HB 1758 — An Act amending Title 35 (Health and Safety) of the Pennsylvania Consolidated Statutes, in volunteer firefighters, repealing provisions relating to employment sanctions; and providing for volunteer emergency responders employer tax credit.

PRINTER'S NO.   2166

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 1758
                                                 Session of
                                                   2025

     INTRODUCED BY SCOTT, BOROWSKI, GIRAL, HILL-EVANS, PIELLI,
        SANCHEZ, MALAGARI, SIEGEL, PROBST, MADDEN, STEELE, MAYES,
        McANDREW, CIRESI, CERRATO, GILLEN AND CEPEDA-FREYTIZ,
        JULY 23, 2025

     REFERRED TO COMMITTEE ON FINANCE, JULY 23, 2025


                                    AN ACT
 1   Amending Title 35 (Health and Safety) of the Pennsylvania
 2      Consolidated Statutes, in volunteer firefighters, repealing
 3      provisions relating to employment sanctions; and providing
 4      for volunteer emergency responders employer tax credit.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.    Subchapter C of Chapter 74 of Title 35 of the
 8   Pennsylvania Consolidated Statutes is repealed:
 9                               [SUBCHAPTER C
10                           EMPLOYMENT SANCTIONS
11   Sec.
12   7421.   Scope of subchapter.
13   7422.   Definitions.
14   7423.   Prohibition on termination and discipline.
15   7424.   Prohibition on discrimination.
16   7425.   Lost time.
17   7426.   Statements.
18   7427.   Violations.
 1   § 7421.   Scope of subchapter.
 2      This subchapter relates to employment sanctions.
 3   § 7422.   Definitions.
 4      The following words and phrases when used in this subchapter
 5   shall have the meanings given to them in this section unless the
 6   context clearly indicates otherwise:
 7      "Discipline."   The taking of an action against an employee
 8   which adversely affects his regular pay to an extent greater
 9   than permitted by section 7425 (relating to lost time), his job
10   status, his opportunity for promotion or his right to any
11   benefit granted by the employer to other similarly situated
12   employees.
13      "Discriminate."   To discharge or to discipline in a manner
14   inconsistent with the employer's treatment of other similarly
15   situated employees who are injured in the course of their
16   employment or related activities.
17      "Employer."   An individual, partnership, association,
18   corporation, business trust or a person or group of persons
19   acting directly or indirectly in the interest of an employer in
20   relation to any employee.
21      "Line of duty."   Going to, coming from or during fire
22   prevention and safety activities which includes fire prevention,
23   first aid, rescue and salvage, ambulance service, fire police
24   work, assistance at accidents, control of crowds both on the
25   fire grounds and at occasions of public or general assembly,
26   animal rescue, abatement of conditions due to storm, flood or
27   general peril, abatement or removal of hazards to safety and
28   other activities as are commonly undertaken by fire companies,
29   ambulance services or rescue squads or their affiliated
30   organizations.

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 1   § 7423.   Prohibition on termination and discipline.
 2      No employer shall terminate or discipline an employee who is
 3   a volunteer fireman, a volunteer member of the fire police or a
 4   volunteer member of an ambulance service or rescue squad and, in
 5   the line of duty, has responded to a call prior to the time he
 6   was due to report for work resulting in a loss of time from his
 7   employment.
 8   § 7424.   Prohibition on discrimination.
 9      No employer shall discriminate against an employee because
10   the employee has been injured in the line of duty as a volunteer
11   fireman, a volunteer member of the fire police or a volunteer
12   member of an ambulance service or rescue squad, nor shall an
13   employer discriminate against an employee injured in the line of
14   duty as a volunteer fireman, a volunteer member of the fire
15   police or a volunteer member of an ambulance service or rescue
16   squad who subsequently returns to work after receiving workers'
17   compensation benefits under the act of June 2, 1915 (P.L.736,
18   No.338), known as the Workers' Compensation Act.
19   § 7425.   Lost time.
20      Time lost from employment as provided in section 7423
21   (relating to prohibition on termination and discipline) may be
22   charged to the regular pay of the employee.
23   § 7426.   Statements.
24      An employee losing time as provided in section 7423 (relating
25   to prohibition on termination and discipline) shall supply his
26   employer with a statement from the chief executive officer of
27   his volunteer fire company, ambulance service or rescue squad or
28   its affiliated organization stating that he responded to a call
29   and the time of the call.
30   § 7427.   Violations.

