An Act providing for school-to-work programs; establishing the CareerBound Program; providing for the CareerBound Tax Credit Program; and conferring powers and imposing duties on the Department of Community and Economic Development and the Department of Labor and Industry.

PRINTER'S NO. 945
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 904
Session of
2025
INTRODUCED BY M. MACKENZIE AND STAATS, MARCH 13, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 13, 2025
AN ACT
Providing for school-to-work programs; establishing the
CareerBound Program; providing for the CareerBound Tax Credit
Program; and conferring powers and imposing duties on the
Department of Community and Economic Development and the
Department of Labor and Industry.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the CareerBound
Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Board." As defined in section 103 of the Workforce
Development Act.
"Business partner." A business entity authorized to do
business in this Commonwealth that employs individuals in a
high-priority occupation.
"CareerBound." The program established in section 3.
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"Department." The Department of Labor and Industry of the
Commonwealth.
"High-priority occupation." An occupation that is included
in the list issued by the department under section 1302(e) of
the Workforce Development Act.
"Institution of higher education." Includes any of the
following:
(1) A community college operating under Article XIX-A of
the act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949.
(2) A university within the State System of Higher
Education.
(3) The Pennsylvania State University.
(4) The University of Pittsburgh.
(5) Temple University.
(6) Lincoln University.
(7) Any other institution that the Commonwealth
designates as a State-related institution of higher
education.
(8) The Thaddeus Stevens College of Technology.
(9) Any accredited private or independent college or
university.
"Local workforce development board." As defined in section
103 of the Workforce Development Act.
"Participating agency." Includes the Department of Education
and the Department of Community and Economic Development of the
Commonwealth.
"Pass-through entity." Any of the following:
(1) A partnership as defined in section 301(n.0) of the
Tax Reform Code.
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(2) A single-member limited liability company treated as
a disregarded entity for Federal income tax purposes.
(3) A Pennsylvania S corporation as defined in section
301(n.1) of the Tax Reform Code.
"Payment." An amount of money paid in consideration for a
tax credit under section 7.
"Program partners." All entities that participate in a
school-to-work program.
"Qualified taxpayer." A business partner or a taxpayer that
has been approved for a tax credit under section 7.
"School partner." A school district, area career and
technical school, intermediate unit, charter school or cyber
charter school.
"School-to-work program." A program that has been approved
to participate in CareerBound.
"Soft skills." As follows:
(1) The workplace interpersonal and professional skills
that are necessary for an employee to adhere to generally
accepted workplace behaviors.
(2) The term includes work ethic, promptness, integrity
and respect for others.
"Tax liability." An amount of tax due under Article III, IV,
VI, VII, VIII, IX or XV of the Tax Reform Code or under Article
XVI of the act of May 17, 1921 (P.L.682, No.284), known as The
Insurance Company Law of 1921.
"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.
"Taxpayer." As follows:
(1) A business entity authorized to do business in this
Commonwealth and subject to taxes imposed under Article III,
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IV, VI, VII, VIII, IX or XV of the Tax Reform Code or a tax
under Article XVI of The Insurance Company Law of 1921.
(2) The term includes a pass-through entity.
"Workforce Development Act." The act of December 18, 2001
(P.L.949, No.114), known as the Workforce Development Act.
Section 3. CareerBound program.
(a) Establishment.--The CareerBound Program is established
within the department.
(b) Administration.--The department shall administer
CareerBound to empower local workforce development boards,
school partners and business partners to collaboratively develop
and implement innovative school-to-work programs to do all of
the following:
(1) Provide students with career exploration
opportunities and exposure to high-priority occupations to
enable each student to make an informed decision on a future
career path.
(2) Provide local workforce development boards with the
funding and support necessary to convene school partners and
business partners to implement innovative school-to-work
programs.
(3) Provide business partners with an opportunity to
participate in a tax credit program and to develop
collaborative relationships with school partners and local
workforce development boards so that the next generation of
workers is well-equipped to meet the demand for high-priority
occupations.
(4) Provide school partners with the funds and framework
to deliver to students a relevant and rigorous curriculum
that prepares students for high-priority occupations.
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(5) Provide program partners with informational
resources to help them conduct successful school-to-work
programs.
Section 4. School-to-work program requirements.
(a) Curriculum.--The curriculum for a school-to-work program
must include one or more of the following components:
(1) Early exposure. Curricula approved under this
paragraph must provide students with a broad orientation to
the tools, processes and procedures used by individuals
employed in a high-priority occupation. Activities may
include student visits to a business partner's facilities for
company tours, demonstrations, field trips and lessons to
familiarize students with the basic features of a high-
priority occupation.
