HB 2170 — 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 establishing the employer blood donation tax credit.

PRINTER'S NO.   2823

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2170
                                               Session of
                                                 2026

     INTRODUCED BY FLOOD AND GILLEN, JANUARY 28, 2026

     REFERRED TO COMMITTEE ON FINANCE, JANUARY 29, 2026


                                    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 tax credit and tax benefit administration,
11      further providing for definitions; and establishing the
12      employer blood donation tax credit.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    The definition of "tax credit" in section 1701-
16   A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
17   Reform Code of 1971, is amended by adding a paragraph to read:
18   Section 1701-A.1.    Definitions.
19      The following words and phrases when used in this article
20   shall have the meanings given to them in this section unless the
21   context clearly indicates otherwise:
22      * * *
23      "Tax credit."    A tax credit authorized under any of the
 1   following:
 2             * * *
 3             (14.2)   Article XVIII-I.
 4             * * *
 5      Section 2.      The act is amended by adding an article to read:
 6                               ARTICLE XVIII-I
 7                      EMPLOYER BLOOD DONATION TAX CREDIT
 8   Section 1801-I.     Scope of article.
 9      This article relates to the employer blood donation tax
10   credit.
11   Section 1802-I.     Definitions.
12      The following words and phrases when used in this article
13   shall have the meanings given to them in this section unless the
14   context clearly indicates otherwise:
15      "Blood donation."     The voluntary and uncompensated donation
16   of whole blood or specific components of blood, by an employee,
17   drawn for use by a nonprofit blood bank organization as part of
18   a blood drive.
19      "Blood drive."     A function held at a specific date and time
20   that is organized by a nonprofit blood bank organization in
21   coordination with an employer or group of employers and is
22   closed to nonemployees.
23      "Department."     The Department of Revenue of the Commonwealth.
24      "Employee."     An individual employed by an employer.
25      "Employer."     A sole proprietor, general partnership, limited
26   partnership, limited liability company, corporation or other
27   legally recognized business entity.
28      "Tax credit."     An employer blood donation tax credit
29   authorized under section 1803-I.
30      "Verified donation."     A blood donation made by an employee

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 1   during a blood drive that can be documented by an employer.
 2   Section 1803-I.    Employer blood donation tax credit.
 3      (a)   Establishment.--For tax years 2025 through 2029, an
 4   employer that provides one or more paid leaves of absence to an
 5   employee for the specific purpose of a verified donation of
 6   blood as part of a blood drive provided by a Commonwealth
 7   nonprofit blood donation organization shall qualify for the
 8   employer blood donation tax credit. An employer that qualifies
 9   for the tax credit may apply the tax credit against tax due
10   under Article III, IV, VII, VIII, IX or XV.
11      (b)   Amount of tax credit.--The tax credit authorized by
12   subsection (a) shall be equal to $20 for each verified donation.
13      (c)   Limitations.--
14            (1)   The tax credit shall not be used to reduce the tax
15      liability of the taxpayer to less than $0.
16            (2)   The total aggregate amount of all tax credits
17      approved may not exceed $500,000 in a fiscal year.
18   Section 1804-I.    Regulations.
19      The department may determine, by regulation, documentation
20   required to implement this article and other regulations the
21   department deems necessary to implement this article.
22      Section 3.     The addition of Article XVIII-I of the act shall
23   apply to taxable years commencing after December 31, 2025.
24      Section 4.     This act shall take effect immediately.




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