HB 2235 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Pennsylvania firefighter and emergency medical service provider recruitment and retention tax credit.

PRINTER'S NO.   2928

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2235
                                                 Session of
                                                   2026

     INTRODUCED BY PUGH, HILL-EVANS, M. MACKENZIE, CAUSER, KUZMA,
        RIVERA, ZIMMERMAN, OLSOMMER AND GILLEN, FEBRUARY 20, 2026

     REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 20, 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 Pennsylvania firefighter and
11      emergency medical service provider recruitment and retention
12      tax credit.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.     The act of March 4, 1971 (P.L.6, No.2), known as
16   the Tax Reform Code of 1971, is amended by adding an article to
17   read:
18                               ARTICLE XIX-L
19                   PENNSYLVANIA FIREFIGHTER AND EMERGENCY
20                    MEDICAL SERVICE PROVIDER RECRUITMENT
21                          AND RETENTION TAX CREDIT
22   Section 1901-L.    Scope of article.
23      This article relates to the Pennsylvania firefighter and
 1   emergency medical service provider recruitment and retention tax
 2   credit.
 3   Section 1902-L.         Definitions.
 4      The following words and phrases when used in this article
 5   shall have the meanings given to them in this section unless the
 6   context clearly indicates otherwise:
 7      "Department."         The Department of Revenue of the Commonwealth.
 8      "Firefighter or emergency medical service provider."         The
 9   term includes:
10             (1)   an active volunteer as defined in 35 Pa.C.S. § 79A03
11      (relating to definitions); and
12             (2)   a first responder who volunteers for or is employed
13      by any of the following:
14                   (i)    Career emergency medical services as defined in
15             35 Pa.C.S. § 7802 (relating to definitions).
16                   (ii)    An emergency medical services company as
17             defined in 35 Pa.C.S. § 7802.
18                   (iii)    A fire company as defined in 35 Pa.C.S. §
19             7802.
20                   (iv)    A volunteer EMS company as defined in 35
21             Pa.C.S. § 7802.
22                   (v)    A volunteer fire company as defined in 35
23             Pa.C.S. § 7802.
24                   (vi)    A volunteer rescue company as defined in 35
25             Pa.C.S. § 7802.
26      "Qualified taxpayer."         A taxpayer who is a firefighter or
27   emergency medical service provider.
28      "Tax credit."         The Pennsylvania firefighter and emergency
29   medical service provider recruitment and retention tax credit
30   authorized under this article.

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 1      "Tax liability."   Liability for the tax imposed under Article
 2   III.
 3      "Taxpayer."    An individual subject to payment of tax under
 4   Article III.
 5   Section 1903-L.   Credit for firefighter and emergency medical
 6               service personnel.
 7      (a)   Establishment.--The Pennsylvania firefighter and
 8   emergency medical service provider recruitment and retention tax
 9   credit is established.
10      (b)   Tax credit limit.--For a taxable year beginning after
11   December 31, 2026, a qualified taxpayer may claim a
12   nonrefundable tax credit not to exceed $6,000 against the
13   taxpayer's tax liability under Article III for that taxable
14   year.
15      (c)   Claim of tax credit.--A qualified taxpayer must claim a
16   tax credit on a return filed under section 330.
17      (d)   Adequate proof of eligibility.--A qualified taxpayer
18   must submit proof of eligibility for the tax credit to the
19   department at the time the qualified taxpayer submits a claim.
20      (e)   Applicability of tax credit.--The tax credit shall be
21   considered a payment of estimated tax made under Part VIII of
22   Article III.
23      (f)   Duration of tax credit.--A qualified taxpayer may claim
24   the tax credit for the year in which the qualified taxpayer
25   first becomes a qualified taxpayer and the next five consecutive
26   tax years, as long as the individual remains a qualified
27   taxpayer.
28   Section 1904-L.   Prohibitions.
29      A qualified taxpayer may not carry over, carry back, sell,
30   assign or transfer a tax credit.

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 1   Section 1905-L.    Departmental duties.
 2      The department shall publish guidelines and may promulgate
 3   regulations necessary for the implementation and administration
 4   of this article.
 5   Section 1906-L.    Applicability.
 6      The tax credit shall apply to taxable years commencing after
 7   December 31, 2026, and before January 1, 2032.
 8   Section 1907-L.    Expiration.
 9      This article shall expire December 31, 2037.
10      Section 2.     This act shall take effect in 60 days.




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