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 1      (a)     Employers.--An employer who willfully and knowingly
 2   violates this subchapter shall be required to revoke a
 3   disciplinary action and any penalty attached thereto or to
 4   reinstate such employee to his former position and shall be
 5   required to pay the employee all lost wages and benefits for the
 6   period between termination and reinstatement and reasonable
 7   attorney fees incurred in an action to recover lost wages and
 8   benefits.
 9      (b)     Statute of limitations.--An action to enforce this
10   subchapter shall be commenced within two years of the date of
11   violation, and the action shall be commenced in the court of
12   common pleas of the county in which the employer is located.]
13      Section 2.     Title 35 is amended by adding a chapter to read:
14                                CHAPTER 74A
15            VOLUNTEER EMERGENCY RESPONDERS EMPLOYER TAX CREDIT
16   Subchapter
17      A.    Preliminary Provisions
18      B.    Private Sector Incentives
19      C.    Public Sector Incentives
20                                SUBCHAPTER A
21                           PRELIMINARY PROVISIONS
22   Sec.
23   74A01.   Scope of chapter.
24   74A02.   Definitions.
25   74A03.   Employment discrimination prohibited.
26   § 74A01.    Scope of chapter.
27      This chapter relates to volunteer emergency responders
28   employer tax credit.
29   § 74A02.    Definitions.
30      The following words and phrases when used in this chapter

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 1   shall have the meanings given to them in this section unless the
 2   context clearly indicates otherwise:
 3      "Commonwealth."   A department, agency, board, commission or
 4   instrumentality of State government.
 5      "Department."   The Department of Revenue of the Commonwealth.
 6      "Discipline."   To take action against an employee which
 7   adversely affects the employee's regular pay to an extent not
 8   provided for in this chapter, the employee's job status or
 9   opportunity for promotion or the employee's right to any benefit
10   granted by the employer to other similarly situated employees.
11      "Discriminate."   To discharge or to discipline in a manner
12   inconsistent with the employer's treatment of other similarly
13   situated employees who are injured in the course of employment
14   or related activities.
15      "Employee-volunteer."   A member of a volunteer emergency
16   service organization who is in the employ of the Commonwealth, a
17   political subdivision or a private employer.
18      "Employer."   An individual, partnership, association,
19   corporation, business trust or a person or group of persons who
20   controls and directs a worker under an express or implied
21   contract of hire and who pays the worker's salary or wages. The
22   term includes the Commonwealth and its political subdivisions.
23      "Line of duty."   Going to, coming from or during fire
24   prevention and safety activities, which include fire prevention,
25   first aid, rescue and salvage, ambulance service, fire police
26   work, assistance at accidents, control of crowds both on the
27   fire grounds and at occasions of public or general assembly,
28   animal rescue, abatement of conditions due to storm, flood or
29   general peril, abatement or removal of hazards to safety and
30   other activities as are commonly undertaken by fire companies,

