HB 2325 — An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, providing for educator expenses tax credit.

PRINTER'S NO.   3100

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2325
                                                  Session of
                                                    2026

     INTRODUCED BY INGLIS, BURGOS, MERSKI, McNEILL, BRENNAN, PROBST,
        SANCHEZ, MAYES, HILL-EVANS, DOUGHERTY, BOYD, PARKER,
        MALAGARI, DEASY, CEPEDA-FREYTIZ AND CIRESI, MARCH 27, 2026

     REFERRED TO COMMITTEE ON FINANCE, MARCH 30, 2026


                                       AN ACT
 1   Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
 2      act relating to the public school system, including certain
 3      provisions applicable as well to private and parochial
 4      schools; amending, revising, consolidating and changing the
 5      laws relating thereto," providing for educator expenses tax
 6      credit.
 7      The General Assembly of the Commonwealth of Pennsylvania
 8   hereby enacts as follows:
 9      Section 1.     The act of March 10, 1949 (P.L.30, No.14), known
10   as the Public School Code of 1949, is amended by adding an
11   article to read:
12                               ARTICLE XVII-E
13                        EDUCATOR EXPENSES TAX CREDIT
14   Section 1701-E.    Scope of article.
15      This article relates to the educator expenses tax credit.
16   Section 1702-E.    Definitions.
17      The following words and phrases when used in this article
18   shall have the meanings given to them in this section unless the
19   context clearly indicates otherwise:
 1      "Department."    The Department of Revenue of the Commonwealth.
 2      "Educator expenses."    Costs to cover the purchase of
 3   instructional materials or supplies that are designated for
 4   classroom use in a school entity or nonpublic school, as
 5   determined by the department.
 6      "Nonpublic school."    As defined in section 923.3-A(b).
 7      "Professional employee."       As the term "professional employe"
 8   is defined in section 1101(1).
 9      "School entity."    A school district, intermediate unit, area
10   career and technical school, charter school, regional charter
11   school or cyber charter school operating within this
12   Commonwealth.
13   Section 1703-E.    Tax credit.
14      For taxable years beginning on and after January 1, 2025, a
15   professional employee shall be allowed a tax credit for educator
16   expenses purchased by the professional employee in the amount
17   paid during the taxable year, or $500, whichever is less.
18   Section 1704-E.    Limitations.
19      A professional employee is not entitled to carry forward,
20   carry back, sell or assign all or a portion of a tax credit
21   granted to the professional employee under this article.
22   Section 1705-E.    Department responsibilities.
23      The department shall:
24          (1)    Promulgate rules and regulations to administer the
25      provisions of this article.
26          (2)    In consultation with the Department of Education,
27      determine the educator expenses that qualify under this
28      article.
29          (3)    Post guidelines of the educator expenses tax credit
30      on its publicly accessible Internet website.

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1         (4)   Submit an annual report to the chairperson and
2     minority chairperson of the Education Committee of the Senate
3     and the chairperson and minority chairperson of the Education
4     Committee of the House of Representatives regarding the
5     educator expenses tax credit program. The report shall
6     include the number of professional educators who received tax
7     credits under this article and the total dollar amount of tax
8     credits awarded under this article.
9     Section 2.    This act shall take effect in 60 days.




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