PRINTER'S NO. 233
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.288
Session of
2025
INTRODUCED BY PROKOPIAK, DONAHUE, HILL-EVANS, GIRAL, McNEILL,
NEILSON, SCHLOSSBERG, MERSKI, DELLOSO, CERRATO, CEPEDA-
FREYTIZ, SANCHEZ, HOHENSTEIN AND GREEN, JANUARY 23, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JANUARY 23, 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 construction tax credit
requirements.
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-A.2
CONSTRUCTION TAX CREDIT REQUIREMENTS
Section 1701-A.2. 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:
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22 "Construction tax credit." A tax credit authorized under any
of the following:
(1) Article XVII-D.
(2) Article XVII-G.
(3) Article XVIII-G.
(4) Article XIX-C.
(5) Article XIX-E.
(6) Article XIX-F.
(7) Article XXIX-D.
"Department." The Department of Revenue of the Commonwealth.
Section 1702-A.2. Eligibility for credit.
(a) Eligibility.--In addition to any other requirements
provided by a law of this Commonwealth, regulation or guideline,
before a construction tax credit may be awarded to a taxpayer
that has made a capital expenditure of more than $25,000 to
construct, reconstruct, demolish, alter or repair a facility,
the department, in consultation with the Department of Labor and
Industry, shall verify that the taxpayer has:
(1) made good faith efforts to recruit and employ, and
to encourage any contractors or subcontractors of the
taxpayer to recruit and employ, workers from the local labor
market for employment during the construction,
reconstruction, demolition, alteration or repair of the
facility phase; and
(2) demonstrated that individuals employed by the
taxpayer or any contractor or subcontractor of the taxpayer
for the construction, reconstruction, demolition, alteration
or repair of the facility have been paid the prevailing
minimum wage rate for each craft or classification as
determined by the Department of Labor and Industry under the
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30 act of August 15, 1961 (P.L.987, No.442), known as the
Pennsylvania Prevailing Wage Act.
(b) New jobs.--A facility for which a construction tax
credit is sought and awarded shall be deemed to meet each of the
minimum requirements necessary to apply the wage and benefit
rates and related certification of payroll records required by
the Pennsylvania Prevailing Wage Act. A taxpayer or any
contractor or subcontractor of the taxpayer engaged to perform
on the facility shall comply with all provisions and
requirements of the Pennsylvania Prevailing Wage Act for all new
jobs and for each craft or classification performing
construction, reconstruction, demolition, alteration or repair
work, other than maintenance work, undertaken at the facility
during the initial construction and during any period when
construction tax credit is sought and awarded for the facility.
(c) Notification.--Before the solicitation of bids or
proposals of any contract or subcontract for a facility for
which a construction tax credit is sought, the taxpayer or the
taxpayers shall notify the Department of Labor and Industry of
the solicitation and request the issuance of a wage and benefit
rate determination for each craft and classification anticipated
to perform at the project facility. Rate requests shall be in
conformity with the procedures of the Pennsylvania Prevailing
Wage Act, and the Department of Labor and Industry shall issue
rates upon request as required under this subsection and the
provisions of the Pennsylvania Prevailing Wage Act.
Section 1703-A.2. Enforcement.
The Department of Labor and Industry shall enforce this
article and shall apply the same administration and enforcement
applicable to any construction, reconstruction, demolition,
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30 alteration or repair of a facility, other than maintenance work,
undertaken in accordance with the act of August 15, 1961
(P.L.987, No.442), known as the Pennsylvania Prevailing Wage
Act, to ensure compliance.
Section 1704-A.2. Violations.
(a) Refund requirement.--In addition to enforcement
authorized under the act of August 15, 1961 (P.L.987, No.442),
known as the Pennsylvania Prevailing Wage Act, and section 1703-
A.2, if, after notice and hearing, the Department of Labor and
Industry determines that a taxpayer intentionally failed to pay
or intentionally caused another person to fail to pay the
prevailing wage or benefit rates as specified under section
11(h) of the Pennsylvania Prevailing Wage Act for the
construction, reconstruction, demolition, alteration or repair
of a facility for which a construction tax credit is awarded, or
ratified the intentional failure by any contractors or
subcontractors of the taxpayer, the taxpayer shall refund 10% of
the amount of the construction tax credit as follows:
(1) in the case of initial construction, for the first
fiscal year for which a tax credit is awarded; or
(2) for the fiscal year in which the intentional
noncompliance occurred as determined by the Department of
Labor and Industry.
(b) Appeals.--A finding of a violation under subsection (a)
may be appealed under section 2.2(e)(1) of the Pennsylvania
Prevailing Wage Act and 34 Pa. Code ยง 213.3 (relating to appeals
from determinations of the Secretary). Any final determination
by the Secretary of Labor and Industry or the Appeals Board
under the Pennsylvania Prevailing Wage Act may be appealed in
accordance with 2 Pa.C.S. (relating to administrative law and
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30 procedure).
Section 2. This act shall take effect in 60 days.
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