2024 Pa. Act 56 | Pennsylvania Act 2024-56 — TAX REFORM CODE OF 1971 - OMNIBUS AMENDMENTS

Act text

TAX REFORM CODE OF 1971 - OMNIBUS AMENDMENTS
	Act of Jul. 11, 2024, P.L. 674, No. 56	Cl. 72

Session of 2024

No. 2024-56

SB 654

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 sales and use tax, further providing for exclusions from tax; in personal income tax, further providing for definitions and for classes of income and providing for transfer to Clean Streams Fund; in corporate net income tax, further providing for definitions and providing for determination of net loss deduction; in bank and trust company shares tax, further providing for ascertainment of taxable amount and exclusion of United States obligations; in realty transfer tax, further providing for transfer of tax; in Historic Preservation Incentive Tax Credit, further providing for tax credit certificates; in Coal Refuse Energy and Reclamation Tax Credit, further providing for application and approval of tax credit and for limitation on tax credits; in city revitalization and improvement zones, further providing for definitions, for establishment or designation of contracting authority, for approval, for reports, for transfers, for restrictions, for transfer of property and for review; in Manufacturing and Investment Tax Credit, further providing for definitions, for rural growth funds, for claiming the tax credit and for revocation of tax credit certificates; in Neighborhood Assistance Tax Credit, further providing for tax credit and for grant of tax credit; providing for 529 savings account employer matching contribution tax credit and for employer child care contribution tax credit; in Computer Data Center Equipment Incentive Program, further providing for definitions and for sales and use tax exemption; providing for tuition account programs; and making an editorial change.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1. Section 204 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 clause to read:

Section 204. Exclusions from Tax.--The tax imposed by section 202 shall not be imposed upon any of the following:

(76) The sale at retail or use of services related to the cleaning or maintenance of a storage trap utilized by a food service or restaurant establishment to collect grease waste.

Section 2. Section 301 of the act is amended by adding subsections to read:

Section 301. Definitions.--Any reference in this article to the Internal Revenue Code of 1986 shall mean the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), as amended to January 1, 1997, unless the reference contains the phrase "as amended" and refers to no other date, in which case the reference shall be to the Internal Revenue Code of 1986 as it exists as of the time of application of this article. The following words, terms and phrases when used in this article shall have the meaning ascribed to them in this section except where the context clearly indicates a different meaning:

(o.5) "Qualified student loan" means indebtedness incurred by a taxpayer to pay educational expenses, which are:

(1) incurred on behalf of the taxpayer at the time the indebtedness is incurred;

(2) paid or incurred within a reasonable period of time before or after the indebtedness is incurred; and

(3) attributable to education furnished during a period in which the recipient is a student.

The term includes indebtedness used to refinance indebtedness that qualifies as a qualified student loan. The term does not include indebtedness owed by a taxpayer to a person related to the taxpayer.

(t.1) "Student loan interest" means interest paid during the taxable year on a qualified student loan, including required and voluntary interest payments, to attend a college, university, vocational school or other postsecondary educational institution eligible to participate in a student aid program administered by the United States Department of Education.

Section 3. Section 303(a.7)(2)(i)(B) of the act is amended, the subparagraph is amended by adding a clause, the subsection is amended by adding a paragraph and the section is amended by adding subsections to read:

Section 303. Classes of Income.--* * *

(a.7) The following apply:

(2) (i) The following shall not be subject to tax under this article:

(B) [Any rollover that is excludable from tax under section 529(c)(3)(C) of the Internal Revenue Code of 1986, as amended.] Any distribution that is excludable from tax under section 529 of the Internal Revenue Code of 1986, as amended.

(E) Any amount received by an employe through an employer's matching contribution to an account as defined under Article XIX-J.

(7) An amount received from the Federal or State Government or Norfolk Southern Railway, or an agent thereof, as a result of the train derailment that occurred in East Palestine, Ohio, on February 3, 2023, shall not be considered income subject to the tax imposed by this article.

(a.11) The amount of student loan interest paid during a taxable year by a resident individual shall be deductible from taxable income on the annual personal income tax return, provided that the deduction may not:

(1) exceed two thousand five hundred dollars ($2,500) per taxable year; and

(2) result in taxable income being less than zero.

(a.12) A person may claim a deduction for depletion of a mine, oil and gas well and other natural deposit in accordance with the provisions of sections 611, 612, 613, 613A, 614, 616 and 617 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 611 et seq.) in effect on the effective date of this subsection.

Section 4. The act is amended by adding a section to read:

Section 360.1. Transfer to Clean Streams Fund.--No later than August 1, 2024, and each August 1 thereafter, the sum of fifty million dollars ($50,000,000) shall be transferred from the proceeds of the tax imposed under this article to the Clean Streams Fund established under section 1712-A.2 of the act of April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code."

Section 5. Part I heading of Article IV of the act is amended to read:

PART I

[DEFINITIONS] PRELIMINARY PROVISIONS

Section 6. Section 401(3)4(c)(1)(A) and (2)(B) of the act are amended and clause (3)1 is amended by adding phrases to read:

Section 401. Definitions.--The following words, terms, and phrases, when used in this article, shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning:

(3) "Taxable income." 1. * * *

(b.2) An additional deduction shall be allowed from the taxable income of a medical cannabis business in the amount of the ordinary and necessary expenses that were paid or incurred by the medical cannabis business during the taxable year that are ordinarily deductible for Federal income tax purposes under section 162 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 162) if no deduction for ordinary and necessary expenses paid or incurred by the medical cannabis business was taken for Federal income tax purposes for the taxable year. As used in this phrase, the term "medical cannabis business" shall mean a medical marijuana organization as defined in section 103 of the act of April 17, 2016 (P.L.84, No.16), known as the "Medical Marijuana Act," that has an active grower/processor permit during the taxable year for which the deduction is sought.

(u) (1) To the extent a taxpayer makes the adjustment required by phrase (t)(1), an affiliated entity which is subject to tax under this article on a tax base that includes the intangible expense or cost, or the interest expense or cost, paid, accrued or incurred by the taxpayer may annually elect to exclude the intangible expense or cost, or the interest expense or cost, when determining the affiliated entity's taxable income under this subclause or, or if applicable, subclause 2. If such an election is made, the taxpayer that made the adjustment required by phrase (t)(1) shall not be entitled to receive any credit against tax due in this Commonwealth as calculated under phrase (t)(1)(A) or (B).

(2) The election under paragraph (1) shall be made by the affiliated entity with the filing of its original return. The affiliated entity shall identify the name and Federal EIN of the taxpayer to which the election applies. Nothing in this paragraph shall otherwise impact nexus or apportionment of the taxpayer or the affiliated entity.

