PRIOR PRINTER'S NO. 1983 PRINTER'S NO. 3275
No. 1590 Session of 1983
INTRODUCED BY COLAFELLA, FATTAH, GALLAGHER, McVERRY, PETRARCA,
GODSHALL, KUKOVICH, DORR, FARGO, MILLER, WIGGINS, MICOZZIE,
CIMINI, CIVERA, LESCOVITZ, PRATT, E. Z. TAYLOR, GEIST,
PRISTELLA, DALEY, OLASZ, HERMAN, MERRY, BURD, SEMMEL, VAN
HORNE, LASHINGER, DeLUCA, FISCHER, STEIGHNER AND MAYERNIK,
OCTOBER 12, 1984
AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 20, 1984
AN ACT
1 Providing a tax credit for donated computer equipment.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Donated
6 Equipment Tax Credit Act.
7 Section 2. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "College." Any institution chartered within the Commonwealth
12 and duly authorized by law to be called a college or university.
13 "Computer equipment." A data processor which can be
14 programmed in at least two standard computer languages, which
1 has a random access memory with a capacity for at least 32,000
2 bytes and is or can be used connected to a screen for visual
3 display of data. Display screens, printers, disc drives and
4 installation costs, if donated with a data processor, are also
5 eligible for a tax credit.
6 "Corporation." A corporation having capital stock, joint-
7 stock association or limited partnership, either organized under
8 the laws of the Commonwealth, the United States, or any other
9 state, territory or foreign country or dependency and doing
10 business in this Commonwealth, or having capital or property
11 employed or used in this Commonwealth by or in the name of
12 itself or any person, partnership, association, limited
13 partnership, joint-stock association or corporation. The word
14 "corporation" shall not include building and loan associations,
15 banks, bank and trust companies, national banks, savings
16 institutions, trust companies, insurance and surety companies.
17 "Department." The Department of Revenue.
18 "Donated equipment." Computer equipment given to a school
19 entity or a college solely for educational purposes, and not
20 transferred for money, property, services or other
21 consideration. The original use of the equipment immediately
22 after the donation shall be by the donee.
23 "School entity." A school district, joint school district,
24 area vocational-technical school, intermediate unit, private
25 academic school, approved private school or licensed private
26 school.
27 Section 3. Credit against taxes.
28 A corporation shall be entitled to a credit against taxes
29 imposed under Article IV of the act of March 4, 1971 (P.L.6,
30 No.2), known as the Tax Reform Code of 1971, for the tax year in
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1 which the equipment was donated. The credit shall be equal to <--
2 the market value of the computer equipment. THE AMOUNT OF THE <--
3 TAX CREDIT MAY BE OF AN AMOUNT UP TO AND INCLUDING 25% OF THE
4 DEPRECIATED MARKET VALUE OF THE EQUIPMENT, AS DETERMINED BY THE
5 DEPARTMENT FROM INFORMATION SUBMITTED IN THE NOTE OF DONATION
6 UNDER SECTION 4.
7 Section 4. Note of donation.
8 In accordance with regulations adopted by the department, the
9 taxpayer shall submit a note of donation which shall include the
10 following information:
11 (1) A description of the donated equipment.
12 (2) An appraisal of the value of the donated equipment.
13 (3) A statement by the donee that the donated equipment
14 has been received, identifying the educational use which will
15 be made of the equipment and an affidavit that no special
16 consideration was made in exchange for the donation.
17 Section 5. Department powers.
18 The department has the power and its duty shall be to adopt
19 such rules, regulations, procedures and forms as are necessary
20 to implement this act.
21 Section 6. Effective date.
22 This act shall take effect in 90 days. 13
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