HB 1900 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for educator tax credit.

PRINTER'S NO.   2405

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1900
                                               Session of
                                                 2025

     INTRODUCED BY RIVERA, NEILSON, SAMUELSON, WEBSTER, MERSKI,
        SANCHEZ, K.HARRIS, BELLMON, HILL-EVANS, GIRAL, BURGOS,
        BRENNAN, HANBIDGE, PROBST, HOHENSTEIN, STEELE AND GALLAGHER,
        OCTOBER 6, 2025

     REFERRED TO COMMITTEE ON FINANCE, OCTOBER 6, 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 teacher tax credit.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.    The act of March 4, 1971 (P.L.6, No.2), known as
14   the Tax Reform Code of 1971, is amended by adding an article to
15   read:
16                             ARTICLE XVII-B.1
17                            TEACHER TAX CREDIT
18   Section 1701-B.1.    Scope of article.
19      This article relates to teacher tax credits.
20   Section 1702-B.1.    Definitions.
21      The following words and phrases when used in this article
 1   shall have the meanings given to them in this section unless the
 2   context clearly indicates otherwise:
 3      "Certified teacher."     An individual who, during any portion
 4   of the taxable year for which the tax credit is being sought,
 5   was certified as a teacher by the Commonwealth and was employed
 6   as a teacher in a public, nonpublic or charter school in this
 7   Commonwealth.
 8      "Classroom supplies."     The term includes books, materials,
 9   computers and related equipment, including related software and
10   services, other equipment and supplementary materials for use in
11   the classroom of a certified teacher.
12      "Department."     The Department of Revenue of the Commonwealth.
13      "Tax credit."     The teacher tax credit established under this
14   article.
15      "Taxpayer."     An individual who is a certified teacher and
16   subject to tax under Article III.
17   Section 1703-B.1.    Tax credit for teachers.
18      (a)     Eligibility.--A taxpayer who is a certified teacher and
19   incurs expenses for the purchase of classroom supplies in a
20   taxable year may apply for a tax credit.
21      (b)     Amount of credit.--The amount of the tax credit shall be
22   equal to 100% of the amount that the taxpayer spent on
23   unreimbursed classroom supplies during the taxable year, up to a
24   maximum of $100.
25      (c)     Credit refundable.--If the amount of credit that the
26   taxpayer is eligible to receive under this section exceeds the
27   taxpayer's tax liability, the department shall pay the excess
28   amount to the taxpayer.
29   Section 1704-B.1.    Eligibility.
30      (a)     Determination of eligibility.--In order to determine

20250HB1900PN2405                    - 2 -
 1   eligibility for the tax credit, the Department of Education
 2   shall annually provide to the department a list of all certified
 3   teachers during the taxable year.
 4      (b)   Ineligibility.--
 5            (1)   A taxpayer shall be ineligible for the tax credit
 6      unless the department verifies that the taxpayer's name
 7      appears on the list provided under subsection (a) for the
 8      taxable year in which the tax credit is being sought.
 9            (2)   A taxpayer shall be ineligible for the tax credit if
10      the taxpayer has claimed a deduction for unreimbursed
11      business expenses related to classroom education under
12      Article III for the taxable year in which the tax credit is
13      sought. This paragraph shall not apply if any part of the
14      amount of unreimbursed business expenses claimed is unrelated
15      to classroom supplies.
16   Section 1705-B.1.     Carryover, carryback, sale and assignment of
17                  tax credit.
18      A taxpayer may not carry forward, carry back, sell or assign
19   all or a portion of a tax credit granted to the taxpayer.
20   Section 1706-B.1.     Administration.
21      The department may develop written guidelines for the
22   implementation of this article.
23      Section 2.     This act shall apply to taxable years commencing
24   after December 31, 2025.
25      Section 3.     This act shall take effect immediately.




20250HB1900PN2405                    - 3 -