Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB820

Introduced
3/3/25  
Refer
3/3/25  
Refer
5/5/25  
Report Pass
5/6/25  
Engrossed
5/6/25  

Caption

In tax credit and tax benefit administration, further providing for definitions; and providing for working Pennsylvanians tax credit.

Impact

The introduction of HB 820 is expected to significantly impact state tax laws by expanding the definition of tax credits within Pennsylvania's Tax Reform Code. By adding the Working Pennsylvanians Tax Credit as a new article, the bill establishes clear eligibility criteria and application procedures for the tax credit. The refundable nature of the credit further serves as a crucial aspect, as it allows taxpayers to receive refunds on excess credit amounts, making it an important tool for assisting those who may owe little to no taxes.

Summary

House Bill 820 introduces a tax credit known as the Working Pennsylvanians Tax Credit, designed to provide financial relief to qualified taxpayers in Pennsylvania. Specifically, it allows taxpayers who claim the Federal earned income tax credit to apply a tax credit equal to 30% of that amount against their state tax liability. This initiative aims to enhance the financial situation of low to moderate-income residents, ensuring they can retain more of their earnings and alleviate some financial burdens.

Sentiment

The sentiment surrounding HB 820 appears largely positive among its proponents, who view it as a step towards economic justice and support for working-class individuals and families. Legislators and advocates supporting the bill argue that it will provide necessary financial support to those who need it most, promoting greater equity in the tax system. However, there may be opponents who express concerns regarding the fiscal implications of adding another tax credit and its impact on the state budget.

Contention

Notable points of contention regarding HB 820 may revolve around the sustainability of funding the new tax credit. Critics could argue that providing additional tax credits could strain the state budget, leading to potential shortfalls in funding essential services. Additionally, discussions could arise about ensuring equitable access to the credit and addressing any barriers that might prevent eligible taxpayers from claiming it. Overall, the bill's passage may lead to debates about balancing tax relief with financial responsibility at the state level.

Companion Bills

No companion bills found.

Previously Filed As

PA SB810

In tax credit and tax benefit administration, further providing for definitions; and providing for Working Family Income Tax Credit.

PA HB1034

In tax credit and tax benefit administration, further providing for definitions; and providing for Working Family Income Tax Credit.

PA HB653

In tax credit and tax benefit administration, further providing for definitions; and providing for tax credits for rehabilitation and reconstruction of certain factory and mill buildings and for a business tax credit.

PA HB2315

In tax credit and tax benefit administration, further providing for definitions; and providing for promotion of renewable opportunities, supporting people, employment and resilience (PROSPER) tax credit.

PA SB1106

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA HB2452

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA HB2402

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, further providing for definitions and for application and approval of tax credit, providing for sustainable aviation fuel and further providing for definitions.

PA SB334

In research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB316

In tax credit and tax benefit administration, further providing for definitions; and establishing the Residential Electric Vehicle Charging Station Tax Credit.

Similar Bills

No similar bills found.