PRINTER'S NO. 728
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.709
Session of
2025
INTRODUCED BY BENNINGHOFF, COOK, GALLAGHER, GILLEN, HEFFLEY,
SIEGEL, SMITH AND ARMANINI, FEBRUARY 24, 2025
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 24, 2025
AN ACT
Amending Title 74 (Transportation) of the Pennsylvania
Consolidated Statutes, providing for motor carrier parking
space tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 74 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 85
MOTOR CARRIER PARKING SPACE TAX CREDIT
Sec.
8501. Definitions.
8502. Eligibility.
8503. Procedure.
8504. Motor carrier parking space tax credit.
8505. Carryover and limitations.
8506. Sale or assignment.
8507. Pass-through entity.
8508. Penalties.
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18 8509. Standards and procedures.
8510. Surplus real property study.
8511. Construction.
§ 8501. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Motor carrier parking space." A designated area that:
(1) is clearly marked;
(2) is 10 feet wide by 80 feet long;
(3) has the purpose of fitting a motor carrier vehicle
accompanied by a semitrailer inside its parameters; and
(4) provides sufficient spacing to give adequate
capacity for a motor carrier vehicle's turning radius.
"Pass-through entity." Any of the following:
(1) A partnership as defined in section 301(n.0) of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971.
(2) A Pennsylvania S corporation as defined in section
301(n.1) of the Tax Reform Code of 1971.
(3) An unincorporated entity subject to section 307.21
of the Tax Reform Code of 1971.
"Qualified tax liability." A taxpayer's tax liability under
Article III, IV, VI, VII, VIII, IX, XI or XV of the Tax Reform
Code of 1971.
"Semitrailer." As defined in 75 Pa.C.S. § 102 (relating to
definitions).
"Start date." The first day of the calendar quarter in which
an application is submitted to the department unless the
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30 applicant requests and the department agrees to a later start
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"Surplus real property." A plot of land owned by the
Commonwealth or the Department of General Services on behalf of
the Commonwealth.
"Tax credit." The motor carrier parking space tax credit
authorized by this chapter.
"Taxpayer." A person that satisfies the eligibility
qualifications as prescribed in section 8502 (relating to
eligibility).
"Tier 1 corridor." Any of the following:
(1) I-76 from US-1 to I-95 in Philadelphia, Philadelphia
County.
(2) I-78 from Exit 49 (PA-100) to the State line.
(3) I-79 from the Ohio River to Exit 76 (Pennsylvania
Turnpike).
(4) I-81 from Exit 44 to the Susquehanna River.
(5) I-81 from I-83 to I-78.
(6) I-83 from US-322 to I-81.
(7) I-95 in the Philadelphia area from the State line to
I-276.
(8) The Pennsylvania Turnpike (I-76) from Exit 57 (US
22) to Exit 75 (I-70).
(9) The Pennsylvania Turnpike (I-76) from Exit 298 (I-
176) to Norristown (I-476).
(10) The Pennsylvania Turnpike (I-276) from Valley Forge
(I-76) to I-95.
"Tier 2 corridor." Any of the following:
(1) I-70 between I-79 and the Pennsylvania Turnpike (I-
76).
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30 (2) I-76 from the Pennsylvania Turnpike (Valley Forge
Interchange) to Exit 340 (US 1).
(3) I-78 from I-81 to Exit 49 (PA 100).
(4) I-79 from Exit 49 (PA 576) to the Ohio River.
(5) I-80 from PA SR 38 to PA SR 66.
(6) I-80 from PA SR 42 to I-81.
(7) I-81 from the Pennsylvania-Maryland State line to
Exit 52 (Pennsylvania Turnpike).
(8) I-81 from the Susquehanna River to I-83.
(9) I-81 from Exit 164 (Sugar Notch) to Exit 194 (I-
476).
(10) I-83 from Exit 21 (US 30) to US 322 in Dauphin
County.
(11) I-84 from I-81 (Dunmore) to I-380.
(12) I-376 from Exit 64 (I-79) to Exit 80 (US 22).
(13) I-476 from I-76 (Conshohocken) to I-276
(Norristown).
(14) The Pennsylvania Turnpike (I-76) from Exit 13
(Homewood) to Exit 57 (US 22/Pittsburgh).
(15) The Pennsylvania Turnpike (I-70/I-76) from Exit 75
(New Stanton) to Somerset North/South Service Plazas.
(16) The Pennsylvania Turnpike Northeast Extension (I-
476) from I-276 (Norristown) to I-78 (Lehigh Valley).
"Year one." The four calendar quarters immediately following
the start date.
§ 8502. Eligibility.
In order to apply for a tax credit, a person must demonstrate
to the department the following:
(1) The ability of the person to create five new free-
of-charge and publicly available motor carrier parking spaces
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30 on property leased or owned by the taxpayer.
(2) The motor carrier parking spaces must be made with
concrete or asphalt.
(3) The property must be at least three acres in size.
(4) The property must not be more than one mile from
either a Tier 1 corridor or Tier 2 corridor.
