An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Homebuyer Rebate Program.

PRIOR PRINTER'S NO. 1681 PRINTER'S NO. 2713
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1450
Session of
2025
INTRODUCED BY DAVIDSON, KUTZ, KHAN, GUZMAN, WAXMAN, GIRAL,
McNEILL, KENYATTA, OTTEN, SANCHEZ, HILL-EVANS, CEPEDA-
FREYTIZ, HOWARD, BRENNAN, BOYD, MADDEN, MALAGARI, NEILSON,
CIRESI, DEASY, CERRATO, GILLEN, FLEMING, SCHLOSSBERG AND
BELLMON, MAY 12, 2025
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, DECEMBER 17, 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 realty transfer tax, further providing for
transfer of tax; providing for Homebuyer Rebate Program; and
establishing the Homebuyer Rebate Program Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1102-C.6 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 subsection to read:
Section 1102-C.6. Transfer of Tax.--* * *
(e) Beginning July 31, 2026, and each July 31 thereafter,
the State Treasurer shall transfer an amount equal to ten per
cent of the tax collected under this article into the Homebuyer
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Rebate Program Fund established under section 1905-L.
Section 2. The act is amended by adding an article to read:
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:
ARTICLE XIX-L
HOMEBUYER REBATE PROGRAM
Section 1901-L. 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." T HE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
"Domicile." As defined in section 501 of the act of December
31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
Act.
"Fund." The Homebuyer Rebate Program Fund established under
section 1905-L.
"Homebuyer Rebate Program." The program established under
section 1902-L.
"Homestead." A dwelling, including the parcel of land on
which the dwelling is located and the other improvements located
on the parcel for which any of the following apply:
(1) The dwelling is primarily used as the domicile of an
owner who is a natural person.
(2) The dwelling is one of the following:
(i) A unit in a condominium as the term is defined
in 68 Pa.C.S. § 3103 (relating to definitions) and the
unit is primarily used as the domicile of a natural
person who is an owner of the unit.
(ii) The dwelling is a unit in a cooperative as the
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term is defined in 68 Pa.C.S. § 4103 (relating to
definitions) and the unit is primarily used as the
domicile of a natural person who is an owner of the unit.
"Qualified homebuyer." An individual who meets all of the
following:
(1) Has not either:
(i) Previously purchased a home within this
Commonwealth.
(ii) Purchased a home within this Commonwealth
within five years prior to the date of application for
the Homebuyer Rebate Program.
(1) HAS NOT PREVIOUSLY PURCHASED A HOME.
(2) Intends to purchase the home for use as a homestead.
(3) IF MARRIED, HAS A SPOUSE WHO HAS NOT COLLECTED A
REBATE UNDER SECTION 1904-L.
"Tax liability." The portion of the realty transfer tax due
under Article XI-C for the transfer of the homestead that the
qualified homebuyer agreed to pay under a written agreement
between the seller of the homestead and the qualified homebuyer.
Section 1902-L. Homebuyer Rebate Program.
The Homebuyer Rebate Program is established within the
Department of Revenue DEPARTMENT .
Section 1903-L. Claims.
(a) Filing.--Beginning January 1, 2026, a qualified
homebuyer may file a claim with the department for a rebate
under this section ARTICLE on a form developed by the
department. Except as otherwise provided in subsection (b), the
claim shall be filed with the department on or before June 30 of
the year next succeeding the end of the calendar year in which
the realty transfer tax was due and payable.
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(b) Exception.--A claim filed after the June 30 deadline
until December 31 of a calendar year shall be accepted by the
Secretary of Revenue if money is available to pay the benefits
to the late-filing claimant.
(c) Contents of claim.--Each claim shall include, at a
minimum:
(1) The size and nature of the homestead being
purchased.
(2) The amount paid by the claimant for the homestead.
(3) The amount of realty transfer tax due under Article
XI-C for the transfer of the homestead.
(4) Proof of payment of the claimant's tax liability.
(5) Reasonable proof of the claimant's status as a
qualified homebuyer.
(d) Eligibility of claimants.--
(1) Only one claimant from a homestead each year shall
be entitled to the rebate.