(3) In no case shall the exclusion under paragraph (1) exceed the intangible expense or cost, or the interest expense or cost, paid, accrued or incurred by the taxpayer.

4. * * *

(A) (I) For taxable years beginning before January 1, 2007, two million dollars ($2,000,000);

(II) For taxable years beginning after December 31, 2006, the greater of twelve and one-half per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 or three million dollars ($3,000,000);

(III) For taxable years beginning after December 31, 2008, the greater of fifteen per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 or three million dollars ($3,000,000);

(IV) For taxable years beginning after December 31, 2009, the greater of twenty per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 or three million dollars ($3,000,000);

(V) For taxable years beginning after December 31, 2013, the greater of twenty-five per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 or four million dollars ($4,000,000);

(VI) For taxable years beginning after December 31, 2014, the greater of thirty per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 or five million dollars ($5,000,000);

(VII) For taxable years beginning after December 31, 2017, thirty-five per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2;

(VIII) For taxable years beginning after December 31, 2018, forty per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2; [or]

(IX) For taxable years beginning after December 31, 2024, the percentage of taxable income as determined under section 401.1; or

(2) * * *

(B) The earliest net loss shall be carried over to the earliest taxable year to which it may be carried under this schedule. The total net loss deduction allowed in any taxable year shall not exceed:

(I) Two million dollars ($2,000,000) for taxable years beginning before January 1, 2007.

(II) The greater of twelve and one-half per cent of the taxable income as determined under subclause 1 or, if applicable, subclause 2 or three million dollars ($3,000,000) for taxable years beginning after December 31, 2006.

(III) The greater of fifteen per cent of the taxable income as determined under subclause 1 or, if applicable, subclause 2 or three million dollars ($3,000,000) for taxable years beginning after December 31, 2008.

(IV) The greater of twenty per cent of the taxable income as determined under subclause 1 or, if applicable, subclause 2 or three million dollars ($3,000,000) for taxable years beginning after December 31, 2009.

(V) The greater of twenty-five per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 or four million dollars ($4,000,000) for taxable years beginning after December 31, 2013.

(VI) The greater of thirty per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 or five million dollars ($5,000,000) for taxable years beginning after December 31, 2014.

(VII) Thirty-five per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 for taxable years beginning after December 31, 2017.

(VIII) Forty per cent of taxable income as determined under subclause 1 or, if applicable, subclause 2 for taxable years beginning after December 31, 2018.

(IX) The percentage of taxable income as determined under section 401.1 for taxable years beginning after December 31, 2024.

Section 7. The act is amended by adding a section to read:

Section 401.1. Determination of Net Loss Deduction.--(a) For taxable years beginning after December 31, 2024, and prior to January 1, 2026, the net loss deduction shall be determined as follows:

(1) Deduct forty per cent of taxable income as determined under subclause 1 of section 401(3) or, if applicable, subclause 2 of section 401(3), for a net loss incurred in a taxable year beginning prior to January 1, 2025.

(2) (Reserved).

(b) For taxable years beginning after December 31, 2025, and prior to January 1, 2027, the net loss deduction shall be determined as follows:

(2) For a net loss incurred in a taxable year beginning after December 31, 2024, deduct an amount equal to:

(i) fifty per cent minus the actual percentage of taxable income deducted under paragraph (1); multiplied by

(ii) the taxable income as determined under subclause 1 of section 401(3) or, if applicable, subclause 2 of section 401(3).

(c) For taxable years beginning after December 31, 2026, and prior to January 1, 2028, the net loss deduction shall be determined as follows:

(2) For a net loss incurred in a taxable year beginning after December 31, 2024, deduct an amount equal to:

(i) sixty per cent minus the actual percentage of taxable income deducted under paragraph (1); multiplied by

(ii) the taxable income as determined under subclause 1 of section 401(3) or, if applicable, subclause 2 of section 401(3).

(d) For taxable years beginning after December 31, 2027, and prior to January 1, 2029, the net loss deduction shall be determined as follows:

(2) For a net loss incurred in a taxable year beginning after December 31, 2024, deduct an amount equal to:

(i) seventy per cent minus the actual percentage of taxable income deducted under paragraph (1); multiplied by

(ii) the taxable income as determined under subclause 1 of section 401(3) or, if applicable, subclause 2 of section 401(3).

(e) For taxable years beginning after December 31, 2028, the net loss deduction shall be determined as follows:

(2) For a net loss incurred in a taxable year beginning after December 31, 2024, deduct an amount equal to:

(i) eighty per cent minus the actual percentage of taxable income deducted under paragraph (1); multiplied by

(ii) the taxable income as determined under subclause 1 of section 401(3) or, if applicable, subclause 2 of section 401(3).

Section 8. Section 701.1(b), (b.1) and (c) of the act are amended to read:

Section 701.1. Ascertainment of Taxable Amount; Exclusion of United States Obligations.--* * *

(b) A deduction for the value of United States obligations shall be provided from the taxable amount of shares in an amount equal to the same percentage of total bank equity capital as the book value of obligations of the United States bears to the book value of the total assets. In computing the deduction for United States obligations, any goodwill [recorded as a result of the use of purchase accounting for an acquisition or combination as described in this section and occurring after June 30, 2001,] deducted from the taxable amount of shares under subsection (b.1) shall be subtracted from the book value of total bank equity capital and disregarded in determining the deduction provided for obligations of the United States. For purposes of this article, United States obligations shall be obligations coming within the scope of 31 U.S.C. § 3124 (relating to exemption from taxation).

(b.1) A deduction for goodwill shall be provided from the taxable amount of shares in an amount equal to the value of any goodwill recorded [as a result of the use of purchase accounting for an acquisition or combination as described in this section] in the Reports of Condition of the institution pursuant to generally accepted accounting principles because of an acquisition or business combination and occurring after June 30, 2001.

[(c) For purposes of this section:

(1) a mere change in identity, form or place of organization of one institution, however effected, shall be treated as if a single institution had been in existence prior to as well as after such change; and

(2) if there is a combination of two or more institutions into one, the book values and deductions for United States obligations from the Reports of Condition of the constituent institutions shall be combined. For purposes of this section, a combination shall include any acquisition required to be accounted for by using the purchase method in accordance with generally accepted accounting principles or a statutory merger or consolidation.]

Section 9. Section 1102-C.6(a) and (b) of the act are amended and the section is amended by adding a subsection to read:

Section 1102-C.6. Transfer of Tax.--(a) [Subject to subsection (b), beginning] Beginning July 31, 2019, and each July 31 thereafter, the State Treasurer shall transfer from the General Fund to the Housing Affordability and Rehabilitation Enhancement Fund under Article IV-D of the act of December 3, 1959 (P.L.1688, No.621), known as the "Housing Finance Agency Law," an amount [equal to forty per cent of the difference between:

(1) the total amount of the tax imposed under section 1102-C and collected by the Commonwealth for the prior fiscal year; and

(2) the total dollar amount of such tax estimated for the fiscal year beginning July 1, 2014, and as contained in the final estimate signed by the Governor for that fiscal year as required by section 618 of the act of April 9, 1929 (P.L.177, No.175), known as "The Administrative Code of 1929."] under subsection (b).

