An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in institutions of higher education, establishing the PA WORKS Scholarship Grant Program and the trade career-incentive tax credit.

PRINTER'S NO. 1824
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1380
Session of
2026
INTRODUCED BY YAW, A. WILLIAMS, PICOZZI, BARTOLOTTA, PENNYCUICK,
GEBHARD, LANGERHOLC, MILLER, ROBINSON AND VOGEL,
JUNE 18, 2026
REFERRED TO EDUCATION, JUNE 18, 2026
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in institutions of higher education,
establishing the PA WORKS Scholarship Grant Program and the
trade career-incentive tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XX-L of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, is
amended by adding a subarticle to read:
SUBARTICLE E
PA WORKS SCHOLARSHIP GRANT PROGRAM
Section 2070-L. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Approved course of study." A program offered by an
institution of higher education that provides instruction in at
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least one of the following:
(1) Carpentry.
(2) Construction safety.
(3) Construction management.
(4) Electrical construction or maintenance.
(5) Heating, ventilation or air conditioning.
(6) Masonry construction.
(7) Metal fabrication.
(8) Plumbing, water or environmental technology.
(9) Welding or welding technology.
(10) Concrete science technology.
(11) Building construction technology.
(12) Residential construction technology and management.
(13) Automotive.
(14) Diesel truck technology.
(15) Heavy equipment technology.
(16) Heavy equipment operator technology.
"Business firm." An entity authorized to do business in this
Commonwealth and subject to taxes imposed under Article III, IV,
VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
"Educational cost." Tuition, mandatory fees, textbooks,
tools or other expenses paid to an institution of higher
education and approved by the agency.
"Grant." A PA WORKS grant awarded under this subarticle.
"Institution of higher education." One of the following:
(1) An institution of higher education that is located
in this Commonwealth and approved by the agency for
enrollment of grant recipients under the Higher Education
Scholarship Law.
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(2) An institution of higher education established under
Article XIX-G.
"Program." The Pennsylvania Workforce, Opportunity,
Retention and Knowledge Scholarship Program, referred to as PA
WORKS.
"Student." An individual who is a resident of this
Commonwealth and is admitted or enrolled at an institution of
higher education.
Section 2071-L. PA WORKS Scholarship Grant Program.
The PA WORKS Scholarship Grant Program is established within
the agency to award grants beginning in the 2026-2027 school
year.
Section 2072-L. Agency duties.
The agency shall:
(1) Administer the program and, in its sole discretion,
award grants to students who submit a completed application
and satisfy the eligibility criteria in paragraph (4). The
agency shall develop an application form that students may
use to apply for a grant. The application of a student under
18 years of age or a student determined to be a dependent
must include the signature of a parent or guardian.
(2) Use money appropriated for the purpose of awarding
grants, except that the agency may use up to 5% of money
appropriated for the purpose of administering, implementing
and servicing costs associated with the program.
(3) Award a grant to a student in an amount of $5,000
per academic year or if the total amount of Federal and State
grants available to the student exceeds the educational cost
as determined by the agency, whichever is less. The agency,
in its discretion, may provide for partial-year awards.
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(4) Establish eligibility criteria in order for a
student to receive a grant. The criteria shall, at a minimum,
include that a student must:
(i) Be a resident of this Commonwealth as defined by
the agency.
(ii) Be enrolled in an approved course of study.
(iii) Maintain satisfactory academic progress
defined by the agency.
(iv) Not have earned a bachelor's degree or the
equivalent.
(v) Enter into a written agreement with the agency
to:
(A) Satisfy all degree requirements and other
requirements under this subarticle.
(B) Reside and commence employment in this
Commonwealth within one year after completion of an
approved course of study culminating in a bachelor's
or associate's degree. The employment must be in an
in-demand occupation, as determined by the agency,
for a period of 36 months for each academic year the
student received a grant, unless the agency
determines that there are extenuating circumstances.
If the agency determines that there are no
extenuating circumstances, residency and employment
in this Commonwealth must be maintained for the
duration of the qualifying employment.
(C) Reimburse the Commonwealth the aggregate
amount of a scholarship, including interest, received
under this subarticle if the student fails to comply
with clauses (A) and (B). For a student who partially
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satisfies the work requirement, the agency shall
prorate the required reimbursement.
