HB 1450 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Homebuyer Rebate Program.

PRINTER'S NO.   1681

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1450
                                               Session of
                                                 2025

     INTRODUCED BY DAVIDSON, KUTZ, KHAN, GUZMAN, WAXMAN, GIRAL,
        McNEILL, KENYATTA, OTTEN, SANCHEZ, HILL-EVANS, CEPEDA-
        FREYTIZ, HOWARD, BRENNAN, BOYD, MADDEN, MALAGARI, NEILSON,
        CIRESI, DEASY, CERRATO, GILLEN, FLEMING AND SCHLOSSBERG,
        MAY 12, 2025

     REFERRED TO COMMITTEE ON FINANCE, MAY 12, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in realty transfer tax, further providing for
11      transfer of tax; providing for Homebuyer Rebate Program; and
12      establishing the Homebuyer Rebate Program Fund.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    Section 1102-C.6 of the act of March 4, 1971
16   (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
17   by adding a subsection to read:
18      Section 1102-C.6.    Transfer of Tax.--* * *
19      (e)   Beginning July 31, 2026, and each July 31 thereafter,
20   the State Treasurer shall transfer an amount equal to ten per
21   cent of the tax collected under this article into the Homebuyer
 1   Rebate Program Fund established under section 1905-L.
 2      Section 2.      The act is amended by adding an article to read:
 3                                ARTICLE XIX-L
 4                           HOMEBUYER REBATE PROGRAM
 5   Section 1901-L.     Definitions.
 6      The following words and phrases when used in this article
 7   shall have the meanings given to them in this section unless the
 8   context clearly indicates otherwise:
 9      "Domicile."      As defined in section 501 of the act of December
10   31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
11   Act.
12      "Fund."   The Homebuyer Rebate Program Fund established under
13   section 1905-L.
14      "Homebuyer Rebate Program."        The program established under
15   section 1902-L.
16      "Homestead."     A dwelling, including the parcel of land on
17   which the dwelling is located and the other improvements located
18   on the parcel for which any of the following apply:
19          (1)   The dwelling is primarily used as the domicile of an
20      owner who is a natural person.
21          (2)   The dwelling is one of the following:
22                (i)    A unit in a condominium as the term is defined
23          in 68 Pa.C.S. § 3103 (relating to definitions) and the
24          unit is primarily used as the domicile of a natural
25          person who is an owner of the unit.
26                (ii)    The dwelling is a unit in a cooperative as the
27          term is defined in 68 Pa.C.S. § 4103 (relating to
28          definitions) and the unit is primarily used as the
29          domicile of a natural person who is an owner of the unit.
30      "Qualified homebuyer."     An individual who meets all of the

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 1   following:
 2            (1)   Has not either:
 3                  (i)    Previously purchased a home within this
 4            Commonwealth.
 5                  (ii)    Purchased a home within this Commonwealth
 6            within five years prior to the date of application for
 7            the Homebuyer Rebate Program.
 8            (2)   Intends to purchase the home for use as a homestead.
 9      "Tax liability."       The portion of the realty transfer tax due
10   under Article XI-C for the transfer of the homestead that the
11   qualified homebuyer agreed to pay under a written agreement
12   between the seller of the homestead and the qualified homebuyer.
13   Section 1902-L.       Homebuyer Rebate Program.
14      The Homebuyer Rebate Program is established within the
15   Department of Revenue.
16   Section 1903-L.       Claims.
17      (a)     Filing.--Beginning January 1, 2026, a qualified
18   homebuyer may file a claim with the department for a rebate
19   under this section on a form developed by the department. Except
20   as otherwise provided in subsection (b), the claim shall be
21   filed with the department on or before June 30 of the year next
22   succeeding the end of the calendar year in which the realty
23   transfer tax was due and payable.
24      (b)     Exception.--A claim filed after the June 30 deadline
25   until December 31 of a calendar year shall be accepted by the
26   Secretary of Revenue if money is available to pay the benefits
27   to the late-filing claimant.
28      (c)     Contents of claim.--Each claim shall include, at a
29   minimum:
30            (1)   The size and nature of the homestead being

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 1      purchased.
 2            (2)   The amount paid by the claimant for the homestead.
 3            (3)   The amount of realty transfer tax due under Article
 4      XI-C for the transfer of the homestead.
 5            (4)   Proof of payment of the claimant's tax liability.
 6            (5)   Reasonable proof of the claimant's status as a
 7      qualified homebuyer.
 8      (d)   Eligibility of claimants.--
 9            (1)   Only one claimant from a homestead each year shall
10      be entitled to the rebate.
11            (2)   If two or more individuals meet the definition of a
12      qualified homebuyer for the same homestead during the same
13      year, the individuals may determine who the claimant shall
14      be.
15            (3)   If the individuals are unable to agree, the
16      department shall determine to whom the rebate is to be paid.
17      (e)   Approval of claim.--If the department determines that
18   the claimant meets the definition of a qualified homebuyer and
19   has paid the claimant's tax liability, the department shall
20   approve the claim and shall, as soon as practicable, make
21   payment from the fund for the approved claim.
22   Section 1904-L.    Amount of rebate.
23      A qualified homebuyer whose claim has been approved under
24   this section is eligible for a rebate of $2,500.
25   Section 1905-L.    Homebuyer Rebate Program Fund.
26      (a)   Establishment.--The Homebuyer Rebate Program Fund is
27   established in the State Treasury.
28      (b)   Amount.--Ten percent of the tax collected under Article
29   XI-C shall be deposited annually into the fund.
30      (c)   Use of money.--Money from the fund shall be used to pay

