PRINTER'S NO. 2983
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2229
Session of
2024
INTRODUCED BY CEPHAS, HILL-EVANS, GIRAL, ABNEY, GALLAGHER,
SOLOMON, SCHLOSSBERG, HANBIDGE, MADDEN, MAYES, BOYD, PARKER,
SANCHEZ, DALEY, GREEN, CEPEDA-FREYTIZ, CERRATO, OTTEN AND
KENYATTA, APRIL 24, 2024
REFERRED TO COMMITTEE ON FINANCE, APRIL 24, 2024
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for work opportunity tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-M
WORK OPPORTUNITY TAX CREDIT
Section 1701-M. Scope of article.
This article relates to w ork opportunity tax credits.
Section 1702-M. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Federal Work Opportunity Tax Credit." The Federal tax
credit under 26 U.S.C. Subt. A Ch. 1 Subch. A Pt. IV Subpt. F
(relating to rules for computing work opportunity credit).
"Individual with barriers to employment." A member of a
targeted group under 26 U.S.C. § 51(d)(1) (relating to amount of
credit).
"Qualified tax liability." The liability for taxes imposed
under Article III, IV, VII, VIII, IX or XV.
"Qualified taxpayer." An employer that qualifies for the
Federal Work Opportunity Tax Credit.
"Tax credit." The work opportunity tax credit provided for
under this article.
Section 1703-M. Work opportunity tax credit.
(a) Claiming the credit.--A qualified taxpayer may claim a
tax credit against the qualified taxpayer's qualified tax
liability for wages paid or incurred by the qualified taxpayer
during the taxable year to an individual with barriers to
employment who is employed in this Commonwealth.
(b) Amount.--The tax credit may be claimed in an amount
equal to 50% of the Federal Work Opportunity Tax Credit properly
claimed for the taxable year by a qualified taxpayer on the
qualified taxpayer's Federal income tax return, excluding any
amount carried back or forward from another taxable year in
accordance with 26 U.S.C. § 39 (relating to carryback and
carryforward of unused credits).
Section 1704-M. Carryover, carryback, refund and assignment of
credit.
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A qualified taxpayer may not carryover, carryback or obtain a
refund of or sell or assign a tax credit.
Section 1705-M. Report to General Assembly.
On or before October 1, 2026, and each October 1 thereafter,
the department shall submit a report on the tax credit to the
General Assembly. The report shall include the following
information for the prior fiscal year:
(1) The number and amount of tax credits awarded.
(2) The qualified taxpayers that were awarded tax
credits.
(3) The amount of tax credits issued to each qualified
taxpayer.
Section 1706-M. Guidelines.
The department shall develop and publish guidelines necessary
to implement this article.
Section 2. This act shall take effect in 60 days.
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