HB 709 — An Act amending Title 74 (Transportation) of the Pennsylvania Consolidated Statutes, providing for motor carrier parking space tax credit.

PRINTER'S NO.   728

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 709
                                                 Session of
                                                   2025

     INTRODUCED BY BENNINGHOFF, COOK, GALLAGHER, GILLEN, HEFFLEY,
        SIEGEL, SMITH AND ARMANINI, FEBRUARY 24, 2025

     REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 24, 2025


                                      AN ACT
 1   Amending Title 74 (Transportation) of the Pennsylvania
 2      Consolidated Statutes, providing for motor carrier parking
 3      space tax credit.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Title 74 of the Pennsylvania Consolidated
 7   Statutes is amended by adding a chapter to read:
 8                                  CHAPTER 85
 9                   MOTOR CARRIER PARKING SPACE TAX CREDIT
10   Sec.
11   8501.   Definitions.
12   8502.   Eligibility.
13   8503.   Procedure.
14   8504.   Motor carrier parking space tax credit.
15   8505.   Carryover and limitations.
16   8506.   Sale or assignment.
17   8507.   Pass-through entity.
18   8508.   Penalties.
 1   8509.   Standards and procedures.
 2   8510.   Surplus real property study.
 3   8511.   Construction.
 4   § 8501.    Definitions.
 5      The following words and phrases when used in this chapter
 6   shall have the meanings given to them in this section unless the
 7   context clearly indicates otherwise:
 8      "Department."     The Department of Revenue of the Commonwealth.
 9      "Motor carrier parking space."        A designated area that:
10             (1)   is clearly marked;
11             (2)   is 10 feet wide by 80 feet long;
12             (3)   has the purpose of fitting a motor carrier vehicle
13      accompanied by a semitrailer inside its parameters; and
14             (4)   provides sufficient spacing to give adequate
15      capacity for a motor carrier vehicle's turning radius.
16      "Pass-through entity."     Any of the following:
17             (1)   A partnership as defined in section 301(n.0) of the
18      act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
19      Code of 1971.
20             (2)   A Pennsylvania S corporation as defined in section
21      301(n.1) of the Tax Reform Code of 1971.
22             (3)   An unincorporated entity subject to section 307.21
23      of the Tax Reform Code of 1971.
24      "Qualified tax liability."        A taxpayer's tax liability under
25   Article III, IV, VI, VII, VIII, IX, XI or XV of the Tax Reform
26   Code of 1971.
27      "Semitrailer."     As defined in 75 Pa.C.S. § 102 (relating to
28   definitions).
29      "Start date."     The first day of the calendar quarter in which
30   an application is submitted to the department unless the

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 1   applicant requests and the department agrees to a later start
 2   date.
 3      "Surplus real property."      A plot of land owned by the
 4   Commonwealth or the Department of General Services on behalf of
 5   the Commonwealth.
 6      "Tax credit."      The motor carrier parking space tax credit
 7   authorized by this chapter.
 8      "Taxpayer."      A person that satisfies the eligibility
 9   qualifications as prescribed in section 8502 (relating to
10   eligibility).
11      "Tier 1 corridor."      Any of the following:
12             (1)    I-76 from US-1 to I-95 in Philadelphia, Philadelphia
13      County.
14             (2)    I-78 from Exit 49 (PA-100) to the State line.
15             (3)    I-79 from the Ohio River to Exit 76 (Pennsylvania
16      Turnpike).
17             (4)    I-81 from Exit 44 to the Susquehanna River.
18             (5)    I-81 from I-83 to I-78.
19             (6)    I-83 from US-322 to I-81.
20             (7)    I-95 in the Philadelphia area from the State line to
21      I-276.
22             (8)    The Pennsylvania Turnpike (I-76) from Exit 57 (US
23      22) to Exit 75 (I-70).
24             (9)    The Pennsylvania Turnpike (I-76) from Exit 298 (I-
25      176) to Norristown (I-476).
26             (10)   The Pennsylvania Turnpike (I-276) from Valley Forge
27      (I-76) to I-95.
28      "Tier 2 corridor."      Any of the following:
29             (1)    I-70 between I-79 and the Pennsylvania Turnpike (I-
30      76).

