HB 904 — An Act providing for school-to-work programs; establishing the CareerBound Program; providing for the CareerBound Tax Credit Program; and conferring powers and imposing duties on the Department of Community and Economic Development and the Department of Labor and Industry.

PRINTER'S NO.   945

                    THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 904
                                                  Session of
                                                    2025

     INTRODUCED BY M. MACKENZIE AND STAATS, MARCH 13, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 13, 2025


                                       AN ACT
 1   Providing for school-to-work programs; establishing the
 2      CareerBound Program; providing for the CareerBound Tax Credit
 3      Program; and conferring powers and imposing duties on the
 4      Department of Community and Economic Development and the
 5      Department of Labor and Industry.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8   Section 1.    Short title.
 9      This act shall be known and may be cited as the CareerBound
10   Act.
11   Section 2.    Definitions.
12      The following words and phrases when used in this act shall
13   have the meanings given to them in this section unless the
14   context clearly indicates otherwise:
15      "Board."    As defined in section 103 of the Workforce
16   Development Act.
17      "Business partner."       A business entity authorized to do
18   business in this Commonwealth that employs individuals in a
19   high-priority occupation.
20      "CareerBound."    The program established in section 3.
 1      "Department."   The Department of Labor and Industry of the
 2   Commonwealth.
 3      "High-priority occupation."     An occupation that is included
 4   in the list issued by the department under section 1302(e) of
 5   the Workforce Development Act.
 6      "Institution of higher education."    Includes any of the
 7   following:
 8          (1)   A community college operating under Article XIX-A of
 9      the act of March 10, 1949 (P.L.30, No.14), known as the
10      Public School Code of 1949.
11          (2)   A university within the State System of Higher
12      Education.
13          (3)   The Pennsylvania State University.
14          (4)   The University of Pittsburgh.
15          (5)   Temple University.
16          (6)   Lincoln University.
17          (7)   Any other institution that the Commonwealth
18      designates as a State-related institution of higher
19      education.
20          (8)   The Thaddeus Stevens College of Technology.
21          (9)   Any accredited private or independent college or
22      university.
23      "Local workforce development board."    As defined in section
24   103 of the Workforce Development Act.
25      "Participating agency."    Includes the Department of Education
26   and the Department of Community and Economic Development of the
27   Commonwealth.
28      "Pass-through entity."    Any of the following:
29          (1)   A partnership as defined in section 301(n.0) of the
30      Tax Reform Code.

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 1          (2)   A single-member limited liability company treated as
 2      a disregarded entity for Federal income tax purposes.
 3          (3)   A Pennsylvania S corporation as defined in section
 4      301(n.1) of the Tax Reform Code.
 5      "Payment."     An amount of money paid in consideration for a
 6   tax credit under section 7.
 7      "Program partners."    All entities that participate in a
 8   school-to-work program.
 9      "Qualified taxpayer."     A business partner or a taxpayer that
10   has been approved for a tax credit under section 7.
11      "School partner."    A school district, area career and
12   technical school, intermediate unit, charter school or cyber
13   charter school.
14      "School-to-work program."     A program that has been approved
15   to participate in CareerBound.
16      "Soft skills."    As follows:
17          (1)   The workplace interpersonal and professional skills
18      that are necessary for an employee to adhere to generally
19      accepted workplace behaviors.
20          (2)   The term includes work ethic, promptness, integrity
21      and respect for others.
22      "Tax liability."    An amount of tax due under Article III, IV,
23   VI, VII, VIII, IX or XV of the Tax Reform Code or under Article
24   XVI of the act of May 17, 1921 (P.L.682, No.284), known as The
25   Insurance Company Law of 1921.
26      "Tax Reform Code."     The act of March 4, 1971 (P.L.6, No.2),
27   known as the Tax Reform Code of 1971.
28      "Taxpayer."    As follows:
29          (1)   A business entity authorized to do business in this
30      Commonwealth and subject to taxes imposed under Article III,

