HB 1004 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in research and development tax credit, further providing for limitation on credits.

PRINTER'S NO.    1091

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1004
                                               Session of
                                                 2025

     INTRODUCED BY BRIGGS, GAYDOS, BRENNAN, MADDEN, KOSIEROWSKI,
        PIELLI, KHAN, McNEILL, INGLIS, STEELE, HILL-EVANS, MULLINS,
        FRIEL, WEBSTER, N. NELSON, MALAGARI, NEILSON, SANCHEZ, DALEY,
        FREEMAN, KINKEAD AND ZIMMERMAN, MARCH 24, 2025

     REFERRED TO COMMITTEE ON FINANCE, MARCH 24, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in research and development tax credit, further
11      providing for limitation on credits.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 1709-B(a) of the act of March 4, 1971
15   (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
16   to read:
17      Section 1709-B.    Limitation on Credits.--(a)   The total
18   amount of credits approved by the department shall not exceed
19   [sixty] one hundred twenty million dollars [($60,000,000)]
20   ($120,000,000) in any fiscal year. Of that amount, [twelve]
21   twenty-four million dollars [($12,000,000)] ($24,000,000) shall
1   be allocated exclusively for small businesses. However, if the
2   total amounts allocated to either the group of applicants
3   exclusive of small businesses or the group of small business
4   applicants is not approved in any fiscal year, the unused
5   portion will become available for use by the other group of
6   qualifying taxpayers.
7      * * *
8      Section 2.   This act shall take effect in 60 days.




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