Bill > HB775

This bill introduces tax credits to encourage companies to hire and support "phoenix employees" - individuals who have been out of the workforce for at least two years or are entering a job that increases their earnings by 50%. The bill establishes two primary tax credit programs: the Phoenix Employee Tax Credit and the Returnship Tax Credit. Under the Phoenix Employee Tax Credit, companies can claim a credit equal to twice the state personal income tax paid by a phoenix employee, which can be applied to various state taxes and is available for up to three consecutive years. The Returnship Tax Credit provides companies with $1,000 for each completed paid internship designed to reintroduce phoenix employees to the workforce, with the intent of offering a permanent position. The bill requires companies to demonstrate their ability to hire and support phoenix employees, including providing training and committing to retain them for at least three years. The Department of Revenue will manage the program, with annual funding starting at $15 million for phoenix employee credits and $10 million for returnship credits, with amounts increasing in subsequent years and adjusted for inflation. The bill also includes provisions to ensure fair compensation for phoenix employees and penalties for companies that fail to maintain operations or submit fraudulent documentation, with potential refunds or third-degree felony charges for serious violations.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=775