PRINTER'S NO. 824
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.820
Session of
2025
INTRODUCED BY SAPPEY, WAXMAN, GUENST, KENYATTA, PIELLI,
MALAGARI, KHAN, GIRAL, PROBST, SANCHEZ, NEILSON, HOWARD,
SAMUELSON, FREEMAN, DAVIDSON, CIRESI, OTTEN, CERRATO AND
D. WILLIAMS, MARCH 3, 2025
REFERRED TO COMMITTEE ON FINANCE, MARCH 3, 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," in tax credit and tax benefit administration,
further providing for definitions; and providing for working
Pennsylvanians tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "tax credit" in section 1701-
A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, is amended by adding a paragraph to read:
Section 1701-A.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:
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22 "Tax credit." A tax credit authorized under any of the
following:
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(8.2) Article XVIII-I.
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Section 2. The act is amended by adding an article to read:
ARTICLE XVIII-I
WORKING PENNSYLVANIANS TAX CREDIT
Section 1801-I. Scope of article.
This article relates to the working Pennsylvanians tax
credit.
Section 1802-I. 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:
"Department." The Department of Revenue of the Commonwealth.
"Federal earned income tax credit." The earned income tax
credit provided under 26 U.S.C. ยง 32 (relating to earned
income).
"Qualified taxpayer." A taxpayer eligible to receive a tax
credit under section 1804-I.
"Tax credit." The working Pennsylvanians tax credit provided
under this article.
"Tax liability." Tax liability under Article III.
"Taxpayer." An individual subject to the tax under Article
III.
Section 1803-I. Working Pennsylvanians tax credit.
(a) Application of tax credit.--A qualified taxpayer may
apply the tax credit against the qualified taxpayer's tax
liability.
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30 (b) Spouses who file separately.--In the case of spouses who
are both eligible to receive the tax credit and who file a joint
Federal tax return but who elect to determine their taxes
separately, the tax credit may only be used by the spouse with
the greater tax otherwise due, computed without regard to the
tax credit.
(c) Amount of tax credit.--The tax credit shall be equal to
30% of the Federal earned income tax credit received by the
taxpayer for the same taxable year.
(d) Credit refundable.--If the amount of credit which the
qualified taxpayer is eligible to receive under this section
exceeds the qualified taxpayer's tax liability, the department
shall refund the excess amount to the qualified taxpayer.
Section 1804-I. Eligibility.
A taxpayer is eligible to receive a tax credit if the
taxpayer claimed the Federal earned income tax credit during the
same taxable year.
Section 1805-I. Regulations.
(a) Rules and regulations.--The department may promulgate
rules and regulations to administer and enforce this article.
(b) Guidelines.--The department may develop written
guidelines for the implementation of this article. The
guidelines shall be in effect until the department promulgates
rules and regulations for the implementation of the provisions
of this article.
Section 1806-I. Applicability.
This article shall apply to taxable years beginning after
December 31, 2024.
Section 3. This act shall take effect immediately.
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