(b) The amount transferred under subsection (a) [may not exceed] shall be equal to the following:

(1) For each fiscal year beginning after June 30, 2019, and ending prior to July 1, 2023, forty million dollars ($40,000,000).

(2) For the fiscal year beginning [July 1, 2023, and each fiscal year thereafter, sixty million dollars ($60,000,000).] after June 30, 2023, and ending prior to July 1, 2024, sixty million dollars ($60,000,000).

(3) For the fiscal year beginning after June 30, 2024, and ending prior to July 1, 2025, seventy million dollars ($70,000,000).

(4) For the fiscal year beginning after June 30, 2025, and ending prior to July 1, 2026, eighty million dollars ($80,000,000).

(5) For the fiscal year beginning after June 30, 2026, and ending prior to July 1, 2027, ninety million dollars ($90,000,000).

(6) For the fiscal year beginning July 1, 2027, and each fiscal year thereafter, one hundred million dollars ($100,000,000).

(d) Nothing in this section shall be construed to increase the rate of tax imposed under section 1102-C.

Section 10. Section 1703-H(b)(2.3) and (5)(i) of the act are amended to read:

Section 1703-H. Tax credit certificates.

(b) Review, recommendation and approval.--

(2.3) Any amount of tax credit certificates up to the annual program limit of [$5,000,000] $20,000,000 not awarded within the initial application period shall be available on a first-come, first-served basis through a process determined by the Department of Community and Economic Development.

(5) In granting tax credit certificates under this article, the Department of Community and Economic Development:

(i) Shall not grant more than [$5,000,000] $20,000,000 in tax credit certificates in any fiscal year exclusive of any tax credit certificates not awarded or returned from previous fiscal years.

Section 11. Section 1704-J(b) of the act is amended to read:

Section 1704-J. Application and approval of tax credit.

(b) Amount.--Except as otherwise provided under section 1707-J, a qualified taxpayer shall receive a tax credit equal to [$4] $8 multiplied by the tons of qualified coal refuse used to generate electricity at an eligible facility in this Commonwealth by a qualified taxpayer in the previous calendar year.

Section 12. Section 1707-J(a) and (c) of the act are amended and the section is amended by adding a subsection to read:

Section 1707-J. Limitation on tax credits.

(a) Amount.--The total amount of tax credits issued by the department may not exceed $7,500,000 in fiscal year 2016-2017, $10,000,000 in fiscal years 2017-2018 and 2018-2019 [and $20,000,000 in] , $20,000,000 in fiscal years 2019-2020, 2020-2021, 2021-2022, 2022-2023 and 2023-2024 and $55,000,000 annually beginning in the 2024-2025 fiscal year and continuing each fiscal year thereafter.

(c) Restriction.--Notwithstanding subsection (b), the department may not grant more than [22.2%] 26.5% of the amount under subsection (a) in tax credits to a single eligible facility in any fiscal year.

(d) Exception.-- In a fiscal year where the full amount of the tax credit is not utilized due to the restriction in subsection (c), a facility not receiving the full per ton tax credit for which the facility would otherwise be eligible shall be provided, on a prorated basis as described in subsection (b), up to the maximum per ton tax credit amount the facility would otherwise be authorized to receive under this section.

Section 13. The definitions of "city," "city revitalization and improvement zone," "eligible tax," "municipality" and "pilot zone" in section 1802-C of the act are amended to read:

Section 1802-C. 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:

"City." A city of the second class A or third class or a home rule city or a municipality with a population of at least 20,000 based on the most recent Federal decennial census. The term does not include a city that is determined to be distressed under the act of July 10, 1987 (P.L.246, No.47), known as the Municipalities Financial Recovery Act.

"City revitalization and improvement zone." An area of not more than 130 acres in a city or municipality , that may include an area in one or more contiguous municipalities, comprised of parcels designated by the contracting authority, which will provide economic development and job creation within a city or one or more contiguous municipalities .

"Eligible tax." Any of the following taxes:

(1) Corporate net income tax, capital stock and franchise tax, bank shares tax, personal income tax paid by shareholders, members or partners of Subchapter S corporations, limited liability companies, partnerships or sole proprietors on income other than passive activity income as defined under section 469 of the Internal Revenue Code of 1986 (Public Law 99-516, 26 U.S.C. § 1 et seq.) or business privilege tax, calculated and apportioned as to amount attributable to the location within the zone and calculated under section 1904-B(b) and (c).

(1.1) For a zone designated after July 1, 2024, insurance premiums tax, calculated and apportioned as to the amount attributable to the location within the zone and calculated under section 1904-B(c).

(2) Amusement tax, only to the extent the tax is related to the activity of a qualified business within the zone.

(3) Sales and use tax, only to the extent the tax is related to the activity of a qualified business within the zone. The term includes sales and use taxes on material used for construction in the zone and business personal property to be used by the qualified business in the zone.

(3.1) The hotel occupancy tax imposed under Part V of Article II.

(4) Personal income tax withheld from its employees by a qualified business for work performed in the zone.

(5) Local services tax withheld from its employees by a qualified business for work performed in the zone.

(6) Earned income tax withheld from its employees by a qualified business for work performed in the zone.

(7) All taxes paid to the Commonwealth, or an amount equal to all of the taxes paid to the Commonwealth, related to the purchase or sale of liquor, wine or malt or brewed beverages by a licensee located in the zone for purchases that occurred outside the zone.

The term does not include cigarette tax.

"Municipality." An incorporated town, a township or a borough. The term does not include an incorporated town, a township or a borough that is determined to be distressed under the Municipalities Financial Recovery Act.

"Pilot zone." An area of not more than 100 acres designated by the contracting authority prior to July 1, 2024, following application and approval by the Department of Community and Economic Development, the office and the department which will provide economic development and job creation within one or more municipalities, with a total population of at least 7,000 based on the most recent Federal decennial census.

Section 14. Section 1803-C of the act is amended to read:

Section 1803-C. Establishment or designation of contracting authority.

(a) Authorization.--[Except as set forth in subsection (b), a city, municipality or home rule county] The following shall apply:

(1) A city, municipality or municipalities may establish or designate a contracting authority to designate a zone under this article.

