PA SB821

Creates a $500 annual state income tax credit for active Pennsylvania National Guard members who are Commonwealth residents with at least two full years of service

Tax credit applies to taxable years beginning after December 31, 2026, and cannot be carried over, carried back, refunded, sold, or assigned

Eligible taxpayers must be active Guard members on the date they file their tax return and may apply the credit to a spouse's liability on joint returns

Department of Revenue must submit annual reports beginning December 31, 2027, to legislative committees detailing the number of Guard members using the credit and total credits approved

Taxpayers who improperly claim the credit must repay the full amount plus interest as a penalty