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 1   claims under this article.
 2   Section 1906-L.   Fraudulent claims to obtain benefits.
 3      (a)   Civil penalty.--In a case in which a claim is excessive
 4   and was filed with fraudulent intent, the claim shall be
 5   disallowed in full and a penalty of 25% of the amount claimed
 6   shall be imposed. The penalty and the amount of the disallowed
 7   claim, if the claim has been paid, shall bear interest at the
 8   rate of 1.5% per month from the date of the claim until repaid.
 9      (b)   Criminal penalty.--The claimant and any person who
10   assisted in the preparation or filing of a fraudulent claim
11   commits a misdemeanor of the third degree and, upon conviction
12   thereof, shall be sentenced to pay a fine not exceeding $1,000
13   or to imprisonment not exceeding one year, or both.
14   Section 1907-L.   Petition for redetermination.
15      (a)   Right to file.--A claimant whose claim is either denied,
16   corrected or otherwise adversely affected by the department may
17   file with the department a petition for redetermination on forms
18   supplied by the department within 90 days after the date of
19   mailing of written notice by the department of the action.
20      (b)   Contents.--The petition shall set forth the grounds upon
21   which the claimant alleges that the departmental action is
22   erroneous or unlawful, in whole or part, and shall contain an
23   affidavit or affirmation that the facts contained in the
24   petition are true and correct.
25      (c)   Extension of time for filing.--An extension of time for
26   filing the petition may be allowed for cause but may not exceed
27   120 days.
28      (d)   Hearings.--The department shall hold hearings as may be
29   necessary for the purpose of redetermination and each claimant
30   who has duly filed a petition for redetermination shall be

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 1   notified by the department of the time when and the place where
 2   the hearing for the claimant's case will be held.
 3      (e)   Time period for decision.--The department shall, within
 4   six months after receiving a filed petition for redetermination,
 5   dispose of the matters raised by the petition and shall mail
 6   notice of the department's decision to the claimant.
 7      (f)   Review of redetermination.--Within 90 days after the
 8   date of official receipt by the claimant of the decision on a
 9   petition for redetermination, the claimant who is adversely
10   affected by the decision may by petition request the Board of
11   Finance and Revenue to review the action.
12   Section 1908-L.   Review by Board of Finance and Revenue.
13      (a)   Right to review.--Within 90 days after the date of
14   official receipt by the claimant of a decision on a petition for
15   redetermination, the claimant who is adversely affected by the
16   decision may by petition request the Board of Finance and
17   Revenue to review the action.
18      (b)   No decision.--The failure of the department to
19   officially notify the claimant of a decision within the six-
20   month period under section 1311 of the act of June 27, 2006 (1st
21   Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act,
22   shall be deemed a denial of the petition and a petition for
23   review may be filed with the Board of Finance and Revenue within
24   120 days after written notice is officially received by the
25   claimant that the department has failed to dispose of the
26   petition within the six-month period.
27      (c)   Contents of petition.--A petition for redetermination
28   shall state the reasons upon which the claimant relies or shall
29   incorporate by reference the petition for redetermination in
30   which the reasons were stated. The petition shall be supported

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 1   by affidavit that the facts set forth therein are correct and
 2   true.
 3      (d)   Time period for decision.--The board shall act in
 4   disposition of petitions filed within six months after the
 5   petition has been received. In the event of failure of the Board
 6   of Finance and Revenue to dispose of a petition within six
 7   months, the action taken by the department upon the petition for
 8   redetermination shall be deemed sustained.
 9      (e)   Relief authorized by board.--The Board of Finance and
10   Revenue may sustain the action taken by the department on the
11   petition for redetermination or the board may take other action
12   as deemed necessary and consistent with this article.
13      (f)   Form of notice.--Notice of the action of the Board of
14   Finance and Revenue shall be given by mail to the department and
15   to the claimant.
16   Section 1909-L.    Appeal.
17      A claimant aggrieved by a decision of the Board of Finance
18   and Revenue may appeal from the decision of the board in the
19   manner provided by law for appeals from decisions of the board
20   in tax cases.
21   Section 1910-L.    Report.
22      (a)   Duty.--The department shall prepare a report on the
23   Homebuyer Rebate Program.
24      (b)   Contents.--The report shall include:
25            (1)   A description of the demand for the program.
26            (2)   The efforts made by the department to promote the
27      program.
28            (3)   The total number of rebates issued under the
29      program, the average amount of rebate issued and the average
30      amount of realty transfer tax paid by recipients of rebates.

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 1            (4)   An assessment of the effectiveness of the program in
 2      meeting the goals of this article.
 3            (5)   A recommendation as to whether the program should be
 4      renewed and, if so, any recommendations for legislation that
 5      may improve the effectiveness of the program.
 6            (6)   Any other information deemed relevant by the
 7      department.
 8      (c)     Submission.--The department shall submit the report to
 9   the Governor and the General Assembly on January 31, 2030.
10   Section 1911-L.    Regulations.
11      (a)     Regulations.--The department shall promulgate
12   regulations to implement the provisions of this article.
13      (b)     Guidelines.--The department shall develop written
14   guidelines for the implementation of this article. The
15   guidelines shall be in effect until the department promulgates
16   regulations for the implementation of the provisions of this
17   article.
18   Section 1912-L.    Expiration.
19      This article shall expire December 31, 2030.
20      Section 3.     This act shall take effect immediately.




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