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 Keystone Literacy Investment Tax Credit.

This bill creates a new tax incentive program called the Keystone Literacy Investment Tax Credit to fund evidence-based reading instruction in Pennsylvania public schools. The program allows insurance companies and their holding companies to purchase tax credits from the state, which they can then use to offset their own insurance premiums tax liability. The Department of Community and Economic Development will sell up to $150 million in these credits by January 2027, with the funds designated for literacy programs. Qualified taxpayers can begin applying the credits against their tax bills starting in 2029, with an annual cap on the total amount of credits that can be used set at $50 million.