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PRINTER'S NO. 3436
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2536
Session of
2026
INTRODUCED BY FLEMING, WAXMAN, SHUSTERMAN, SAPPEY, BRENNAN,
KAZEEM, HILL-EVANS, SANCHEZ, OTTEN, MADDEN, MAYES, BOYD,
D. WILLIAMS, INGLIS, CURRY AND CEPEDA-FREYTIZ, MAY 26, 2026
REFERRED TO COMMITTEE ON FINANCE, MAY 27, 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," in tax credit and tax benefit administration,
further providing for definitions; and providing for direct
support professionals tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "tax credit" in section 1701-
A.1 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 paragraph to read:
Section 1701-A.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:
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"Tax credit." A tax credit authorized under any of the
following:
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(8.2) Article XVII-M.
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Section 2. The act is amended by adding an article to read:
ARTICLE XVII-M
DIRECT SUPPORT PROFESSIONALS TAX CREDIT
Section 1701-M. Scope of article.
This article relates to the direct support professionals tax
credit.
Section 1702-M. 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.
"Direct support professional." An individual who is employed
to provide direct support professional services.
"Direct support professional services." Services provided to
individuals with developmental or intellectual disabilities,
including assistance with activities of daily living, health
care support, habilitation services and employment assistance.
"Qualified taxpayer." A taxpayer who is employed as a direct
support professional and who meets the eligibility requirements
under section 1703-M(a).
"Tax credit." The direct support professionals tax credit
authorized under this article.
"Tax liability." The liability for taxes imposed under
Article III.
"Taxpayer." An individual subject to taxes imposed under
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Article III.
Section 1703-M. Tax credit.
(a) Application.--A qualified taxpayer may apply for a tax
credit under this article against the qualified taxpayer's tax
liability in a manner determined by the department. The
application shall include all of the following:
(1) The name and tax identification number of the
qualified taxpayer.
(2) Documentation that the qualified taxpayer is
employed as a direct support professional.
(3) Any other information that the department may
require.
(b) Form.--The department shall post the tax credit
application on the department's publicly accessible Internet
website.
(c) Filing.--A qualified taxpayer shall submit an
application for a tax credit as an attachment to the qualified
taxpayer's return filed under section 330.
(d) Notification.--The department shall notify the applicant
of the status of the tax credit approval within 60 days of
receipt of a completed application.
(e) Eligibility.--For taxable years beginning after December
31, 2025, a qualified taxpayer shall be eligible for a credit
not to exceed $1,000 against the qualified taxpayer's tax
liability. A qualified taxpayer with an adjusted gross income of
$100,000 or more shall not be eligible for the tax credit under
this article.
(f) Refundability.--If the amount of the tax credit
allowable under this section exceeds the qualified taxpayer's
tax liability, the department shall refund the excess to the
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qualified taxpayer.
(g) Limitation.--The total amount of tax credits authorized
under this article shall not exceed $2,000,000 in any fiscal
year. If the total amount of tax credits claimed exceeds the
limit specified under this subsection, the department shall
allocate the credits on a pro rata basis among all eligible
claimants.
(h) Guidelines.--The department may publish guidelines
necessary to implement and administer the provisions of this
article.
Section 1704-M. Report to General Assembly.
(a) Report.--No later than December 31, 2026, and by
December 31 of each year thereafter, the department shall submit
a report on the administration of the tax credit under this
article.
(b) Contents.--The report shall include all of the
following:
(1) The number of qualified taxpayers who claimed the
tax credit.
(2) The total amount of tax credits approved.
(3) Any recommendations for changes in the calculation
or administration of the tax credit.
(c) Recipients.--The report shall be submitted to all of the
following:
(1) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(2) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(3) The chairperson and minority chairperson of the
Health and Human Services Committee of the Senate.
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(4) The chairperson and minority chairperson of the
Human Services Committee of the House of Representatives.
Section 1705-M. Expiration.
The authority of the department to approve claims for tax
credits under this article shall expire December 31, 2030.
Section 3. This act shall take effect immediately.
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