(2) If two or more individuals meet the definition of a
qualified homebuyer for the same homestead during the same
year, the individuals may determine who the claimant shall
be.
(3) If the individuals are unable to agree, the
department shall determine to whom the rebate is to be paid.
(e) Approval of claim.--If the department determines that
the claimant meets the definition of a qualified homebuyer and
has paid the claimant's tax liability, the department shall
approve the claim and shall, as soon as practicable, make
payment from the fund for the approved claim.
(E) APPROVAL OF CLAIM.--
(1) IF THE DEPARTMENT DETERMINES THAT THE CLAIMANT MEETS
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THE DEFINITION OF A QUALIFIED HOMEBUYER AND HAS PAID THE
CLAIMANT'S TAX LIABILITY, THE DEPARTMENT SHALL APPROVE THE
CLAIM AND SHALL, AS SOON AS PRACTICABLE, MAKE PAYMENT FOR THE
APPROVED CLAIM.
(2) THE APPROVAL OF CLAIMS SHALL BE MADE ON A FIRST-
COME, FIRST-SERVED BASIS.
(3) THE TOTAL AMOUNT OF CREDITS APPROVED SHALL NOT
EXCEED THE AMOUNT SPECIFIED UNDER SECTION 1905-L.
Section 1904-L. Amount of rebate.
(A) ELIGIBILITY.-- A qualified homebuyer whose claim has been
approved under this section ARTICLE is eligible for a rebate of
$2,500.
Section 1905-L. Homebuyer Rebate Program Fund.
(a) Establishment.--The Homebuyer Rebate Program Fund is
established in the State Treasury.
(b) Amount.--Ten percent of the tax collected under Article
XI-C shall be deposited annually into the fund.
(c) Use of money.--Money from the fund shall be used to pay
claims under this article.
(B) REFUND.--IF A QUALIFIED HOMEBUYER WHOSE CLAIM HAS BEEN
APPROVED UNDER THIS ARTICLE SELLS THE HOMESTEAD WITHIN FIVE
YEARS OF RECEIVING THE REBATE UNDER THIS ARTICLE, THE CLAIMANT
SHALL REFUND TO THE DEPARTMENT THE REBATE ON A PRO RATA BASIS.
SECTION 1905-L. ALLOCATION.
(A) AVAILABILITY OF MONEY.--TEN PERCENT OF THE TAX COLLECTED
UNDER ARTICLE XI-C SHALL BE MADE AVAILABLE ON AN ANNUAL BASIS TO
CARRY OUT THE PURPOSES OF THIS ARTICLE.
(B) PROCEDURE.--UPON REQUEST OF THE DEPARTMENT, THE STATE
TREASURER SHALL TRANSFER MONEY IN ACCORDANCE WITH SUBSECTION
(A).
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Section 1906-L. Fraudulent claims to obtain benefits.
(a) Civil penalty.--In a case in which a claim is excessive
and was filed with fraudulent intent, the claim shall be
disallowed in full and a penalty of 25% of the amount claimed
shall be imposed. The penalty and the amount of the disallowed
claim, if the claim has been paid, shall bear interest at the
rate of 1.5% per month from the date of the claim until repaid.
(b) Criminal penalty.--The claimant and any person who
assisted in the preparation or filing of a fraudulent claim
commits a misdemeanor of the third degree and, upon conviction
thereof, shall be sentenced to pay a fine not exceeding $1,000
or to imprisonment not exceeding one year, or both.
Section 1907-L. Petition for redetermination.
(a) Right to file.--A claimant whose claim is either denied,
corrected or otherwise adversely affected by the department may
file with the department a petition for redetermination on forms
supplied by the department within 90 days after the date of
mailing of written notice by the department of the action.
(b) Contents.--The petition shall set forth the grounds upon
which the claimant alleges that the departmental action is
erroneous or unlawful, in whole or part, and shall contain an
affidavit or affirmation that the facts contained in the
petition are true and correct.
(c) Extension of time for filing.--An extension of time for
filing the petition may be allowed for cause but may not exceed
120 days.
