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HB 2193

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for deer processor's tax credit.

2025-2026 Regular Session Introduced by Danilo Burgos and 8 co-sponsors

The bill creates a Pennsylvania Deer Processor’s Tax Credit to offset venison processing costs for donations to qualifying charities, with limits and carryforwards.

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Bill Summary · HB 2193

Overview

HB 2193 (2025-2026 PA Session) creates a new deer processor’s tax credit under the Pennsylvania Tax Reform Code of 1971. The credit is designed to support charitable donation of venison by covering processing expenses incurred to prepare meat for human consumption and donated to accepting registered public charities.

Main purpose and intent

  • Establish a targeted tax credit to incentivize the processing of deer for donation to charitable organizations that feed the hungry.
  • Provide a mechanism for processors or pass-through entities (and their shareholders/members) to receive a credit against eligible tax liabilities for the cost of processing venison destined for charitable distribution.

Key provisions and changes

  • Article XVII-M: Deer Processor’s Tax Credit added to the Tax Reform Code of 1971.
  • Definitions (Section 1702-M):
    • Accepting registered public charity: charity that accepts venison to feed the hungry.
    • Qualified processing expense: processing costs incurred to process a single deer donated for human consumption.
    • Qualified tax liability: taxes under Articles III, IV, or VI (and for shareholders of pass-throughs, the shareholder’s tax liability).
    • Pass-through entity: partnerships, LLCs, S corporations, or similar entities treated as pass-throughs for federal tax purposes.
  • Tax credit amount (Section 1703-M):
    • $100 per deer processed that is donated to an accepting registered charity.
    • Maximum credit per taxpayer per taxable year: $5,000.
    • Tax credit timing: department notifies the taxpayer by December 15 of the year following the tax year.
  • Carryover and application (Section 1704-M):
    • Unused credit may be carried forward for up to 15 years, reducing in value as credits are used each year.
    • Credits are applied against the taxpayer’s current qualified tax liability before considering carryover.
    • No carryback or refund of unused credits.
  • Limitation and allocation (Section 1705-M):
    • Annual cap: total credits may not exceed $200,000 in any fiscal year.
    • Credits allocated on a first-come, first-served basis until the annual cap is reached.
  • Pass-through specifics (Section 1706-M):
    • Pennsylvania S corporations: if the corporation has no qualified tax liability, a shareholder may receive a credit equal to the corporation’s credit times the shareholder’s share of distributive income.
    • Other pass-throughs: owners/members may receive a credit equal to the entity’s credit times their share of distributive income.
    • The credit for a pass-through entity and its owners may not be claimed for the same qualified processing expense (no double-dipping).
    • The credit is in addition to any other credits to which the shareholder/owner may be entitled, subject to the above limitation.
  • Regulations (Section 1707-M): Department of Revenue to promulgate regulations as needed.
  • Effective dates (Section 2 and 3):
    • Applies to taxable years beginning after December 31, 2024.
    • Takes effect July 1, 2026 or immediately, whichever is later.

Who would be affected

  • Deer processors incurring qualified processing expenses related to donating venison.
  • Pass-through entities (partnerships, LLCs taxed as partnerships, Pennsylvania S corporations) and their shareholders/owners/members that process venison for donation.
  • Accepting registered public charities that receive donated venison (to qualify the expense under the program).
  • Taxpayers with qualified tax liabilities under PA Articles III, IV, or VI who process and donate venison.

Procedural and timeline notes

  • Applications for the credit must be filed by September 15 of the year following the tax year in which processing occurred.
  • Annual credit availability is capped at $200,000 and awarded on a first-come, first-served basis.
  • The Department of Revenue will issue notification of approved credit by December 15 following the tax year.
  • If credits are not fully utilized in a given year, they may be carried forward for up to 15 years, but never carried back or refunded.

Potential impact and considerations

  • Encourages charitable donation of venison by offsetting processing costs, potentially increasing venison donations to hungry populations.
  • Provides financial support to deer processors and pass-through entities participating in charitable donation programs.
  • The $200,000 annual cap and $5,000 per-entity cap limit overall uptake, so the program may benefit a subset of processors.
  • Administrative details (ear tagging requirement, recordkeeping) ensure traceability of donated deer and processing expenses.

Compiled from official sources — confirm details with the bill’s official record.

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