Pennsylvania House Bill HB1087

Pennsylvania 2025-2026 Regular Session

• Introduced: 4/1/25
• Refer: 4/1/25

Caption

Establishing the Active Volunteer First Responder Education Tax Credit Program.

Summary

HB1087 would create the Active Volunteer First Responder Education Tax Credit Program within Pennsylvania’s Tax Reform Code. The program is designed to help active volunteer firefighters and volunteer EMS responders pay for higher education at approved public colleges, technical institutes, and State System institutions. Under the bill, eligible organizations would receive contributions from business firms and use those funds to award scholarships to qualifying volunteer first responders. Scholarships could cover tuition and school-related fees, with awards of up to $5,000 for full-time students and up to $2,500 for part-time students. To qualify, a student must be a Pennsylvania resident, have at least one year of active volunteer first responder service, be enrolled in an approved program, and provide official verification of good standing from the relevant fire or EMS organization. In exchange for receiving the scholarship, the student must remain an active volunteer for five years after completing the program, or repay 20% of the scholarship for each year of noncompliance. The bill also creates a tax credit for business firms that contribute to eligible organizations, with credits generally capped at 50% of contributions and $2,500 per firm per year, though a higher 90% credit is available for consecutive-year contributors.

Impact

The bill would amend the Tax Reform Code of 1971 by adding a new article establishing a state-administered tax credit and scholarship framework. It would authorize the Department of Community and Economic Development, in consultation with the Department of Revenue, to certify eligible organizations, approve business-firm contributions, issue tax credit certificates, and publish participating organizations. The program would apply to taxable years beginning after December 31, 2025, and would be limited to seven fiscal years for business-firm applications. It also sets a statewide annual cap of $10 million in approved tax credits and restricts credits to nonrefundable, nontransferable use against specified business taxes.

Sentiment

No committee transcript or vote record was provided, so there is no direct evidence of formal support or opposition in the available materials. Based on the bill’s structure, the measure appears intended as a targeted incentive for volunteer fire and EMS recruitment and retention, paired with educational assistance for those volunteers. The overall policy approach suggests a generally favorable framing toward first responders and workforce development.

Contention

The main potential points of contention are the use of state tax credits to subsidize private contributions, the $10 million annual cap, and the administrative burden of verifying eligibility and monitoring the five-year post-graduation service requirement. Some may also question whether the scholarship and tax credit amounts are sufficient to materially affect volunteer recruitment or whether the program favors certain higher-education pathways over other training options. Because no hearing or vote record is included, no specific legislators, agencies, or stakeholder groups are identified as opposing or supporting these issues.