An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for a disaster lodging tax credit.

PRINTER'S NO. 13
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 34
Session of
2025
INTRODUCED BY CONKLIN, SANCHEZ, GIRAL, HILL-EVANS, HARKINS AND
FLEMING, JANUARY 10, 2025
REFERRED TO COMMITTEE ON FINANCE, JANUARY 10, 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 tax credit and tax benefit administration,
further providing for definitions; and providing for a
disaster lodging 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 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:
* * *
"Tax credit." A tax credit authorized under any of the
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following:
(1) Article XVII-B.
(2) Article XVII-D.
(3) Article XVII-E.
(4) Article XVII-G.
(5) Article XVII-H.
(6) Article XVII-I.
(7) Article XVII-J.
(8) Article XVII-K.
(8.1) Article XVII-L.
(9) Article XVIII.
(10) Article XVIII-B.
(11) Article XVIII-D.
(12) Article XVIII-E.
(13) Article XVIII-F.
(14) Article XVIII-G.
(14.1) Article XVIII-H.
(15) Article XIX-A.
(15.1) Article XIX-C.
(16) Article XIX-E.
(16.1) Article XIX-F.
(16.2) Article XIX-L.
(17) Section 2010.
(19) Article XX-B of the act of March 10, 1949 (P.L.30,
No.14), known as the Public School Code of 1949.
(20) The act of December 1, 2004 (P.L.1750, No.226),
known as the First Class Cities Economic Development District
Act.
(21) 12 Pa.C.S. Ch. 34 (relating to Infrastructure and
Facilities Improvement Program).
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(22) Any other program established by a law of this
Commonwealth in which a person applies for and receives a
credit against a tax. This paragraph shall not apply to a
credit against a tax liability as a result of an overpayment.
* * *
Section 2. The act is amended by adding an article to read:
ARTICLE XIX-L
DISASTER LODGING TAX CREDIT
Section 1901-L. Scope of article.
This article establishes the disaster lodging tax credit
program.
Section 1902-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:
"Beneficiary." A resident of this Commonwealth whose primary
residence located within this Commonwealth was affected by a
disaster to whom a qualified hotel or recreational campground
provides a discount. The term shall not include a resident of
this Commonwealth for whom housing was made available, as a
result of a disaster, through a Federal or State disaster relief
program.
"Department." The Department of Revenue of the Commonwealth.
"Disaster." A man-made disaster or natural disaster that
represents a direct and immediate threat to the primary
residence of a beneficiary, such that the primary residence is
rendered uninhabitable or inaccessible.
"Discount." A discount of not more than 100% on
accommodations provided to a beneficiary by a qualified hotel or
recreational campground.
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"Man-made disaster." An industrial, nuclear or
transportation accident, sinkhole, explosion, conflagration,
power failure, natural resource shortage or other condition,
except enemy action, resulting from man-made causes, including
oil spills and other environmental contamination, which
threatens or causes substantial damage to property or
individuals, loss of life or other hardships.
"Natural disaster." A hurricane, tornado, storm, flood, high
water, wind-driven water, tidal wave, earthquake, landslide,
mudslide, snowstorm, drought, fire, sinkhole, explosion or other
catastrophe not resulting from a man-made cause which threatens
or causes substantial damage to property or individuals,
possible loss of life or other hardships.
"Qualified hotel." A hotel, as defined in section 209(a)
(1.4), that is located in this Commonwealth and that provides a
discount.
"Qualifying tax liability." A tax paid by a qualified hotel.
"Recreational campground." As follows:
(1) A lodging establishment located in this Commonwealth
organized to accommodate five or more separate, designated
campsites for shelter in either privately owned or
campground-owned lodging. The property may:
(i) Include amenities, such as site-specific
electric and sewer hookups, public bath houses,
convenience stores, recreational areas or pools.
(ii) Permit seasonal sites.
(iii) Not require seasonal guests to have month-to-
month agreements.
(iv) Allow approved guests to leave a trailer on the
site throughout the year but not maintain a permanent
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residence.
(2) The term does not include a recreational vehicle or
tent campsite in a State park.
"Rent." As defined in section 209(a)(6).
"Tax credit." A tax credit under this article.
Section 1903-L. Tax credit.
(a) Eligibility.--A qualified hotel or recreational
campground that provides a discount shall be eligible for a tax
credit equal to 100% of the discount provided.
(b) Limitation.--A qualified hotel or recreational
campground may receive a tax credit for a discount for not more
than 90 nights per accommodation rented by a beneficiary.
Section 1904-L. Procedure.
(a) Application.--
(1) A qualified hotel or recreational campground may
apply to the department for a tax credit.
(2) The application must be submitted to the department
by March 31 for the tax credit claimed for a discount
provided to a beneficiary during the prior calendar year.
(3) The application must be on a form and in the manner
determined by the department and must include the following:
(i) certification under subsection (b);
(ii) information required by the department to
verify that the applicant is a qualified hotel or
recreational campground; and
(iii) any other information as the department deems
appropriate.
(b) Certification.--A beneficiary must certify, on a form
and in the manner determined by the department, that the
beneficiary's primary residence was directly and immediately
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threatened by a man-made disaster or natural disaster.
(c) Review and approval.--
(1) The department shall review each application and
shall issue an approval or disapproval by December 31 of each
year.
(2) Upon approval, the department shall issue a
certificate stating the amount of tax credit granted for
discounts provided in the prior calendar year.
Section 1905-L. Carryover, carry back, refund and assignment of
tax credit.
(a) Use.--A tax credit shall first be applied against the
qualifying tax liability of the qualified hotel or recreational
campground during the tax year in which the qualified hotel or
recreational campground provided a discount.
(b) Carryover.--If the qualified hotel or recreational
campground cannot use the entire amount of the tax credit during
the taxable year in which the qualified hotel or recreational
campground provided a discount, the excess may be carried over
to succeeding taxable years and used as a credit against the
qualifying tax liability of the qualified hotel or recreational
campground for those taxable years. Each time that the tax
credit is carried over to a succeeding taxable year, the tax
credit shall be reduced by the amount that was used as a credit
during the immediately preceding taxable year. The tax credit
may be carried over and applied to succeeding taxable years for
no more than five taxable years following the first taxable year
for which the qualified hotel or recreational campground was
entitled to claim the tax credit.
(c) Carryback and refund.--A qualified hotel or recreational
campground may not carry back nor obtain a refund of an unused
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tax credit.
(d) Sale or assignment.--A qualified hotel or recreational
campground may not sell nor assign a tax credit granted to the
qualified hotel or recreational campground.
Section 1906-L. Regulations.
(a) Promulgation.--The department may promulgate regulations
to implement and administer this article. The regulations may
provide additional guidance as to what constitutes a disaster.
(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 this article.
Section 1907-L. Report.
The department shall, by March 31 of the succeeding year,
issue a report on the costs of the tax credit to the Governor,
the President pro tempore of the Senate, the Majority Leader and
Minority Leader of the Senate, the Speaker of the House of
Representatives and the Majority Leader and Minority Leader of
the House of Representatives.
Section 3. This act shall take effect in 60 days.
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