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 1             (2)    I-76 from the Pennsylvania Turnpike (Valley Forge
 2      Interchange) to Exit 340 (US 1).
 3             (3)    I-78 from I-81 to Exit 49 (PA 100).
 4             (4)    I-79 from Exit 49 (PA 576) to the Ohio River.
 5             (5)    I-80 from PA SR 38 to PA SR 66.
 6             (6)    I-80 from PA SR 42 to I-81.
 7             (7)    I-81 from the Pennsylvania-Maryland State line to
 8      Exit 52 (Pennsylvania Turnpike).
 9             (8)    I-81 from the Susquehanna River to I-83.
10             (9)    I-81 from Exit 164 (Sugar Notch) to Exit 194 (I-
11      476).
12             (10)    I-83 from Exit 21 (US 30) to US 322 in Dauphin
13      County.
14             (11)    I-84 from I-81 (Dunmore) to I-380.
15             (12)    I-376 from Exit 64 (I-79) to Exit 80 (US 22).
16             (13)    I-476 from I-76 (Conshohocken) to I-276
17      (Norristown).
18             (14)    The Pennsylvania Turnpike (I-76) from Exit 13
19      (Homewood) to Exit 57 (US 22/Pittsburgh).
20             (15)    The Pennsylvania Turnpike (I-70/I-76) from Exit 75
21      (New Stanton) to Somerset North/South Service Plazas.
22             (16)    The Pennsylvania Turnpike Northeast Extension (I-
23      476) from I-276 (Norristown) to I-78 (Lehigh Valley).
24      "Year one."      The four calendar quarters immediately following
25   the start date.
26   § 8502.    Eligibility.
27      In order to apply for a tax credit, a person must demonstrate
28   to the department the following:
29             (1)    The ability of the person to create five new free-
30      of-charge and publicly available motor carrier parking spaces

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 1      on property leased or owned by the taxpayer.
 2             (2)   The motor carrier parking spaces must be made with
 3      concrete or asphalt.
 4             (3)   The property must be at least three acres in size.
 5             (4)   The property must not be more than one mile from
 6      either a Tier 1 corridor or Tier 2 corridor.
 7             (5)   The property must be zoned as commercial or
 8      industrial.
 9             (6)   The property must have adequate lighting.
10             (7)   The property must have either a mobile or permanent
11      bathroom facility for use by the public.
12             (8)   The person must have the intent to maintain existing
13      operations in this Commonwealth for a period of at least five
14      years from the start date.
15   § 8503.    Procedure.
16      (a)    Application.--A taxpayer may apply for a claim to
17   receive a tax credit by submitting to the department a tax
18   credit application on a form and in a manner as determined by
19   the department.
20      (b)    Creation of motor carrier parking spaces.--In order to
21   receive a tax credit, the taxpayer must agree to:
22             (1)   create in year one at least five motor carrier
23      parking spaces on the property; and
24             (2)   retain the motor carrier parking spaces for as long
25      as the taxpayer continues to operate while receiving the tax
26      credit.
27      (c)    Approval.--If the department approves the taxpayer's
28   application, the department and the taxpayer must enter into an
29   agreement containing the following:
30             (1)   A description and the number of the motor carrier

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 1      parking spaces to be created by the taxpayer.
 2             (2)   The amount of private capital investment in the
 3      creation of motor carrier parking spaces.
 4             (3)   The maximum tax credit amount that the taxpayer may
 5      claim.
 6             (4)   An obligation of the taxpayer to maintain existing
 7      operations in this Commonwealth for at least five years from
 8      the start date.
 9             (5)   Any other information the department deems
10      appropriate.
11      (d)    Agreement.--
12             (1)   After an agreement is executed between the
13      department and a taxpayer, the taxpayer shall create the
14      motor carrier parking spaces on the property in year one in
15      accordance with section 8502 (relating to eligibility) and
16      the terms of the agreement.
17             (2)   If the taxpayer does not create the motor carrier
18      parking spaces in accordance with section 8502 and the
19      agreement, the taxpayer shall be in breach of the agreement
20      and the department shall terminate the agreement.
21   § 8504.    Motor carrier parking space tax credit.
22      (a)    Maximum amount.--The department may award a tax credit
23   of $5,000 per newly created motor carrier parking space not to
24   exceed a total tax credit of up to $100,000 per taxpayer.
25      (b)    Certificate.--
26             (1)   After the agreement between the department and a
27      taxpayer is executed under section 8503 (relating to
28      procedure), the department shall determine in year one
29      whether the taxpayer has created the motor carrier parking
30      spaces and is otherwise in compliance with the agreement.

