HB 334 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for Pennsylvania Individual Recruitment and Retention Tax Credit.

PRINTER'S NO.    289

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 334
                                               Session of
                                                 2025

     INTRODUCED BY MUNROE, HANBIDGE, KHAN, PROBST, KENYATTA, PIELLI,
        SANCHEZ, HILL-EVANS, GIRAL, BURGOS, DELLOSO, SCHLOSSBERG,
        CEPEDA-FREYTIZ, CIRESI, DOUGHERTY, MALAGARI, DONAHUE, O'MARA,
        DEASY, STEELE, CERRATO AND GREEN, JANUARY 27, 2025

     REFERRED TO COMMITTEE ON FINANCE, JANUARY 27, 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 tax credit and tax benefit administration,
11      further providing for definitions; and providing for
12      Pennsylvania Individual Recruitment and Retention Tax Credit.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    The definition of "tax credit" in section 1701-
16   A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
17   Reform Code of 1971, is amended by adding a paragraph to read:
18   Section 1701-A.1.    Definitions.
19      The following words and phrases when used in this article
20   shall have the meanings given to them in this section unless the
21   context clearly indicates otherwise:
22      * * *
 1      "Tax credit."    A tax credit authorized under any of the
 2   following:
 3          * * *
 4          (16.2)     Article XIX-L.
 5          * * *
 6      Section 2.     The act is amended by adding an article to read:
 7                               ARTICLE XIX-L
 8                   PENNSYLVANIA INDIVIDUAL RECRUITMENT
 9                          AND RETENTION TAX CREDIT
10   Section 1901-L.    Scope of article.
11      This article relates to the Pennsylvania Individual
12   Recruitment and Retention Tax Credit.
13   Section 1902-L.    Definitions.
14      The following words and phrases when used in this article
15   shall have the meanings given to them in this section unless the
16   context clearly indicates otherwise:
17      "Department."    The Department of Revenue of the Commonwealth.
18      "Qualifying taxpayer."    Either:
19          (1)   a resident individual who becomes a recently
20      certified professional after December 31, 2024, and
21      subsequently obtains employment within this Commonwealth
22      after December 31, 2024, in the field for which the
23      individual is certified; or
24          (2)   an individual who was certified in another state of
25      the United States in one of the fields enumerated in the
26      definition of recently certified professional prior to
27      January 1, 2025, becomes a resident individual of this
28      Commonwealth after December 31, 2024, and obtains employment
29      in this Commonwealth in the field for which the individual is
30      certified.

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 1      "Recently certified professional."        An individual who
 2   receives one of the following after December 31, 2024:
 3          (1)   One of the following teaching certifications:
 4                (i)    Instructional certificate - level I.
 5                (ii)    Educational specialist certificate - level I.
 6                (iii)    Program specialist certificate.
 7                (iv)    Supervisory certificate; administrative
 8          certificate - level I.
 9                (v)    Letters of eligibility.
10                (vi)    Career and technical education instructional
11          certificate - instructional I.
12                (vii)    Career and technical supervisory certificate.
13                (viii)    Career and technical education director
14          certificate.
15          (2)   A certification received under 53 Pa.C.S. Ch. 21
16      Subch. D (relating to Municipal Police Education and
17      Training).
18          (3)   A graduate of the Pennsylvania State Police Academy.
19          (4)   A certification received under 44 Pa.C.S. Ch. 74
20      (relating to sheriffs and deputy sheriffs), except
21      individuals elected to the Office of Sheriff.
22          (5)   One of the following health care professional
23      credentials:
24                (i)    Registered nurse.
25                (ii)    Licensed practical nurse.
26                (iii)    Certified registered nurse practitioner.
27                (iv)    Clinical nurse specialist.
28                (v)    Certified registered nurse anesthetists.
29                (vi)    Registered nurse aid.
30      "Resident individual."     As defined in section 301.

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 1      "Tax credit."     The Pennsylvania Individual Recruitment and
 2   Retention Tax Credit authorized under this article.
 3      "Tax liability."    The liability for taxes imposed on
 4   individuals under section 302.
 5      "Taxpayer."    A resident individual subject to the tax imposed
 6   under Article III.
 7   Section 1903-L.    Credit for attraction and retention of needed
 8               professionals.
 9      (a)   Tax credit.--For taxable years beginning after December
10   31, 2024, a qualifying taxpayer may claim a tax credit, to be
11   known as the Pennsylvania Individual Recruitment and Retention
12   Tax Credit, not to exceed $2,500 against the taxpayer's tax
13   liability for wages earned as a recently certified professional.
14      (b)   Claim of tax credit.--A taxpayer must claim a tax credit
15   on a return filed under section 330.
16      (c)   Adequate proof of qualifications.--A taxpayer must
17   provide the department with proof that the taxpayer meets the
18   requirements of a qualified taxpayer.
19      (d)   Applicability of tax credit.--The tax credit shall be
20   considered a payment of estimated tax made under Part VIII of
21   Article III.
22      (e)   Duration of tax credit.--A taxpayer may claim the tax
23   credit for the year in which the taxpayer first becomes a
24   qualified taxpayer and the next two succeeding tax years, as
25   long as the taxpayer remains employed in the field in which the
26   individual is certified.
27   Section 1904-L.    Prohibitions.
28      A taxpayer may not carry over, carry back, sell, assign or
29   transfer a tax credit.
30   Section 1905-L.    Departmental duties.

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 1      The department shall publish guidelines and may promulgate
 2   regulations necessary for the implementation and administration
 3   of this article.
 4   Section 1906-L.    Applicability.
 5      The tax credit shall apply to individuals who become
 6   qualifying taxpayers after December 31, 2024, and prior to
 7   January 1, 2028.
 8   Section 1907-L.    Expiration.
 9      This article shall expire December 31, 2030.
10      Section 3.     This act shall take effect in 60 days.




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