(2) Practical exposure. Curricula approved under this
paragraph must provide students with a detailed understanding
of the tools, processes and procedures used by individuals
employed in a high-priority occupation. Activities may
include extended visits by students to a business partner's
facilities for demonstrations, job shadowing and hands-on
experience with the duties and skills necessary to be
employed in a high-priority occupation.
(3) Extended exposure. Curricula approved under this
paragraph must provide students with an in-depth
understanding of the tools, processes and procedures used by
individuals employed in a high-priority occupation.
Activities may include preapprenticeships, apprenticeships,
internships and cooperative learning opportunities to give
students practical knowledge that could be directly
applicable to a high-priority occupation.
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(b) Occupational focus.--Curricula approved under subsection
(a) must be focused on providing students with exposure to high-
priority occupations that are either designated as high-priority
occupations Statewide or within the region served by the local
workforce development board.
(c) Soft skills development.--Curricula approved under
subsection (a) must include some instruction on the development
of soft skills.
Section 5. Application and approval process.
(a) Application.--A local workforce development board may
submit an application to the department requesting approval for
participation in CareerBound.
(b) Application requirements.--A completed application must
describe the proposed school-to-work program on a form and in a
manner prescribed by the department. An application must include
all of the following:
(1) A list of program partners, including a declaration
of interest by at least one school partner and at least one
business partner. The program partners may include
institutions of higher education, nonprofit business-support
entities and economic development agencies.
(2) A description of proposed curricula, encompassing at
least one component listed in section 4(a)(1), (2) and (3).
(3) A projection of annual costs associated with the
proposed school-to-work program, including:
(i) an enumeration of any opportunities to leverage
other funding and programming resources; and
(ii) a plan for how the school-to-work program will
be funded after the first four school years.
(4) A list of high-priority occupations that are the
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focus of the proposed school-to-work program.
(5) Documentation of any commitment by a business
partner that plans to make payment to CareerBound and seeks
to utilize the tax credit provisions in section 7, including
the amount the business partner has agreed to contribute
during each of the first four school years.
(6) A start date for the proposed school-to-work program
that shall approximately coincide with the beginning of the
school year for the school partners.
(7) A list of clear objectives and measurable goals that
the proposed school-to-work program seeks to achieve.
(8) Documentation of an agreement among the program
partners describing the role of each program partner within
the proposed school-to-work program and the expectations that
each program partner agrees to fulfill.
(c) Approval process.--
(1) The department, in consultation with participating
agencies and the board as needed, shall approve school-to-
work programs for participation in CareerBound. When
determining how many new school-to-work programs to approve
annually, the department shall consider the following:
(i) Tax credit obligations to business partners for
school-to-work programs approved in prior years.
(ii) An estimate of the amount of tax credits that
will be approved under section 7 over the next four-year
period.
(iii) An estimate of the amount of financial support
from business partners and other sources for proposed
school-to-work programs.
(2) Priority shall be given to a proposed school-to-work
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program demonstrating one or more of the following
characteristics:
(i) Substantial program integration across
educational levels, including use of multiple curriculum
components listed in section 4(a).
(ii) An ability to leverage other funding and
programming resources.
(iii) A commitment from a business partner to
provide preferred interviews to students completing the
school-to-work program.
(3) Additional consideration shall be given to a
proposed school-to-work program that:
(i) includes multiple business partners or multiple
school partners;
(ii) targets middle school or early high school
students for early exposure activities; or
(iii) is integrated into a school partner's
curriculum as a credit course.
(d) Contractual relationship.--Within 30 days of the
completion of the approval process, the department shall enter
into a contract with each local workforce development board that
submitted an application that was approved. The contract shall
require the signatories to provide the services described in the
approved school-to-work program from funds designated for that
purpose in the application or from funds identified by the
participating agencies for this purpose under the general
appropriation act.
(e) Termination.--The department, in consultation with
participating agencies and the board as needed, may terminate a
school-to-work program for failure to comply with program
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requirements.
(f) Expiration of CareerBound Tax Credit support.--A school-
to-work program shall not be eligible for support from the
CareerBound Tax Credit Program established under section 7 after
the end of the fourth school year of operation. The following
apply:
(1) Beginning with the fifth school year, the school
partners and business partners shall assume responsibility
for the funding of the school-to-work program.
