(a) Establishment.--A municipality that levies an earned income tax may establish by ordinance or resolution a tax credit against an individual's liability imposed under Chapter 3 of the Local Tax Enabling Act¹ for active service as a volunteer.

(b) Amount.--A municipality shall set forth in the ordinance or resolution the total amount of the tax credit that will be offered to an individual. If an individual's earned income tax liability is less than the amount of the tax credit offered, the individual's tax credit must equal the individual's tax liability.

(c) Public notice.--At least 30 days prior to adoption of the ordinance or resolution, the governing body shall give public notice of its intent to adopt an ordinance or resolution to establish a tax credit and conduct at least one public hearing on the issue.

(d) Specific notice.--A municipality that establishes a tax credit under this chapter shall notify the commissioner in the manner prescribed by the commissioner.