An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for green roof tax credit.

HB 1038 creates a new 25% tax credit for Pennsylvania property owners who install green roofs - roofs with vegetation, waterproof membranes, and drainage systems. It directly affects businesses and individuals who construct qualifying green roofs covering at least 50% of a building’s rooftop or 75% of certified eligible space, requiring structural engineering certification and local permits. Applicants must file detailed plans with the Department of Revenue, maintain the roof for five years, and claim credits against annual taxes (capped at $100,000 per applicant yearly), with $10 million in credits available statewide each fiscal year. The credit is non-refundable, non-transferable, and requires repayment if maintenance requirements are not met.