(2) This subsection shall not be construed to prohibit a
school-to-work program from applying for or accepting Federal
or State grant funding or from receiving funding through the
local workforce development board, after the expiration of
CareerBound tax credit support.
Section 6. Operation.
(a) Cooperative management.--In collaboration with the
participating agencies and the board, the department shall:
(1) Manage the operation of CareerBound.
(2) Establish an application process.
(3) Enumerate outcome-based metrics by which school-to-
work programs will be evaluated in the reports under section
8.
(4) Institute guidelines and procedures as necessary to
implement CareerBound.
(b) Informational resources.--In collaboration with the
participating agencies and the board, the department shall
provide informational resources to help program partners conduct
successful school-to-work programs.
(c) Availability of tax credits.--The department shall
regularly consult with participating agencies to determine the
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availability of tax credits for business partners when
determining how many new school-to-work programs to approve.
Section 7. CareerBound Tax Credit Program.
(a) Establishment.--The CareerBound Tax Credit Program is
established to encourage private investment in school-to-work
programs approved under section 5.
(b) Application and approval of tax credit.--
(1) A business partner or a taxpayer that contributes to
an approved school-to-work program may apply to the
Department of Community and Economic Development for a tax
credit under this act. The following apply:
(i) The application must be submitted to the
Department of Community and Economic Development for the
tax credit claimed for payments made in support of an
approved school-to-work program.
(ii) The application shall be due as follows:
(A) A business partner shall:
(I) Make an initial application within 60
days of signing the contract under section 5(d).
(II) Submit verification of payment no later
than March 1 after making a payment in support of
an approved school-to-work program during the
prior calendar year.
(B) A taxpayer that is not a business partner
shall apply no later than March 1 after making a
payment in support of an approved school-to-work
program during the prior calendar year.
(iii) The application must be on the form required
by the Department of Community and Economic Development,
which shall include the following:
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(A) Information required by the Department of
Community and Economic Development to document the
amount of a payment made in support of an approved
school-to-work program.
(B) Information required by the Department of
Community and Economic Development to verify that the
applicant is a business partner or other taxpayer.
(C) The amount that a business partner has
contracted to pay in support of an approved school-
to-work program for each of the next four years, if
applicable.
(D) Any other information as the Department of
Community and Economic Development deems appropriate.
(2) The following apply to review and approval:
(i) The Department of Community and Economic
Development shall review each application and shall issue
an approval or disapproval within 60 days of receipt of
the application. The following apply:
(A) An approval or disapproval of an initial
application by a business partner shall be for each
of the years included in the four school years for
which the school-to-work program was approved.
(B) An approval or disapproval of an application
by a qualified taxpayer that is not a business
partner or a verification of payment by a business
partner shall be for the most recently ended calendar
year.
(ii) Upon approval of a tax credit for a payment to
an approved school-to-work program during the prior
calendar year, the Department of Community and Economic
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Development shall notify the Department of Revenue to
issue a certificate to the qualified taxpayer for a
payment that is made during the prior calendar year. The
certificate shall state the amount of the tax credit and
the procedure for the use of the tax credit awarded under
this act.
(iii) Subject to paragraph (3)(ii), business
partners making payments agreed to in the contract under
section 5(d) shall receive preference for tax credits
under this section.
(3) The following apply to the availability of tax
credits:
(i) Each fiscal year, the amount of $10,000,000 in
tax credits shall be made available by the Department of
Community and Economic Development in accordance with
this act.
(ii) Twenty percent of the total amount of tax
credits under subparagraph (i) shall be reserved for
qualified taxpayers that are not business partners.
(iii) A portion of the total amount of tax credits
under subparagraph (i) shall be reserved for approved
business partners, based on the information required on
the initial application under paragraph (1)(iii)(C).
(iv) The amount of a tax credit awarded to a
qualified taxpayer under this act shall be as follows:
(A) For a qualified taxpayer that is a business
partner, the tax credit shall be equal to 90% of the
amount of the payment in support of an approved
school-to-work program during the prior calendar
year.
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(B) For a qualified taxpayer that is not a
business partner, the tax credit shall be equal to
75% of the amount of the payment in support of an
approved school-to-work program during the prior
calendar year.
(C) Notwithstanding any other provision of this
act, the Department of Community and Economic
Development shall not award a qualified taxpayer a
total amount of tax credits that exceeds $500,000 in
the taxable year for which the tax credit was
approved.
