PRINTER'S NO. 3309
No. 2536 Session of 1992
INTRODUCED BY HERMAN, TRELLO, NAHILL, KENNEY, STEELMAN, RAYMOND,
GANNON, McHALE, ARMSTRONG, FLICK, HESS, FAIRCHILD, DEMPSEY,
GODSHALL, BIRMELIN, BROWN, CARLSON, HARPER, VANCE, HAGARTY,
GERLACH, MERRY, HECKLER, BARLEY, JOHNSON, RUDY, ULIANA,
DURHAM, BELFANTI, CIVERA, CLARK, ADOLPH, FAJT, HARLEY,
McCALL, M. N. WRIGHT, TELEK, NOYE, E. Z. TAYLOR, OLASZ, KING,
TOMLINSON AND RITTER, MARCH 24, 1992
REFERRED TO COMMITTEE ON FINANCE, MARCH 24, 1992
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for a child care tax credit.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
14 the Tax Reform Code of 1971, is amended by adding an article to
15 read:
16 ARTICLE XXII
17 CHILD CARE TAX CREDIT
18 Section 2201. Short Title.--This article shall be known and
19 may be cited as the "Child Care Tax Credit Act."
1 Section 2202. Definitions.--The following words, terms and
2 phrases, when used in this article, shall have the meanings
3 ascribed to them in this section, except where the context
4 clearly indicates otherwise:
5 "Business firm." Any corporation, partnership or sole
6 proprietorship authorized to do business in this Commonwealth
7 and subject to any of the taxes imposed by Articles III, IV, VI,
8 VII, VIII, IX, X, XIII or XV of this act.
9 "Credit." The child care tax credit.
10 "Highly compensated individuals." Those individuals who, in
11 the aggregate, receive the top twenty-five per cent of all
12 employe compensation paid by the business firm.
13 Section 2203. Authorization of Credit.--(a) A business firm
14 that operates its own child-care facility which meets the
15 following requirements shall be eligible for the tax credit:
16 (1) The child-care center has been issued a valid license by
17 the Department of Public Welfare.
18 (2) Children of the business firm's employes utilize the
19 center on a regular basis.
20 (3) At least fifty per cent of the employes utilizing the
21 child-care center are not stockholders who own more than ten per
22 cent in value of the stock of the corporation.
23 (4) The child-care program equitably benefits groups of
24 employes who qualify under a classification set up by the
25 employer which is not discriminatory in favor of highly
26 compensated individuals, officers, shareholders, owners or their
27 dependents.
28 (5) At least eighty per cent of the children utilizing the
29 child-care center shall be children of the business firm's
30 employes.
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1 (b) A business firm which makes contributions to a child-
2 care facility not operated by the business firm shall be
3 eligible for the tax credit if the following requirements are
4 met:
5 (1) The child-care center has been issued a valid license by
6 the Department of Public Welfare.
7 (2) At least fifty per cent of the employes utilizing the
8 child-care center are not stockholders who own more than ten per
9 cent in value of the stock of the corporation.
10 (3) The child-care program equitably benefits groups of
11 employes who qualify under a classification set up by the
12 corporation which is not discriminatory in favor of highly
13 compensated individuals, officers, shareholders, owners or their
14 dependents.
15 Section 2204. Calculation of Credit.--(a) The amount of the
16 tax credit available to a business firm which qualifies under
17 this article and operates its own not-for-profit child-care
18 center shall be equal to fifty per cent of the net costs
19 expended for the operation and maintenance of the child-care
20 center plus fifty per cent of the annual depreciation allowance
21 for capital expenditures for the construction or renovation of
22 the child-care center.
23 (b) The amount of the tax credit available to a business
24 firm which qualifies under this article and contributes to a
25 child-care center not operated by the business firm shall be
26 equal to fifty per cent of the contributions made by the
27 business firm to the child-care center.
28 Section 2205. Powers and Duties.--In addition to those
29 powers created by any other act of the General Assembly, the
30 Secretary of Revenue shall have the power and it shall be his
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1 duty to:
2 (1) Publish any rules and regulations which may be required
3 to implement this article.
4 (2) Publish as a notice in the Pennsylvania Bulletin, no
5 later than November 30, 1992, forms upon which taxpayers may
6 apply for the tax credit authorized by this article.
7 (3) Within five months after the close of any calendar year
8 during which tax credits granted pursuant to this article were
9 used, furnish to the members of the General Assembly an annual
10 report providing as to each business firm which used tax credits
11 during the preceding calendar year pursuant to this article, the
12 employer's name, address, standard industrial classification
13 code and the amount of tax credits granted.
14 (4) The provisions of section 408(b) of this act relating to
15 confidentiality of information, and any other provisions of law
16 preventing the disclosure of information required pursuant to
17 subclause (3) of this section, shall not apply when the
18 information is divulged for the purposes of subclause (2) of
19 this section.
20 Section 2. This act shall take effect beginning in the tax
21 year 1993.
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