Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB706

Introduced
5/5/25  

Caption

In educational tax credits, further providing for limitations.

Impact

This legislation is expected to create a more structured approach to how educational tax credits are allocated, addressing potential disparities that may exist among various regions. By reallocating unclaimed tax credits to businesses in other regions, the bill aims to promote a more uniform distribution of financial resources aimed at enhancing educational contributions. It emphasizes the importance of inclusivity in regional representation when it comes to funding educational initiatives, which could influence local economic development.

Summary

Senate Bill 706 aims to amend the Public School Code of 1949 by modifying provisions regarding educational tax credits. The bill specifically focuses on establishing limitations related to the approval and allocation of tax credits for contributions made by business firms throughout the Commonwealth of Pennsylvania. The proposed changes emphasize equitable distribution among different regions of the state, ensuring that businesses from all areas have access to these credits and can support local education systems effectively.

Sentiment

The sentiment surrounding SB706 appears generally positive among proponents who see the bill as a necessary step in ensuring that educational funding is accessible and equitable throughout Pennsylvania. Supporters argue that this bill would motivate businesses to contribute to education, potentially leading to improvements in local schools. However, there may be concerns about how the redistribution of credits could impact businesses that are already contributing significantly to their regions, raising questions about potential unintended consequences.

Contention

A notable point of contention regarding SB706 may arise from debates over the effectiveness of tax credits as a means to support education. Some critics may question whether the emphasis on regional equity adequately addresses the complexities of educational funding. Additionally, there could be discussions about the administrative burden associated with reallocating unclaimed credits and whether the proposed guidelines for implementation are robust enough to achieve the desired outcomes. These factors will likely be key points in future discussions as the bill progresses through the legislative process.

Companion Bills

No companion bills found.

Previously Filed As

PA SB661

In educational tax credits, further providing for limitations.

PA HB1513

In educational tax credits, further providing for definitions, for qualification and application by organizations, for limitations and for opportunity scholarships and providing for economically disadvantaged school scholarships.

PA SB334

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

PA SB757

In Treasury Department, establishing the Pennsylvania Award for Student Success Scholarship Program and the Pennsylvania Award for Student Success Scholarship Fund; in bonus and tax reports and returns and reports and records relating to tax collections, further providing for confidential information; in tax credits, further providing for Department of Community and Economic Development; in 2022-2023 budget implementation, further providing for Department of Education; and making a repeal.

PA SB554

In educational tax credits, further providing for school participation in program.

PA HB1046

In educational tax credits, further providing for school participation in program.

PA HB2063

In educational tax credits, further providing for definitions and for qualification and application by organizations.

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 SB654

In sales and use tax, further providing for

PA HB111

In school finances, further providing for fiscal year and for tax levy and limitations.

Similar Bills

No similar bills found.