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 1      IV, VI, VII, VIII, IX or XV of the Tax Reform Code or a tax
 2      under Article XVI of The Insurance Company Law of 1921.
 3            (2)   The term includes a pass-through entity.
 4      "Workforce Development Act."       The act of December 18, 2001
 5   (P.L.949, No.114), known as the Workforce Development Act.
 6   Section 3.     CareerBound program.
 7      (a)   Establishment.--The CareerBound Program is established
 8   within the department.
 9      (b)   Administration.--The department shall administer
10   CareerBound to empower local workforce development boards,
11   school partners and business partners to collaboratively develop
12   and implement innovative school-to-work programs to do all of
13   the following:
14            (1)   Provide students with career exploration
15      opportunities and exposure to high-priority occupations to
16      enable each student to make an informed decision on a future
17      career path.
18            (2)   Provide local workforce development boards with the
19      funding and support necessary to convene school partners and
20      business partners to implement innovative school-to-work
21      programs.
22            (3)   Provide business partners with an opportunity to
23      participate in a tax credit program and to develop
24      collaborative relationships with school partners and local
25      workforce development boards so that the next generation of
26      workers is well-equipped to meet the demand for high-priority
27      occupations.
28            (4)   Provide school partners with the funds and framework
29      to deliver to students a relevant and rigorous curriculum
30      that prepares students for high-priority occupations.

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 1            (5)   Provide program partners with informational
 2      resources to help them conduct successful school-to-work
 3      programs.
 4   Section 4.     School-to-work program requirements.
 5      (a)   Curriculum.--The curriculum for a school-to-work program
 6   must include one or more of the following components:
 7            (1)   Early exposure. Curricula approved under this
 8      paragraph must provide students with a broad orientation to
 9      the tools, processes and procedures used by individuals
10      employed in a high-priority occupation. Activities may
11      include student visits to a business partner's facilities for
12      company tours, demonstrations, field trips and lessons to
13      familiarize students with the basic features of a high-
14      priority occupation.
15            (2)   Practical exposure. Curricula approved under this
16      paragraph must provide students with a detailed understanding
17      of the tools, processes and procedures used by individuals
18      employed in a high-priority occupation. Activities may
19      include extended visits by students to a business partner's
20      facilities for demonstrations, job shadowing and hands-on
21      experience with the duties and skills necessary to be
22      employed in a high-priority occupation.
23            (3)   Extended exposure. Curricula approved under this
24      paragraph must provide students with an in-depth
25      understanding of the tools, processes and procedures used by
26      individuals employed in a high-priority occupation.
27      Activities may include preapprenticeships, apprenticeships,
28      internships and cooperative learning opportunities to give
29      students practical knowledge that could be directly
30      applicable to a high-priority occupation.

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 1      (b)   Occupational focus.--Curricula approved under subsection
 2   (a) must be focused on providing students with exposure to high-
 3   priority occupations that are either designated as high-priority
 4   occupations Statewide or within the region served by the local
 5   workforce development board.
 6      (c)   Soft skills development.--Curricula approved under
 7   subsection (a) must include some instruction on the development
 8   of soft skills.
 9   Section 5.     Application and approval process.
10      (a)   Application.--A local workforce development board may
11   submit an application to the department requesting approval for
12   participation in CareerBound.
13      (b)   Application requirements.--A completed application must
14   describe the proposed school-to-work program on a form and in a
15   manner prescribed by the department. An application must include
16   all of the following:
17            (1)   A list of program partners, including a declaration
18      of interest by at least one school partner and at least one
19      business partner. The program partners may include
20      institutions of higher education, nonprofit business-support
21      entities and economic development agencies.
22            (2)   A description of proposed curricula, encompassing at
23      least one component listed in section 4(a)(1), (2) and (3).
24            (3)   A projection of annual costs associated with the
25      proposed school-to-work program, including:
26                  (i)    an enumeration of any opportunities to leverage
27            other funding and programming resources; and
28                  (ii)   a plan for how the school-to-work program will
29            be funded after the first four school years.
30            (4)   A list of high-priority occupations that are the

