HB 2308 — An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in institutions of higher education, establishing the PA WORKS Scholarship Grant Program and the trade career-incentive tax credit.

PRINTER'S NO.   3041

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2308
                                                 Session of
                                                   2026

     INTRODUCED BY CUTLER, BENNINGHOFF, PICKETT, FEE, OWLETT, KUZMA,
        STAATS, KUTZ, FRITZ, KOZAK, MENTZER AND PASHINSKI,
        MARCH 20, 2026

     REFERRED TO COMMITTEE ON EDUCATION, MARCH 23, 2026


                                       AN ACT
 1   Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
 2      act relating to the public school system, including certain
 3      provisions applicable as well to private and parochial
 4      schools; amending, revising, consolidating and changing the
 5      laws relating thereto," in institutions of higher education,
 6      establishing the PA WORKS Scholarship Grant Program and the
 7      trade career-incentive tax credit.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10      Section 1.     Article XX-L of the act of March 10, 1949
11   (P.L.30, No.14), known as the Public School Code of 1949, is
12   amended by adding a subarticle to read:
13                                SUBARTICLE E
14                     PA WORKS SCHOLARSHIP GRANT PROGRAM
15   Section 2070-L.    Definitions.
16      The following words and phrases when used in this subarticle
17   shall have the meanings given to them in this section unless the
18   context clearly indicates otherwise:
19      "Approved course of study."      A program offered by an
20   institution of higher education that provides instruction in at
 1   least one of the following:
 2            (1)   Carpentry.
 3            (2)   Construction safety.
 4            (3)   Construction management.
 5            (4)   Electrical construction or maintenance.
 6            (5)   Heating, ventilation or air conditioning.
 7            (6)   Masonry construction.
 8            (7)   Metal fabrication.
 9            (8)   Plumbing, water or environmental technology.
10            (9)   Welding or welding technology.
11      "Business firm."    An entity authorized to do business in this
12   Commonwealth and subject to taxes imposed under Article III, IV,
13   VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,
14   No.2), known as the Tax Reform Code of 1971.
15      "Educational cost."      Tuition, mandatory fees, textbooks or
16   other expenses paid to an institution of higher education and
17   approved by the agency.
18      "Grant."    A PA WORKS grant awarded under this subarticle.
19      "Institution of higher education."      One of the following:
20            (1)   An institution of higher education that is located
21      in this Commonwealth and approved by the agency for
22      enrollment of grant recipients under the Higher Education
23      Scholarship Law.
24            (2)   An institution of higher education established under
25      Article XIX-G.
26      "Program."    The Pennsylvania Workforce, Opportunity,
27   Retention and Knowledge Scholarship Program, referred to as PA
28   WORKS.
29      "Student."    An individual who is a resident of this
30   Commonwealth and is admitted or enrolled at an institution of

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 1   higher education.
 2   Section 2071-L.       PA WORKS Scholarship Grant Program.
 3      The PA WORKS Scholarship Grant Program is established within
 4   the agency to award grants beginning in the 2026-2027 school
 5   year.
 6   Section 2072-L.       Agency duties.
 7      The agency shall:
 8           (1)   Administer the program and, in its sole discretion,
 9      award grants to students who submit a completed application
10      and satisfy the eligibility criteria in paragraph (4). The
11      agency shall develop an application form that students may
12      use to apply for a grant. The application of a student under
13      18 years of age or a student determined to be a dependent
14      must include the signature of a parent or guardian.
15           (2)   Use money appropriated for the purpose of awarding
16      grants, except that the agency may use up to 5% of money
17      appropriated for the purpose of administering, implementing
18      and servicing costs associated with the program.
19           (3)   Award a grant to a student in an amount of $5,000
20      per academic year or if the total amount of Federal and State
21      grants available to the student exceeds the educational cost
22      as determined by the agency, whichever is less. The agency,
23      in its discretion, may provide for partial-year awards.
24           (4)   Establish eligibility criteria in order for a
25      student to receive a grant. The criteria shall, at a minimum,
26      include that a student must:
27                 (i)    Be a resident of this Commonwealth as defined by
28           the agency.
29                 (ii)    Be enrolled in an approved course of study.
30                 (iii)    Maintain satisfactory academic progress

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 1        defined by the agency.
 2              (iv)    Not have earned a bachelor's degree or the
 3        equivalent.
 4              (v)    Enter into a written agreement with the agency
 5        to:
 6                     (A)   Satisfy all degree requirements and other
 7              requirements under this subarticle.
 8                     (B)   Reside and commence employment in this
 9              Commonwealth within one year after completion of an
10              approved course of study culminating in a bachelor's
11              or associate's degree. The employment must be in an
12              in-demand occupation, as determined by the agency,
13              for a period of 36 months for each academic year the
14              student received a grant, unless the agency
15              determines that there are extenuating circumstances.
16              If the agency determines that there are no
17              extenuating circumstances, residency and employment
18              in this Commonwealth must be maintained for the
19              duration of the qualifying employment.
20                     (C)   Reimburse the Commonwealth the aggregate
21              amount of a scholarship, including interest, received
22              under this subarticle if the student fails to comply
23              with clauses (A) and (B). For a student who partially
24              satisfies the work requirement, the agency shall
25              prorate the required reimbursement.
26        (5)   Monitor and verify a student's compliance with the
27    agreement and enforce loan repayment of all grants for a
28    student who does not comply with the provisions of this
29    section, including use of all lawful collection procedures.
30    Nothing under this paragraph shall be construed to require an

