An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, providing for tax credit for Pennsylvania child learning investment.

PRINTER'S NO. 2030
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1662
Session of
2025
INTRODUCED BY WHITE, M. MACKENZIE, NEILSON, KAUFFMAN, BERNSTINE
AND ROWE, JUNE 25, 2025
REFERRED TO COMMITTEE ON FINANCE, JUNE 25, 2025
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection, for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
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Commonwealth," providing for tax credit for Pennsylvania
child learning investment.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.343, No.176), known
as The Fiscal Code, is amended by adding an article to read:
ARTICLE XVI-Z.1
PENNSYLVANIA CHILD LEARNING
INVESTMENT TAX CREDIT PROGRAM
Section 1601-Z.1. Scope of article.
This article relates to the Pennsylvania Child Learning
Investment Tax Credit Program.
Section 1602-Z.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:
"Department." The Department of Revenue of the Commonwealth.
"Eligible child." A child of school-age who:
(1) has not yet received a high school diploma;
(2) currently resides within the attendance boundary of
a public school;
(3) is eligible to attend a school district under the
act of March 10, 1949 (P.L.30, No.14), known as the Public
School Code of 1949; and
(4) is not enrolled in a public school for the taxable
year.
"Nonpublic school." As defined under section 923.3-A of the
Public School Code of 1949.
"Public school." As defined under section 1101-B of the
Public School Code of 1949.
"Qualified learning expenses." Expenses incurred by a
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taxpayer that is a parent or legal guardian of an eligible
child, including:
(1) Tuition and fees at a nonpublic school.
(2) Textbooks or curriculum materials.
(3) Fees for after-school or summer education programs
provided by a nonpublic school.
(4) Tutoring services.
(5) Educational software and applications.
(6) Fees for standardized and nationally recognized
tests, including college admissions tests and advanced
placement examinations and related preparatory courses.
(7) Education services for students with disabilities
from a licensed or accredited practitioner or education
service provider.
(8) Contracted services provided by a public school
district, including specific classroom instruction.
"Tax credit." The Pennsylvania Child Learning Investment Tax
Credit provided for under this article.
"Tax liability." The liability for taxes imposed under
Article III of the Tax Reform Code of 1971, excluding any tax
withheld by an employer under Article III of the Tax Reform Code
of 1971.
"Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
"Taxable year." As defined under section 301 of the Tax
Reform Code of 1971.
"Taxpayer." A resident individual subject to the tax imposed
under Article III of the Tax Reform Code of 1971.
Section 1603-Z.1. Credit for child learning investment
expenses.
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(a) Creation of tax credit.--For each taxable year beginning
after December 31, 2025, a taxpayer shall be allowed a tax
credit against the tax imposed under Article III of the Tax
Reform Code of 1971 for each eligible child who is not enrolled
in a public school for the taxable year to be used for qualified
learning expenses.
(b) Amount.--The credit shall be $8,000 per child per
taxable year.
(c) Claim of tax credit.--A taxpayer shall claim a tax
credit under this section on a return filed under section 330 of
the Tax Reform Code of 1971.
(d) Tax credit refund.--The tax credit under this section
shall be applied against the taxpayer's tax liability. If the
tax credit exceeds the taxpayer's tax liability, the department
shall issue a refund under the procedures specified in section
346 of the Tax Reform Code of 1971.
(e) Prorating of tax credit.--In the case of a child
enrolled in a public school for a portion of the taxable year
and in a nonpublic school for a portion of the taxable year, the
amount of the credit awarded to the taxpayer shall be prorated.
(f) Distribution of tax credit.--
(1) The department shall allow taxpayers to claim the
credit when filing an annual tax return or through advanced
installments.
(2) The department shall prescribe applications for the
purposes of claiming the credits in advance and a deadline by
which applications for the advance shall be submitted.
(3) A taxpayer shall choose to receive the credit:
(i) as a direct deposit electronically to a banking
account provided by the taxpayer; or
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(ii) by certified mail to a legal address.
Section 1604-Z.1. Regulations.
The Secretary of Revenue may issue rules and promulgate
regulations necessary to implement and administer this article.
Section 2. This act shall take effect in 60 days.
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