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 1    focus of the proposed school-to-work program.
 2          (5)   Documentation of any commitment by a business
 3    partner that plans to make payment to CareerBound and seeks
 4    to utilize the tax credit provisions in section 7, including
 5    the amount the business partner has agreed to contribute
 6    during each of the first four school years.
 7          (6)   A start date for the proposed school-to-work program
 8    that shall approximately coincide with the beginning of the
 9    school year for the school partners.
10          (7)   A list of clear objectives and measurable goals that
11    the proposed school-to-work program seeks to achieve.
12          (8)   Documentation of an agreement among the program
13    partners describing the role of each program partner within
14    the proposed school-to-work program and the expectations that
15    each program partner agrees to fulfill.
16    (c)   Approval process.--
17          (1)   The department, in consultation with participating
18    agencies and the board as needed, shall approve school-to-
19    work programs for participation in CareerBound. When
20    determining how many new school-to-work programs to approve
21    annually, the department shall consider the following:
22                (i)    Tax credit obligations to business partners for
23          school-to-work programs approved in prior years.
24                (ii)    An estimate of the amount of tax credits that
25          will be approved under section 7 over the next four-year
26          period.
27                (iii)   An estimate of the amount of financial support
28          from business partners and other sources for proposed
29          school-to-work programs.
30          (2)   Priority shall be given to a proposed school-to-work

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 1      program demonstrating one or more of the following
 2      characteristics:
 3                  (i)    Substantial program integration across
 4            educational levels, including use of multiple curriculum
 5            components listed in section 4(a).
 6                  (ii)    An ability to leverage other funding and
 7            programming resources.
 8                  (iii)    A commitment from a business partner to
 9            provide preferred interviews to students completing the
10            school-to-work program.
11            (3)   Additional consideration shall be given to a
12      proposed school-to-work program that:
13                  (i)    includes multiple business partners or multiple
14            school partners;
15                  (ii)    targets middle school or early high school
16            students for early exposure activities; or
17                  (iii)    is integrated into a school partner's
18            curriculum as a credit course.
19      (d)   Contractual relationship.--Within 30 days of the
20   completion of the approval process, the department shall enter
21   into a contract with each local workforce development board that
22   submitted an application that was approved. The contract shall
23   require the signatories to provide the services described in the
24   approved school-to-work program from funds designated for that
25   purpose in the application or from funds identified by the
26   participating agencies for this purpose under the general
27   appropriation act.
28      (e)   Termination.--The department, in consultation with
29   participating agencies and the board as needed, may terminate a
30   school-to-work program for failure to comply with program

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 1   requirements.
 2      (f)   Expiration of CareerBound Tax Credit support.--A school-
 3   to-work program shall not be eligible for support from the
 4   CareerBound Tax Credit Program established under section 7 after
 5   the end of the fourth school year of operation. The following
 6   apply:
 7            (1)   Beginning with the fifth school year, the school
 8      partners and business partners shall assume responsibility
 9      for the funding of the school-to-work program.
10            (2)   This subsection shall not be construed to prohibit a
11      school-to-work program from applying for or accepting Federal
12      or State grant funding or from receiving funding through the
13      local workforce development board, after the expiration of
14      CareerBound tax credit support.
15   Section 6.     Operation.
16      (a)   Cooperative management.--In collaboration with the
17   participating agencies and the board, the department shall:
18            (1)   Manage the operation of CareerBound.
19            (2)   Establish an application process.
20            (3)   Enumerate outcome-based metrics by which school-to-
21      work programs will be evaluated in the reports under section
22      8.
23            (4)   Institute guidelines and procedures as necessary to
24      implement CareerBound.
25      (b)   Informational resources.--In collaboration with the
26   participating agencies and the board, the department shall
27   provide informational resources to help program partners conduct
28   successful school-to-work programs.
29      (c)   Availability of tax credits.--The department shall
30   regularly consult with participating agencies to determine the

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 1   availability of tax credits for business partners when
 2   determining how many new school-to-work programs to approve.
 3   Section 7.     CareerBound Tax Credit Program.
 4      (a)   Establishment.--The CareerBound Tax Credit Program is
 5   established to encourage private investment in school-to-work
 6   programs approved under section 5.
 7      (b)   Application and approval of tax credit.--
 8            (1)   A business partner or a taxpayer that contributes to
 9      an approved school-to-work program may apply to the
10      Department of Community and Economic Development for a tax
11      credit under this act. The following apply:
12                  (i)    The application must be submitted to the
13            Department of Community and Economic Development for the
14            tax credit claimed for payments made in support of an
15            approved school-to-work program.
16                  (ii)    The application shall be due as follows:
17                         (A)   A business partner shall:
18                               (I)    Make an initial application within 60
19                         days of signing the contract under section 5(d).
20                               (II)   Submit verification of payment no later
21                         than March 1 after making a payment in support of
22                         an approved school-to-work program during the
23                         prior calendar year.
24                         (B)   A taxpayer that is not a business partner
25                  shall apply no later than March 1 after making a
26                  payment in support of an approved school-to-work
27                  program during the prior calendar year.
28                  (iii)    The application must be on the form required
29            by the Department of Community and Economic Development,
30            which shall include the following:

