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; and providing for Pennsyl . . .vania Individual Recruitment and Retention Tax Credit.
HB334 would create a new Pennsylvania Individual Recruitment and Retention Tax Credit within the Tax Reform Code. The credit is aimed at attracting and keeping newly certified professionals in Pennsylvania by allowing eligible resident taxpayers to claim up to $2,500 against personal income tax liability for wages earned in certain newly certified occupations. The bill applies to individuals who become qualifying taxpayers after December 31, 2024, and before January 1, 2028, and it sunsets the new article on December 31, 2030.
The bill defines eligible “recently certified professionals” to include several categories of teachers and education specialists, municipal police officers, Pennsylvania State Police Academy graduates, sheriffs and deputy sheriffs, and certain health care professionals such as registered nurses, licensed practical nurses, nurse practitioners, clinical nurse specialists, nurse anesthetists, and nurse aides. To qualify, an individual must either be a Pennsylvania resident who newly earns one of these credentials and then works in that field in the Commonwealth, or a person certified in another state who moves to Pennsylvania and works in the certified field here. The credit can be claimed for the first eligible year and the next two tax years, so long as the taxpayer remains employed in the field.
The bill would amend the Tax Reform Code’s definition of “tax credit” to include this new program and would require taxpayers to provide proof of eligibility to the Department of Revenue. It also specifies that the credit is treated as a payment of estimated tax, cannot be carried forward or back, and cannot be sold, assigned, or transferred. The Department of Revenue would be responsible for issuing guidance and may adopt regulations to administer the program.
Because the bill creates a new personal income tax credit, it would directly affect resident individual taxpayers who enter the listed professions after the effective date, as well as the Department of Revenue’s administration of tax credits. It would also indirectly affect employers and workforce sectors facing shortages, especially education, law enforcement, and health care. The measure is limited in duration and scope, suggesting a targeted workforce recruitment and retention incentive rather than a broad tax change.
There is no recorded committee transcript or vote history provided, so no formal debate or partisan split can be identified from the available materials. Based on the bill text alone, the policy appears oriented toward workforce recruitment and retention, with likely support from advocates for teacher, public safety, and health care staffing. Potential points of contention would likely involve the fiscal cost of the credit, whether the listed professions are the right ones to target, and whether a tax credit is an effective tool for recruitment and retention.
HB334 would amend the Pennsylvania Tax Reform Code by adding a new Article XIX-L and expanding the statutory definition of “tax credit” to include the Pennsylvania Individual Recruitment and Retention Tax Credit. It would create a personal income tax credit of up to $2,500 for qualifying resident individuals in specified newly certified professions, administered by the Department of Revenue. The bill would affect newly credentialed teachers, police officers, sheriffs/deputy sheriffs, State Police Academy graduates, and certain nurses and other health care professionals, while also imposing documentation and administrative duties on the department.
No committee discussion or vote record is included, so the available evidence does not show a documented floor or committee sentiment. The bill’s structure suggests a generally supportive policy goal focused on workforce shortages and retention in public service and health care occupations, but the absence of debate means there is no direct record of endorsements or opposition in the provided materials.
The main likely points of contention are fiscal and policy-related: the cost of creating a new tax credit, the narrow list of eligible professions, and whether a tax incentive is the best way to recruit and retain workers in education, law enforcement, and health care. Another possible issue is administrative complexity, since taxpayers must prove eligibility and the Department of Revenue must issue guidance and potentially regulations. No specific objections or supporters are identified in the provided transcripts or votes.