PRINTER'S NO. 632
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
615
Session of
2023
INTRODUCED BY BROOKS, STEFANO, DILLON, KANE, MASTRIANO,
SANTARSIERO AND BAKER, APRIL 24, 2023
REFERRED TO FINANCE, APRIL 24, 2023
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 National Guard service 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 XVIII-I
NATIONAL GUARD SERVICE TAX CREDIT
Section 1801-I. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
"Qualified tax liability." The liability for taxes imposed
under Article III for the taxable year beginning after December
31, 2023, and each taxable year thereafter.
"Tax credit." The tax credit under this article.
"Taxpayer." An individual subject to payment of taxes under
Article III who is a member of the Pennsylvania National Guard.
Section 1802-I. Eligibility.
(a) Application to department.--A taxpayer may claim a tax
credit against the qualified tax liability of the taxpayer by
submitting an application for the tax credit under this article
in a manner required by the department. The application shall
contain the following information:
(1) The name and tax identification number of the
taxpayer.
(2) Documentation that the taxpayer meets the
eligibility criteria specified in section 1803-I.
(3) Any other information deemed appropriate by the
department.
(b) Procedure.--The application shall be attached to the
applicant's annual tax return required to be filed under Article
III.
Section 1803-I. Taxpayer eligibility.
(a) Credit.--A taxpayer who is an active member of the
Pennsylvania National Guard and meets all of the following
criteria shall be eligible for a tax credit:
(1) Is a resident of this Commonwealth.
(2) Has at least two full years of service in the
Pennsylvania National Guard by December 31 of the first
eligible taxable year under this article. For purposes of
this paragraph, two full years of service means two full
20230SB0615PN0632 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
calendar years in which the taxpayer has met all obligations
required of the taxpayer as a result of military service in
the Pennsylvania National Guard, including any obligations
not met but excused by the taxpayer's chain of command.
(3) Is an active member of the Pennsylvania National
Guard on the date that the taxpayer files the tax return.
(b) Maximum credit.--A taxpayer who qualifies under
subsection (a) may claim a tax credit of $500.
Section 1804-I. Carryover and carryback prohibited.
A taxpayer may not carry over, carry back, obtain a refund
of, sell or assign an unused tax credit under this article.
Section 1805-I. Self certification.
The making or filing by a taxpayer of any return,
declaration, statement or other document required to be made or
filed under this article shall constitute a certification by the
taxpayer that the statements, including the taxpayer's residency
status and years of service as an active member of the
Pennsylvania National Guard, contained in the return,
declaration, statement or other document are true and that any
copy filed is a true copy.
Section 1806-I. Guidelines.
(a) General rule.--The department shall adopt guidelines,
including forms, necessary to administer this article.
(b) Joint income.--A tax credit granted under this article
may be applied to the tax liability of the spouse of an eligible
taxpayer if both the eligible taxpayer and the spouse report
income on a joint income tax return.
Section 1807-I. Report to General Assembly.
No later than December 31, 2024, and each December 31
thereafter, the department shall submit a report on the tax
20230SB0615PN0632 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
credits granted under this article. The report shall include the
number of active members of the Pennsylvania National Guard who
utilized the tax credit as of the date of the report and the
amount of credits approved. The report may include
recommendations for changes in the calculation or administration
of the tax credit. The report shall be submitted to the
chairperson and minority chairperson of the Appropriations
Committee of the Senate, the chairperson and minority
chairperson of the Appropriations Committee of the House of
Representatives, the chairperson and minority chairperson of the
Veterans Affairs and Emergency Preparedness Committee of the
Senate and the chairperson and minority chairperson of the
Veterans Affairs and Emergency Preparedness Committee of the
House of Representatives. The report may include other
information that the department deems appropriate.
Section 1808-I. Penalty.
A taxpayer who claims a credit under this article but fails
to meet the standards under this article, shall repay the full
amount of the tax credit to the Commonwealth, plus interest as
prescribed under section 351.
Section 2. This act shall take effect immediately.
20230SB0615PN0632 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21