HB 288 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for construction tax credit requirements.

PRINTER'S NO.   233

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 288
                                               Session of
                                                 2025

     INTRODUCED BY PROKOPIAK, DONAHUE, HILL-EVANS, GIRAL, McNEILL,
        NEILSON, SCHLOSSBERG, MERSKI, DELLOSO, CERRATO, CEPEDA-
        FREYTIZ, SANCHEZ, HOHENSTEIN AND GREEN, JANUARY 23, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JANUARY 23, 2025


                                     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 construction tax credit
11      requirements.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    The act of March 4, 1971 (P.L.6, No.2), known as
15   the Tax Reform Code of 1971, is amended by adding an article to
16   read:
17                              ARTICLE XVII-A.2
18                    CONSTRUCTION TAX CREDIT REQUIREMENTS
19   Section 1701-A.2.    Definitions.
20      The following words and phrases when used in this article
21   shall have the meanings given to them in this section unless the
22   context clearly indicates otherwise:
 1      "Construction tax credit."      A tax credit authorized under any
 2   of the following:
 3            (1)   Article XVII-D.
 4            (2)   Article XVII-G.
 5            (3)   Article XVIII-G.
 6            (4)   Article XIX-C.
 7            (5)   Article XIX-E.
 8            (6)   Article XIX-F.
 9            (7)   Article XXIX-D.
10      "Department."    The Department of Revenue of the Commonwealth.
11   Section 1702-A.2.    Eligibility for credit.
12      (a)   Eligibility.--In addition to any other requirements
13   provided by a law of this Commonwealth, regulation or guideline,
14   before a construction tax credit may be awarded to a taxpayer
15   that has made a capital expenditure of more than $25,000 to
16   construct, reconstruct, demolish, alter or repair a facility,
17   the department, in consultation with the Department of Labor and
18   Industry, shall verify that the taxpayer has:
19            (1)   made good faith efforts to recruit and employ, and
20      to encourage any contractors or subcontractors of the
21      taxpayer to recruit and employ, workers from the local labor
22      market for employment during the construction,
23      reconstruction, demolition, alteration or repair of the
24      facility phase; and
25            (2)   demonstrated that individuals employed by the
26      taxpayer or any contractor or subcontractor of the taxpayer
27      for the construction, reconstruction, demolition, alteration
28      or repair of the facility have been paid the prevailing
29      minimum wage rate for each craft or classification as
30      determined by the Department of Labor and Industry under the

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 1      act of August 15, 1961 (P.L.987, No.442), known as the
 2      Pennsylvania Prevailing Wage Act.
 3      (b)   New jobs.--A facility for which a construction tax
 4   credit is sought and awarded shall be deemed to meet each of the
 5   minimum requirements necessary to apply the wage and benefit
 6   rates and related certification of payroll records required by
 7   the Pennsylvania Prevailing Wage Act. A taxpayer or any
 8   contractor or subcontractor of the taxpayer engaged to perform
 9   on the facility shall comply with all provisions and
10   requirements of the Pennsylvania Prevailing Wage Act for all new
11   jobs and for each craft or classification performing
12   construction, reconstruction, demolition, alteration or repair
13   work, other than maintenance work, undertaken at the facility
14   during the initial construction and during any period when
15   construction tax credit is sought and awarded for the facility.
16      (c)   Notification.--Before the solicitation of bids or
17   proposals of any contract or subcontract for a facility for
18   which a construction tax credit is sought, the taxpayer or the
19   taxpayers shall notify the Department of Labor and Industry of
20   the solicitation and request the issuance of a wage and benefit
21   rate determination for each craft and classification anticipated
22   to perform at the project facility. Rate requests shall be in
23   conformity with the procedures of the Pennsylvania Prevailing
24   Wage Act, and the Department of Labor and Industry shall issue
25   rates upon request as required under this subsection and the
26   provisions of the Pennsylvania Prevailing Wage Act.
27   Section 1703-A.2.   Enforcement.
28      The Department of Labor and Industry shall enforce this
29   article and shall apply the same administration and enforcement
30   applicable to any construction, reconstruction, demolition,

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 1   alteration or repair of a facility, other than maintenance work,
 2   undertaken in accordance with the act of August 15, 1961
 3   (P.L.987, No.442), known as the Pennsylvania Prevailing Wage
 4   Act, to ensure compliance.
 5   Section 1704-A.2.    Violations.
 6      (a)   Refund requirement.--In addition to enforcement
 7   authorized under the act of August 15, 1961 (P.L.987, No.442),
 8   known as the Pennsylvania Prevailing Wage Act, and section 1703-
 9   A.2, if, after notice and hearing, the Department of Labor and
10   Industry determines that a taxpayer intentionally failed to pay
11   or intentionally caused another person to fail to pay the
12   prevailing wage or benefit rates as specified under section
13   11(h) of the Pennsylvania Prevailing Wage Act for the
14   construction, reconstruction, demolition, alteration or repair
15   of a facility for which a construction tax credit is awarded, or
16   ratified the intentional failure by any contractors or
17   subcontractors of the taxpayer, the taxpayer shall refund 10% of
18   the amount of the construction tax credit as follows:
19            (1)   in the case of initial construction, for the first
20      fiscal year for which a tax credit is awarded; or
21            (2)   for the fiscal year in which the intentional
22      noncompliance occurred as determined by the Department of
23      Labor and Industry.
24      (b)   Appeals.--A finding of a violation under subsection (a)
25   may be appealed under section 2.2(e)(1) of the Pennsylvania
26   Prevailing Wage Act and 34 Pa. Code § 213.3 (relating to appeals
27   from determinations of the Secretary). Any final determination
28   by the Secretary of Labor and Industry or the Appeals Board
29   under the Pennsylvania Prevailing Wage Act may be appealed in
30   accordance with 2 Pa.C.S. (relating to administrative law and

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1   procedure).
2      Section 2.   This act shall take effect in 60 days.




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