PRINTER'S NO. 1580

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1206

Session of

2015

INTRODUCED BY DEAN, MAY 13, 2015

REFERRED TO COMMITTEE ON FINANCE, MAY 13, 2015

AN ACT

hereby enacts as follows:

section 1902-A of the act of March 4, 1971 (P.L.6, No.2),

community services, offering neighborhood assistance or

providing job training, veterans' housing assistance, education

or crime prevention in an impoverished area, holding a ruling

from the Internal Revenue Service of the United States

Department of the Treasury that the organization is exempt from

income taxation under the provisions of the Internal Revenue

Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) and

approved by the Department of Community [Affairs] and Economic

engages or contributes to a neighborhood organization which

engages in the activities of providing neighborhood assistance,

comprehensive service projects, veterans' housing assistance,

job training or education for individuals, community services or

crime prevention in an impoverished area or private company

which makes qualified investment to rehabilitate, expand or

improve buildings or land located within portions of

impoverished areas which have been designated as enterprise

zones shall receive a tax credit as provided in section 1905-A

if the secretary annually approves the proposal of such business

and regulations for the approval or disapproval of such

proposals by business firms or private companies. The secretary

shall provide a report listing of all applications received and

their disposition in each fiscal year to the General Assembly by

October 1 of the following fiscal year. The secretary's report

shall include all taxpayers utilizing the credit and the amount

of credits approved, sold or assigned. Notwithstanding any law

providing for the confidentiality of tax records, the

information in the report shall be public information, and all

when approving applications for neighborhood assistance tax

credits, applications which involve:

Commonwealth; and

Agriculture, shall promulgate guidelines for the approval or

disapproval of applications for tax credits by business firms

that contribute food or money to charitable food programs.

dollars ($18,000,000)] twenty-one million dollars ($21,000,000)

of tax credit in any fiscal year.

Department of Community and Economic Development, may sell or

assign, in whole or in part, a neighborhood assistance tax

credit granted to the business firm under this article if no

claim for allowance of the credit is filed within one year from

the date the credit is granted by the Department of Revenue

under section 1905-A. The Department of Community and Economic

Development and the Department of Revenue shall jointly

promulgate guidelines for the approval of applications under

this subsection.

credit in the taxable year in which the purchase or assignment

is made. The purchaser or assignee may not carry over, carry

back, obtain a refund of or sell or assign the neighborhood

assistance tax credit. The purchaser or assignee shall notify

the Department of Revenue of the seller or assignor of the

neighborhood assistance tax credit in compliance with procedures

specified by the Department of Revenue.

Department of Community and Economic Development shall be

applied against the business firm's tax liability for the taxes

(P.L.373, No.55), is amended to read:

Revenue shall grant a tax credit against any tax due under

Article III, IV, VI, VII, VIII, IX or XV of this act, or any tax

substituted in lieu thereof in an amount which shall not exceed

fifty-five per cent of the total amount contributed during the

taxable year by a business firm or twenty-five per cent of

qualified investments by a private company in programs approved

pursuant to section 1904-A of this act: Provided, That a tax

credit of up to seventy-five per cent of the total amount

contributed during the taxable year by a business firm or up to

thirty-five per cent of the amount of qualified investments by a

private company may be allowed for investment in programs where

activities fall within the scope of special program priorities

credit of up to seventy-five per cent of the total amount

contributed during the taxable year by a business firm in

comprehensive service projects with five-year commitments and up

to eighty per cent of the total amount contributed during the

taxable year by a business firm in comprehensive service

projects with six-year or longer commitments shall be

granted[.], and Provided further, That a tax credit of up to

ninety per cent of the total amount contributed during the

taxable year by a business firm in veterans' housing assistance

approved under section 1904-A(b.3) shall be granted. Such credit

national bank, savings association, mutual savings bank or

building and loan association for activities that are a part of

its normal course of business. Any tax credit not used in the

period the contribution or investment was made may be carried

over for the next five succeeding calendar or fiscal years until

the full credit has been allowed. A business firm shall not be

entitled to carry back or obtain a refund of an unused tax

credit. The total amount of all tax credits allowed pursuant to

this act shall not exceed [eighteen million dollars

($18,000,000)] twenty-one million dollars ($21,000,000) in any

one fiscal year. Of that amount, two million dollars

($2,000,000) shall be allocated exclusively for pass-through

veterans' housing assistance approved under section 1904-A(b.3).

However, if the total amounts allocated to either the group of

applicants, exclusive of pass-through entities, or the group of

pass-through entity applicants is not approved in any fiscal

year, the unused portion shall become available for use by the

other group of qualifying taxpayers.