(c) Use of tax credits.--
(1) Prior to sale or assignment of a tax credit under
subsection (e), a qualified taxpayer must first use a tax
credit against the qualified tax liability incurred in the
taxable year for which the tax credit was approved.
(2) The tax credit may be applied against up to 50% of
the qualified taxpayer's qualified tax liabilities incurred
in the taxable year for which the tax credit was approved.
(d) Carryover, carryback and refund.--A tax credit may not
be carried back, carried forward or used to obtain a refund.
(e) Sale or assignment.--
(1) If a qualified taxpayer holds a tax credit through
the end of the calendar year in which the tax credit was
granted, the qualified taxpayer may sell or assign the tax
credit, in whole or in part, if the sale is effective by the
close of the following calendar year.
(2) (i) To sell or assign a tax credit, a qualified
taxpayer must file an application for the sale or
assignment of the tax credit with the Department of
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Community and Economic Development. The application must
be on a form required by the Department of Community and
Economic Development.
(ii) To approve an application, the Department of
Community and Economic Development must receive a finding
from the Department of Revenue that the applicant has:
(A) Filed all required State tax reports and
returns for all applicable taxable years.
(B) Paid any balance of State tax due as
determined by assessment or determination by the
Department of Community and Economic Development and
not under timely appeal.
(iii) Upon approval by the Department of Community
and Economic Development, a qualified taxpayer may sell
or assign, in whole or in part, a tax credit.
(f) Purchasers and assignees.--
(1) A purchaser or assignee of a tax credit under
subsection (e) must claim the tax credit in the calendar year
in which the purchase or assignment is made.
(2) The amount of the tax credit that a purchaser or
assignee under subsection (e) may use against any one
qualified tax liability may not exceed 50% of any of the
qualified tax liabilities of the purchaser or assignee for
the taxable year.
(g) Resale and assignment.--
(1) A purchaser under subsection (e) may not sell or
assign the purchased tax credit.
(2) An assignee under subsection (e) may not sell or
assign the assigned tax credit.
(h) Notice.--The purchaser or assignee under subsection (e)
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shall notify the Department of Community and Economic
Development of the seller or assignor of the tax credit in
compliance with procedures specified by the Department of
Community and Economic Development.
(i) Pass-through entity.--
(1) If a pass-through entity has an unused tax credit,
the pass-through entity may elect, in writing, according to
procedures established by the Department of Community and
Economic Development, to transfer all or a portion of the tax
credit to shareholders, members or partners in proportion to
the share of the entity's distributive income to which the
shareholders, members or partners are entitled.
(2) The same unused tax credit may not be claimed by
both the pass-through entity and a shareholder, member or
partner of the pass-through entity.
(3) The amount of the tax credit that a transferee under
paragraph (1) may use against any one qualified tax liability
may not exceed 20% of any qualified tax liabilities for the
taxable year.
(4) A transferee under paragraph (1) must claim the tax
credit in the calendar year in which the transfer is made.
(5) A transferee under paragraph (1) may not sell or
assign the tax credit.
(j) Administration.--The Department of Community and
Economic Development shall develop written guidelines for the
implementation of this section.
Section 8. Annual reports.
(a) Requirement.--Within 60 days of the end of each school
year in which a school-to-work program is in operation, the
department, participating agencies and the board shall jointly
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submit a report regarding the implementation of CareerBound and
the school-to-work programs over the previous school year.
(b) Contents.--The annual report under subsection (a) must:
(1) Include information about each school-to-work
program, including whether the school-to-work program
achieved the clear objectives and measurable goals proposed
under section 5(b)(7), an analysis of the school-to-work
program according to the outcome-based metrics enumerated by
the department in section 6(a)(3), the number of
participating students and the amount spent.
(2) Identify best practices observed from among the most
successful school-to-work programs.
(3) Include the names of the qualified taxpayers
utilizing the tax credit as of the date of the report and the
amount of tax credits approved for, utilized by or sold or
assigned by a qualified taxpayer.
(c) Submittal.--The annual report under subsection (a) shall
be submitted to:
(1) The Governor.
(2) The Auditor General.
(3) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(4) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(5) The chairperson and minority chairperson of the
Education Committee of the Senate.
(6) The chairperson and minority chairperson of the
Education Committee of the House of Representatives.
(7) The chairperson and minority chairperson of the
Labor and Industry Committee of the Senate.
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(8) The chairperson and minority chairperson of the
Labor and Industry Committee of the House of Representatives.
Section 9. Effective date.
This act shall take effect in one year.
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