SB 1406
An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for Keystone Literacy Investment Tax Credit.
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill creates a new Keystone Literacy Investment Tax Credit to support evidence-based reading instruction programs. It allows qualified taxpayers, primarily insurance companies, to purchase tax credits from the state and apply them against their insurance premiums tax liability. The program aims to fund the Keystone Literacy Investment Fund, which will then distribute grants to schools for literacy initiatives. The bill establishes a process for selling these tax credits and outlines guidelines for the program's implementation.
Key provisions
- Creates the Keystone Literacy Investment Tax Credit.
- Allows qualified taxpayers (primarily insurance companies) to purchase tax credits.
- Applies tax credits against insurance premiums tax liability.
- Establishes the Keystone Literacy Investment Fund.
- Directs funds from tax credit sales to the Department of Education for literacy grants.
- Sets a cap on the total amount of tax credits purchased annually ($50,000,000).
- Specifies a sale timeline of January 31, 2027.
- Provides for a carryover of unused tax credits up to 2034.
Who is affected
- Insurance Companies
- Taxpayers
- Pennsylvania Schools
- Department of Revenue
- Department of Community and Economic Development
Notable changes
- Introduces a new tax credit mechanism focused on literacy funding.
- Creates a dedicated fund for literacy programs.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
David Argall
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