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 1                     (A)   Information required by the Department of
 2              Community and Economic Development to document the
 3              amount of a payment made in support of an approved
 4              school-to-work program.
 5                     (B)   Information required by the Department of
 6              Community and Economic Development to verify that the
 7              applicant is a business partner or other taxpayer.
 8                     (C)   The amount that a business partner has
 9              contracted to pay in support of an approved school-
10              to-work program for each of the next four years, if
11              applicable.
12                     (D)   Any other information as the Department of
13              Community and Economic Development deems appropriate.
14        (2)   The following apply to review and approval:
15              (i)     The Department of Community and Economic
16        Development shall review each application and shall issue
17        an approval or disapproval within 60 days of receipt of
18        the application. The following apply:
19                     (A)   An approval or disapproval of an initial
20              application by a business partner shall be for each
21              of the years included in the four school years for
22              which the school-to-work program was approved.
23                     (B)   An approval or disapproval of an application
24              by a qualified taxpayer that is not a business
25              partner or a verification of payment by a business
26              partner shall be for the most recently ended calendar
27              year.
28              (ii)    Upon approval of a tax credit for a payment to
29        an approved school-to-work program during the prior
30        calendar year, the Department of Community and Economic

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 1        Development shall notify the Department of Revenue to
 2        issue a certificate to the qualified taxpayer for a
 3        payment that is made during the prior calendar year. The
 4        certificate shall state the amount of the tax credit and
 5        the procedure for the use of the tax credit awarded under
 6        this act.
 7               (iii)    Subject to paragraph (3)(ii), business
 8        partners making payments agreed to in the contract under
 9        section 5(d) shall receive preference for tax credits
10        under this section.
11        (3)    The following apply to the availability of tax
12    credits:
13               (i)     Each fiscal year, the amount of $10,000,000 in
14        tax credits shall be made available by the Department of
15        Community and Economic Development in accordance with
16        this act.
17               (ii)    Twenty percent of the total amount of tax
18        credits under subparagraph (i) shall be reserved for
19        qualified taxpayers that are not business partners.
20               (iii)    A portion of the total amount of tax credits
21        under subparagraph (i) shall be reserved for approved
22        business partners, based on the information required on
23        the initial application under paragraph (1)(iii)(C).
24               (iv)    The amount of a tax credit awarded to a
25        qualified taxpayer under this act shall be as follows:
26                      (A)   For a qualified taxpayer that is a business
27               partner, the tax credit shall be equal to 90% of the
28               amount of the payment in support of an approved
29               school-to-work program during the prior calendar
30               year.

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 1                        (B)   For a qualified taxpayer that is not a
 2                  business partner, the tax credit shall be equal to
 3                  75% of the amount of the payment in support of an
 4                  approved school-to-work program during the prior
 5                  calendar year.
 6                        (C)   Notwithstanding any other provision of this
 7                  act, the Department of Community and Economic
 8                  Development shall not award a qualified taxpayer a
 9                  total amount of tax credits that exceeds $500,000 in
10                  the taxable year for which the tax credit was
11                  approved.
12      (c)   Use of tax credits.--
13            (1)   Prior to sale or assignment of a tax credit under
14      subsection (e), a qualified taxpayer must first use a tax
15      credit against the qualified tax liability incurred in the
16      taxable year for which the tax credit was approved.
17            (2)   The tax credit may be applied against up to 50% of
18      the qualified taxpayer's qualified tax liabilities incurred
19      in the taxable year for which the tax credit was approved.
20      (d)   Carryover, carryback and refund.--A tax credit may not
21   be carried back, carried forward or used to obtain a refund.
22      (e)   Sale or assignment.--
23            (1)   If a qualified taxpayer holds a tax credit through
24      the end of the calendar year in which the tax credit was
25      granted, the qualified taxpayer may sell or assign the tax
26      credit, in whole or in part, if the sale is effective by the
27      close of the following calendar year.
28            (2)   (i)    To sell or assign a tax credit, a qualified
29            taxpayer must file an application for the sale or
30            assignment of the tax credit with the Department of

