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PRINTER'S NO. 2737
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2116
Session of
2026
INTRODUCED BY CIRESI, GUZMAN, RIVERA, HANBIDGE, SHUSTERMAN,
McNEILL, HOHENSTEIN, GUENST, HARKINS, GALLAGHER, SAPPEY,
KINKEAD, BOROWSKI, D. WILLIAMS, DONAHUE, PARKER, HILL-EVANS,
SANCHEZ, NEILSON, INGLIS AND CEPEDA-FREYTIZ, JANUARY 7, 2026
REFERRED TO COMMITTEE ON FINANCE, JANUARY 8, 2026
AN ACT
Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), entitled "An act providing for taxation by school
districts, for the State funds formula, for tax relief in
first class cities, for school district choice and voter
participation, for other school district options and for a
task force on school cost reduction; making an appropriation;
prohibiting prior authorized taxation; providing for
installment payment of taxes; restricting the power of
certain school districts to levy, assess and collect taxes;
and making related repeals," in tax relief in cities of the
first class, further providing for supplemental senior
citizen tax reduction; and, in senior citizens property tax
and rent rebate assistance, providing for income calculation
and further providing for property tax and rent rebate.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 704(a)(1) of the act of June 27, 2006
(1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
Act, is amended to read:
Section 704. Supplemental senior citizen tax reduction.
(a) Eligibility.--Beginning in the first year in which a
payment under section 505(b) is made and each year thereafter,
the following apply:
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(1) Except as provided in paragraph (2), any resident of
a city of the first class, a city of the second class A or a
resident of a school district of the first class A who is
eligible to receive a property tax rebate under Chapter 13
[and has a household income, as defined under section 1303,
equal to or less than $30,000] shall be eligible to receive
an additional property tax rebate equal to 50% of the amount
the individual is eligible to receive under Chapter 13.
* * *
Section 2. The act is amended by adding a section to read:
Section 1303.1. Income calculation.
For the purposes of calculating income under this chapter,
income shall be reduced by the face amount of property taxes
paid by the claimant on the claimant's primary residence
regardless of whether the taxes were paid in the discount, face
or penalty period.
Section 3. Section 1304 of the act is amended to read:
Section 1304. Property tax; and rent rebate.
(a) Schedule of rebates.--
(1) (Reserved).
(2) The following apply:
(i) The base amount of any claim for property tax
rebate for real property taxes due and payable during
calendar year 2023 and thereafter shall be determined in
accordance with the following schedule:
Household Income
Amount of Real Property Taxes
Allowed as Rebate
$ 0 - $ 8,000 $1,000
8,001 - 15,000 770
15,001 - 18,000 460
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18,001 - 45,000 380
(ii) [The] Except as otherwise provided in paragraph
(5), the supplemental amount for a claimant with [a
household income equal to or less than $30,000 and] an
eligible claim for property tax rebate for real property
taxes due and payable during the calendar year preceding
the first year in which a payment under section 505(b) is
made and each year thereafter and whose real property
taxes exceed 15% of the claimant's household income shall
be equal to 50% of the base amount determined under
subparagraph (i). A claimant who is a resident of a city
of the first class, a city of the second class A or a
school district of the first class A shall be ineligible
for the supplemental amount under this subparagraph.
(3) The following apply:
(i) The base amount of any claim for rent rebate in
lieu of property taxes for rent due and payable during
calendar year 2023 and thereafter shall be determined in
accordance with the following:
Household Income
Amount of Rent Rebate in
Lieu of Property Taxes
Allowed as Rebate
$ 0 - $ 8,000 $1,000
8,001 - 15,000 770
15,001 - 18,000 460
18,001 - 45,000 380
(ii) Except as otherwise provided in paragraph (5),
the supplemental amount for a claimant with an eligible
claim for rent rebate in lieu of property taxes and whose
gross rent actually paid exceeds 75% of the claimant's
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household income shall be equal to 50% of the base amount
determined under subparagraph (i).
(4) The household income limits contained in paragraphs
(2)(i) and (ii) and (3) shall be increased by a percentage
equal to the percentage change in the Consumer Price Index
for All Urban Consumers statistics published by the United
States Bureau of Labor Statistics. Any increase shall be
rounded to the nearest $10. The percentage change shall be
determined by comparison of the figure for the previous July,
with that of the current July figure. If the Consumer Price
Index declines for a given period, the household income limit
shall be unchanged for that year. The secretary shall, within
10 days following the determination, transmit notice of the
determination to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin.
(5) The supplemental amount for a claimant with an
eligible claim for both a property tax rebate and a rent
rebate in lieu of property taxes whose combined total of real
property taxes and one-fifth of gross rent actually paid
exceeds 15% of the claimant's household income shall be equal
to 50% of the base amount determined under paragraph (2)(ii).
A claimant who is a resident of a city of the first class, a
city of the second class A or a school district of the first
class A shall be ineligible for the supplemental amount under
this subparagraph.
(b) Limitations on claims.--
(1) No claim through calendar year 2005 shall be allowed
if the amount of property tax or rent rebate computed in
accordance with this section is less than $10, and the
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maximum amount of property tax or rent rebate payable shall
not exceed $500.
(2) For calendar year 2006 and thereafter, the maximum
amount of property tax or rent rebate in lieu of property
taxes payable shall not exceed the lesser of:
(i) the amount of a claim under subsection (a)(2) or
(3);
(ii) the amount of real property taxes actually
paid; or
(iii) 20% of gross rent actually paid.
(3) No claim shall be allowed if the claimant is a
tenant of an owner of real property exempt from real property
taxes.
(c) Apportionment [and public assistance].--
(1) If any of the following exist relating to a claim:
(i) a homestead is owned or rented and occupied for
only a portion of a year or is owned or rented in part by
a person who does not meet the qualifications for a
claimant, exclusive of any interest owned or leased by a
claimant's spouse;
(ii) the claimant is a widow or widower who
remarries; or
(iii) the claimant is a formerly disabled person who
is no longer disabled,
the department shall apportion the real property taxes or
rent in accordance with the period or degree of ownership or
leasehold or eligibility of the claimant in determining the
amount of rebate for which a claimant is eligible.
[(2) A claimant who receives public assistance from the
Department of Public Welfare shall not be eligible for rent
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rebate in lieu of property taxes during those months within
which the claimant receives public assistance.]
(d) Government subsidies.--Rent shall not include subsidies
provided by or through a governmental agency.
Section 4. This act shall take effect in 60 days.
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