PRINTER'S NO. 2146
No. 1445 Session of 2008
INTRODUCED BY McILHINNEY, TOMLINSON, RHOADES, A. WILLIAMS,
LOGAN, REGOLA, WONDERLING, BOSCOLA AND KITCHEN, JUNE 10, 2008
REFERRED TO FINANCE, JUNE 10, 2008
AN ACT
1 Providing for a State tax credit for personal contributions to
2 certain charitable organizations that provide assistance to
3 the working poor.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Pennsylvania
8 Charity Tax Credit Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Department." The Department of Revenue of the Commonwealth.
14 "Low-income residents." Persons whose household income is
15 less than 150% of the Federal poverty level.
16 "Qualifying charitable organization." A charitable
17 organization that is exempt from Federal income taxation under
18 section 501(c)(3) of the Internal Revenue Code of 1986 (Public
1 Law 99-514, 26 U.S.C § 501(c)(3)), or is a designated community
2 action agency that receives community services block grant
3 program moneys pursuant to 42 U.S.C. § 9901 (relating to
4 purposes and goals). The organization must spend at least 50% of
5 its budget on services to residents of this Commonwealth who
6 receive temporary assistance for needy families' benefits or on
7 low-income residents of this Commonwealth and their households.
8 Taxpayers choosing to make donations through an umbrella
9 charitable organization that collects donations on behalf of
10 member charities shall designate that the donation be directed
11 to a member charitable organization that would qualify under
12 this section on a stand-alone basis.
13 "Services." Cash assistance, medical care, child care, food,
14 clothing, shelter, job placement and job training services or
15 any other assistance that is reasonably necessary to meet
16 immediate basic needs and that is provided and used in this
17 Commonwealth.
18 Section 3. Authorization of credit.
19 (a) Credit.--For taxable years beginning after December 31,
20 2008, a credit is allowed against the taxes imposed by the
21 Commonwealth for voluntary cash contributions made by the
22 taxpayer during the taxable year to a qualifying charitable
23 organization as determined pursuant to, but not exceeding, the
24 following:
25 (1) Two hundred dollars in any taxable year for a single
26 individual or a head of household.
27 (2) Four hundred dollars for a married couple filing a
28 joint return.
29 (3) A husband and wife who file separate returns for a
30 taxable year in which they could have filed a joint return
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1 may each claim only one-half of the tax credit that would
2 have been allowed for a joint return.
3 (b) Carry forward.--If the allowable tax credit exceeds the
4 taxes otherwise due the Commonwealth on the claimant's income,
5 or if there are no taxes due the Commonwealth, the taxpayer may
6 carry forward the amount of the claim not used to offset the
7 taxes for not more than five consecutive taxable years' income
8 tax liability.
9 (c) Limitations.--The credit allowed under this section is
10 in lieu of a deduction pursuant to section 170 of the Internal
11 Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 170) and
12 taken for State tax purposes.
13 (d) Requirements.--Taxpayers taking a credit authorized
14 under this section shall provide the name of the qualifying
15 charitable organization and the amount of the contribution to
16 the department on forms provided by the department.
17 (e) Additional limitations.--The credit under this section
18 applies only to contributions to qualifying charitable
19 organizations that exceed the total amount deducted pursuant to
20 section 170 of the Internal Revenue Code of 1986 in the
21 taxpayer's baseline year. The taxpayer's baseline year is:
22 (1) The 2007 taxable year if the taxpayer deducted
23 charitable contributions pursuant to section 170 of the
24 Internal Revenue Code of 1986 in the 2007 taxable year.
25 (2) If the taxpayer did not deduct charitable
26 contributions pursuant to section 170 of the Internal Revenue
27 Code of 1986 in the 2007 taxable year, the taxpayer's
28 baseline year is the first taxable year after 2007 that the
29 taxpayer deducted charitable contributions pursuant to
30 section 170 of the Internal Revenue Code of 1986.
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1 (f) Certification.--A qualifying charitable organization
2 shall provide the department with a written certification that
3 it meets all criteria to be considered a qualifying charitable
4 organization. The organization shall also notify the department
5 of any changes that may affect the organization's qualifications
6 under this section. The department shall compile and make
7 available to the public a list of the qualifying organizations.
8 Section 4. Effective date.
9 This act shall take effect in 60 days.
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