HB 2116 — An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, in tax relief in cities of the first class, further providing for supplemental senior citizen tax reduction; and, in senior citizens property tax and rent rebate assistance, providing for income calculation and further providing for property tax and rent rebate.

PRINTER'S NO.    2737

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2116
                                               Session of
                                                 2026

     INTRODUCED BY CIRESI, GUZMAN, RIVERA, HANBIDGE, SHUSTERMAN,
        McNEILL, HOHENSTEIN, GUENST, HARKINS, GALLAGHER, SAPPEY,
        KINKEAD, BOROWSKI, D. WILLIAMS, DONAHUE, PARKER, HILL-EVANS,
        SANCHEZ, NEILSON, INGLIS AND CEPEDA-FREYTIZ, JANUARY 7, 2026

     REFERRED TO COMMITTEE ON FINANCE, JANUARY 8, 2026


                                    AN ACT
 1   Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
 2      No.1), entitled "An act providing for taxation by school
 3      districts, for the State funds formula, for tax relief in
 4      first class cities, for school district choice and voter
 5      participation, for other school district options and for a
 6      task force on school cost reduction; making an appropriation;
 7      prohibiting prior authorized taxation; providing for
 8      installment payment of taxes; restricting the power of
 9      certain school districts to levy, assess and collect taxes;
10      and making related repeals," in tax relief in cities of the
11      first class, further providing for supplemental senior
12      citizen tax reduction; and, in senior citizens property tax
13      and rent rebate assistance, providing for income calculation
14      and further providing for property tax and rent rebate.
15      The General Assembly of the Commonwealth of Pennsylvania
16   hereby enacts as follows:
17      Section 1.    Section 704(a)(1) of the act of June 27, 2006
18   (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
19   Act, is amended to read:
20   Section 704.    Supplemental senior citizen tax reduction.
21      (a)   Eligibility.--Beginning in the first year in which a
22   payment under section 505(b) is made and each year thereafter,
23   the following apply:
 1            (1)     Except as provided in paragraph (2), any resident of
 2      a city of the first class, a city of the second class A or a
 3      resident of a school district of the first class A who is
 4      eligible to receive a property tax rebate under Chapter 13
 5      [and has a household income, as defined under section 1303,
 6      equal to or less than $30,000] shall be eligible to receive
 7      an additional property tax rebate equal to 50% of the amount
 8      the individual is eligible to receive under Chapter 13.
 9            * * *
10      Section 2.        The act is amended by adding a section to read:
11   Section 1303.1.       Income calculation.
12      For the purposes of calculating income under this chapter,
13   income shall be reduced by the face amount of property taxes
14   paid by the claimant on the claimant's primary residence
15   regardless of whether the taxes were paid in the discount, face
16   or penalty period.
17      Section 3.        Section 1304 of the act is amended to read:
18   Section 1304.        Property tax; and rent rebate.
19      (a)    Schedule of rebates.--
20            (1)     (Reserved).
21            (2)     The following apply:
22                  (i)    The base amount of any claim for property tax
23            rebate for real property taxes due and payable during
24            calendar year 2023 and thereafter shall be determined in
25            accordance with the following schedule:
26                                              Amount of Real Property Taxes
27      Household Income                              Allowed as Rebate
28      $       0 - $ 8,000                                 $1,000
29          8,001 -    15,000                                770
30       15,001 -      18,000                                460