(2) The board of directors of the contracting authority of a zone designated after July 1, 2024, shall include:

(i) members with diverse skill sets in the areas of government, law, finance, banking, economic development, community development, planning, project management, project engineering, real estate development and environmental remediation;

(ii) residents of the zone and business owners located in the zone; and

(iii) residents, business owners and business representatives from the city, municipality or municipalities that created the zone.

[(b) Distressed cities.--A city that is a distressed city under the act of July 10, 1987 (P.L.246, No.47), known as the Municipalities Financial Recovery Act, and is located in a home rule county may not establish a contracting authority under this article.

(c) Counties.--The home rule county where a distressed city under the Municipalities Financial Recovery Act is located may establish a contracting authority to designate a zone under this article within the distressed city.]

Section 15. Section 1804-C(c), (d) and (e) of the act are amended and the section is amended by adding subsections to read:

Section 1804-C. Approval.

(b.2) Additional approval.--Following the effective date of this subsection, applications may be approved for:

(1) Up to two zones for one or more municipalities with a population between 7,000 and 19,999 based on the most recent Federal decennial census.

(2) Up to two zones for one or more cities or municipalities with a population of 20,000 or more based on the most recent Federal decennial census.

[(c) Approval schedule.--The Department of Community and Economic Development shall develop a schedule for the approval of applications under this section as follows:

(1) Following the effective date of this paragraph, applications for two initial city revitalization and improvement zones and one pilot zone may be approved.

(2) Beginning in 2016, applications for two additional zones may be approved each calendar year.]

(c.2) Single approval.--An application for one zone located in a city of the third class incorporated under optional charter which is located in a home rule county of the third class, is its county's seat and has a population of between 93,500 and 95,500 based on the 2020 Federal decennial census may be approved in the first year after the effective date of this subsection. A contracting authority designated under section 1803-C by a city of the third class incorporated under optional charter which is located in a home rule county of the third class, is its county's seat and has a population of between 93,500 and 95,500 based on the 2020 Federal decennial census shall have a board of directors consisting of nine members. The following shall apply:

(1) One voting member shall be appointed by the mayor and shall serve a five-year term.

(2) Two voting members shall be appointed by the State Representative of the 1st District. The following apply:

(i) One member appointed under this paragraph shall serve a two-year term.

(ii) One member appointed under this paragraph shall serve a five-year term.

(3) Two voting members shall be appointed by the State Representative of the 2nd District. The following apply:

(i) One member appointed under this paragraph shall serve a two-year term.

(ii) One member appointed under this paragraph shall serve a three-year term.

(4) Four voting members shall be appointed by the Senator from the 49th District.

(i) One member appointed under this paragraph shall serve a two-year term.

(ii) Two members appointed under this paragraph shall serve three-year terms.

(iii) One member appointed under this paragraph shall serve a five-year term.

(5) Terms specified in paragraphs (1), (2), (3) and (4) shall commence upon the date of appointment. Members may be reappointed for five-year terms following the expiration of the initial appointed term.

(6) Members serve without compensation.

(7) A vacancy on the board shall be filled by the same appointing authority as the initial appointment in accordance with paragraphs (1), (2), (3) and (4).

(d) [Time] Schedule .--The Department of Community and Economic Development shall establish [and publish] application deadlines [in the Pennsylvania Bulletin and] and publish the deadlines on its publicly accessible Internet website.

(e) Reapplication.--If an application is not approved under this section, the applicant may revise [and resubmit] the application and plan and reapply for approval.

Section 16. Section 1809-C(a) and (b) of the act are amended and the section is amended by adding a subsection to read:

Section 1809-C. Reports.

(a) State zone report.--No later than June 15 following the baseline year and each year thereafter, [or by August 31 for reports due in 2020,] each qualified business shall file a report with the department in a form or manner required by the department which includes all of the following:

(1) Amount of each eligible tax which was paid to the Commonwealth by the qualified business in the prior calendar year.

(2) Amount of each eligible tax refund received from the Commonwealth in the prior calendar year by the qualified business.

(3) The number of new jobs created by the qualified business for the prior calendar year in the zone.

(4) The total wages and salaries for employees of the qualified business for the prior calendar year in the zone.

(5) The amount of private capital investment made by the qualified business in the prior calendar year in the zone.

(a.1) Information.--Notwithstanding any other provision of law, the department may provide information obtained under subsection (a)(3), (4) and (5) to the Department of Community and Economic Development.

(b) Local zone report.--No later than June 15 following the baseline year and for each year thereafter, [or by August 31 for reports due in 2020,] each qualified business shall file a report with the local taxing authority which includes all of the following:

(1) Amount of each eligible tax which was paid to the local taxing authority by the qualified business in the prior calendar year.

(2) Amount of each eligible tax refund received from the local taxing authority in the prior calendar year by the qualified business.

Section 16.1. Section 1812-C(a) and (c) of the act are amended to read:

Section 1812-C. Transfers.

(a) Office.--Within ten days of receiving the certification from the department under section 1811-C, the office shall direct the State Treasurer to transfer the amount of certified eligible State zone tax from the General Fund to each fund of a contracting authority. The following shall apply:

(1) For zones designated after July 1, 2024, the office shall direct the State Treasurer to transfer the amount of certified eligible State zone tax up to the maximum of $15,000,000 from the General Fund to each fund of a contracting authority within ten days of receiving the certification from the department under section 1811-C.

(2) The maximum amount of certified eligible State zone tax under paragraph (1) shall be annually adjusted beginning July 1, 2025, and each July 1 thereafter to reflect any upward change in the Consumer Price Index for All Urban Consumers (CPI-U) for the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD area for the prior 12-month period.

[(c) Notification.--The following shall apply:

(1) If the transfers under subsection (a) and section 1811-C(c) are insufficient to make payments on the bonds issued under section 1813-C(a)(1) for the calendar year when the transfers are made, the contracting authority shall notify the Department of Community and Economic Development, the office and the department of the amount of the deficiency and may request the additional money necessary to make payments on the bonds.

(2) The notification under paragraph (1) must be accompanied by a detailed account of the contracting authority's expenditures and the calculation which resulted in the request for additional money. The Department of Community and Economic Development, the office or the department may request additional information from the contracting authority and shall jointly verify the proper amount of money necessary to make the payments on the bonds.

(3) Notwithstanding 53 Pa.C.S. § 5607(e) (relating to purposes and powers), within 90 days of the date of the notification request, the office shall direct the State Treasurer to establish a restricted account within the General Fund. The office shall direct the State Treasurer to transfer the amount verified under paragraph (2) from the General Fund to the restricted account for the use of the contracting authority to make payments on the bonds issued under section 1813-C(a)(1).

(4) Money transferred under paragraph (3):

(i) shall be limited to 50% of the State tax baseline amount for the calendar year prior to the date the amount is verified under paragraph (2), not to exceed $7,500,000; and

(ii) must occur in the first seven calendar years following the baseline year.

