SB 1445

                                              PRINTER'S NO.   1915
             THE GENERAL ASSEMBLY OF PENNSYLVANIA
                 SENATE BILL
                 No. 1445
                                        Session of
                                          2026
INTRODUCED BY ROTHMAN, J. WARD, KEEFER, STEFANO, HUTCHINSON AND
   LANGERHOLC, AUGUST 26, 2026
REFERRED TO FINANCE, AUGUST 26, 2026
                             AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled
2    "An act relating to the finances of the State government;
3    providing for cancer control, prevention and research, for
4    ambulatory surgical center data collection, for the Joint
5    Underwriting Association, for entertainment business
6    financial management firms, for private dam financial
7    assurance and for reinstatement of item vetoes; providing for
8    the settlement, assessment, collection, and lien of taxes,
9    bonus, and all other accounts due the Commonwealth, the
10    collection and recovery of fees and other money or property
11    due or belonging to the Commonwealth, or any agency thereof,
12    including escheated property and the proceeds of its sale,
13    the custody and disbursement or other disposition of funds
14    and securities belonging to or in the possession of the
15    Commonwealth, and the settlement of claims against the
16    Commonwealth, the resettlement of accounts and appeals to the
17    courts, refunds of moneys erroneously paid to the
18    Commonwealth, auditing the accounts of the Commonwealth and
19    all agencies thereof, of all public officers collecting
20    moneys payable to the Commonwealth, or any agency thereof,
21    and all receipts of appropriations from the Commonwealth,
22    authorizing the Commonwealth to issue tax anticipation notes
23    to defray current expenses, implementing the provisions of
24    section 7(a) of Article VIII of the Constitution of
25    Pennsylvania authorizing and restricting the incurring of
26    certain debt and imposing penalties; affecting every
27    department, board, commission, and officer of the State
28    government, every political subdivision of the State, and
29    certain officers of such subdivisions, every person,
30    association, and corporation required to pay, assess, or
31    collect taxes, or to make returns or reports under the laws
32    imposing taxes for State purposes, or to pay license fees or
33    other moneys to the Commonwealth, or any agency thereof,
34    every State depository and every debtor or creditor of the
1    Commonwealth," providing for the Pennsylvania Learning
2    Investment Tax Credit Program.
3    The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5    Section 1.   The act of April 9, 1929 (P.L.343, No.176), known
6 as The Fiscal Code, is amended by adding an article to read:
7ARTICLE XVI-Y.1
8PENNSYLVANIA LEARNING INVESTMENT
9TAX CREDIT PROGRAM
10 Section 1601-Y.1.    Scope of article.
11    This article relates to the Pennsylvania Learning Investment
12 Tax Credit Program.
13 Section 1602-Y.1.    Definitions.
14    The following words and phrases when used in this article
15 shall have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17    "Area median gross income."      The median gross income for the
18 area in which a taxpayer resides as determined by the United
19 States Department of Housing and Urban Development under 26
20 U.S.C. § 42 (relating to low-income housing credit), adjusted
21 for family size.
22    "Department."    The Department of Revenue of the Commonwealth.
23    "Eligible child."    A child of school age who:
24(1)   has not yet received a high school diploma;
25(2)   currently resides within the attendance boundary of
26    a public school;
27(3)   is eligible to attend a school district under the
28    act of March 10, 1949 (P.L.30, No.14), known as the Public
29    School Code of 1949; and
30(4)   is not enrolled in a public school for the taxable
31    year.
20260SB1445PN1915  - 2 -
1    "Nonpublic school."    As defined under section 923.3-A of the
2 Public School Code of 1949.
3    "Public school."    As defined under section 1101-B of the
4 Public School Code of 1949.
5    "Qualified learning expenses."       Expenses incurred by a
6 taxpayer that is a parent or legal guardian of an eligible
7 child, including:
8(1)   tuition and fees at a nonpublic school;
9(2)   textbooks or curriculum materials;
10(3)   fees for after-school or summer education programs
11    provided by a nonpublic school;
12(4)   tutoring;
13(5)   educational software, technology and applications;
14(6)   fees for standardized and nationally recognized
15    tests, including college admissions tests and advanced
16    placement examinations and related preparatory courses;
17(7)   education services for students with disabilities
18    from a licensed or accredited practitioner or education
19    service provider; and
20(8)   contracted services provided by a public school
21    district, including specific classroom instruction.
