A04334
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
269
Session of
2023
INTRODUCED BY GEBHARD, BROOKS, COLLETT, DILLON, STEFANO,
LANGERHOLC, COSTA, J. WARD, HUTCHINSON AND ROBINSON,
JANUARY 31, 2023
SENATOR HUTCHINSON, FINANCE, AS AMENDED, MAY 1, 2024
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 personal income tax, further providing for
imposition of tax; in gross receipts tax, further providing
for imposition of tax, providing for transfers to Alternative
Fuels Incentive Fund and further providing for establishment
of revenue-neutral reconciliation; IN TAX CREDIT AND TAX
BENEFIT ADMINISTRATION, FURTHER PROVIDING FOR DEFINITIONS;
providing for volunteer certified emergency medical
technician tax credit; and imposing duties on the Department
of Revenue.; eliminating the tax imposed upon each dollar of
the gross receipts received from the sales of electric
energy; providing for the benefit of consumers and for a
civil penalty; and making a repeal.
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:
SECTION 1. THE DEFINITION OF "TAX CREDIT" IN SECTION 1701-
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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 1. Section 302(a) and (b) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
amended December 14, 2023 (P.L.460, No.64), are amended to read:
Section 302. Imposition of Tax.--(a) Except as provided in
subsection (c), every resident individual, estate or trust shall
be subject to, and shall pay for the privilege of receiving each
of the classes of income hereinafter enumerated in section 303,
a tax upon each dollar of income received by that resident
during that resident's taxable year at the rate of [three and
seven hundredths] two and eight-tenths per cent.
(b) Except as provided in subsection (c), every nonresident
individual, estate or trust shall be subject to, and shall pay
for the privilege of receiving each of the classes of income
hereinafter enumerated in section 303 from sources within this
Commonwealth, a tax upon each dollar of income received by that
nonresident during that nonresident's taxable year at the rate
of [three and seven hundredths] two and eight-tenths per cent.
* * *
Section 2. Section 1101(b) and (h) of the act are amended
and the section is amended by adding a subsection to read:
Section 1101. Imposition of Tax.--* * *
(a.2) Transfer to Alternative Fuels Incentive Fund.--
Notwithstanding any other provision of law, beginning in fiscal
year 2024-2025, and each fiscal year thereafter, six million
dollars ($6,000,000) of the taxes received under subsection (a)
shall be transferred to the Alternative Fuels Incentive Fund
established under section 3 of the act of November 29, 2004
(P.L.1376, No.178), known as the Alternative Fuels Incentive
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Act. The transfer required under this subsection shall be made
annually by May 31, 2025, and each May 31 thereafter.
(b) Electric Light, Waterpower and Hydro-electric
Utilities.--
(1) Every electric light company, waterpower company and
hydro-electric company now or hereafter incorporated or
organized by or under any law of this Commonwealth, or now or
hereafter organized or incorporated by any other state or by the
United States or any foreign government and doing business in
this Commonwealth, and every limited partnership, association,
joint-stock association, copartnership, person or persons,
engaged in electric light and power business, waterpower
business and hydro-electric business in this Commonwealth, shall
pay to the State Treasurer, through the Department of Revenue, a
tax of forty-four mills upon each dollar of the gross receipts
of the corporation, company or association, limited partnership,
joint-stock association, copartnership, person or persons,
received from:
[(1)] (i) the sales of electric energy within this State,
except gross receipts derived from the sales for resale of
electric energy to persons, partnerships, associations,
corporations or political subdivisions subject to the tax
imposed by this subsection upon gross receipts derived from such
resale; and
[(2)] (ii) the sales of electric energy produced in
Pennsylvania and made outside of Pennsylvania in a state that
has taken action since December 21, 1977 which results in higher
costs for electric energy produced in that state and sold in
Pennsylvania unless the action that was taken after December 21,
1977 is rescinded according to the following apportionment
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formula: except for gross receipts derived from sales under
clause (1), the gross receipts from all sales of electricity of
the producer shall be apportioned to the Commonwealth of
Pennsylvania by the ratio of the producer's operating and
maintenance expenses in Pennsylvania and depreciation
attributable to property in Pennsylvania to the producer's total
operating and maintenance expenses and depreciation.
(2) This subsection shall expire for taxable years beginning
after December 31, 2024.
* * *
(h) Benefits to Consumer.--
(1) For purposes of this article, the reduction in the taxes
imposed under subsections (a) and (b) shall derive to the
benefit of the consumer purchasing services from said utilities.
