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PRINTER'S NO. 1668
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1307
Session of
2026
INTRODUCED BY BAKER, COSTA, KANE AND MILLER, MAY 1, 2026
REFERRED TO FINANCE, MAY 1, 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 Historic Barn Preservation Tax
Credit and for regulations; and imposing powers and duties on
the Department of Community and Economic Development.
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 XIX-L
HISTORIC BARN PRESERVATION TAX CREDIT
Section 1901-L. Scope of article.
This article establishes the Historic Barn Preservation Tax
Credit.
Section 1902-L. Definitions.
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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:
"Agrotourism." Farm-related tourism or farm-related
entertainment activity that takes place on agricultural land and
allows members of the general public, whether or not for a fee,
to tour, explore, observe, learn about, participate in or be
entertained by an aspect of agricultural production, harvesting,
husbandry or rural lifestyle that occurs on the farm.
"Costs of rehabilitation or restoration." Costs attributed
to the rehabilitation or restoration of a historic barn,
including, but not limited to:
(1) historic decorative elements;
(2) upgrading of the structural, mechanical, electrical
and plumbing systems; and
(3) architectural fees and alterations to make the
historic barn suitable for agricultural or agrotourism use.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Historic barn." A structure that is:
(1) located within this Commonwealth;
(2) used:
(i) to store farm implements, hay, feed, grain or
any other agricultural or horticultural products;
(ii) to house poultry, livestock or other farm
animals;
(iii) as a milk house;
(iv) for a manner directly and customarily
associated with agricultural use; or
(v) for a manner directly and customarily associated
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with agrotourism use; and
(3) at least 50 years old.
"Qualified taxpayer." Any natural person, corporation,
business trust, limited liability company, partnership, limited
liability partnership, association or any other form of legal
business entity that:
(1) Has not failed to file a State tax return for any
taxable year and does not have an outstanding balance or
unpaid taxes.
(2) Owns a historic barn.
"Tax credit." The Historic Barn Preservation Tax Credit
established under section 1903-L(a).
Section 1903-L. Historic Barn Preservation Tax Credit.
(a) Establishment.--The Historic Barn Preservation Tax
Credit is established to encourage restoration and continued use
of historic barns in this Commonwealth. The department shall
administer the tax credit in accordance with this article.
(b) Tax credit.--For taxable years beginning after December
31, 2026, a qualified taxpayer may claim the tax credit for the
costs of rehabilitation or restoration of a historic barn and
may apply the tax credit against its qualified tax liability.
(c) Availability.--
(1) Beginning in fiscal year 2026-2027 and each fiscal
year thereafter, no more than $10,000,000 in tax credits may
be awarded per fiscal year in accordance with this article.
(2) In addition to the amount allocated under paragraph
(1), any unallocated tax credits from the preceding fiscal
year may be allocated.
(d) Maximum amount.--The amount of the tax credit shall be
the lesser of:
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(1) 25% of the total incurred costs of rehabilitation or
restoration; or
(2) $100,000.
(e) Availability of tax credits.--Tax credits shall be made
available by the department on a first-come, first-served basis.
(f) Application.--Within 120 days of the effective date of
this subsection and in consultation with the following, the
department shall promulgate an application process, including an
application form, by which qualified taxpayers may apply for the
tax credit:
(1) The Department of Agriculture.
(2) The Pennsylvania Historical and Museum Commission.
(3) Other stakeholders knowledgeable in the topics of
preservation of Pennsylvania's historic barns, agriculture or
agrotourism.
Section 1904-L. Use of tax credit.
(a) Carryover.--If a qualified taxpayer cannot use the
entire amount of the tax credit for the taxable year in which
the tax credit was awarded, the excess tax credit may be carried
over to succeeding taxable years and used as a credit against
the qualified tax liability of the qualified taxpayer, never to
exceed the original credit amount.
(b) Carryback and refund.--A qualified taxpayer is not
entitled to carry back or obtain a refund of all or a portion of
an unused tax credit granted to the qualified taxpayer under
this article.
(c) Sale or assignment of tax credit.--A qualified taxpayer
may not sell or assign a tax credit granted to the qualified
taxpayer under this article.
Section 1905-L. Regulations.
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The department shall promulgate rules and regulations
necessary to implement this article.
Section 1906-L. Expiration.
The department may not approve an application for a tax
credit under this article after December 31, 2036.
Section 2. This act shall take effect in 60 days.
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