HB 1672 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Firefighter and Emergency Medical Service Provider Recruitment and Retention Tax Credit.

PRINTER'S NO.   2041

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1672
                                                 Session of
                                                   2025

     INTRODUCED BY HOGAN, PROBST, LABS, DAVANZO, M. MACKENZIE, KRUPA,
        STAATS, KUZMA, NEILSON, CAUSER, WATRO, FLEMING, RIVERA,
        GILLEN AND DOUGHERTY, JUNE 26, 2025

     REFERRED TO COMMITTEE ON FINANCE, JUNE 26, 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," providing for Firefighter and Emergency Medical
11      Service Provider Recruitment and Retention Tax Credit.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.     The act of March 4, 1971 (P.L.6, No.2), known as
15   the Tax Reform Code of 1971, is amended by adding an article to
16   read:
17                               ARTICLE XIX-L
18                         FIREFIGHTER AND EMERGENCY
19                    MEDICAL SERVICE PROVIDER RECRUITMENT
20                          AND RETENTION TAX CREDIT
21   Section 1901-L.    Scope of article.
22      This article relates to the Firefighter and Emergency Medical
 1   Service Provider Recruitment and Retention Tax Credit.
 2   Section 1902-L.    Definitions.
 3      The following words and phrases when used in this article
 4   shall have the meanings given to them in this section unless the
 5   context clearly indicates otherwise:
 6      "Active, paid or volunteer firefighter or emergency medical
 7   service provider."    The term includes an active volunteer, as
 8   defined in 35 Pa.C.S. § 79A03 (relating to definitions) and a
 9   career first responder who volunteers or works for any of the
10   following:
11          (1)   Career emergency medical services as defined in 35
12      Pa.C.S. § 7802 (relating to definitions).
13          (2)   An emergency medical services company as defined in
14      35 Pa.C.S. § 7802.
15          (3)   A fire company as defined in 35 Pa.C.S. § 7802.
16          (4)   A volunteer emergency medical services company as
17      defined in 35 Pa.C.S. § 7802.
18          (5)   A volunteer fire company as defined in 35 Pa.C.S. §
19      7802.
20          (6)   A volunteer rescue company as defined in 35 Pa.C.S.
21      § 7802.
22      "Department."     The Department of Revenue of the Commonwealth.
23      "Qualifying taxpayer."    An individual who is an active, paid
24   or volunteer firefighter or emergency medical service provider.
25      "Tax credit."     The Firefighter and Emergency Medical Service
26   Provider Recruitment and Retention Tax Credit authorized under
27   this article.
28      "Tax liability."    The liability for taxes imposed on
29   individuals under section 302.
30      "Taxpayer."    A qualified individual subject to the tax

20250HB1672PN2041                      - 2 -
 1   imposed under Article III.
 2   Section 1903-L.    Credit for attraction and retention of needed
 3                professionals.
 4      (a)    Tax credit.--For taxable years beginning after December
 5   31, 2024, a qualifying taxpayer may claim a tax credit, to be
 6   known as the Firefighter and Emergency Medical Service Provider
 7   Recruitment and Retention Tax Credit, not to exceed $2,500
 8   against the qualifying taxpayer's tax liability for wages
 9   earned.
10      (b)    Claim of tax credit.--A taxpayer must claim a tax credit
11   on a return filed under section 330.
12      (c)    Adequate proof of qualifications.--A taxpayer must
13   provide the department with proof that the taxpayer is a
14   qualified taxpayer.
15      (d)    Applicability of tax credit.--The tax credit shall be
16   considered a payment of estimated tax made under Part VIII of
17   Article III.
18      (e)    Duration of tax credit.--A taxpayer may claim the tax
19   credit for the year in which the taxpayer first becomes a
20   qualified taxpayer and the next two succeeding tax years if the
21   qualified taxpayer remains employed in a qualifying field.
22   Section 1904-L.    Prohibitions.
23      A qualified taxpayer may not carry over, carry back, sell,
24   assign or transfer a tax credit.
25   Section 1905-L.    Departmental duties.
26      The department shall publish guidelines and may promulgate
27   regulations necessary for the implementation and administration
28   of this article.
29   Section 1906-L.    Applicability.
30      The tax credit shall apply to individuals who become

20250HB1672PN2041                   - 3 -
1   qualifying taxpayers after December 31, 2025, and prior to
2   January 1, 2029.
3   Section 1907-L.    Expiration.
4      The authority of the department to issue tax credits under
5   this article shall expire December 31, 2031.
6      Section 2.     This act shall take effect in 60 days.




20250HB1672PN2041                    - 4 -