An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for deer processor's tax credit.

PRIOR PRINTER'S NO. 2862 PRINTER'S NO. 3610
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2193
Session of
2026
INTRODUCED BY PASHINSKI, HILL-EVANS, FREEMAN, ZIMMERMAN, MADDEN,
CEPEDA-FREYTIZ, GOUGHNOUR, BURGOS AND CAUSER,
FEBRUARY 3, 2026
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 16, 2026
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," providing for deer processor's tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-M
DEER PROCESSOR'S TAX CREDIT
Section 1701-M. Scope of article.
This article relates to a deer processor's tax credit.
Section 1702-M. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Accepting registered public charity." An institution that
meets the criteria under section 5 of the act of November 26,
1997 (P.L.508, No.55), known as the Institutions of Purely
Public Charity Act, and accepts venison as a means of feeding
the hungry.
"Department." The Department of Revenue of the Commonwealth.
"Pass-through entity." Any of the following:
(1) A partnership, limited partnership, limited
liability company, business trust or other unincorporated
entity that for Federal income tax purposes is taxable as a
partnership.
(2) A Pennsylvania S corporation.
"Qualified processing expense." The expense a processor
incurs as a result of processing a single deer, from which the
meat is being donated for the sole purpose of human consumption.
"Qualified tax liability."
(1) The liability for taxes imposed under Article III,
IV or VI III OR IV .
(2) The term includes the liability for taxes imposed
under Article III on a shareholder of a pass-through entity.
"Tax credit." The deer processor's tax credit authorized
under this article.
"Taxpayer."
(1) An entity subject to tax under Article III, IV or VI
III OR IV .
(2) The term includes the shareholder, owner or member
of a pass-through entity that applies for or receives a tax
credit.
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Section 1703-M. Tax credit for qualified processing expense.
(a) Application.--
(1) A taxpayer may apply for a tax credit as provided in
this article if the taxpayer incurs a qualified processing
expense while donating the taxpayer's service to an
individual who wishes to donate all of the consumable venison
from a single deer to an accepting registered public charity.
(2) By September 15, the taxpayer described in paragraph
(1) must submit an application to the department for a
qualified processing expense incurred in the taxable year
that ended in the prior calendar year.
(b) Accountability.--The qualifying processor must retain
for recordkeeping purposes each appropriate Pennsylvania Game
Commission numbered and issued ear tag that is affixed to each
deer being donated.
(c) Receipt.--
(1) Subject to paragraph (2), a taxpayer that is
qualified under subsection (a) shall receive a tax credit for
the taxable year in the amount of $100 per deer processed.
(2) The maximum tax credit amount which a taxpayer that
is qualified under subsection (a) shall receive may not
exceed $5,000 for the taxable year.
(d) Notification.--By December 15 of the calendar year
following the close of the taxable year during which the
qualified processing expense was incurred, the department shall
notify the taxpayer of the amount of the taxpayer's tax credit
approved by the department.
Section 1704-M. Carryover, carryback, refund and application of
tax credit.
(a) Carryover.-- If a taxpayer cannot use the entire amount
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of the tax credit for the taxable year in which the tax credit
is first approved, the excess may be carried over to succeeding
taxable years and used as a credit against the qualified tax
liability of the taxpayer for those taxable years. The following
apply to the carryover:
(1) Each time that the tax credit is carried over to a
succeeding taxable year, it is to be reduced by the amount
that was used as a credit during the immediately preceding
taxable year.
(2) The tax credit may be carried over and applied to
succeeding taxable years for no more than 15 FIVE taxable
years following the first taxable year for which the taxpayer
was entitled to claim the tax credit.
(b) Application.--A tax credit approved by the department
for a qualified processing expense in a taxable year first shall
be applied against the taxpayer's qualified tax liability for
the current taxable year as of the date on which the tax credit
was approved before the tax credit is applied against any
qualified tax liability under subsection (a).
(c) No carryback or refund.--A taxpayer is not entitled to
carry back or obtain a refund of an unused tax credit.
Section 1705-M. Limitation on credits.
(a) Total amount.--The total amount of tax credits approved
by the department shall not exceed $200,000 in any fiscal year.
(b) Allocation of tax credits.--Tax credits under this
article shall be provided on a first-come, first-served basis
until all annual available tax credits have been allocated.
Section 1706-M. Shareholder, owner or member pass-through.
(a) Application to Pennsylvania S corporations.--If a
Pennsylvania S corporation does not have a qualified tax
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liability against which the tax credit may be applied, a
shareholder of the Pennsylvania S corporation is entitled to a
tax credit equal to the tax credit determined for the
Pennsylvania S corporation for the taxable year multiplied by
the percentage of the Pennsylvania S corporation's distributive
income to which the shareholder is entitled.
(b) Other applications.--If a pass-through entity other than
a Pennsylvania S corporation does not have a qualified tax
liability against which the tax credit may be applied, an owner
or member of the pass-through entity is entitled to a tax credit
equal to the tax credit determined for the pass-through entity
for the taxable year multiplied by the percentage of the pass-
through entities' distributive income to which the owner or
member is entitled.
(c) Additional credit.--
(1) Except as provided in paragraph (2), the tax credit
provided under subsection (a) or (b) is in addition to any
tax credit to which a shareholder, owner or member of a pass-
through entity is otherwise entitled under this article.
(2) A pass-through entity and a shareholder, owner or
member of a pass-through entity may not claim a tax credit
under this article for the same qualified processing expense.
SECTION 1706-M. PASS-THROUGH ENTITY.
(A) TRANSFER.--IF A PASS-THROUGH ENTITY HAS ANY UNUSED TAX
CREDIT, IT 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.
(B) LIMITATION.--A PASS-THROUGH ENTITY AND A SHAREHOLDER,
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MEMBER OR PARTNER OF A PASS-THROUGH ENTITY SHALL NOT CLAIM THE
CREDIT UNDER SUBSECTION (A) FOR THE SAME QUALIFIED LIABILITY.
(C) APPLICATION.--A SHAREHOLDER, MEMBER OR PARTNER OF A
PASS-THROUGH ENTITY TO WHOM A CREDIT IS TRANSFERRED UNDER
SUBSECTION (A) 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 1707-M. Regulations GUIDELINES .
The department shall promulgate regulations necessary MAY
DEVELOP WRITTEN GUIDELINES for the implementation and
administration of this article.
Section 2. This act shall apply to taxable years beginning
after December 31, 2024 2025.
Section 3. This act shall take effect July 1, 2026, or
immediately, whichever is later.
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