PRINTER'S NO. 3800

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2651

Session of

2024

INTRODUCED BY GUENST, HILL-EVANS, ROZZI, MADDEN, SANCHEZ,

McANDREW, CIRESI, MALAGARI, HADDOCK, DELLOSO, PARKER, KINSEY,

SHUSTERMAN, GILLEN, FLEMING AND CERRATO, OCTOBER 23, 2024

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 12 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

Sec.

4401. Scope of chapter.

4402. Definitions.

4403. Establishment.

4410. Applicability.

§ 4401. Scope of chapter.

This chapter relates to the Returning Heroes Supplemental Tax

Credit Program.

§ 4402. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department." The Department of Revenue of the Commonwealth.

"Pass-through entity." A partnership as defined in section

"Qualified veteran." As defined in 26 U.S.C. § 51(d)(3)(A)

(relating to amount of credit).

"Secretary." The Secretary of Revenue of the Commonwealth.

"Supplemental tax credit." The Returning Heroes Supplemental

Tax Credit established under this chapter.

"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),

known as the Tax Reform Code of 1971.

"Taxpayer." An entity subject to tax under Article III, IV

or VI of the Tax Reform Code. The term includes the shareholder

of a Pennsylvania S corporation that receives a Returning Heroes

computing work opportunity credit).

§ 4403. Establishment.

There is established a tax credit program to be known as the

Returning Heroes Supplemental Tax Credit Program. The program

shall provide supplemental tax credits to taxpayers who receive

a Work Opportunity Tax Credit and meet the program requirements.

§ 4404. Application.

(a) General rule.--By September 15, 2023, a taxpayer must

submit an application and proof to the department of all Work

Opportunity Tax Credits that were awarded to the taxpayer during

Credit shall be eligible to receive from the department a

supplemental tax credit of $2,000.

(c) Notification.--By December 15 of the calendar year

following the close of the taxable year during which a Work

Opportunity Tax Credit was awarded to the taxpayer for a

qualified veteran, the department shall notify the taxpayer if

the supplemental tax credit application was approved or denied.

If the application is denied, the department shall state the

reasons for the denial, including a description of deficiencies

in the application.

carried over to the succeeding taxable years and used as a

credit against the qualified tax liability of the taxpayer for

those taxable years. Each time that the supplemental tax credit

is carried over to a succeeding taxable year, it shall be

reduced by the amount that was used as a credit during the

immediately preceding taxable year. The supplemental tax credit

may be carried over and applied to succeeding taxable years for

no more than 15 taxable years following the first taxable year

for which the taxpayer was entitled to claim the credit.

(b) Application.--A supplemental tax credit approved by the

credit.

§ 4406. Limitation on credits.

(a) Total amount.--The total amount of supplemental tax

credits approved by the department may not exceed $20,000,000 in

any fiscal year.

(b) Allocation.--Tax credits shall be allocated by the

department on a first-come, first-served basis.

§ 4407. Shareholder, owner or member of pass-through entity.

(a) Shareholder.--If a Pennsylvania S corporation does not

have an eligible tax liability against which the supplemental

Pennsylvania S corporation's distributive income to which the

shareholder is entitled.

(b) Pass-through entity.--If a pass-through entity other

than a Pennsylvania S corporation does not have an eligible tax

liability against which the supplemental tax credit may be

applied, an owner or member of the pass-through entity is

entitled to a supplemental tax credit equal to the tax credit

determined for the pass-through entity for the taxable year

multiplied by the percentage of the pass-through entity's

distributive income to which the owner or member is entitled.

under this chapter for the same expense.

§ 4408. Reports.

The secretary shall submit an annual report to the General

Assembly indicating the use and effectiveness of the

supplemental tax credits no later than March 15 following the

year in which the credits were approved. The report shall

include the names of all businesses utilizing the supplemental

tax credits as of the date of the report and the amount of

credits approved and utilized by each taxpayer. Notwithstanding

any law providing for the confidentiality of tax records, the

The secretary shall promulgate regulations necessary for the

implementation and administration of this chapter.

§ 4410. Applicability.

This chapter shall apply to taxpayers receiving Work

Opportunity Tax Credits for a qualified veteran during tax years

beginning after December 31, 2022.