(5) The property must be zoned as commercial or
industrial.
(6) The property must have adequate lighting.
(7) The property must have either a mobile or permanent
bathroom facility for use by the public.
(8) The person must have the intent to maintain existing
operations in this Commonwealth for a period of at least five
years from the start date.
§ 8503. Procedure.
(a) Application.--A taxpayer may apply for a claim to
receive a tax credit by submitting to the department a tax
credit application on a form and in a manner as determined by
the department.
(b) Creation of motor carrier parking spaces.--In order to
receive a tax credit, the taxpayer must agree to:
(1) create in year one at least five motor carrier
parking spaces on the property; and
(2) retain the motor carrier parking spaces for as long
as the taxpayer continues to operate while receiving the tax
credit.
(c) Approval.--If the department approves the taxpayer's
application, the department and the taxpayer must enter into an
agreement containing the following:
(1) A description and the number of the motor carrier
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30 parking spaces to be created by the taxpayer.
(2) The amount of private capital investment in the
creation of motor carrier parking spaces.
(3) The maximum tax credit amount that the taxpayer may
claim.
(4) An obligation of the taxpayer to maintain existing
operations in this Commonwealth for at least five years from
the start date.
(5) Any other information the department deems
appropriate.
(d) Agreement.--
(1) After an agreement is executed between the
department and a taxpayer, the taxpayer shall create the
motor carrier parking spaces on the property in year one in
accordance with section 8502 (relating to eligibility) and
the terms of the agreement.
(2) If the taxpayer does not create the motor carrier
parking spaces in accordance with section 8502 and the
agreement, the taxpayer shall be in breach of the agreement
and the department shall terminate the agreement.
§ 8504. Motor carrier parking space tax credit.
(a) Maximum amount.--The department may award a tax credit
of $5,000 per newly created motor carrier parking space not to
exceed a total tax credit of up to $100,000 per taxpayer.
(b) Certificate.--
(1) After the agreement between the department and a
taxpayer is executed under section 8503 (relating to
procedure), the department shall determine in year one
whether the taxpayer has created the motor carrier parking
spaces and is otherwise in compliance with the agreement.
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30 (2) If the department is satisfied that the motor
carrier parking spaces have been created and that the
taxpayer is in compliance with the agreement, the department
shall issue a tax credit certificate and filing information
to the taxpayer.
(3) If the department is not satisfied that the motor
carrier parking spaces have been created and that the
taxpayer is in compliance with the agreement, the department
may not issue a tax credit certificate and filing information
to the taxpayer. Subject to the limitations in subsection
(c), the department shall issue tax credits on a first-come,
first-served basis.
(c) Limitation.--For the fiscal year starting on June 30,
2025, the department shall issue no more than $10,000,000 in tax
credits. Starting on June 30, 2026, and ending on June 30, 2035,
the department shall authorize an additional $1,000,000 in tax
credits in excess of the limit on the tax credits authorized for
the prior fiscal year. Beginning June 30, 2035, the department
will be limited to awarding $20,000,000 for each fiscal year. In
any fiscal year, the department may reissue, assign or award
prior fiscal year tax credits which have been recaptured under
section 8508 (relating to penalties) and award prior fiscal year
tax credits not previously issued.
(d) Duration of tax credit.--A taxpayer may claim the tax
credit for the year in which the tax credit was approved and may
continue to receive the tax credit until the taxpayer is no
longer operating, as long as the taxpayer maintains the motor
carrier parking spaces.
(e) Subject to tax credit and tax benefit administration.--
The tax credit shall be subject to Article XVII-A.1 of the act
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30 of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
§ 8505. Carryover and limitations.
The following limitations apply to tax credits:
(1) If a taxpayer cannot use the entire amount of the
tax credit for the taxable year in which the tax credit is
first approved, the excess may be carried over to succeeding
taxable years and used as a tax credit against the qualified
tax liability of the taxpayer for the taxable years. Each
time the tax credit is carried over to a succeeding taxable
year, the tax credit shall be reduced by the amount of the
tax credit used as a tax credit during the immediately
preceding taxable year. The tax credit may be carried over
and applied to succeeding taxable years for no more than
three taxable years following the first taxable year for
which the taxpayer was entitled to claim the tax credit.
(2) A tax credit for a taxable year first shall be
applied against the taxpayer's qualified tax liability for
the current taxable year as of the date on which the tax
credit was approved before the tax credit may be applied
against any tax liability under paragraph (1).
(3) A taxpayer is not entitled to carry back or obtain a
refund of all or any portion of an unused tax credit granted
to the taxpayer.
§ 8506. Sale or assignment.
(a) Application.--
(1) A taxpayer, upon application to and approval by the
department, may sell or assign, in whole or in part, a tax
credit granted to the taxpayer.
(2) The department shall issue guidelines for the
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30 approval of applications for tax credits.
(3) Before the department may approve an application,
the department must determine whether the applicant has filed
all required State tax reports and returns for all applicable
taxable years and paid any balance of State tax due as
determined at settlement, assessment or determination by the
department.