(4.1) Under extraordinary circumstances, a contracting authority may request money in excess of the limitations in paragraph (4)(i). The Department of Community and Economic Development, the office and the department shall determine whether the circumstances merit additional money and the amount to be transferred. The money shall be transferred under the procedure under this section.

(5) Money transferred under paragraph (3) shall be repaid to the General Fund by the contracting authority. If money transferred under paragraph (3) is not repaid to the General Fund by the contracting authority within 12 calendar years following the baseline year, the city, municipality or home rule county which established or designated the contracting authority shall pay the money not repaid to the General Fund plus an additional penalty of 10% of the amount outstanding on the date of the final payment on the bonds originally issued under section 1813-C(a)(1).]

Section 17. Section 1813-C(c)(1) of the act is amended and the subsection is amended by adding a paragraph to read:

Section 1813-C. Restrictions.

(1) Except as set forth in paragraph [(4),] (4) or (5), for the first five calendar years of the zone designated after July 1, 2024, if the amount of money transferred to the fund under sections 1811-C(c) and 1812-C in any one calendar year exceeds the money utilized, budgeted or appropriated by official resolution of the contracting authority under this section in that calendar year, the contracting authority may carry forward any excess up to a total sum of $3,000,000 for the five-year calendar period. For the sixth calendar year and each calendar year thereafter, if the amount of money transferred to the fund under sections 1811-C(c) and 1812-C in any one calendar year exceeds the money utilized, budgeted or appropriated by official resolution of the contracting authority under this section in that calendar year, the contracting authority shall submit by April 15 following the end of the calendar year any money not utilized, budgeted or appropriated by official resolution of the contracting authority to the State Treasurer for deposit into the General Fund.

(5) Other than a zone described in paragraph (1) or (4), for a zone designation prior to July 1, 2024, if the amount of money transferred to the fund under sections 1811-C(c) and 1812-C in any one calendar year exceeds the money utilized, budgeted or appropriated by official resolution of the contracting authority under this section in that calendar year, the contracting authority shall submit any money not utilized, budgeted or appropriated by official resolution to the State Treasurer for deposit into the General Fund by April 15 of the following calendar year.

Section 18. Sections 1814-C(a) and (b) and 1819-C(a) introductory paragraph of the act are amended to read:

Section 1814-C. Transfer of property.

(a) Property.--[Parcels in a zone] A parcel or parcels in a zone where no zone fund dollars were expended upon the parcel or parcels or where a facility has not been constructed, reconstructed or renovated using money under this article may be transferred out of the zone, if the contracting authority provides a notarized certification, confirmed in the annual audit required under section 1807-C(c), that no fund dollars were used on the [property] parcel or parcels . Additional acreage, not to exceed the acreage transferred out of the zone, may be added to the zone.

(b) [Approval.--A transfer under subsections (a) and (a.2) must be approved by the Department of Community and Economic Development in consultation with the office and the department.] Review and approval.--The following apply:

(1) A transfer may be reviewed and approved by the Department of Community and Economic Development in consultation with the office and the department. The contracting authority shall submit a written request to the Department of Community and Economic Development to approve the transfer of a parcel or parcels. In addition to the written request, the contracting authority shall submit the following to the Department of Community and Economic Development:

(i) The certification under subsection (a).

(ii) A resolution of the contracting authority board approving the transfer of the parcel or parcels.

(iii) Any additional information as required by the Department of Community and Economic Development, the office or the department.

(2) A determination regarding a request to approve a transfer of a parcel or parcels shall be made within 90 days of receipt of the written request from the contracting authority board.

Section 1819-C. Review.

(a) Department of Community and Economic Development.--By December 31, 2021, and annually each March 31 thereafter, the Department of Community and Economic Development shall, in cooperation with the office and the department, complete a review and analysis of all active zones. The review shall include an analysis of:

Section 19. The definitions of "closing date" and "rural growth investment" in section 1822-G of the act are amended and the section is amended by adding definitions to read:

Section 1822-G. Definitions.

The following words and phrases when used in this part shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Closing date." [The]

(1) With respect to program one tax credit authority, the date on which a rural growth fund has collected all of the amounts specified by section 1825-G.

(2) With respect to program two tax credit authority, either:

(i) the date on which a rural growth fund has collected all of the amounts specified under 1825-G; or

(ii) investment authority reallocated under section 1826-G(b) or 1833-G(c).

"Program one tax credit authority." Investment authority issued by the department before January 1, 2024.

"Program two tax credit authority." Investment authority issued by the department on or after January 1, 2024.

"Rural growth investment." A capital or equity investment in a rural business or any loan to a rural business with a stated maturity at least one year after the date of issuance. A secured loan or a revolving line of credit provided to a rural business is a rural growth investment only if the growth fund obtains an affidavit from the president or chief executive officer or equivalent position of the rural business attesting that the rural business sought and was denied similar financing from a commercial bank. The term does not include any investment used by a rural business or its affiliates to refinance a prior rural growth investment made with program one tax credit authority.

Section 20. Sections 1824-G(f) and 1830-G(a) of the act are amended to read:

Section 1824-G. Rural growth funds.

(f) Limitation.--The department may not approve more than $50,000,000 in investment authority with respect to program one tax credit authority and $50,000,000 in investment authority with respect to program two tax credit authority under this part.

Section 1830-G. Claiming the tax credit.

(a) Presentation.--

(1) Beginning July 1, 2020, with respect to program one tax credit authority, upon presenting a tax credit certificate to the Department of Revenue, a business firm may claim a tax credit of up to 20% of the amount awarded under section 1829-G for each of the taxable years that includes the third, fourth, fifth, sixth and seventh anniversaries of the closing date, exclusive of any tax credit amounts carried over under section 1831-G(b).

(2) Beginning July 1, 2024, with respect to program two tax credit authority, upon presenting a tax credit certificate to the Department of Revenue, a business firm may claim a tax credit of up to 20% of the amount awarded under section 1829-G for each of the taxable years that includes the third, fourth, fifth, sixth and seventh anniversaries of the closing date, exclusive of any tax credit amounts carried over under section 1831-G(b).

Section 21. Section 1833-G(a)(4) of the act is amended and the section is amended by adding a subsection to read:

Section 1833-G. Revocation of tax credit certificates.

(a) Revocation.--The department shall revoke a tax credit certificate awarded under section 1829-G if any of the following occur with respect to a rural growth fund before the rural growth fund exits the program under section 1834-G:

(4) The following apply:

(i) With respect to program one tax credit authority, the rural growth fund invests more than 20% of its investment authority, exclusive of receipts or redeemed rural growth investments, in the same rural business, including amounts invested in affiliates of the rural business.

