PRINTER'S NO. 1189
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.1094
Session of
2025
INTRODUCED BY CIRESI, JAMES, SANCHEZ, WAXMAN, HILL-EVANS,
MADDEN, MAYES, GIRAL, NEILSON, PROBST, CEPEDA-FREYTIZ,
MALAGARI, HOWARD, D. WILLIAMS, BRENNAN, STEELE, SAPPEY,
BOROWSKI AND GREEN, MARCH 31, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
MARCH 31, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for historic homeownership preservation
incentive tax credit; imposing duties on the Department of
Community and Economic Development and the Pennsylvania
Historical and Museum Commission; and establishing the
Historic Homeowner Preservation Tax Credit Administration
Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-H.1
HISTORIC HOMEOWNERSHIP PRESERVATION INCENTIVE TAX CREDIT
Section 1701-H.1. Scope of article.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23 This article relates to the historic homeownership
preservation incentive tax credit.
Section 1702-H.1. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Certified historic property." A property located within
this Commonwealth that is:
(1) l isted individually in the National Register of
Historic Places;
(2) located in a historic district listed in the
National Register of Historic Places and identified as a
contributing building in the National Register of Historic
Places or as determined by the commission;
(3) individually designated as a historic property by
local ordinance; or
(4) located in a historic district that is:
(i) certified by the commission under the act of
June 13, 1961 (P.L.282, No.167), entitled "An act
authorizing counties, cities, boroughs, incorporated
towns and townships to create historic districts within
their geographic boundaries; providing for the
appointment of Boards of Historical Architectural Review;
empowering governing bodies of political subdivisions to
protect the distinctive historical character of these
districts and to regulate the erection, reconstruction,
alteration, restoration, demolition or razing of
buildings within the historic districts";
( ii) established by a municipality that has adopted
a home rule charter; or
20250HB1094PN1189 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 (iii) established by a municipality under the act of
July 31, 1968 (P.L.805, No.247), known as the
Pennsylvania Municipalities Planning Code.
"Commission." The Pennsylvania Historical and Museum
Commission.
"Completed project." The completion of the rehabilitation of
a qualified historic home in accordance with a qualified
rehabilitation plan. If the property is unoccupied, the owner
shall obtain an occupancy certificate prior to completing the
project.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Internal Revenue Code." 26 U.S.C. § 1 et seq. (Internal
Revenue Code of 1986), as amended.
"Qualified census tract." A federally qualified census tract
or area of chronic economic distress that is identified by the
department and is:
(1) at 100% or below the State family median income
level; or
(2) designated as a qualified opportunity zone under 26
U.S.C. § 1400Z-1 (relating to designation).
"Qualified expenditures." As follows:
(1) The costs and expenses that:
(i) are properly chargeable to a capital account;
(ii) are incurred by a qualified taxpayer in the
rehabilitation of a qualified historic home pursuant to a
qualified rehabilitation plan; and
(iii) adhere to the guidelines for eligible
rehabilitation expenditures developed under section 1705-
H.1.
20250HB1094PN1189 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 (2) The term does not include:
(i) The cost of acquiring a building or interest in
a building.
(ii) An expenditure attributable to the enlargement
of an existing building.
(iii) Expenditures related to interior improvements
or maintenance, except as necessary to stabilize or
structurally support the qualified historic home's
exteriors.
(3) The commission may develop guidelines on the types
of costs and expenses that are appropriately determined to be
qualified expenditures.
"Qualified historic home." As follows:
(1) A certified historic property or portion of the
property of an applicant that is:
(i) located in a qualified census tract;
(ii) owned by the applicant; and
(iii) being used, or within a reasonable period will
be used, by the applicant as the applicant's principal
residence.
(2) The following apply to the property described under
paragraph (1):
(i) The property may consist of part of a multiple
dwelling or multiple purpose building or series of
buildings.
(ii) If only a portion of a building is used as the
principal residence, only those qualified expenditures
that are properly allocable to that portion shall be
eligible under this article to apply for tax credits
calculated at the percentage available to owner-
20250HB1094PN1189 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 occupants.
"Qualified rehabilitation plan." A plan to substantially
rehabilitate a qualified historic home that is approved by the
commission as being consistent with the Standards for the
Treatment of Historic Properties as adopted by the United States
Secretary of the Interior. A plan shall be treated as
substantially rehabilitated if qualified expenditures total
$5,000 or more.
"Qualified tax liability." Tax liability imposed on a
taxpayer under Article III. The term does not include any tax
withheld by an employer from an employee under Article III.
"Qualified taxpayer." An individual who:
(1) is subject to a tax imposed under Article III; and
(2) owns a qualified historic home.
Section 1703-H.1. Tax credit certificates.
(a) Application.--
(1) A qualified taxpayer may apply to the department for
a tax credit certificate under this section.
(2) The application shall be on the form required by the
department and shall include a qualified rehabilitation plan.
(3) The department shall establish an application
processing fee. The following apply:
(i) The fee structure shall be tiered based on the
amount of tax credits requested.
(ii) In no case shall the fee exceed $100.
(4) The proceeds of the fee under paragraph (3) shall be
deposited into the Historic Homeowner Preservation Tax Credit
Administration Fund, which is established in the State
Treasury. The money in the Historic Homeowner Preservation
Tax Credit Administration Fund shall be appropriated on a
20250HB1094PN1189 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 continuing basis to the department and used by the commission
and the department to offset the costs of the review of tax
credit applications and awarding of tax credit certificates.
