Finance

Pennsylvania SB 1445 establishes the Learning Investment Tax Credit Program, which provides a refundable tax credit of $8,000 per child for qualified education expenses. The program is available to parents or legal guardians with annual incomes up to 300% of the area median gross income who have school-age children not enrolled in public schools. Eligible expenses include private school tuition, textbooks, tutoring, educational software, and standardized test fees. The total amount of credits awarded is capped at $300 million per fiscal year, with a mechanism to increase this cap by 25% if the previous year's usage reaches 90% of the limit.

Pennsylvania Senate Bill 1441 creates a new state income tax credit for parents, guardians, or grandparents who pay for their children's participation in youth activities. To qualify, the child must be under 18 and a Pennsylvania resident participating in eligible nonprofessional sports, arts, or recreational programs. Taxpayers can claim a credit equal to necessary expenses such as equipment, travel, lessons, and registration fees, with a maximum limit of $2,000 per child. The credit is not refundable and cannot be carried over to other tax years, applying to taxable years beginning after December 31, 2026.

This bill amends Pennsylvania's Right-to-Know Law to ban government agencies from signing nondisclosure agreements related to data centers. The law prohibits any contract that restricts the public from accessing information about the construction, development, or location of these facilities. If an agency signs such an agreement, the contract is considered void and unenforceable. The bill defines a data center as a facility used to process, store, or transmit data using computers and software.

This bill amends Pennsylvania's Tax Reform Code to update how funds are managed in Neighborhood Improvement Zones and to create a new Small Business Opportunity Program. Under the new rules, any leftover money from these zones must first pay required debts and obligations before 25% of the baseline tax revenue is automatically transferred to a fund dedicated to small business grants. The program is designed to help small businesses start, grow, or stay open in these specific areas by providing financial support to those that hire full-time employees and file all required tax reports. Local authorities will be required to report annually on the number of businesses participating, the total money awarded, and the number of jobs created or kept. Additionally, the bill clarifies that local officials and auditors can access specific tax records for these zones solely to verify eligibility and manage the program.

SB 1384 amends Pennsylvania's Tax Reform Code to update definitions for tax benefits and introduce new rules for computer data centers. The bill explicitly prohibits the Department of Revenue from certifying any new computer data centers after its effective date. It also establishes a new certification program for the Governor's Responsible Infrastructure Development, which sets standards for clean firm energy, including specific requirements for solar, wind, and battery storage systems. Additionally, the legislation defines terms related to alternative compliance payments and clean hydrogen production to support these infrastructure standards.