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 1      institution of higher education to enforce any provision of
 2      this subarticle relating to repayment of funds for failure to
 3      comply with the provisions of this section.
 4            (6)   Advertise, market and provide outreach to students
 5      in traditionally underserved communities and include
 6      information about the program on the agency's publicly
 7      accessible Internet website.
 8            (7)   Not charge more than the three-month United States
 9      Treasury bill rate for interest on any repayment under
10      paragraph (4)(v)(C).
11            (8)   Accept donated money from businesses for the purpose
12      of awarding grants.
13            (9)   Not award a student a grant upon successful
14      completion of one approved course of study.
15   Section 2073-L.    Term of grant.
16      A grant shall be for a maximum of four academic years or the
17   completion of a bachelor's degree, whichever occurs first.
18   Section 2074-L.    Grant priority.
19      The agency shall:
20            (1)   Establish a process for accepting and reviewing
21      applications. The process shall ensure that applications
22      which meet the eligibility criteria and are complete will be
23      awarded in the order received by the agency.
24            (2)   Give renewal applicants the opportunity of first
25      priority in awarding grants for their renewal applications.
26   Section 2075-L.    Limitations.
27      The number of grants shall be limited to the amount of money
28   appropriated to the agency for the program.
29   Section 2076-L.    Termination.
30      (a)   Notification and return of money.--If a student

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 1   terminates enrollment in the approved course of study during the
 2   academic year or prior to completion of the approved course of
 3   study, the institution of higher education shall notify the
 4   agency in writing and shall return any unused portion of the
 5   grant to the agency.
 6      (b)   Construction.--Nothing in this subarticle shall be
 7   construed to change a student's eligibility for a grant if the
 8   student terminates enrollment in one approved course of study
 9   and enrolls in a different approved course of study at the same
10   institution of higher education or another institution of higher
11   education.
12   Section 2077-L.   Reimbursed and returned money.
13      Money reimbursed and returned under sections 2072-L and 2076-
14   L shall be used to provide additional grants.
15   Section 2078-L.   Taxation.
16      A grant received by a student shall not be considered taxable
17   income for purposes of Article III of the act of March 4, 1971
18   (P.L.6, No.2), known as the Tax Reform Code of 1971.
19   Section 2079-L.   Construction.
20      Nothing in this subarticle shall be construed to disqualify
21   an institution of higher education from receipt of money under
22   the act of July 18, 1974 (P.L.483, No.174), known as The
23   Institutional Assistance Grants Act.
24   Section 2080-L.   Trade career-incentive tax credit.
25      (a)   Establishment.--A trade career-incentive tax credit is
26   established to supplement existing Federal and State funding
27   appropriated for grants awarded under the program.
28      (b)   Application.--A business firm applying to claim a trade
29   career-incentive tax credit must complete and submit to the
30   Department of Revenue a trade career-incentive tax credit

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 1   application on a form and in a manner as determined by the
 2   Department of Revenue.
 3      (c)   Approval.--If the Department of Revenue approves the
 4   business firm's application, the Department of Revenue and the
 5   business firm shall execute a commitment letter containing the
 6   following:
 7            (1)   The maximum trade career-incentive tax credit amount
 8      the business firm may claim.
 9            (2)   A signed statement that the business firm intends to
10      maintain existing operations in this Commonwealth for at
11      least five years from the start date.
12            (3)   Any other information as the Department of Revenue
13      deems appropriate.
14            (4)   A statement authorizing the credit as a single-year
15      or multiple-year credit.
16      (d)   Certificate.--After a commitment letter has been signed
17   by both the Commonwealth and the business firm, the business
18   firm shall receive a trade career-incentive tax credit
19   certificate and filing information.
20   Section 2081-L.    Public outreach.
21      The agency shall:
22            (1)   Actively advertise and market the program to
23      resident students and include information about the program
24      on the agency's publicly accessible Internet website.
25            (2)   Establish guidelines to advertise the trade career-
26      incentive tax credit to eligible business firms.
27   Section 2082-L.    Report.
28      The agency shall prepare and submit to the Governor, the
29   General Assembly and the Secretary of Education an annual report
30   detailing the operation of the program each year. The report

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 1   shall, at a minimum, include:
 2          (1)   The number of new grant applicants and renewal grant
 3      applications.
 4          (2)   The number of grants awarded to students.
 5          (3)   The number of grants awarded to students by an
 6      approved course of study.
 7          (4)   The number of grants awarded to students by an
 8      institution of higher education.
 9          (5)   The average value of a grant award.
10          (6)   The number of grant recipients that are employed and
11      meeting the work requirement under section 2072-L(4)(v)(B).
12          (7)   The number of grant recipients that are employed and
13      meeting the work requirement by occupation.
14          (8)   The number of grant recipients that have not met the
15      work requirement.
16          (9)   The amount of money reimbursed to the Commonwealth
17      by grant recipients that have not met the work requirement.
18      Section 2.   This act shall take effect in 60 days.




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