HB 2127 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in waterfront development tax credit, further providing for waterfront development organizations, for waterfront development projects, for tax credit and for limitations.

PRINTER'S NO.    2749

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2127
                                                Session of
                                                  2026

     INTRODUCED BY KINKEAD, HILL-EVANS, SCHLOSSBERG, HOHENSTEIN,
        SANCHEZ, DEASY, D. WILLIAMS, BELLMON, NEILSON, GREEN,
        GOUGHNOUR, KHAN, WAXMAN AND STEELE, JANUARY 9, 2026

     REFERRED TO COMMITTEE ON FINANCE, JANUARY 9, 2026


                                     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 waterfront development tax credit, further
11      providing for waterfront development organizations, for
12      waterfront development projects, for tax credit and for
13      limitations.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.     Sections 1704-K(c) and 1705-K(b) introductory
17   paragraph of the act of March 4, 1971 (P.L.6, No.2), known as
18   the Tax Reform Code of 1971, are amended and the sections are
19   amended by adding subsections to read:
20   Section 1704-K.    Waterfront development organizations.
21      * * *
22      (c)   Approval timeline.--No later than 60 days after [a
23   waterfront development organization has submitted] submission of
 1   an application under [this section] subsections (a) and (b), the
 2   department shall notify a waterfront development organization if
 3   the organization meets the requirements of [this section]
 4   subsections (a) and (b) for the current fiscal year.
 5      * * *
 6      (e)   Renewal timeline.--No later than 60 days after a
 7   waterfront development organization files a renewal application
 8   under subsection (d), the department shall notify the waterfront
 9   development organization if the organization meets the
10   requirements of subsection (d) for the current fiscal year.
11   Section 1705-K.    Waterfront development projects.
12      * * *
13      (b)   Submission.--After approval of a waterfront development
14   organization's application under section 1704-K(c)[,] or
15   simultaneous with the filing of a waterfront development
16   organization's renewal application under section 1704-K(d), the
17   organization may submit, on a form and in a manner required by
18   the department, waterfront development projects for approval by
19   the department. The submission shall include for each waterfront
20   development project:
21            * * *
22      (i)   Care and maintenance.--No more than 15% of the
23   contributions received under this article may be reserved for
24   future physical maintenance and operation of facilities of
25   waterfront development projects approved under subsection (b).
26      Section 2.     Sections 1706-K(c) and 1708-K(1) and (4) of the
27   act are amended to read:
28   Section 1706-K.    Tax credit.
29      * * *
30      (c)   Availability of tax credits.--Tax credits shall be made

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 1   available by the department, based on [a first-come, first-
 2   served basis] criteria published by the department, within the
 3   limitation established under section 1708-K.
 4      * * *
 5   Section 1708-K.    Limitations.
 6      The following limitations shall apply to the tax credits:
 7          (1)   No tax credit may exceed [75%] 90% of the total
 8      contribution made by a business firm during a taxable year.
 9          * * *
10          (4)   The total amount of all tax credits shall not exceed
11      [$5,000,000] $10,000,000 in any one fiscal year.
12          * * *
13      Section 3.     This act shall take effect in 60 days.




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