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 1          Community and Economic Development. The application must
 2          be on a form required by the Department of Community and
 3          Economic Development.
 4                (ii)    To approve an application, the Department of
 5          Community and Economic Development must receive a finding
 6          from the Department of Revenue that the applicant has:
 7                       (A)   Filed all required State tax reports and
 8                returns for all applicable taxable years.
 9                       (B)   Paid any balance of State tax due as
10                determined by assessment or determination by the
11                Department of Community and Economic Development and
12                not under timely appeal.
13                (iii)    Upon approval by the Department of Community
14          and Economic Development, a qualified taxpayer may sell
15          or assign, in whole or in part, a tax credit.
16    (f)   Purchasers and assignees.--
17          (1)   A purchaser or assignee of a tax credit under
18    subsection (e) must claim the tax credit in the calendar year
19    in which the purchase or assignment is made.
20          (2)   The amount of the tax credit that a purchaser or
21    assignee under subsection (e) may use against any one
22    qualified tax liability may not exceed 50% of any of the
23    qualified tax liabilities of the purchaser or assignee for
24    the taxable year.
25    (g)   Resale and assignment.--
26          (1)   A purchaser under subsection (e) may not sell or
27    assign the purchased tax credit.
28          (2)   An assignee under subsection (e) may not sell or
29    assign the assigned tax credit.
30    (h)   Notice.--The purchaser or assignee under subsection (e)

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 1   shall notify the Department of Community and Economic
 2   Development of the seller or assignor of the tax credit in
 3   compliance with procedures specified by the Department of
 4   Community and Economic Development.
 5      (i)   Pass-through entity.--
 6            (1)   If a pass-through entity has an unused tax credit,
 7      the pass-through entity may elect, in writing, according to
 8      procedures established by the Department of Community and
 9      Economic Development, to transfer all or a portion of the tax
10      credit to shareholders, members or partners in proportion to
11      the share of the entity's distributive income to which the
12      shareholders, members or partners are entitled.
13            (2)   The same unused tax credit may not be claimed by
14      both the pass-through entity and a shareholder, member or
15      partner of the pass-through entity.
16            (3)   The amount of the tax credit that a transferee under
17      paragraph (1) may use against any one qualified tax liability
18      may not exceed 20% of any qualified tax liabilities for the
19      taxable year.
20            (4)   A transferee under paragraph (1) must claim the tax
21      credit in the calendar year in which the transfer is made.
22            (5)   A transferee under paragraph (1) may not sell or
23      assign the tax credit.
24      (j)   Administration.--The Department of Community and
25   Economic Development shall develop written guidelines for the
26   implementation of this section.
27   Section 8.     Annual reports.
28      (a)   Requirement.--Within 60 days of the end of each school
29   year in which a school-to-work program is in operation, the
30   department, participating agencies and the board shall jointly

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 1   submit a report regarding the implementation of CareerBound and
 2   the school-to-work programs over the previous school year.
 3      (b)   Contents.--The annual report under subsection (a) must:
 4            (1)   Include information about each school-to-work
 5      program, including whether the school-to-work program
 6      achieved the clear objectives and measurable goals proposed
 7      under section 5(b)(7), an analysis of the school-to-work
 8      program according to the outcome-based metrics enumerated by
 9      the department in section 6(a)(3), the number of
10      participating students and the amount spent.
11            (2)   Identify best practices observed from among the most
12      successful school-to-work programs.
13            (3)   Include the names of the qualified taxpayers
14      utilizing the tax credit as of the date of the report and the
15      amount of tax credits approved for, utilized by or sold or
16      assigned by a qualified taxpayer.
17      (c)   Submittal.--The annual report under subsection (a) shall
18   be submitted to:
19            (1)   The Governor.
20            (2)   The Auditor General.
21            (3)   The chairperson and minority chairperson of the
22      Appropriations Committee of the Senate.
23            (4)   The chairperson and minority chairperson of the
24      Appropriations Committee of the House of Representatives.
25            (5)   The chairperson and minority chairperson of the
26      Education Committee of the Senate.
27            (6)   The chairperson and minority chairperson of the
28      Education Committee of the House of Representatives.
29            (7)   The chairperson and minority chairperson of the
30      Labor and Industry Committee of the Senate.

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1          (8)   The chairperson and minority chairperson of the
2      Labor and Industry Committee of the House of Representatives.
3   Section 9.   Effective date.
4      This act shall take effect in one year.




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