In historic preservation incentive tax credit, further providing for tax credit certificates.
Summary
HB1572 amends Pennsylvania’s Tax Reform Code provisions governing the historic preservation incentive tax credit, specifically the issuance of tax credit certificates. The bill raises the maximum amount of tax credit certificates that may be granted to a single qualified taxpayer in a fiscal year from $500,000 to $1,500,000. It does not change the overall annual statewide cap of $20 million in certificates, and it retains the requirement that the Department of Community and Economic Development distribute credits equitably across regions of the Commonwealth, with unused regional allocations to be reallocated to eligible projects elsewhere.
The measure applies to fiscal years beginning on or after July 1, 2025, and takes effect immediately. In practical terms, it expands the amount of historic preservation tax credit support that can go to an individual project or taxpayer while leaving the program’s total annual funding ceiling unchanged. The bill is aimed at the historic preservation incentive tax credit program, which supports rehabilitation and preservation projects that qualify under state law.
Impact
HB1572 changes section 1703-H(b)(5) of the Tax Reform Code of 1971 by increasing the per-taxpayer cap on historic preservation incentive tax credit certificates from $500,000 to $1.5 million. This affects the Department of Community and Economic Development’s administration of the program and may allow larger preservation projects to receive more state tax credit support in a single fiscal year. The statewide annual cap remains $20 million, so the bill reallocates potential benefit toward larger individual recipients without increasing the total amount of credits available under the program.
Sentiment
The voting history suggests generally strong support for the bill, with the House Finance Committee and House Rules Committee both reporting it favorably and the House ultimately giving it final passage by a substantial margin. The near-unanimous committee votes indicate broad agreement on the policy change, and the final floor vote shows overall approval despite some opposition. No committee transcript was provided, so the available record reflects support more than detailed debate.
Contention
The main point of contention appears to be the increase in the per-taxpayer cap, which could concentrate a larger share of the historic preservation tax credit program in fewer, larger projects. Supporters likely view the change as a way to make the credit more usable for substantial preservation efforts, while opponents may be concerned that it reduces access for smaller projects or shifts benefits away from broader distribution. The bill preserves the regional equity requirement and statewide cap, which may have helped address concerns about fairness and program limits.
Providing for historic homeownership preservation incentive tax credit; imposing duties on the Department of Community and Economic Development and the Pennsylvania Historical and Museum Commission; and establishing the Historic Homeowner Preservation Tax Credit Administration Fund.
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