HB 2193

PRIOR PRINTER'S NO. 2862  PRINTER'S NO.   3610
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                    HOUSE BILL
                    No. 2193
                                             Session of
                                               2026
INTRODUCED BY PASHINSKI, HILL-EVANS, FREEMAN, ZIMMERMAN, MADDEN,
   CEPEDA-FREYTIZ, GOUGHNOUR, BURGOS AND CAUSER,
   FEBRUARY 3, 2026
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
   AS AMENDED, JUNE 16, 2026
                                  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 deer processor's tax credit.
11    The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13    Section 1.     The act of March 4, 1971 (P.L.6, No.2), known as
14 the Tax Reform Code of 1971, is amended by adding an article to
15 read:
16ARTICLE XVII-M
17DEER PROCESSOR'S TAX CREDIT
18 Section 1701-M.    Scope of article.
19    This article relates to a deer processor's tax credit.
20 Section 1702-M.    Definitions.
21    The following words and phrases when used in this article
1 shall have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3    "Accepting registered public charity."      An institution that
4 meets the criteria under section 5 of the act of November 26,
5 1997 (P.L.508, No.55), known as the Institutions of Purely
6 Public Charity Act, and accepts venison as a means of feeding
7 the hungry.
8    "Department."    The Department of Revenue of the Commonwealth.
9    "Pass-through entity."    Any of the following:
10(1)    A partnership, limited partnership, limited
11    liability company, business trust or other unincorporated
12    entity that for Federal income tax purposes is taxable as a
13    partnership.
14(2)    A Pennsylvania S corporation.
15    "Qualified processing expense."      The expense a processor
16 incurs as a result of processing a single deer, from which the
17 meat is being donated for the sole purpose of human consumption.
18    "Qualified tax liability."
19(1)    The liability for taxes imposed under Article III,     <--
20    IV or VI III OR IV.  <--
21(2)    The term includes the liability for taxes imposed
22    under Article III on a shareholder of a pass-through entity.
23    "Tax credit."    The deer processor's tax credit authorized
24 under this article.
25    "Taxpayer."
26(1)    An entity subject to tax under Article III, IV or VI <--
27    III OR IV.  <--
28(2)    The term includes the shareholder, owner or member
29    of a pass-through entity that applies for or receives a tax
30    credit.
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1 Section 1703-M.     Tax credit for qualified processing expense.
2    (a)   Application.--
3(1)   A taxpayer may apply for a tax credit as provided in
4    this article if the taxpayer incurs a qualified processing
5    expense while donating the taxpayer's service to an
6    individual who wishes to donate all of the consumable venison
7    from a single deer to an accepting registered public charity.
8(2)   By September 15, the taxpayer described in paragraph
9    (1) must submit an application to the department for a
10    qualified processing expense incurred in the taxable year
11    that ended in the prior calendar year.
12    (b)   Accountability.--The qualifying processor must retain
13 for recordkeeping purposes each appropriate Pennsylvania Game
14 Commission numbered and issued ear tag that is affixed to each
15 deer being donated.
16    (c)   Receipt.--
17(1)   Subject to paragraph (2), a taxpayer that is
18    qualified under subsection (a) shall receive a tax credit for
19    the taxable year in the amount of $100 per deer processed.
20(2)   The maximum tax credit amount which a taxpayer that
21    is qualified under subsection (a) shall receive may not
22    exceed $5,000 for the taxable year.
23    (d)   Notification.--By December 15 of the calendar year
24 following the close of the taxable year during which the
25 qualified processing expense was incurred, the department shall
26 notify the taxpayer of the amount of the taxpayer's tax credit
27 approved by the department.
28 Section 1704-M.     Carryover, carryback, refund and application of
29tax credit.
30    (a)   Carryover.--If a taxpayer cannot use the entire amount
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1 of the tax credit for the taxable year in which the tax credit
2 is first approved, the excess may be carried over to succeeding
3 taxable years and used as a credit against the qualified tax
4 liability of the taxpayer for those taxable years. The following
5 apply to the carryover:
6(1)   Each time that the tax credit is carried over to a
7    succeeding taxable year, it is to be reduced by the amount
8    that was used as a credit during the immediately preceding
9    taxable year.