(4) Notwithstanding any other provision of law, the
department must settle, assess or determine the tax of an
applicant under this paragraph within 90 days of the filing
of each required final return or report in accordance with
section 806.1(a)(5) of the act of April 9, 1929 (P.L.343,
No.176), known as The Fiscal Code.
(b) Use by purchaser or assignee.--
(1) The purchaser or assignee of all or a portion of a
tax credit under subsection (a) must immediately claim the
tax credit in the taxable year in which the purchase or
assignment is made.
(2) The amount of the tax credit that a purchaser or
assignee may use against any one qualified tax liability may
not exceed 50% of the qualified tax liability for the taxable
year.
(3) The purchaser or assignee may not carry forward,
carry back or obtain a refund of or sell or assign the tax
credit.
(4) The purchaser or assignee shall notify the
department of the seller or assignor of the tax credit in
compliance with procedures specified by the department.
§ 8507. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
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30 tax credits under section 8505 (relating to carryover and
limitations), the entity may elect in writing, according to
procedures established by the department, to transfer all or a
portion of the tax credit to shareholders, members or partners
in proportion or the share of the entity's distributive income
to which the shareholder, member or partner is entitled.
(b) Limitation.--A pass-through entity and a shareholder,
member or partner of a pass-through entity may not claim the tax
credit under subsection (a) for the same motor carrier parking
spaces.
(c) Application.--A shareholder, member or partner of a
pass-through entity to whom a tax credit is transferred under
subsection (a) shall immediately claim the tax credit in the
taxable year in which the transfer is made. The shareholder,
member or partner may not carry forward, carry back, obtain a
refund of or sell or assign the tax credit.
§ 8508. Penalties.
(a) Failure to maintain operations.--A taxpayer that
receives a tax credit and fails to maintain existing operations
related to the tax credits in this Commonwealth for as long as
the taxpayer continues to operate while receiving the tax credit
shall refund to the Commonwealth the total amount of tax credits
granted. The department may issue an assessment, including
interest, additions and penalties, for the total amount of each
tax credit to be refunded to the Commonwealth.
(b) Failure to maintain motor carrier parking.--A taxpayer
that receives a tax credit and fails to maintain the motor
carrier parking spaces for as long as the taxpayer continues to
operate while receiving the tax credit must refund to the
Commonwealth the total amount of tax credits granted. The
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30 department may issue an assessment, including interest,
additions and penalties, for the total amount of tax credits to
be refunded to the Commonwealth.
(c) Waiver.--The department may waive the penalties under
subsections (a) and (b) if the department determines that the
taxpayer's existing operations were not maintained or the motor
carrier parking spaces were not created because of circumstances
beyond the taxpayer's control, including a natural disaster,
unforeseen industry trend or a loss of a major supplier or
market.
§ 8509. Standards and procedures.
The department shall establish standards and procedures for
the tax credit.
§ 8510. Surplus real property study.
(a) Duty of Department of General Services.--The Department
of General Services shall conduct a study of surplus real
property described in subsection (b) for the purpose of
analyzing if the property could be sold to a private entity for
the purpose of creating motor carrier parking spaces. In
carrying out the study, the Department of General Services may
enter into an agreement with or consult with the following
organizations:
(1) The Department of Transportation of the
Commonwealth.
(2) The Pennsylvania Turnpike Commission.
(3) A State association that represents the motor
trucking industry.
(4) Other organizations deemed necessary by the
Department of General Services.
(b) Parameters.--In conducting the study, the Department of
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30 General Services shall analyze surplus real property that:
(1) is within one mile of a Tier 1 corridor or Tier 2
corridor;
(2) is at least three acres in size; and
(3) is zoned for commercial or industrial use.
(c) Condition.--The study shall describe how the surplus
real property could be developed for motor carrier parking
spaces utilizing Federal grants.
(d) Agreement.--The Department of General Services and the
organizations listed in subsection (a) may enter into an
agreement to conduct the study and issue the report under
subsection (e).
(e) Report.--Within 12 months of the effective date of this
subsection, the Department of General Services shall publish a
report of the study on its publicly accessible Internet website
and issue a copy of the report to each of the following:
(1) The Secretary of Transportation of the Commonwealth.
(2) The Pennsylvania Transportation Advisory Committee.
(3) The chairperson and minority chairperson of the
Transportation Committee of the Senate.
(4) The chairperson and minority chairperson of the
Transportation Committee of the House of Representatives.
(5) The chairperson and minority chairperson of the
State Government Committee of the Senate.
(6) The chairperson and minority chairperson of the
State Government Committee of the House of Representatives.
§ 8511. Construction.
Nothing in this chapter shall be construed to limit or
disallow a motor carrier vehicle from parking in a designated
motor carrier parking space on a taxpayer's property.
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30 Section 2. This act shall take effect as follows:
(1) This section and the addition of 74 Pa.C.S. § 8510
shall take effect immediately.
(2) The remainder of this act shall take effect December
31, 2025, or immediately, whichever is later.
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