(ii) With respect to program two tax credit authority, the rural growth fund invests more than $5,000,000 of its investment authority, exclusive of receipts or redeemed rural growth investments, in the same rural business, including amounts invested in affiliates of the rural business.

(d) Rural growth investment cap.--With respect to any one rural business, the maximum amount of rural growth investments made in that business, on a collective basis with all of its affiliates that may be counted toward the satisfaction of subsection (a), shall be $15,000,000, exclusive of receipts of redeemed rural growth investments.

Section 22. Sections 1904-A(c) and 1905-A(a) of the act are amended to read:

Section 1904-A. Tax Credit.--* * *

(c) The total amount of tax credit granted for programs approved under this act shall not exceed [thirty-six million dollars ($36,000,000)] seventy-two million dollars ($72,000,000) of tax credit in any fiscal year.

Section 1905-A. Grant of Tax Credit.--(a) The Department of Revenue shall grant a tax credit against any tax due under Article III, IV, VI, VII, VIII, IX or XV of this act, or any tax substituted in lieu thereof in an amount which shall not exceed [fifty-five] sixty-five per cent of the total amount contributed during the taxable year by a business firm or twenty-five per cent of qualified investments by a private company in programs approved pursuant to section 1904-A of this act: Provided, That a tax credit of up to [seventy-five] ninety per cent of the total amount contributed during the taxable year by a business firm or up to thirty-five per cent of the amount of qualified investments by a private company may be allowed for investment in programs where activities fall within the scope of special program priorities as defined with the approval of the Governor in regulations promulgated by the secretary, and Provided further, That a tax credit of up to [seventy-five] ninety per cent of the total amount contributed during the taxable year by a business firm in comprehensive service projects with five-year commitments and up to [eighty] ninety-five per cent of the total amount contributed during the taxable year by a business firm in comprehensive service projects with six-year or longer commitments shall be granted, and Provided further, That a tax credit of up to [seventy-five] ninety per cent of the total amount contributed during the taxable year by a business firm in veterans' housing assistance approved under section 1904-A(b.3) shall be granted. Such credit shall not exceed [five hundred thousand dollars ($500,000)] one million dollars ($1,000,000) annually for contributions or investments to fewer than four projects or [one million two hundred fifty thousand dollars ($1,250,000)] two million five hundred thousand dollars ($2,500,000) annually for contributions or investments to four or more projects. No tax credit shall be granted to any bank, bank and trust company, insurance company, trust company, national bank, savings association, mutual savings bank or building and loan association for activities that are a part of its normal course of business. Any tax credit not used in the period the contribution or investment was made may be carried over for the next five succeeding calendar or fiscal years until the full credit has been allowed. A business firm shall not be entitled to carry back or obtain a refund of an unused tax credit. The total amount of all tax credits allowed pursuant to this act shall not exceed [thirty-six million dollars ($36,000,000)] seventy-two million dollars ($72,000,000) in any one fiscal year. Of that amount, two million dollars ($2,000,000) shall be allocated exclusively for pass-through entities. However, if the total amounts allocated to either the group of applicants, exclusive of pass-through entities, or the group of pass-through entity applicants is not approved in any fiscal year, the unused portion shall become available for use by the other group of qualifying taxpayers.

Section 23. The act is amended by adding articles to read:

ARTICLE XIX-J

529 SAVINGS ACCOUNT EMPLOYER

MATCHING CONTRIBUTION TAX CREDIT

Section 1901-J. Scope of article.

This article relates to the 529 savings account employer matching contribution tax credit program.

Section 1902-J. 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:

"ABLE account." An account under the act of April 18, 2016 (P.L.128, No.17), known as the Pennsylvania ABLE Act.

"ABLE account contract." As defined in section 102 of the Pennsylvania ABLE Act.

"Account." An account owned by an employee who has entered into a Tuition Account Program Contract under the act of April 3, 1992 (P.L.28, No.11), known as the Tuition Account Programs and College Savings Bond Act, or an ABLE account contract, or a tuition account program contract or an ABLE account program administered by another state, notwithstanding the named beneficiary of the account.

"Department." The Department of Revenue of the Commonwealth.

"Matching contribution." A deposit of money by an employer into an employee-owned account during the tax year that does not exceed the amount of deposits made into that account by the employee during the same tax year.

"Pass-through entity." Any of the following:

(1) A partnership as defined in section 301(n.0).

(2) A Pennsylvania S corporation as defined in section 301(n.1).

(3) An unincorporated entity subject to section 307.21.

"State tax liability." Any of the taxes due under Article III, IV, VII, VIII, IX or XV. The term shall not include any tax withheld by an employer from an employee under Article III.

"Tax credit." The 529 savings account employer matching contribution tax credit established under section 1903-J.

"Tuition Account Program Contract." As defined in section 302 of the Tuition Account Programs and College Savings Bond Act.

Section 1903-J. Credit for employer matching contributions to tuition savings accounts and ABLE accounts.

(a) Tax credit.--For taxable years beginning after December 31, 2024, and ending before January 1, 2030, an employer that makes a matching contribution to an account owned by an employee under this article or an ABLE account may claim a tax credit against the employer's State tax liability.

(b) Amount of tax credit.--The amount of the tax credit under subsection (a) shall be equal to 25% of the employer's aggregate matching contributions made to accounts owned by employees during the tax year.

(c) Tax credit limit for employers.--The total amount of matching contributions to accounts owned by employees for which an employer may claim a tax credit shall be no more than $500 per employee during the tax year.

(d) Proof of matching contribution.--In order to receive the tax credit, an employer shall provide the department with proof that the employer has made qualifying matching contributions to employee-owned accounts under this article at the time of filing the employer's tax return.

(e) Proof of employee contribution.--In a manner prescribed by the employer, an employee shall provide to the employer evidence of the total amount deposited into the employee's account during the previous tax year.

Section 1904-J. Carryover, carryback, assignment and pass-through of credit.

(a) General rule.--If the amount of the tax credit allowed under this article exceeds the employer's tax liability in the tax year in which the tax credit is approved, the excess tax credit may be carried over to succeeding tax years for a period not to exceed three years to reduce the employer's tax liability during those tax years. The following shall apply:

(1) A tax credit that is carried over to succeeding tax years must be applied first to the earliest tax year possible.

(2) Any credit remaining after three tax years following the initial approval of a tax credit under this article shall not be refunded or credited to the employer.

(b) No carryback or refund.--An employer approved for a tax credit is not entitled to carry back or obtain a refund of all or any portion of an unused tax credit granted to the employer under this article.