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 1            (2)   If the department is satisfied that the motor
 2      carrier parking spaces have been created and that the
 3      taxpayer is in compliance with the agreement, the department
 4      shall issue a tax credit certificate and filing information
 5      to the taxpayer.
 6            (3)   If the department is not satisfied that the motor
 7      carrier parking spaces have been created and that the
 8      taxpayer is in compliance with the agreement, the department
 9      may not issue a tax credit certificate and filing information
10      to the taxpayer. Subject to the limitations in subsection
11      (c), the department shall issue tax credits on a first-come,
12      first-served basis.
13      (c)   Limitation.--For the fiscal year starting on June 30,
14   2025, the department shall issue no more than $10,000,000 in tax
15   credits. Starting on June 30, 2026, and ending on June 30, 2035,
16   the department shall authorize an additional $1,000,000 in tax
17   credits in excess of the limit on the tax credits authorized for
18   the prior fiscal year. Beginning June 30, 2035, the department
19   will be limited to awarding $20,000,000 for each fiscal year. In
20   any fiscal year, the department may reissue, assign or award
21   prior fiscal year tax credits which have been recaptured under
22   section 8508 (relating to penalties) and award prior fiscal year
23   tax credits not previously issued.
24      (d)   Duration of tax credit.--A taxpayer may claim the tax
25   credit for the year in which the tax credit was approved and may
26   continue to receive the tax credit until the taxpayer is no
27   longer operating, as long as the taxpayer maintains the motor
28   carrier parking spaces.
29      (e)   Subject to tax credit and tax benefit administration.--
30   The tax credit shall be subject to Article XVII-A.1 of the act

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 1   of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
 2   1971.
 3   § 8505.    Carryover and limitations.
 4      The following limitations apply to tax credits:
 5             (1)   If a taxpayer cannot use the entire amount of the
 6      tax credit for the taxable year in which the tax credit is
 7      first approved, the excess may be carried over to succeeding
 8      taxable years and used as a tax credit against the qualified
 9      tax liability of the taxpayer for the taxable years. Each
10      time the tax credit is carried over to a succeeding taxable
11      year, the tax credit shall be reduced by the amount of the
12      tax credit used as a tax credit during the immediately
13      preceding taxable year. The tax credit may be carried over
14      and applied to succeeding taxable years for no more than
15      three taxable years following the first taxable year for
16      which the taxpayer was entitled to claim the tax credit.
17             (2)   A tax credit for a taxable year first shall be
18      applied against the taxpayer's qualified tax liability for
19      the current taxable year as of the date on which the tax
20      credit was approved before the tax credit may be applied
21      against any tax liability under paragraph (1).
22             (3)   A taxpayer is not entitled to carry back or obtain a
23      refund of all or any portion of an unused tax credit granted
24      to the taxpayer.
25   § 8506.    Sale or assignment.
26      (a)    Application.--
27             (1)   A taxpayer, upon application to and approval by the
28      department, may sell or assign, in whole or in part, a tax
29      credit granted to the taxpayer.
30             (2)   The department shall issue guidelines for the

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 1      approval of applications for tax credits.
 2             (3)   Before the department may approve an application,
 3      the department must determine whether the applicant has filed
 4      all required State tax reports and returns for all applicable
 5      taxable years and paid any balance of State tax due as
 6      determined at settlement, assessment or determination by the
 7      department.
 8             (4)   Notwithstanding any other provision of law, the
 9      department must settle, assess or determine the tax of an
10      applicant under this paragraph within 90 days of the filing
11      of each required final return or report in accordance with
12      section 806.1(a)(5) of the act of April 9, 1929 (P.L.343,
13      No.176), known as The Fiscal Code.
14      (b)    Use by purchaser or assignee.--
15             (1)   The purchaser or assignee of all or a portion of a
16      tax credit under subsection (a) must immediately claim the
17      tax credit in the taxable year in which the purchase or
18      assignment is made.
19             (2)   The amount of the tax credit that a purchaser or
20      assignee may use against any one qualified tax liability may
21      not exceed 50% of the qualified tax liability for the taxable
22      year.
23             (3)   The purchaser or assignee may not carry forward,
24      carry back or obtain a refund of or sell or assign the tax
25      credit.
26             (4)   The purchaser or assignee shall notify the
27      department of the seller or assignor of the tax credit in
28      compliance with procedures specified by the department.
29   § 8507.    Pass-through entity.
30      (a)    General rule.--If a pass-through entity has any unused