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 1     18,001 -      45,000                              380
 2                (ii)   [The] Except as otherwise provided in paragraph
 3          (5), the supplemental amount for a claimant with [a
 4          household income equal to or less than $30,000 and] an
 5          eligible claim for property tax rebate for real property
 6          taxes due and payable during the calendar year preceding
 7          the first year in which a payment under section 505(b) is
 8          made and each year thereafter and whose real property
 9          taxes exceed 15% of the claimant's household income shall
10          be equal to 50% of the base amount determined under
11          subparagraph (i). A claimant who is a resident of a city
12          of the first class, a city of the second class A or a
13          school district of the first class A shall be ineligible
14          for the supplemental amount under this subparagraph.
15          (3)     The following apply:
16                (i)    The base amount of any claim for rent rebate in
17          lieu of property taxes for rent due and payable during
18          calendar year 2023 and thereafter shall be determined in
19          accordance with the following:
20                                               Amount of Rent Rebate in
21                                                Lieu of Property Taxes
22    Household Income                              Allowed as Rebate
23    $       0 - $ 8,000                                 $1,000
24        8,001 -    15,000                                770
25     15,001 -      18,000                                460
26     18,001 -      45,000                                380
27                (ii)   Except as otherwise provided in paragraph (5),
28          the supplemental amount for a claimant with an eligible
29          claim for rent rebate in lieu of property taxes and whose
30          gross rent actually paid exceeds 75% of the claimant's

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 1          household income shall be equal to 50% of the base amount
 2          determined under subparagraph (i).
 3          (4)   The household income limits contained in paragraphs
 4    (2)(i) and (ii) and (3) shall be increased by a percentage
 5    equal to the percentage change in the Consumer Price Index
 6    for All Urban Consumers statistics published by the United
 7    States Bureau of Labor Statistics. Any increase shall be
 8    rounded to the nearest $10. The percentage change shall be
 9    determined by comparison of the figure for the previous July,
10    with that of the current July figure. If the Consumer Price
11    Index declines for a given period, the household income limit
12    shall be unchanged for that year. The secretary shall, within
13    10 days following the determination, transmit notice of the
14    determination to the Legislative Reference Bureau for
15    publication in the next available issue of the Pennsylvania
16    Bulletin.
17          (5)   The supplemental amount for a claimant with an
18    eligible claim for both a property tax rebate and a rent
19    rebate in lieu of property taxes whose combined total of real
20    property taxes and one-fifth of gross rent actually paid
21    exceeds 15% of the claimant's household income shall be equal
22    to 50% of the base amount determined under paragraph (2)(ii).
23    A claimant who is a resident of a city of the first class, a
24    city of the second class A or a school district of the first
25    class A shall be ineligible for the supplemental amount under
26    this subparagraph.
27    (b)   Limitations on claims.--
28          (1)   No claim through calendar year 2005 shall be allowed
29    if the amount of property tax or rent rebate computed in
30    accordance with this section is less than $10, and the

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 1    maximum amount of property tax or rent rebate payable shall
 2    not exceed $500.
 3          (2)    For calendar year 2006 and thereafter, the maximum
 4    amount of property tax or rent rebate in lieu of property
 5    taxes payable shall not exceed the lesser of:
 6                 (i)    the amount of a claim under subsection (a)(2) or
 7          (3);
 8                 (ii)    the amount of real property taxes actually
 9          paid; or
10                 (iii)    20% of gross rent actually paid.
11          (3)    No claim shall be allowed if the claimant is a
12    tenant of an owner of real property exempt from real property
13    taxes.
14    (c)   Apportionment [and public assistance].--
15          (1)    If any of the following exist relating to a claim:
16                 (i)    a homestead is owned or rented and occupied for
17          only a portion of a year or is owned or rented in part by
18          a person who does not meet the qualifications for a
19          claimant, exclusive of any interest owned or leased by a
20          claimant's spouse;
21                 (ii)    the claimant is a widow or widower who
22          remarries; or
23                 (iii)    the claimant is a formerly disabled person who
24          is no longer disabled,
25    the department shall apportion the real property taxes or
26    rent in accordance with the period or degree of ownership or
27    leasehold or eligibility of the claimant in determining the
28    amount of rebate for which a claimant is eligible.
29          [(2)    A claimant who receives public assistance from the
30    Department of Public Welfare shall not be eligible for rent

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1      rebate in lieu of property taxes during those months within
2      which the claimant receives public assistance.]
3      (d)   Government subsidies.--Rent shall not include subsidies
4   provided by or through a governmental agency.
5      Section 4.   This act shall take effect in 60 days.




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