Bill > SB401

This bill creates a new tax credit for employers who hire, retain, or support members of the Pennsylvania National Guard (which includes both Army and Air National Guard units). Employers can claim a $1,000 tax credit for each full-time employee who either joins the National Guard while employed, reenlists in the National Guard, or is hired as an active National Guard member. The tax credit can only be claimed once per qualified employee and cannot be claimed if a previous employer has already claimed the credit for that same employee. The total amount of tax credits available is capped at $5,000,000 per fiscal year, and if the total claims exceed this amount, credits will be allocated proportionally. If an employer cannot use the entire tax credit in the first year, they can carry the unused credit forward for up to three additional taxable years, with the credit amount being reduced each time it is carried over. The tax credit applies to taxes under Article III or IV of the tax code, excluding withholding taxes, and employers must file claims for the credit in the first taxable year they become eligible. The bill will take effect 30 days after passage and will apply to tax years beginning after December 31, 2025.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=401