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 1   tax credits under section 8505 (relating to carryover and
 2   limitations), the entity may elect in writing, according to
 3   procedures established by the department, to transfer all or a
 4   portion of the tax credit to shareholders, members or partners
 5   in proportion or the share of the entity's distributive income
 6   to which the shareholder, member or partner is entitled.
 7      (b)    Limitation.--A pass-through entity and a shareholder,
 8   member or partner of a pass-through entity may not claim the tax
 9   credit under subsection (a) for the same motor carrier parking
10   spaces.
11      (c)    Application.--A shareholder, member or partner of a
12   pass-through entity to whom a tax credit is transferred under
13   subsection (a) shall immediately claim the tax credit in the
14   taxable year in which the transfer is made. The shareholder,
15   member or partner may not carry forward, carry back, obtain a
16   refund of or sell or assign the tax credit.
17   § 8508.   Penalties.
18      (a)    Failure to maintain operations.--A taxpayer that
19   receives a tax credit and fails to maintain existing operations
20   related to the tax credits in this Commonwealth for as long as
21   the taxpayer continues to operate while receiving the tax credit
22   shall refund to the Commonwealth the total amount of tax credits
23   granted. The department may issue an assessment, including
24   interest, additions and penalties, for the total amount of each
25   tax credit to be refunded to the Commonwealth.
26      (b)    Failure to maintain motor carrier parking.--A taxpayer
27   that receives a tax credit and fails to maintain the motor
28   carrier parking spaces for as long as the taxpayer continues to
29   operate while receiving the tax credit must refund to the
30   Commonwealth the total amount of tax credits granted. The

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 1   department may issue an assessment, including interest,
 2   additions and penalties, for the total amount of tax credits to
 3   be refunded to the Commonwealth.
 4      (c)    Waiver.--The department may waive the penalties under
 5   subsections (a) and (b) if the department determines that the
 6   taxpayer's existing operations were not maintained or the motor
 7   carrier parking spaces were not created because of circumstances
 8   beyond the taxpayer's control, including a natural disaster,
 9   unforeseen industry trend or a loss of a major supplier or
10   market.
11   § 8509.    Standards and procedures.
12      The department shall establish standards and procedures for
13   the tax credit.
14   § 8510.    Surplus real property study.
15      (a)    Duty of Department of General Services.--The Department
16   of General Services shall conduct a study of surplus real
17   property described in subsection (b) for the purpose of
18   analyzing if the property could be sold to a private entity for
19   the purpose of creating motor carrier parking spaces. In
20   carrying out the study, the Department of General Services may
21   enter into an agreement with or consult with the following
22   organizations:
23             (1)   The Department of Transportation of the
24      Commonwealth.
25             (2)   The Pennsylvania Turnpike Commission.
26             (3)   A State association that represents the motor
27      trucking industry.
28             (4)   Other organizations deemed necessary by the
29      Department of General Services.
30      (b)    Parameters.--In conducting the study, the Department of

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 1   General Services shall analyze surplus real property that:
 2             (1)   is within one mile of a Tier 1 corridor or Tier 2
 3      corridor;
 4             (2)   is at least three acres in size; and
 5             (3)   is zoned for commercial or industrial use.
 6      (c)    Condition.--The study shall describe how the surplus
 7   real property could be developed for motor carrier parking
 8   spaces utilizing Federal grants.
 9      (d)    Agreement.--The Department of General Services and the
10   organizations listed in subsection (a) may enter into an
11   agreement to conduct the study and issue the report under
12   subsection (e).
13      (e)    Report.--Within 12 months of the effective date of this
14   subsection, the Department of General Services shall publish a
15   report of the study on its publicly accessible Internet website
16   and issue a copy of the report to each of the following:
17             (1)   The Secretary of Transportation of the Commonwealth.
18             (2)   The Pennsylvania Transportation Advisory Committee.
19             (3)   The chairperson and minority chairperson of the
20      Transportation Committee of the Senate.
21             (4)   The chairperson and minority chairperson of the
22      Transportation Committee of the House of Representatives.
23             (5)   The chairperson and minority chairperson of the
24      State Government Committee of the Senate.
25             (6)   The chairperson and minority chairperson of the
26      State Government Committee of the House of Representatives.
27   § 8511.    Construction.
28      Nothing in this chapter shall be construed to limit or
29   disallow a motor carrier vehicle from parking in a designated
30   motor carrier parking space on a taxpayer's property.

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1     Section 2.    This act shall take effect as follows:
2         (1)   This section and the addition of 74 Pa.C.S. § 8510
3     shall take effect immediately.
4         (2)   The remainder of this act shall take effect December
5     31, 2025, or immediately, whichever is later.




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