HB 2193 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for deer processor's tax credit.

PRINTER'S NO.   2862

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2193
                                                  Session of
                                                    2026

     INTRODUCED BY PASHINSKI, HILL-EVANS, FREEMAN, ZIMMERMAN, MADDEN,
        CEPEDA-FREYTIZ, GOUGHNOUR, BURGOS AND CAUSER,
        FEBRUARY 3, 2026

     REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 4, 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," providing for deer processor's tax credit.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.     The act of March 4, 1971 (P.L.6, No.2), known as
14   the Tax Reform Code of 1971, is amended by adding an article to
15   read:
16                               ARTICLE XVII-M
17                        DEER PROCESSOR'S TAX CREDIT
18   Section 1701-M.    Scope of article.
19      This article relates to a deer processor's tax credit.
20   Section 1702-M.    Definitions.
21      The following words and phrases when used in this article
 1   shall have the meanings given to them in this section unless the
 2   context clearly indicates otherwise:
 3      "Accepting registered public charity."      An institution that
 4   meets the criteria under section 5 of the act of November 26,
 5   1997 (P.L.508, No.55), known as the Institutions of Purely
 6   Public Charity Act, and accepts venison as a means of feeding
 7   the hungry.
 8      "Department."    The Department of Revenue of the Commonwealth.
 9      "Pass-through entity."    Any of the following:
10            (1)   A partnership, limited partnership, limited
11      liability company, business trust or other unincorporated
12      entity that for Federal income tax purposes is taxable as a
13      partnership.
14            (2)   A Pennsylvania S corporation.
15      "Qualified processing expense."      The expense a processor
16   incurs as a result of processing a single deer, from which the
17   meat is being donated for the sole purpose of human consumption.
18      "Qualified tax liability."
19            (1)   The liability for taxes imposed under Article III,
20      IV or VI.
21            (2)   The term includes the liability for taxes imposed
22      under Article III on a shareholder of a pass-through entity.
23      "Tax credit."    The deer processor's tax credit authorized
24   under this article.
25      "Taxpayer."
26            (1)   An entity subject to tax under Article III, IV or
27      VI.
28            (2)   The term includes the shareholder, owner or member
29      of a pass-through entity that applies for or receives a tax
30      credit.

20260HB2193PN2862                    - 2 -
 1   Section 1703-M.     Tax credit for qualified processing expense.
 2      (a)   Application.--
 3            (1)   A taxpayer may apply for a tax credit as provided in
 4      this article if the taxpayer incurs a qualified processing
 5      expense while donating the taxpayer's service to an
 6      individual who wishes to donate all of the consumable venison
 7      from a single deer to an accepting registered public charity.
 8            (2)   By September 15, the taxpayer described in paragraph
 9      (1) must submit an application to the department for a
10      qualified processing expense incurred in the taxable year
11      that ended in the prior calendar year.
12      (b)   Accountability.--The qualifying processor must retain
13   for recordkeeping purposes each appropriate Pennsylvania Game
14   Commission numbered and issued ear tag that is affixed to each
15   deer being donated.
16      (c)   Receipt.--
17            (1)   Subject to paragraph (2), a taxpayer that is
18      qualified under subsection (a) shall receive a tax credit for
19      the taxable year in the amount of $100 per deer processed.
20            (2)   The maximum tax credit amount which a taxpayer that
21      is qualified under subsection (a) shall receive may not
22      exceed $5,000 for the taxable year.
23      (d)   Notification.--By December 15 of the calendar year
24   following the close of the taxable year during which the
25   qualified processing expense was incurred, the department shall
26   notify the taxpayer of the amount of the taxpayer's tax credit
27   approved by the department.
28   Section 1704-M.     Carryover, carryback, refund and application of
29                  tax credit.
30      (a)   Carryover.--If a taxpayer cannot use the entire amount

20260HB2193PN2862                    - 3 -
 1   of the tax credit for the taxable year in which the tax credit
 2   is first approved, the excess may be carried over to succeeding
 3   taxable years and used as a credit against the qualified tax
 4   liability of the taxpayer for those taxable years. The following
 5   apply to the carryover:
 6            (1)   Each time that the tax credit is carried over to a
 7      succeeding taxable year, it is to be reduced by the amount
 8      that was used as a credit during the immediately preceding
 9      taxable year.
10            (2)   The tax credit may be carried over and applied to
11      succeeding taxable years for no more than 15 taxable years
12      following the first taxable year for which the taxpayer was
13      entitled to claim the tax credit.
14      (b)   Application.--A tax credit approved by the department
15   for a qualified processing expense in a taxable year first shall
16   be applied against the taxpayer's qualified tax liability for
17   the current taxable year as of the date on which the tax credit
18   was approved before the tax credit is applied against any
19   qualified tax liability under subsection (a).
20      (c)   No carryback or refund.--A taxpayer is not entitled to
21   carry back or obtain a refund of an unused tax credit.
22   Section 1705-M.    Limitation on credits.
23      (a)   Total amount.--The total amount of tax credits approved
24   by the department shall not exceed $200,000 in any fiscal year.
25      (b)   Allocation of tax credits.--Tax credits under this
26   article shall be provided on a first-come, first-served basis
27   until all annual available tax credits have been allocated.
28   Section 1706-M.    Shareholder, owner or member pass-through.
29      (a)   Application to Pennsylvania S corporations.--If a
30   Pennsylvania S corporation does not have a qualified tax

20260HB2193PN2862                    - 4 -
 1   liability against which the tax credit may be applied, a
 2   shareholder of the Pennsylvania S corporation is entitled to a
 3   tax credit equal to the tax credit determined for the
 4   Pennsylvania S corporation for the taxable year multiplied by
 5   the percentage of the Pennsylvania S corporation's distributive
 6   income to which the shareholder is entitled.
 7      (b)   Other applications.--If a pass-through entity other than
 8   a Pennsylvania S corporation does not have a qualified tax
 9   liability against which the tax credit may be applied, an owner
10   or member of the pass-through entity is entitled to a tax credit
11   equal to the tax credit determined for the pass-through entity
12   for the taxable year multiplied by the percentage of the pass-
13   through entities' distributive income to which the owner or
14   member is entitled.
15      (c)   Additional credit.--
16            (1)   Except as provided in paragraph (2), the tax credit
17      provided under subsection (a) or (b) is in addition to any
18      tax credit to which a shareholder, owner or member of a pass-
19      through entity is otherwise entitled under this article.
20            (2)   A pass-through entity and a shareholder, owner or
21      member of a pass-through entity may not claim a tax credit
22      under this article for the same qualified processing expense.
23   Section 1707-M.    Regulations.
24      The department shall promulgate regulations necessary for the
25   implementation and administration of this article.
26      Section 2.     This act shall apply to taxable years beginning
27   after December 31, 2024.
28      Section 3.     This act shall take effect July 1, 2026, or
29   immediately, whichever is later.



20260HB2193PN2862                      - 5 -