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; providing for volunteer certified emergency medical technician and volunteer firefighter tax credit; and imposing duties on the Department of Revenue.

PRINTER'S NO. 499
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 526
Session of
2025
INTRODUCED BY BROOKS, GEBHARD, HUTCHINSON, LANGERHOLC,
PENNYCUICK, FONTANA, PHILLIPS-HILL, MASTRIANO, BARTOLOTTA,
COSTA, ROBINSON, BOSCOLA, CULVER, SANTARSIERO, J. WARD,
TARTAGLIONE, STEFANO, KANE, DUSH AND COLLETT, MARCH 26, 2025
REFERRED TO FINANCE, MARCH 26, 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; providing for volunteer
certified emergency medical technician and volunteer
firefighter tax credit; and imposing duties on the Department
of Revenue.
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:
* * *
(14.2) Article XVIII-I.
* * *
Section 2. The act is amended by adding an article to read:
ARTICLE XVIII-I
VOLUNTEER CERTIFIED EMERGENCY MEDICAL TECHNICIAN
AND VOLUNTEER FIREFIGHTER TAX CREDIT
Section 1801-I. 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:
"Active volunteer certified emergency medical technician." A
volunteer for a nonprofit emergency medical services agency who
is certified under 35 Pa.C.S. § 79A23 (relating to
certification).
"Active volunteer firefighter." A volunteer for a volunteer
fire company who is certified under 35 Pa.C.S. § 79A23.
"Department." The Department of Revenue of the Commonwealth.
"Nonprofit emergency medical services agency." An emergency
medical services agency as defined in 35 Pa.C.S. § 8103
(relating to definitions) that is chartered as a nonprofit
corporation.
"Qualified tax liability." The liability for taxes imposed
under Article III for the taxable year beginning after December
31, 2026, and each taxable year thereafter. The term does not
include amounts withheld or required to be withheld from
employees under Article III.
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"Tax credit." The tax credit authorized under this article.
"Taxpayer." An individual subject to payment of taxes under
Article III.
"Volunteer." A member of a volunteer fire company or a
nonprofit emergency medical services agency.
"Volunteer fire company." As defined in 35 Pa.C.S. § 7802
(relating to definitions).
Section 1802-I. Application and procedure.
(a) Application to department.--A taxpayer may claim a tax
credit against the qualified tax liability of the taxpayer by
submitting an application for the tax credit in a manner
required by the department. The application shall contain the
following information:
(1) The name and tax identification number of the
taxpayer.
(2) Documentation that the taxpayer meets the
eligibility criteria specified in section 1803-I.
(3) Any other information deemed appropriate by the
department.
(b) Procedure.--The application shall be attached to the
applicant's annual tax return required to be filed under Article
III.
Section 1803-I. Taxpayer eligibility.
(a) Criteria.--A taxpayer who is an active volunteer
certified emergency medical technician or active volunteer
firefighter shall be eligible for a tax credit if the taxpayer
meets the following criteria:
(1) Is a resident of this Commonwealth.
(2) Has at least two full years of service as a
certified emergency medical technician or volunteer
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firefighter by December 31 of the taxable year and has
responded to at least 20% of the agency's or company's
emergency calls during that two-year period.
(3) Is an active volunteer certified emergency medical
technician or active volunteer firefighter on the date the
taxpayer files the tax return.
(b) Maximum credit.--A taxpayer who qualifies under
subsection (a) may claim a tax credit of $500.
Section 1804-I. Carryover and carryback prohibited.
A taxpayer may not carry over, carry back, obtain a refund
of, sell or assign an unused tax credit.
Section 1805-I. Self certification.
The making or filing by a taxpayer of any return,
declaration, statement or other document required to be made or
filed under this article shall constitute a certification by the
taxpayer that the statements, including the taxpayer's residency
status and years of service as an active volunteer certified
emergency medical technician or active volunteer firefighter,
contained in the return, declaration, statement or other
document are true and that any copy filed is a true copy.
Section 1806-I. Guidelines.
(a) Duty of department.--The department shall adopt
guidelines, including forms, necessary to administer this
article.
(b) Joint income.--A tax credit granted under this article
may be applied to the tax liability of the spouse of an eligible
taxpayer if both the eligible taxpayer and the spouse report
income on a joint income tax return.
Section 1807-I. Report to General Assembly.
No later than December 31, 2027, and each December 31
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thereafter, the department shall submit a report on the tax
credits granted under this article. The report shall include the
number of active volunteer certified emergency medical
technicians and active volunteer firefighters who utilized the
tax credit as of the date of the report and the amount of
credits approved. The report may include recommendations for
changes in the calculation or administration of the tax credit.
The report shall be submitted to the chairperson and minority
chairperson of the Appropriations Committee of the Senate, the
chairperson and minority chairperson of the Appropriations
Committee of the House of Representatives, the chairperson and
minority chairperson of the Veterans Affairs and Emergency
Preparedness Committee of the Senate and the chairperson and
minority chairperson of the Veterans Affairs and Emergency
Preparedness Committee of the House of Representatives. The
report may include other information that the department deems
appropriate.
Section 1808-I. Penalty.
A taxpayer who claims a credit under this article but fails
to meet the standards under this article shall repay the full
amount of the tax credit to the Commonwealth, plus interest as
prescribed under section 351.
Section 3. This act shall take effect immediately.
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