(d) Hearings.--The department shall hold hearings as may be
necessary for the purpose of redetermination and each claimant
who has duly filed a petition for redetermination shall be
notified by the department of the time when and the place where
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the hearing for the claimant's case will be held.
(e) Time period for decision.--The department shall, within
six months after receiving a filed petition for redetermination,
dispose of the matters raised by the petition and shall mail
notice of the department's decision to the claimant.
(f) Review of redetermination.--Within 90 days after the
date of official receipt by the claimant of the decision on a
petition for redetermination, the claimant who is adversely
affected by the decision may by petition request the Board of
Finance and Revenue to review the action.
Section 1908-L. Review by Board of Finance and Revenue.
(a) Right to review.--Within 90 days after the date of
official receipt by the claimant of a decision on a petition for
redetermination, the claimant who is adversely affected by the
decision may by petition request the Board of Finance and
Revenue to review the action.
(b) No decision.--The failure of the department to
officially notify the claimant of a decision within the six-
month period under section 1311 of the act of June 27, 2006 (1st
Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act,
shall be deemed a denial of the petition and a petition for
review may be filed with the Board of Finance and Revenue within
120 days after written notice is officially received by the
claimant that the department has failed to dispose of the
petition within the six-month period.
(c) Contents of petition.--A petition for redetermination
shall state the reasons upon which the claimant relies or shall
incorporate by reference the petition for redetermination in
which the reasons were stated. The petition shall be supported
by affidavit that the facts set forth therein are correct and
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true.
(d) Time period for decision.--The board shall act in
disposition of petitions filed within six months after the
petition has been received. In the event of failure of the Board
of Finance and Revenue to dispose of a petition within six
months, the action taken by the department upon the petition for
redetermination shall be deemed sustained.
(e) Relief authorized by board.--The Board of Finance and
Revenue may sustain the action taken by the department on the
petition for redetermination or the board may take other action
as deemed necessary and consistent with this article.
(f) Form of notice.--Notice of the action of the Board of
Finance and Revenue shall be given by mail to the department and
to the claimant.
SECTION 1907-L. PETITION FOR REDETERMINATION.
A CLAIMANT WHOSE CLAIM IS EITHER DENIED, CORRECTED OR
OTHERWISE ADVERSELY AFFECTED BY THE DEPARTMENT MAY PETITION THE
DEPARTMENT FOR REASSESSMENT IN ACCORDANCE WITH ARTICLE XXVII.
Section 1909-L 1908-L . Appeal.
A claimant aggrieved by a decision of the Board of Finance
and Revenue may appeal from the decision of the board in the
manner provided by law for appeals from decisions of the board
in tax cases.
Section 1910-L 1909-L . Report.
(a) Duty.--The department shall prepare a report on the
Homebuyer Rebate Program.
(b) Contents.--The report shall include:
(1) A description of the demand for the program.
(2) The efforts made by the department to promote the
program.
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(3) The total number of rebates issued under the
program, the average amount of rebate issued and the average
amount of realty transfer tax paid by recipients of rebates.
(4) An assessment of the effectiveness of the program in
meeting the goals of this article.
(5) A recommendation as to whether the program should be
renewed and, if so, any recommendations for legislation that
may improve the effectiveness of the program.
(6) Any other information deemed relevant by the
department.
(c) Submission.--The department shall submit the report to
the Governor and the General Assembly on January 31, 2030.
Section 1911-L. Regulations.
(a) Regulations.--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 1910-L. DUTIES OF DEPARTMENT.
THE DEPARTMENT SHALL:
(1) INCLUDE NOTIFICATION OF ELIGIBILITY REQUIREMENTS AND
APPLICATION MATERIALS ON ANY CURRENT FORMS OR PAPERWORK USED
FOR THE COLLECTION OR PAYMENT OF THE TAX UNDER ARTICLE XI-C.
(2) DEVELOP WRITTEN GUIDELINES FOR THE IMPLEMENTATION
AND ADMINISTRATION OF THIS ARTICLE.
Section 1912-L 1911-L . Expiration.
This article shall expire December 31, 2030.
Section 3 2. This act shall take effect immediately.
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