PRINTER'S NO. 3363
No. 2367 Session of 1984
INTRODUCED BY HERMAN, DURHAM, FLICK, BOOK, FARGO, ROBBINS AND
BOWSER, JUNE 28, 1984
REFERRED TO COMMITTEE ON EDUCATION, JUNE 28, 1984
AN ACT
1 Amending the act of April 9, 1929 (P.L.177, No.175), entitled
2 "An act providing for and reorganizing the conduct of the
3 executive and administrative work of the Commonwealth by the
4 Executive Department thereof and the administrative
5 departments, boards, commissions, and officers thereof,
6 including the boards of trustees of State Normal Schools, or
7 Teachers Colleges; abolishing, creating, reorganizing or
8 authorizing the reorganization of certain administrative
9 departments, boards, and commissions; defining the powers and
10 duties of the Governor and other executive and administrative
11 officers, and of the several administrative departments,
12 boards, commissions, and officers; fixing the salaries of the
13 Governor, Lieutenant Governor, and certain other executive
14 and administrative officers; providing for the appointment of
15 certain administrative officers, and of all deputies and
16 other assistants and employes in certain departments, boards,
17 and commissions; and prescribing the manner in which the
18 number and compensation of the deputies and all other
19 assistants and employes of certain departments, boards and
20 commissions shall be determined," further providing for
21 powers and duties of the Board of the Ben Franklin
22 Partnership Fund.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Section 2503-B of the act of April 9, 1929
26 (P.L.177, No.175), known as The Administrative Code of 1929,
27 amended July 1, 1982 (P.L.774, No.223), is amended by adding
1 subsections to read:
2 Section 2503-B. Duties and Powers of the Board of the Ben
3 Franklin Partnership Fund.--* * *
4 (e) It is hereby declared to be the public policy of the
5 Commonwealth to encourage contributions of vacant floor space
6 within a building or other structure to educational institutions
7 which are members of a consortium which has established an
8 advanced technology center funded in part by the board, as
9 follows:
10 (1) Any person who or which makes a contribution of vacant
11 floor or building space to an educational institution for
12 research or instructional purposes and which is a member of a
13 consortium which has established an advanced technology center
14 funded in part by the board, may apply to receive a tax credit
15 as provided in this subsection, if the contribution and the tax
16 credit are approved annually by the board. Receipt of a tax
17 credit for the contribution shall be conditioned upon use of the
18 contribution directly or indirectly in furtherance of programs
19 of an affiliated member of an advanced technology center which
20 is established by a consortium of which the educational
21 institution is a member, which determination shall be solely
22 within the discretion of the board. The board shall develop
23 appropriate policies which are fairly and equitably applied,
24 including certification. Any donated property to be eligible for
25 the tax credit must meet the following criteria:
26 (i) The property must be donated to an educational
27 institution as defined under subsection (g).
28 (ii) The property may not be transferred by the donee in
29 exchange for money, other property, services or any form of
30 remuneration.
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1 (iii) The contributed property is to be used for research
2 and experimentation or for research training or for
3 instructional purposes.
4 (iv) The applicant must have a written statement from the
5 donee representing that the use and disposition of the property
6 shall be in accordance with subclauses (i) and (iii).
7 (2) The amount of the tax credit provided for in clause (1)
8 may be of an amount up to and including twenty-five per centum
9 (25%) of the amount or value of the contribution, not to exceed
10 two hundred fifty thousand dollars ($250,000) per contributor.
11 The total amount of all tax credits available to all
12 contributors during any Commonwealth fiscal year shall not
13 exceed twenty million dollars ($20,000,000).
14 (3) The value of the credit shall be the fair market value
15 of the property established by the claimant and approved by the
16 Department of Revenue. The Department of Revenue may adjust a
17 claimant's valuation of the property in accordance with
18 principles of valuation applied by the Department of Revenue in
19 other areas of its administration of the Commonwealth's revenue
20 and tax laws.
21 (4) The Board of the Ben Franklin Partnership Fund shall
22 establish such policies and procedures for approval of tax
23 credits including establishing priorities of claims for tax
24 credits as it may deem necessary or appropriate. The procedures
25 established shall provide for submission of a claim to the
26 board, for review of the claim and its approval by the board,
27 and for receipts by the Department of Revenue of the board's
28 actions regarding the claim.
29 (5) The Department of Revenue shall permit a tax credit
30 against any tax due pursuant to Article IV, VI, VIII or IX of
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1 the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
2 Code of 1971"; any tax on corporate net income; any tax on bank
3 shares; any tax on gross premiums; or any tax on net earnings.
4 Any tax not used by a contributor during the Commonwealth's
5 fiscal year for which the credit was approved may, upon approval
6 by the Department of Revenue, be carried over into the
7 Commonwealth's next five fiscal years.
8 (f) This act shall apply to any small business incubators in
9 conjunction with the Ben Franklin Partnership Fund and shall
10 include donations of buildings, office space and services which
11 have been donated for the primary purpose of aiding small
12 businesses.
13 (g) As used in this section:
14 "Educational institution" means an educational organization
15 which is described in section 170(b)(1)(A)(ii) of the Internal
16 Revenue Code of 1954 and is an institution of higher education
17 as defined in section 3304(f) of the Internal Revenue Code of
18 1954.
19 Section 2. This act shall apply to tax years beginning on or
20 after January 1, 1984.
21 Section 3. This act shall take effect immediately.
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