Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB401

Introduced
3/6/25  

Caption

In tax credit and tax benefit administration, further providing for definitions; and providing for the Pennsylvania National Guard employer tax credit.

Impact

If enacted, SB401 would have a significant impact on state taxation policies relating to military personnel. The new tax credits are intended to encourage businesses to hire veterans and reservists, potentially improving employment rates among individuals serving in the National Guard. The bill includes measures for claim periods, wherein employers must file claims for the tax credit within the first taxable year they qualify, and sets a cap on the total annual credits available at $5 million.

Summary

Senate Bill 401 establishes a Pennsylvania National Guard Employer Tax Credit aimed at incentivizing employers to hire or retain members of the Pennsylvania National Guard. The bill introduces a $1,000 tax credit for employers who hire full-time employees who are active members of the Pennsylvania National Guard, or who enlist or reenlist while employed. The proposed legislation amends the Tax Reform Code of 1971 to include these new provisions, making it clearer how the tax credits should be claimed and administered.

Sentiment

General sentiment around SB401 appears to be supportive, especially among groups advocating for veterans and military personnel. The recognition of the contributions made by the Pennsylvania National Guard and the financial support for employers who choose to hire from this pool has been welcomed by many. However, there may also be discussions about the extent to which such credits can impact local economies and whether they would lead to more stable employment opportunities for Guard members.

Contention

Notable points of contention surrounding the bill could involve debates about the appropriateness of using tax credits as a means of supporting military employment. Critics may argue that while it seeks to help a deserving population, it also raises questions about the sustainability and effectiveness of tax incentives. Discussions are likely to center on whether such measures address the root issues of unemployment among veterans or simply act as a temporary fix without addressing broader labor market dynamics.

Companion Bills

No companion bills found.

Previously Filed As

PA SB985

Providing for the Pennsylvania National Guard employer tax credit.

PA SB810

In tax credit and tax benefit administration, further providing for definitions; and providing for Working Family Income Tax Credit.

PA HB1034

In tax credit and tax benefit administration, further providing for definitions; and providing for Working Family Income Tax Credit.

PA HB653

In tax credit and tax benefit administration, further providing for definitions; and providing for tax credits for rehabilitation and reconstruction of certain factory and mill buildings and for a business tax credit.

PA HB2315

In tax credit and tax benefit administration, further providing for definitions; and providing for promotion of renewable opportunities, supporting people, employment and resilience (PROSPER) tax credit.

PA HB2402

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, further providing for definitions and for application and approval of tax credit, providing for sustainable aviation fuel and further providing for definitions.

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 SB615

Providing for National Guard service tax credit.

PA SB1106

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA HB2452

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

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