(c) Pass-through entity.--If an employer is a pass-through entity and has an unused tax credit under section 1903-J, the employer may elect in writing, according to procedures established by the department, to transfer all or a portion of the credit to shareholders, members or partners in proportion to the share of the entity's distributive income to which the shareholder, member or partner is entitled. The following apply:

(1) The same unused tax credit under subsection (b) may not be claimed by:

(i) the pass-through entity; and

(ii) a shareholder, member or patron of the pass-through entity.

(2) A shareholder, member or partner of a pass-through entity to whom a credit is transferred under this subsection shall immediately claim the 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 credit.

Section 1905-J. Departmental duties.

The department shall publish guidelines and may promulgate regulations necessary for the implementation and administration of this article.

Section 1906-J. Nondiscrimination in matching contributions.

(a) Accounts owned by employees.--An employee who owns an account shall have equal opportunity to receive a matching contribution from the employer.

(b) Duty of employers.--If an employer chooses to make matching contributions to employee-owned accounts for the purposes of claiming the tax credit, the employer shall make equal matching contributions during the tax year to any employee that either owns an account or chooses to open an account while employed by the employer.

(c) Rights of employees.--An employee who owns an account may voluntarily opt out of an employer matching contribution benefit during any tax year. An employee who opts out of a matching contribution benefit from the employer during one tax year may elect to receive the matching contribution benefit during another succeeding tax year.

Section 1907-J. Report to General Assembly.

(a) Annual report.--No later than July 1, 2025, and each July 1 thereafter, the department shall submit a report to the General Assembly indicating the effectiveness of the tax credit under this article.

(b) Information required.--The report required under subsection (a) shall include the following information:

(1) The number of tax credits approved under this article.

(2) The amount of tax credits approved under this article.

(3) The number of tax credits denied and the reason for denial.

ARTICLE XIX-K

EMPLOYER CHILD CARE CONTRIBUTION TAX CREDIT

Section 1901-K. Scope of article.

This article establishes the employer child care contribution tax credit.

Section 1902-K. 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:

"Aggregate contribution." The aggregate contribution that a qualified taxpayer makes to all employees during the taxable year for which the qualified taxpayer seeks the employer child care contribution tax credit established under this article, provided that only the first $500 in contributions per employee shall count toward the aggregate contribution.

"Child-care provider." Includes:

(1) A child care center as defined under 55 Pa. Code § 3270.4 (relating to definitions).

(2) A group child care home as defined under 55 Pa. Code § 3280.4 (relating to definitions).

(3) A family child care home as defined under 55 Pa. Code § 3290.4 (relating to definitions).

"Contribution." A payment made to a child-care provider by an employer to subsidize an employee's eligible child-care costs.

"Department." The Department of Revenue of the Commonwealth.

"Eligible child-care costs." Costs incurred by an employee for services rendered by a child-care provider that are incurred to enable the employee to be gainfully employed by a qualified taxpayer.

"Employee." An individual employed by a qualified taxpayer. The term shall not include:

(1) An officer of an entity subject to tax under Article IV, VII, VIII or XV.

(2) An officer of an insurance company subject to tax under Article IX.

"Pass-through entity." Any of the following:

(1) A partnership as defined in section 301(n.0).

(2) A Pennsylvania S corporation as defined in section 301(n.1).

(3) An unincorporated entity subject to section 307.21.

"Qualified tax liability." Any of the taxes due under Article III, IV, VII, VIII or XV. The term shall not include any tax withheld by an employer from an employee under Article III.

"Qualified taxpayer." An individual, partnership, association, corporation, governmental body or unit or agency or other entity that:

(1) is subject to a tax imposed under Article III, IV, VII, VIII, IX or XV; and

(2) is required under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) to withhold Federal income tax from wages paid to an employee.

Section 1903-K. Employer child care contribution tax credit.

(a) General rule.--For taxable years beginning after December 31, 2024, a qualified taxpayer may claim the employer child care contribution tax credit for a contribution made during the taxable year toward an employee's eligible child-care costs and may apply the tax credit against its qualified tax liability.

(b) Application.--A qualified taxpayer applying to claim an employer child care contribution tax credit must complete and submit to the department a child care contribution tax credit application on a form and in a manner as determined by the department. The form shall require the qualified taxpayer to provide the following:

(1) The names, addresses and Social Security numbers of all employees to which the qualified taxpayer made a contribution during the taxable year.

(2) The names, addresses and employer identification numbers of the child-care providers that provided child-care services to each participating employee.

(3) The amount contributed to each participating employee.

(4) The aggregate contribution.

(c) Amount of tax credit.--The amount of the tax credit under subsection (a) shall be equal to 30% of the aggregate contribution made to employees during the tax year.

Section 1904-K. Carryover, carryback, refund and assignment of credit.

(a) Carryover, carryback and refund.--A qualified taxpayer is not entitled to carry forward, carry back or obtain a refund of all or a portion of an unused tax credit granted to the qualified taxpayer under this article.

(b) Sale or assignment of tax credit.--A qualified taxpayer may not sell or assign a tax credit granted to the qualified taxpayer under this article.

Section 1905-K. Pass-through entity.

(a) Election.--If the qualified taxpayer is a pass-through entity, the qualified taxpayer may elect in writing, according to procedures established by the department, to transfer all or a portion of the credit to shareholders, members or partners in proportion to the share of the qualified taxpayer's distributive income to which the shareholders, members or partners are entitled or in any other manner designated by the qualified taxpayer in accordance with its governance documents and without regard to how distributive income, losses or credits are allocated for other tax purposes.

(b) Limitation.--The same unused tax credit under subsection (a) may not be claimed by:

(1) the pass-through entity; and

(2) a shareholder, member or partner of the pass-through entity.

(c) Time.--A shareholder, member or partner of a pass-through entity under subsection (a) may only use a tax credit during a taxable year for which use of the credit is authorized. The shareholder, member or partner of the pass-through entity may not carry forward, carry back, obtain a refund of or sell or assign the tax credit.

Section 1906-K. Exclusion from classes of income.

Notwithstanding any other provision of law, contributions made under this article to an employee's eligible child-care costs during the taxable year may not be included in any of the classes of income enumerated under section 303.

Section 1907-K. Nondiscrimination in contributions.

(a) Employees.--An employee who has incurred eligible child-care costs shall have equal opportunity to receive a contribution from the employer.

(b) Duty of employers.--If an employer chooses to make contributions to a child-care provider for the purposes of claiming the tax credit, the employer shall make equal contributions during the tax year to any employee that has eligible child-care costs.

Section 1908-K. Regulations.

(a) Promulgation.--The department shall promulgate regulations to implement the provisions of this article.

(b) Guidelines.--The department shall develop written guidelines for the implementation of this article. The guidelines shall be in effect until the department promulgates regulations for the implementation of the provisions of this article.

Section 1909-K. Tax compliance.

The provisions of Article XVII-A.1 apply to the application of this article.