Said benefit shall be provided in the form of a reduction in the
State tax surcharge. Failure to pass through the reduction to
the consumer shall subject the public utility to a civil penalty
of at least one thousand dollars ($1,000), but not more than
five thousand dollars ($5,000), and such additional relief as
the court may deem appropriate.
(2) For purposes of this article, the elimination of the
taxes imposed under subsection (b) shall derive to the benefit
of the consumer purchasing electric energy. Said benefit shall
be provided in the form of the elimination of or a reduction in
the State tax surcharge. Failure to pass through the elimination
or reduction to the consumer shall subject the entity to a civil
penalty of at least one thousand dollars ($1,000), but not more
than five thousand dollars ($5,000), and such additional relief
as the court may deem appropriate.
* * *
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Section 3. Section 1101.2 of the act is amended to read:
Section 1101.2. Establishment of Revenue-Neutral
Reconciliation.--(a) Notwithstanding the provisions of 66
Pa.C.S. § 2810(c)(1) (relating to revenue-neutral
reconciliation), the rate of tax established under 66 Pa.C.S. §
2810(c)(2) for the period beginning January 1, 2002, shall
continue in force without further adjustment for periods
beginning January 1, 2003, and thereafter, and the Secretary of
Revenue shall not deliver any further reports under 66 Pa.C.S. §
2810(c)(3).
(b) Subsection (a) shall expire for taxable years beginning
after December 31, 2024.
Section 4. The definition of "tax credit" in section 1701-
A.1 of the act 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:
* * *
"TAX CREDIT." A TAX CREDIT AUTHORIZED UNDER ANY OF THE
FOLLOWING:
* * *
(14.2) ARTICLE XVIII-I.
* * *
SECTION 2 5. THE ACT IS AMENDED BY ADDING AN ARTICLE TO
READ:
ARTICLE XVIII-I
VOLUNTEER CERTIFIED EMERGENCY
MEDICAL TECHNICIAN TAX CREDIT
Section 1801-I. Definitions.
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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:
"ACTIVE VOLUNTEER CERTIFIED EMERGENCY MEDICAL TECHNICIAN." A
VOLUNTEER FOR A NONPROFIT EMERGENCY MEDICAL SERVICES AGENCY WHO
IS CERTIFIED UNDER 35 PA.C.S. § 79A23 (RELATING TO
CERTIFICATION).
"Department." The Department of Revenue of the Commonwealth.
"NONPROFIT EMERGENCY MEDICAL SERVICES AGENCY." AN EMERGENCY
MEDICAL SERVICES AGENCY AS DEFINED IN 35 PA.C.S. § 8103
(RELATING TO DEFINITIONS) AND CHARTERED AS A NONPROFIT
CORPORATION.
"Qualified tax liability." The liability for taxes imposed
under Article III for the taxable year beginning after December
31, 2024, and each taxable year thereafter. THE TERM DOES NOT
INCLUDE AMOUNTS WITHHELD OR REQUIRED TO BE WITHHELD FROM
EMPLOYEES UNDER ARTICLE III.
"Tax credit." The tax credit available to an active
volunteer certified emergency medical technician under this
article.
"Taxpayer." An individual subject to payment of taxes under
Article III.
"VOLUNTEER." A MEMBER OF A VOLUNTEER FIRE COMPANY OR A
NONPROFIT EMERGENCY MEDICAL SERVICES AGENCY.
Section 1802-I. Application and procedure.
(a) Application to department.--A taxpayer may claim a tax
credit against the qualified tax liability of the taxpayer by
submitting an application for the tax credit in a manner
required by the department. The application shall contain the
following information:
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(1) The name and tax identification number of the
taxpayer.
(2) Documentation that the taxpayer meets the
eligibility criteria specified in section 1803-I.
(3) Any other information deemed appropriate by the
department.
(b) Procedure.--The application shall be attached to the
applicant's annual tax return required to be filed under Article
III.
Section 1803-I. Taxpayer eligibility.
(a) Criteria.--A taxpayer who is an active volunteer
certified emergency medical technician shall be eligible for a
tax credit if the taxpayer meets the following criteria:
(1) Is a resident of this Commonwealth.
(2) Has at least two full years of service as a
certified emergency medical technician by December 31 of the
taxable year and has responded to at least 20% of the
company's emergency calls during that two-year period.
(3) Is an active volunteer certified emergency medical
technician on the date the taxpayer files the tax return.
(b) Maximum credit.--A taxpayer who qualifies under
subsection (a) may claim a tax credit of $500.
Section 1804-I. Carryover and carryback prohibited.
A taxpayer may not carry over, carry back, obtain a refund
of, sell or assign an unused tax credit.