(5) The department shall begin accepting applications
for credit certificates on June 1 and close the initial
application period on June 30.
(b) Review, recommendation and approval.--
(1) The department shall forward applications received
under this section to the commission for review.
(2) The commission shall:
(i) Review the proposed rehabilitation plan in each
application.
(ii) Verify that the building is a qualified
historic home.
(iii) By December 1, provide the department with a
list of eligible projects.
(3) The department shall allocate the credits and
release a list of allocated projects within 15 business days
of the receipt of the list under paragraph (2)(iii).
Applicants with approved allocations shall be provided with
an award letter.
(4) Any amount of tax credit certificates up to the
annual program limit of $3,000,000 not awarded within the
initial application period shall be available on a first-
come, first-served basis through a process determined by the
department.
(5) The applicant shall notify the commission of the
completed project and shall submit proof of qualified
expenditures within three years of the issuance of the award
letter by the department under paragraph (3). The commission
20250HB1094PN1189 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 shall notify the department of verification of a completed
project within 30 days and shall notify the department of the
amount of qualified expenditures incurred by the taxpayer in
connection with the completed project.
(6) If the department has approved the application and
received notification of a completed project, it shall issue
the qualified taxpayer a tax credit certificate within 45
days of the receipt of an approved, completed project. A tax
credit certificate issued under this section may not exceed
20% of qualified expenditures determined by the commission to
have been incurred by the qualified taxpayer in connection
with the completed project.
(7) In granting tax credit certificates under this
article, the department may not grant more than $20,000 in
tax credit certificates to a single qualified taxpayer or
qualified taxpayers in a single household in any fiscal year.
Section 1704-H.1. Claiming tax credit.
Upon presenting a tax credit certificate to the Department of
Revenue, a qualified taxpayer may claim a tax credit against the
qualified tax liability of the qualified taxpayer for the
taxable year in which the project was completed. If the tax
credit exceeds the taxpayer's tax liability, the Department of
Revenue may issue a refund under the procedures specified in
section 346.
Section 1705-H.1. Administration.
(a) Guidelines.--The department, the commission and the
Department of Revenue shall jointly develop written guidelines
for the implementation of the provisions of this article.
(b) Forms.--The department, in conjunction with the
commission, shall develop the application forms required under
20250HB1094PN1189 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 section 1703-H.1(a)(2).
Section 1706-H.1. Annual report to General Assembly.
(a) Submittal.--By October 1, 2027, and October 1 of each
year thereafter, the department shall submit a report on the tax
credit under this article to:
(1) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(2) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(3) The chairperson and minority chairperson of the
Finance Committee of the Senate.
(4) The chairperson and minority chairperson of the
Finance Committee of the House of Representatives.
(5) The chairperson and minority chairperson of the
Urban Affairs and Housing Committee of the Senate.
(6) The chairperson and the minority chairperson of the
Housing and Community Development Committee of the House of
Representatives.
(b) Contents.--The report under this section must include:
(1) The list of completed projects that have been
awarded tax credits under this article.
(2) The amount of tax credits under this article
received by each completed project.
(3) Total project costs and the amount of private
investment in each completed project.
(4) The total number of completed projects placed into
service in the past year that were vacant for at least 12
months prior to commencement of rehabilitation work.
(5) The total number of completed projects placed into
service in the past year that had not paid property taxes for
20250HB1094PN1189 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 at least 12 months prior to the commencement of
rehabilitation work.
(c) Public information.--Notwithstanding any law providing
for the confidentiality of tax records, the information in the
report under this section shall be public information and shall
be posted on the publicly accessible Internet website of the
department.
(d) Review of tax credit program.--The department, in
cooperation with the commission, shall undertake a review of the
tax credit program under this article to determine the
effectiveness of the program in preserving and rehabilitating
the Commonwealth's historic homes and the impact these efforts
have had on the stimulation of investment in this Commonwealth.
The results of the review shall be included in the annual report
due October 1, 2027.
Section 1707-H.1. Application of Internal Revenue Code.
The provisions of 26 U.S.C. § 47 (relating to rehabilitation
credit) and the regulations promulgated regarding those
provisions shall apply to the Department of Revenue's
interpretation and administration of the credit provided under
this article without regard to ratably allocating the credit
over a five-year period as required by 26 U.S.C. § 47(a).
References to the Internal Revenue Code shall mean the sections
of the Internal Revenue Code as existing on any date of
interpretation of this article, except that if those sections of
the Internal Revenue Code referenced in this article are
repealed or terminated, references to the Internal Revenue Code
shall mean those sections last having full force and effect
without regard to ratably allocating the credit over a five-year
period as required by 26 U.S.C. § 47(a). If after repeal or
20250HB1094PN1189 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30 termination the Internal Revenue Code sections are revised or
reenacted, references in this article to Internal Revenue Code
sections shall mean those revised or reenacted sections.
Section 1708-H.1. Limitation.
Taxpayers shall not be entitled to apply for tax credits
under this article after February 1, 2035.
Section 1709-H.1. Tax credit administration.
The tax credit provided for under this article is subject to
the provisions of Article XVII-A.1.
Section 1710-H.1. Administrative costs.
(a) Commission.--The commission may use no more than 3% of
money allocated for the tax credit program under this article
for administrative costs associated with the tax credit program.
(b) Department.--T he department may use no more than 3% of
money allocated for the tax credit program under this article
for administrative costs associated with the tax credit program.
Section 2. This act shall take effect in 180 days.
20250HB1094PN1189 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17