Section 1910-K. Applicability.

The provisions of this article shall apply to taxable years beginning after December 31, 2024.

Section 24. Section 2901-D of the act is amended by adding definitions to read:

Section 2901-D. 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:

"Blockchain." A distributed ledger technology in which the data is:

(1) shared across a network that creates a digital ledger of verified transactions or information among network participants; and

(2) typically linked using cryptography to maintain the integrity of the digital ledger and execute other functions, including the transfer of ownership or value.

"Proof of work crypto-asset mining." The process of performing computations to add a valid block of data to a blockchain, excluding computations required to validate individual transactions, typically in exchange for a reward or fee.

Section 25. Section 2931-D(c)(2) of the act is amended by adding a subparagraph to read:

Section 2931-D. Sales and use tax exemption.

(2) Computer data center equipment used by the certified computer data center for any of the following purposes:

(iii) Proof of work crypto-asset mining.

Section 26. The act is amended by adding an article to read:

ARTICLE XXIX-I

TUITION ACCOUNT PROGRAMS

Section 2901-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:

"Account." As defined in section 302 of the act of April 3, 1992 (P.L.28, No.11), known as the Tuition Account Programs and College Savings Bond Act.

"Account owner." As defined in section 302 of the Tuition Account Programs and College Savings Bond Act.

"Beneficiary." As defined in section 302 of the Tuition Account Programs and College Savings Bond Act.

"Tuition Account Program Contract." As defined in section 302 of the Tuition Account Programs and College Savings Bond Act.

Section 2902-I. Fees.

Notwithstanding section 313(c) of the act of April 3, 1992 (P.L.28, No.11), known as the Tuition Account Programs and College Savings Bond Act, the Treasury Department may not impose a fee on the termination of an account if the termination was a result of the death or disability of the beneficiary.

Section 2903-I. Taxation of payment.

Notwithstanding section 313(d) of the act of April 3, 1992 (P.L.28, No.11), known as the Tuition Account Programs and College Savings Bond Act, if a Tuition Account Program Contract is terminated under section 313(a) of the Tuition Account Programs and College Savings Bond Act, a payment received by an account owner from the Treasury Department shall not be considered in the classes of income under section 303 for the purpose of computing the tax under Article III.

Section 27. The amendment of section 701.1(b), (b.1) and (c) of the act shall apply to the ascertainment of the taxable amount of shares after December 31, 2024, and to the report and the payment of the bank and trust company shares tax due after March 14, 2025.

Section 28. The General Assembly finds and declares as follows:

(1) The amendment of section 701.1(b), (b.1) and (c) of the act shall not be relied upon to:

(i) ascertain the taxable amount of shares for a period prior to January 1, 2025;

(ii) ascertain the amount of tax due prior to March 15, 2025; or

(iii) authorize a refund of a tax paid for a period for which a report was due prior to March 15, 2025, beyond the extent to which the refund would have otherwise been due notwithstanding the amendment of section 701.1(b), (b.1) and (c) of the act.

(2) In ascertaining the taxable amount of shares for a period prior to January 1, 2025, the amount of goodwill subtracted and disregarded in calculating the deduction for United States obligations under section 701.1(b) of the act, and the amount of goodwill deducted from the taxable amount of shares under section 701.1(b.1) of the act, shall be determined based on the law as in effect prior to the effective date of this section, without any inference that the amendment of section 701.1(b), (b.1) and (c) of the act expanded, or confirmed any administrative determination that limited or restricted, the extent to which goodwill could be subtracted and disregarded under section 701.1(b) of the act or deducted under section 701.1(b.1) of the act.

Section 29. A computer data center that has met the eligibility requirements and has been certified under Article XXIX-D prior to the effective date of this section shall be deemed to meet the certification requirements of Article XXIX-D. The certification may not be revoked, except as provided under section 2917-D of the act, and shall remain in effect for the remainder of the qualification period, as defined in section 2931-D(d).

Section 30. The amendment, addition or repeal of the following sections of the act shall apply as follows:

(1) Section 204(76) shall apply to transactions occurring after September 30, 2024.

(2) Section 301(o.5) and (t.1) shall apply to taxable years commencing after December 31, 2023.

(3) Section 303(a.7)(7) shall apply to taxable years commencing after December 31, 2022.

(4) Section 303(a.11) shall apply to taxable years commencing after December 31, 2024.

(5) Section 303(a.12) shall apply to taxable years commencing after December 31, 2023.

(6) Section 401(3)1(b.2) shall apply to taxable years commencing after December 31, 2023.

(7) Section 401(3)1(u) shall apply to taxable years commencing after December 31, 2022.

(8) Section 1703-H(b) shall apply to fiscal years beginning after June 30, 2024.

(9) Sections 1704-J(b), 1707-J(a), (c) and (d), 1904-A(c) and 1905-A(a) shall apply to fiscal years beginning after June 30, 2024.

(10) Sections 1822-G, 1824-G, 1830-G and 1833-G shall apply to fiscal years beginning after June 30, 2024.

(11) Articles XIX-J and XIX-K shall apply to taxable years commencing after December 31, 2024.

(12) Sections 2901-D and 2931-D(c)(2)(iii) shall apply to taxable years commencing after December 31, 2025.

Section 31. This act shall take effect as follows:

(1) The following shall take effect immediately:

(i) The amendment, addition or repeal of the following:

(A) Section 204(76) of the act.

(B) Section 301(o.5) and (t.1) of the act.

(D) Section 360.1 of the act.

(E) Section 401(3)1(b.2) and (u) of the act.

(F) Section 401.1 of the act.

(G) Section 701.1(b), (b.1) and (c) of the act.

(H) Section 1102-C.6(a), (b) and (d) of the act.

(I) Sections 1704-J(b) and 1707-J(a), (c) and (d) of the act.

(J) Sections 1802-C, 1803-C, 1804-C(b.2), (c), (c.2), (d) and (e), 1809-C(a) and (b), 1812-C(a) and (c), 1813-C(c)(1) and (5), 1814-C(a) and (b) and 1819-C(a) introductory paragraph of the act.

(K) Sections 1822-G, 1824-G, 1830-G and 1833-G of the act.

(L) Sections 1904-A(c) and 1905-A(a) of the act.

(M) Articles XIX-J, XIX-K and XXIX-I of the act.

(ii) This section and sections 27, 28, 29 and 30 of this act.

(2) The amendment of sections 2901-D and 2931-D(c)(2)(iii) shall take effect December 31, 2025.

(3) The remainder of this act shall take effect in 60 days.

APPROVED--The 11th day of July, A.D. 2024.

JOSH SHAPIRO

Pennsylvania Act 2024-56 — TAX REFORM CODE OF 1971 - OMNIBUS AMENDMENTS

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