Section 1805-I. Self certification.
The making or filing by a taxpayer of any return,
declaration, statement or other document required to be made or
filed under this article shall constitute a certification by the
taxpayer that the statements, including the taxpayer's residency
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status and years of service as an active volunteer certified
emergency medical technician, contained in the return,
declaration, statement or other document are true and that any
copy filed is a true copy.
Section 1806-I. Guidelines.
(a) General rule.--The department shall adopt guidelines,
including forms, necessary to administer this article.
(b) Joint income.--A tax credit granted under this article
may be applied to the tax liability of the spouse of an eligible
taxpayer if both the eligible taxpayer and the spouse report
income on a joint income tax return.
Section 1807-I. Report to General Assembly.
No later than December 31, 2025 2026 , and each December 31
thereafter, the department shall submit a report on the tax
credits granted under this article. The report shall include the
number of active volunteer certified emergency medical
technicians who utilized the tax credit as of the date of the
report and the amount of credits approved. The report may
include recommendations for changes in the calculation or
administration of the tax credit. The report shall be submitted
to the chairperson and minority chairperson of the
Appropriations Committee of the Senate, the chairperson and
minority chairperson of the Appropriations Committee of the
House of Representatives, the chairperson and minority
chairperson of the Veterans Affairs and Emergency Preparedness
Committee of the Senate and the chairperson and minority
chairperson of the Veterans Affairs and Emergency Preparedness
Committee of the House of Representatives. The report may
include other information that the department deems appropriate.
Section 1808-I. Penalty.
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A taxpayer who claims a credit under this article but fails
to meet the standards under this article shall repay the full
amount of the tax credit to the Commonwealth, plus interest as
prescribed under section 351.
Section 2. This act shall take effect immediately.
Section 6. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of
section 1101(a.2) of the act.
(2) Section 6 of the act of November 29, 2004 (P.L.1376,
No.178), known as the Alternative Fuels Incentive Act, is
repealed.
Section 7. The addition of section 1101(a.2) of the act is a
continuation of section 6 of the act of November 29, 2004
(P.L.1376, No.178), known as the Alternative Fuels Incentive
Act. Except as provided in section 1101(a.2) of the act, all
activities initiated under section 6 of the Alternative Fuels
Incentive Act shall continue and remain in full force and effect
and may be completed under section 1101(a.2) of the act. Orders,
regulations, rules and decisions which were made under section 6
of the Alternative Fuels Incentive Act and which are in effect
on the effective date of section 6 of this act shall remain in
full force and effect until revoked, vacated or modified under
section 1101(a.2) of the act. Contracts, obligations and
collective bargaining agreements entered into under section 6 of
the Alternative Fuels Incentive Act are not affected nor
impaired by the repeal of section 6 of the Alternative Fuels
Incentive Act.
Section 8. This act shall apply as follows:
(1) The amendment of section 302(a) and (b) of the act
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shall apply to taxable years beginning after December 31,
2024.
(2) The amendment of section 1101(b) of the act shall
apply to gross receipts derived from transactions occurring
after December 31, 2024.
(3) The amendment of section 1101.2 of the act shall
apply to gross receipts derived from transactions occurring
after December 31, 2024.
Section 9. The following shall apply:
(1) The amendment of sections 1101(b) and 1101.2 of the
act and paragraph (2) are intended to eliminate the tax
imposed upon each dollar of the gross receipts received from
the sales of electric energy for taxable years beginning
after December 31, 2024, and shall not be construed to
relieve any taxpayer from the tax imposed under section
1101(b) or 66 Pa.C.S. § 2810, for taxable years beginning
before January 1, 2025.
(2) Notwithstanding any other provision of law, for
taxable years beginning after December 31, 2024, a tax shall
not be imposed under 66 Pa.C.S. § 2810 upon each dollar of
the gross receipts received from the sales of electric
energy. The elimination of the taxes imposed under 66 Pa.C.S.
§ 2810 upon each dollar of the gross receipts received from
the sales of electric energy shall derive to the benefit of
the consumer purchasing services from said entities. The
benefit shall be provided in the form of the elimination of
or a reduction in the State tax surcharge. Failure to pass
through the elimination or reduction to the consumer shall
subject the entity to a civil penalty of at least $1,000, but
not more than $5,000, and additional relief as the court may
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deem appropriate.
Section 10. This act shall take effect as follows:
(1) The addition of section 1101(a.2) of the act shall
take effect July 1, 2024.
(2) Sections 6 and 7 of this act shall take effect July
1, 2024.
(3) The remainder of this act shall take effect
immediately.
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