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 1   ambulance services or rescue squads or affiliated organizations.
 2      "Pass-through entity."    A partnership as defined in section
 3   301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the
 4   Tax Reform Code of 1971, or a Pennsylvania S corporation as
 5   defined in section 301(n.1) of the Tax Reform Code of 1971.
 6      "Political subdivision."    A county, city, borough,
 7   incorporated town, township, home rule municipality, school
 8   district or municipal authority.
 9      "Qualified tax liability."    The liability for taxes imposed
10   under Article III, IV, VI, VII, VIII, IX or XV of the Tax Reform
11   Code of 1971. The term does not include a tax withheld by an
12   employer from an employee under Article III of the Tax Reform
13   Code of 1971.
14      "Tax credit."   The volunteer emergency responders employer
15   tax credit established under section 74A11 (relating to
16   volunteer emergency responders employer tax credit).
17      "Taxpayer."   An entity that is subject to a tax imposed under
18   Article III, IV, VI, VII, VIII, IX or XV of the Tax Reform Code
19   of 1971. The term does not include a tax withheld by an employer
20   from an employee under Article III of the Tax Reform Code of
21   1971.
22      "Volunteer emergency service organization."    An organization
23   which is a volunteer fire company, volunteer EMS company,
24   volunteer rescue company or volunteer hazardous material
25   response team.
26      "Volunteer EMS company."    As defined in section 7802
27   (relating to definitions).
28      "Volunteer fire company."    As defined in section 7802.
29      "Volunteer hazardous material response team."    A nonprofit
30   chartered corporation, association or organization located in

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 1   this Commonwealth whose members are certified and organized to
 2   provide emergency response services to mitigate actual or
 3   potential immediate threats to public health and the environment
 4   in response to the release or threat of a release of a hazardous
 5   material. The term includes teams certified to perform
 6   stabilization actions needed to remove threats to public health
 7   and the environment from hazardous material releases.
 8      "Volunteer rescue company."      As defined in section 7802.
 9   § 74A03.    Employment discrimination prohibited.
10      (a)     General prohibition.--It is unlawful for an employer to
11   refuse to hire or employ an individual because the individual is
12   a member of a volunteer emergency service organization.
13      (b)     Prohibition on discipline and discrimination for time
14   lost.--
15             (1)   It is unlawful for an employer to discipline or
16      discriminate or to discharge from employment an employee-
17      volunteer with respect to base salary, hire, tenure, terms,
18      conditions or privileges of employment for the reason that
19      the employee-volunteer responded to an emergency call prior
20      to the time the employee-volunteer was due to report to work,
21      resulting in loss of time from employment, if the employee-
22      volunteer satisfies the requirements of paragraph (2).
23             (2)   An employee-volunteer who loses time for reasons
24      specified in this section shall immediately upon arriving at
25      work inform the employee-volunteer's employer or immediate
26      supervisor that the employee-volunteer has been called to
27      respond to an emergency. The employee-volunteer losing time
28      as provided for under this chapter shall supply the employee-
29      volunteer's employer with a statement from the chief
30      executive officer of the volunteer emergency service

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 1      organization for which the employee-volunteer volunteers
 2      stating that employee-volunteer responded to a call and the
 3      time of the call.
 4            (3)   If an employee-volunteer is employed by a private
 5      employer, any time lost from employment may be charged
 6      against the employee-volunteer's regular salary or wages or
 7      the private employer may apply for the tax credits provided
 8      under section 74A11(a) (relating to volunteer emergency
 9      responders employer tax credit).
10            (4)   If an employee-volunteer is employed by the
11      Commonwealth or a political subdivision, payment of salary or
12      wages for time lost from employment shall be based on a
13      policy adopted by the Commonwealth or the political
14      subdivision.
15      (c)   Discrimination because of injury.--It is unlawful for an
16   employer to discipline or to discharge from employment or to
17   otherwise discriminate against an employee-volunteer with
18   respect to hiring, compensation, tenure, terms, conditions or
19   privileges of employment because the employee-volunteer has been
20   injured in the line of duty and has subsequently returned to
21   work, regardless of whether the employee-volunteer received any
22   workers' compensation benefits under the act of June 2, 1915
23   (P.L.736, No.338), known as the Workers' Compensation Act.
24      (d)   Legal action.--An employer who willfully and knowingly
25   violates the provisions of this chapter shall:
26            (1)   Revoke disciplinary action or penalty imposed
27      against an employee-volunteer or reinstate the employee-
28      volunteer to his or her former position.
29            (2)   Pay the employee-volunteer all lost wages and
30      benefits for the period between termination and reinstatement