10(2)   The tax credit may be carried over and applied to
11    succeeding taxable years for no more than 15 FIVE taxable        <--
12    years following the first taxable year for which the taxpayer
13    was entitled to claim the tax credit.
14    (b)   Application.--A tax credit approved by the department
15 for a qualified processing expense in a taxable year first shall
16 be applied against the taxpayer's qualified tax liability for
17 the current taxable year as of the date on which the tax credit
18 was approved before the tax credit is applied against any
19 qualified tax liability under subsection (a).
20    (c)   No carryback or refund.--A taxpayer is not entitled to
21 carry back or obtain a refund of an unused tax credit.
22 Section 1705-M.    Limitation on credits.
23    (a)   Total amount.--The total amount of tax credits approved
24 by the department shall not exceed $200,000 in any fiscal year.
25    (b)   Allocation of tax credits.--Tax credits under this
26 article shall be provided on a first-come, first-served basis
27 until all annual available tax credits have been allocated.
28 Section 1706-M.    Shareholder, owner or member pass-through.       <--
29    (a)   Application to Pennsylvania S corporations.--If a
30 Pennsylvania S corporation does not have a qualified tax
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1 liability against which the tax credit may be applied, a
2 shareholder of the Pennsylvania S corporation is entitled to a
3 tax credit equal to the tax credit determined for the
4 Pennsylvania S corporation for the taxable year multiplied by
5 the percentage of the Pennsylvania S corporation's distributive
6 income to which the shareholder is entitled.
7    (b)   Other applications.--If a pass-through entity other than
8 a Pennsylvania S corporation does not have a qualified tax
9 liability against which the tax credit may be applied, an owner
10 or member of the pass-through entity is entitled to a tax credit
11 equal to the tax credit determined for the pass-through entity
12 for the taxable year multiplied by the percentage of the pass-
13 through entities' distributive income to which the owner or
14 member is entitled.
15    (c)   Additional credit.--
16(1)   Except as provided in paragraph (2), the tax credit
17    provided under subsection (a) or (b) is in addition to any
18    tax credit to which a shareholder, owner or member of a pass-
19    through entity is otherwise entitled under this article.
20(2)   A pass-through entity and a shareholder, owner or
21    member of a pass-through entity may not claim a tax credit
22    under this article for the same qualified processing expense.
23 SECTION 1706-M.    PASS-THROUGH ENTITY.  <--
24    (A)   TRANSFER.--IF A PASS-THROUGH ENTITY HAS ANY UNUSED TAX
25 CREDIT, IT MAY ELECT IN WRITING, ACCORDING TO PROCEDURES
26 ESTABLISHED BY THE DEPARTMENT, TO TRANSFER ALL OR A PORTION OF
27 THE CREDIT TO SHAREHOLDERS, MEMBERS OR PARTNERS IN PROPORTION TO
28 THE SHARE OF THE ENTITY'S DISTRIBUTIVE INCOME TO WHICH THE
29 SHAREHOLDER, MEMBER OR PARTNER IS ENTITLED.
30    (B)   LIMITATION.--A PASS-THROUGH ENTITY AND A SHAREHOLDER,
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1 MEMBER OR PARTNER OF A PASS-THROUGH ENTITY SHALL NOT CLAIM THE
2 CREDIT UNDER SUBSECTION (A) FOR THE SAME QUALIFIED LIABILITY.
3    (C)   APPLICATION.--A SHAREHOLDER, MEMBER OR PARTNER OF A
4 PASS-THROUGH ENTITY TO WHOM A CREDIT IS TRANSFERRED UNDER
5 SUBSECTION (A) SHALL IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE
6 YEAR IN WHICH THE TRANSFER IS MADE. THE SHAREHOLDER, MEMBER OR
7 PARTNER MAY NOT CARRY FORWARD, CARRY BACK, OBTAIN A REFUND OF OR
8 SELL OR ASSIGN THE CREDIT.
9 Section 1707-M.    Regulations GUIDELINES.  <--
10    The department shall promulgate regulations necessary MAY        <--
11 DEVELOP WRITTEN GUIDELINES for the implementation and
12 administration of this article.
13    Section 2.     This act shall apply to taxable years beginning
14 after December 31, 2024 2025.  <--
15    Section 3.     This act shall take effect July 1, 2026, or
16 immediately, whichever is later.
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