22    "Tax credit."    The Pennsylvania learning investment tax
23 credit provided for under this article.
24    "Tax liability."    The liability for taxes imposed under
25 Article III of the Tax Reform Code of 1971, excluding any tax
26 withheld by an employer under Article III of the Tax Reform Code
27 of 1971.
28    "Tax Reform Code of 1971."    The act of March 4, 1971 (P.L.6,
29 No.2), known as the Tax Reform Code of 1971.
30    "Taxable year."    As defined under section 301 of the Tax
20260SB1445PN1915  - 3 -
1 Reform Code of 1971.
2    "Taxpayer."   A resident individual subject to the tax imposed
3 under Article III of the Tax Reform Code of 1971.
4 Section 1603-Y.1.    Credit for learning investment expenses.
5    (a)   Creation of tax credit.--For each taxable year beginning
6 after December 31, 2024, a taxpayer with an annual income not
7 exceeding 300% of the area median gross income for the
8 taxpayer's area of residence, adjusted for family size, shall be
9 allowed a tax credit against the tax imposed under Article III
10 of the Tax Reform Code of 1971 for each eligible child who is
11 not enrolled in a public school for the taxable year to be used
12 for qualified learning expenses.
13    (b)   Amount.--The credit shall be $8,000 per child per
14 taxable year.
15    (c)   Income eligibility.--A taxpayer shall provide
16 documentation, as determined by the department, to verify that
17 the taxpayer's annual income does not exceed 300% of the area
18 median gross income for the taxpayer's area of residence,
19 adjusted for family size, for the taxable year in which the
20 credit is claimed.
21    (d)   Claim of tax credit.--A taxpayer shall claim a tax
22 credit under this section on a return filed under section 330 of
23 the Tax Reform Code of 1971.
24    (e)   Tax credit refund.--The tax credit under this section
25 shall be applied against the taxpayer's tax liability. If the
26 tax credit exceeds the taxpayer's tax liability, the department
27 shall issue a refund under the procedures specified in section
28 346 of the Tax Reform Code of 1971.
29    (f)   Prorating of tax credit.--In the case of a child
30 enrolled in a public school for a portion of the taxable year
20260SB1445PN1915  - 4 -
1 and in a nonpublic school for a portion of the taxable year, the
2 amount of the credit awarded to the taxpayer shall be prorated.
3    (g)   Distribution of tax credit.--
4(1)   The department shall allow taxpayers to claim the
5    credit when filing an annual tax return or through advanced
6    installments.
7(2)   The department shall prescribe applications for the
8    purposes of claiming the credits in advance and a deadline by
9    which applications for the advance shall be submitted.
10(3)   A taxpayer shall choose to receive the credit:
11(i)    as a direct deposit electronically to a banking
12account provided by the taxpayer; or
13(ii)   by certified mail to a legal address.
14    (h)   Annual cap on tax credits.--
15(1)   The total amount of tax credits awarded under this
16    article shall not exceed $300,000,000 in any fiscal year.
17(2)   The department shall monitor the total amount of tax
18    credits claimed and shall cease accepting applications for
19    the tax credit in a fiscal year once the $300,000,000 cap is
20    reached.
21(3)   Beginning in fiscal year 2026-2027, in any fiscal
22    year in which the total amount of tax credits awarded under
23    this article in the prior fiscal year is equal to or greater
24    than 90% of the amount authorized under paragraph (1), the
25    total amount of tax credits available for the subsequent
26    fiscal year shall increase by 25%. The department shall
27    publish on its publicly accessible Internet website the total
28    aggregate amount of all tax credits available when the amount
29    is increased under this paragraph.
30(4)   If the total amount of tax credits requested in a
20260SB1445PN1915  - 5 -
1    fiscal year exceeds the total amount of credits available for
2    that fiscal year, the department shall establish a wait list
3    for applications received after the cap is reached. The
4    applications on the wait list shall be given priority for
5    approval in the order in which they were received for the
6    next fiscal year in which tax credits are available.
7 Section 1604-Y.1.   Regulations.
8    The department shall promulgate regulations necessary to
9 implement and administer this article.
10    Section 2.   This act shall take effect in 60 days.
20260SB1445PN1915  - 6 -