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 1      and reasonable attorney fees which are incurred in an action
 2      to recover lost wages and benefits.
 3      (e)     Period of limitations.--An action to enforce the
 4   provisions of this chapter shall be commenced within a period of
 5   two years from the date of violation, and the action shall be
 6   commenced in the court of common pleas of the county in which
 7   the employer is located.
 8                                SUBCHAPTER B
 9                          PRIVATE SECTOR INCENTIVES
10   Sec.
11   74A11.   Volunteer emergency responders employer tax credit.
12   74A12.   Application for tax credit.
13   74A13.   Review and approval.
14   74A14.   Limitations.
15   74A15.   Shareholder, owner or member pass-through.
16   74A16.   Guidelines.
17   74A17.   Applicability.
18   74A18.   Reports.
19   § 74A11.    Volunteer emergency responders employer tax credit.
20      (a)     Eligibility.--A taxpayer that is an employer shall be
21   eligible to receive a tax credit against qualified tax liability
22   if the taxpayer permits an employee-volunteer to take a paid
23   leave of absence for any of the following:
24            (1)   In response to an emergency call or to respond to an
25      emergency call prior to the start of work.
26            (2)   At the written request of the chief executive
27      officer of the volunteer emergency service organization in
28      order to participate as a student or instructor in training
29      appropriate to the volunteer emergency services organization.
30      (b)     Official notice required.--

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 1          (1)   In order to qualify for the paid leave of absence as
 2      provided for in subsection (a)(1), the employee-volunteer
 3      shall provide notice that the employee-volunteer has been
 4      called to respond to an emergency or provide notice that
 5      employee-volunteer responded to a call and the time of the
 6      call and request that a leave of absence be granted.
 7          (2)   In order to qualify for the paid leave of absence as
 8      provided for in subsection (a)(2), the employee-volunteer
 9      shall provide the employer, within 14 days of the scheduled
10      training, a signed statement from the chief executive officer
11      of the volunteer emergency service organization that includes
12      the reason and amount of time needed for the employee-
13      volunteer to complete the training along with a request that
14      a leave of absence be granted.
15   § 74A12.   Application for tax credit.
16      A taxpayer may apply to the department for a tax credit
17   certificate under this section. The application must be on a
18   form required by the department and shall include all of the
19   following information:
20          (1)   The name and address of the taxpayer.
21          (2)   Documentation of the following for each eligible
22      employee-volunteer in which a tax credit is being claimed:
23                (i)    Name and address of the employee-volunteer.
24                (ii)    Total wages paid by the taxpayer to the
25          employee-volunteer.
26                (iii)    Wages paid by the taxpayer to the employee-
27          volunteer paid under section 74A11(a) (relating to
28          volunteer emergency responders employer tax credit).
29                (iv)    Documentation as required by section 74A11(a)
30          (2) or (b).

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 1            (3)   Any other information required by the department.
 2   § 74A13.    Review and approval.
 3      (a)     Duties.--The department shall do all of the following:
 4            (1)   Review and approve applications according to the
 5      order applications are received and the availability of tax
 6      credits.
 7            (2)   Notify the applicant within 30 days of receipt of
 8      the application of its determination.
 9      (b)     Issuance.--If an application is approved, the department
10   shall issue the taxpayer a tax credit certificate within 15 days
11   of the approval.
12   § 74A14.    Limitations.
13      (a)     Amount.--A tax credit certificate issued under this
14   section may not exceed 50% of a taxpayer's qualified tax
15   liability.
16      (b)     Prohibition.--In granting tax credits under this
17   chapter, the department may not do any of the following:
18            (1)   Grant more than $5,000,000 in tax credit
19      certificates in any fiscal year.
20            (2)   Grant more than $10,000 in tax credit certificates
21      to a single taxpayer in any fiscal year.
22      (c)     Unused credits.--A taxpayer may not be entitled to carry
23   forward, carry back or obtain a refund of the unused tax credit.
24      (d)     Sale or reassignment.--A tax credit may not be sold or
25   reassigned.
26   § 74A15.    Shareholder, owner or member pass-through.
27      (a)     Shareholder entitlement.--If a Pennsylvania S
28   corporation does not have an eligible tax liability against
29   which the tax credit may be applied, a shareholder of the
30   Pennsylvania S corporation shall be entitled to a tax credit