(5) Monitor and verify a student's compliance with the
agreement and enforce loan repayment of all grants for a
student who does not comply with the provisions of this
section, including use of all lawful collection procedures.
Nothing under this paragraph shall be construed to require an
institution of higher education to enforce any provision of
this subarticle relating to repayment of funds for failure to
comply with the provisions of this section.
(6) Advertise, market and provide outreach to students
in traditionally underserved communities and include
information about the program on the agency's publicly
accessible Internet website.
(7) Not charge more than the three-month United States
Treasury bill rate for interest on any repayment under
paragraph (4)(v)(C).
(8) Accept donated money from businesses for the purpose
of awarding grants.
(9) Not award a student a grant upon successful
completion of one approved course of study.
Section 2073-L. Term of grant.
A grant shall be for a maximum of four academic years or the
completion of a bachelor's degree, whichever occurs first.
Section 2074-L. Grant priority.
The agency shall:
(1) Establish a process for accepting and reviewing
applications. The process shall ensure that applications
which meet the eligibility criteria and are complete will be
awarded in the order received by the agency.
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(2) Give renewal applicants the opportunity of first
priority in awarding grants for their renewal applications.
Section 2075-L. Limitations.
The number of grants shall be limited to the amount of money
appropriated to the agency for the program.
Section 2076-L. Termination.
(a) Notification and return of money.--If a student
terminates enrollment in the approved course of study during the
academic year or prior to completion of the approved course of
study, the institution of higher education shall notify the
agency in writing and shall return any unused portion of the
grant to the agency.
(b) Construction.--Nothing in this subarticle shall be
construed to change a student's eligibility for a grant if the
student terminates enrollment in one approved course of study
and enrolls in a different approved course of study at the same
institution of higher education or another institution of higher
education.
Section 2077-L. Reimbursed and returned money.
Money reimbursed and returned under sections 2072-L and 2076-
L shall be used to provide additional grants.
Section 2078-L. Taxation.
A grant received by a student shall not be considered taxable
income for purposes of Article III of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971.
Section 2079-L. Construction.
Nothing in this subarticle shall be construed to disqualify
an institution of higher education from receipt of money under
the act of July 18, 1974 (P.L.483, No.174), known as The
Institutional Assistance Grants Act.
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Section 2080-L. Trade career-incentive tax credit.
(a) Establishment.--A trade career-incentive tax credit is
established to supplement existing Federal and State funding
appropriated for grants awarded under the program.
(b) Application.--A business firm applying to claim a trade
career-incentive tax credit must complete and submit to the
Department of Revenue a trade career-incentive tax credit
application on a form and in a manner as determined by the
Department of Revenue.
(c) Approval.--If the Department of Revenue approves the
business firm's application, the Department of Revenue and the
business firm shall execute a commitment letter containing the
following:
(1) The maximum trade career-incentive tax credit amount
the business firm may claim.
(2) A signed statement that the business firm intends to
maintain existing operations in this Commonwealth for at
least five years from the start date.
(3) Any other information as the Department of Revenue
deems appropriate.
(4) A statement authorizing the credit as a single-year
or multiple-year credit.
(d) Certificate.--After a commitment letter has been signed
by both the Commonwealth and the business firm, the business
firm shall receive a trade career-incentive tax credit
certificate and filing information.
Section 2081-L. Public outreach.
The agency shall:
(1) Actively advertise and market the program to
resident students and include information about the program
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on the agency's publicly accessible Internet website.
(2) Establish guidelines to advertise the trade career-
incentive tax credit to eligible business firms.
Section 2082-L. Report.
The agency shall prepare and submit to the Governor, the
General Assembly and the Secretary of Education an annual report
detailing the operation of the program each year. The report
shall, at a minimum, include:
(1) The number of new grant applicants and renewal grant
applications.
(2) The number of grants awarded to students.
(3) The number of grants awarded to students by an
approved course of study.
(4) The number of grants awarded to students by an
institution of higher education.
(5) The average value of a grant award.
(6) The number of grant recipients that are employed and
meeting the work requirement under section 2072-L(4)(v)(B).
(7) The number of grant recipients that are employed and
meeting the work requirement by occupation.
(8) The number of grant recipients that have not met the
work requirement.
(9) The amount of money reimbursed to the Commonwealth
by grant recipients that have not met the work requirement.
Section 2. This act shall take effect in 60 days.
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