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 1   equal to the tax credit determined for the Pennsylvania S
 2   corporation for the taxable year multiplied by the percentage of
 3   the Pennsylvania S corporation's distributive income to which
 4   the shareholder is entitled.
 5      (b)     Pass-through entity entitlement.--If a pass-through
 6   entity other than a Pennsylvania S corporation does not have tax
 7   liability against which the tax credit may be applied, an owner
 8   or member of the pass-through entity shall be entitled to a tax
 9   credit equal to the tax credit determined for the pass-through
10   entity for the taxable year multiplied by the percentage of the
11   pass-through entity's distributive income to which the owner or
12   member is entitled.
13      (c)     Additional credit.--
14            (1)   Except as provided under paragraph (2), the tax
15      credit provided under subsection (a) or (b) shall be in
16      addition to any other tax credit to which a shareholder,
17      owner or member of a pass-through entity is otherwise
18      entitled under this chapter.
19            (2)   A pass-through entity and a shareholder, owner or
20      member of a pass-through entity may not claim a tax credit
21      under this chapter for the same employee-volunteer.
22   § 74A16.    Guidelines.
23      The department, in conjunction with the Department of
24   Community and Economic Development, shall develop written
25   guidelines necessary for the implementation and administration
26   of this chapter. The guidelines shall be posted on the
27   department's publicly accessible Internet website.
28   § 74A17.    Applicability.
29      This chapter shall apply to taxable years beginning after
30   December 31, 2025.

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 1   § 74A18.    Reports.
 2      No later than June 1, 2027, and each June 1 thereafter, the
 3   department, in conjunction with the Department of Community and
 4   Economic Development, shall submit a report on the effectiveness
 5   of the tax credits granted under this chapter. The report shall
 6   include the names of taxpayers who were issued tax credits as of
 7   the date of the report. The report may include recommendations
 8   for changes in the calculation or administration of the tax
 9   credits and other information as the department deems
10   appropriate. The report shall be submitted to all of the
11   following:
12            (1)   The chairperson and minority chairperson of the
13      Appropriations Committee of the Senate.
14            (2)   The chairperson and minority chairperson of the
15      Appropriations Committee of the House of Representatives.
16            (3)   The chairperson and minority chairperson of the
17      Finance Committee of the Senate.
18            (4)   The chairperson and the minority chairperson of the
19      Finance Committee of the House of Representatives.
20                                SUBCHAPTER C
21                          PUBLIC SECTOR INCENTIVES
22   Sec.
23   74A21.   Emergency response leave of absence.
24   § 74A21.    Emergency response leave of absence.
25      (a)     Optional paid leave.--An officer or employee of the
26   Commonwealth or a political subdivision who is an employee-
27   volunteer may be entitled to leave work in response to an
28   emergency call without loss of pay, time or efficiency, subject
29   to the terms and conditions of a policy adopted by the
30   Commonwealth or political subdivision.

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 1      (b)   Official notice required.--In order to qualify for the
 2   paid leave as provided for in subsection (a), the employee-
 3   volunteer shall:
 4            (1)   Inform his or her employer or immediate supervisor
 5      that the employee-volunteer has been called to respond to an
 6      emergency and request that a leave of absence be granted.
 7            (2)   Supply his or her employer with a statement from the
 8      chief executive officer of the emergency service organization
 9      stating that he or she responded to a call and the time of
10      the call.
11      Section 3.    This act shall take effect in 60 days.




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