PRINTER'S NO. 1614
No. 1393 Session of 1995
INTRODUCED BY WALKO, KAISER, COY, BELARDI, KENNEY, KUKOVICH,
HERMAN, READSHAW, COLAIZZO, BAKER, LAUGHLIN, CAPPABIANCA,
MIHALICH, TRAVAGLIO, CORRIGAN, ROBINSON, SHANER, ROONEY,
VAN HORNE, WOZNIAK, MANDERINO, DEMPSEY, BELFANTI, COWELL,
COLAFELLA, McCALL, PISTELLA, STABACK, MUNDY, DALEY, YEWCIC,
FAJT, GIGLIOTTI, MICHLOVIC, MERRY, LEVDANSKY, MILLER, THOMAS,
L. I. COHEN, SANTONI, BOSCOLA, TRUE, JAMES, FARMER,
TANGRETTI, SATHER, PRESTON, SURRA, GAMBLE, HABAY, HORSEY,
JAROLIN, ITKIN, SAINATO, KREBS, PLATTS, McGEEHAN, BEBKO-
JONES, OLASZ, DeLUCA, GLADECK, PETTIT, KIRKLAND, O'BRIEN,
GEORGE, MARKOSEK, BISHOP, RAMOS, YOUNGBLOOD, DERMODY, BROWN,
MAYERNIK, PESCI, JOSEPHS, PETRARCA, M. COHEN, GRUITZA, WOGAN,
MELIO, TRELLO, PETRONE, LaGROTTA, TRICH, ROEBUCK, CORPORA,
STEELMAN, BUNT, D. W. SNYDER, STURLA AND HENNESSEY,
APRIL 20, 1995
REFERRED TO COMMITTEE ON FINANCE, APRIL 20, 1995
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," further defining "community services"; and
11 further providing for the total amount of tax credits.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The definition of "community services" in section
15 1902-A of the act of March 4, 1971 (P.L.6, No.2), known as the
16 Tax Reform Code of 1971, added June 16, 1994 (P.L.279, No.48),
1 is amended to read:
2 Section 1902-A. Definitions.--The following words, terms and
3 phrases, when used in this article, shall have the meanings
4 ascribed to them in this section, except where the context
5 clearly indicates a different meaning:
6 * * *
7 "Community services." Any type of counseling and advice,
8 emergency assistance or medical care furnished to individuals or
9 groups in an impoverished area. The term includes food
10 assistance and nutrition services offered by organizations such
11 as food banks.
12 * * *
13 Section 2. Section 1904-A(c) and 1905-A of the act, added
14 June 16, 1994 (P.L.279, No.48), are amended to read:
15 Section 1904-A. Tax Credit.--* * *
16 (c) The total amount of tax credit granted for programs
17 approved under this act shall not exceed [fourteen million seven
18 hundred fifty thousand dollars ($14,750,000)] nineteen million
19 dollars ($19,000,000) of tax credit in any fiscal year, subject
20 to the following:
21 (1) two million dollars ($2,000,000) of the total amount of
22 tax credit shall be allocated for comprehensive service
23 projects, but the Secretary of Community Affairs may reallocate
24 any unused portion of the two million dollars ($2,000,000) for
25 any other program authorized by this act if insufficient
26 applications are made for comprehensive service projects; and
27 (2) four million dollars ($4,000,000) of the total amount of
28 tax credit shall be set aside exclusively for private companies
29 which make qualified investments to rehabilitate, expand or
30 improve buildings or land which promote community economic
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1 development and which occur in portions of impoverished areas
2 which have been designated as enterprise zones.
3 Section 1905-A. Grant of Tax Credit.--The Department of
4 Revenue shall grant a tax credit against any tax due under
5 Article IV, VI, VII, VII-A, VIII, VIII-A, IX, X or XV of this
6 act, or any tax substituted in lieu thereof in an amount which
7 shall not exceed fifty per cent of the total amount invested
8 during the taxable year by the business firm or twenty per cent
9 of qualified investments by a private company in programs
10 approved pursuant to section 1904-A of this act: Provided, That
11 a tax credit of up to seventy per cent of the total amount
12 invested during the taxable year by a business firm or up to
13 thirty per cent of the amount of qualified investments by a
14 private company may be allowed for investment in programs where
15 activities fall within the scope of special program priorities
16 as defined with the approval of the Governor in regulations
17 promulgated by the Secretary of the Department of Community
18 Affairs. Regulations establishing special program priorities are
19 to be promulgated during the first month of each fiscal year and
20 at such times during the year as the public interest dictates.
21 Such credit shall not exceed two hundred fifty thousand dollars
22 ($250,000) annually, except in the case of comprehensive service
23 projects which shall be allowed an additional credit equal to
24 seventy per cent of the qualifying investments made in
25 comprehensive service projects; however, such additional credit
26 shall not exceed one hundred seventy-five thousand dollars
27 ($175,000) annually. No tax credit shall be granted to any bank,
28 bank and trust company, insurance company, trust company,
29 national bank, savings association, mutual savings bank or
30 building and loan association for activities that are a part of
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1 its normal course of business. Any tax credit not used in the
2 period the investment was made may be carried over for the next
3 five succeeding calendar or fiscal years until the full credit
4 has been allowed. The total amount of all tax credits allowed
5 pursuant to this act shall not exceed [fourteen million seven
6 hundred fifty thousand dollars ($14,750,000)] nineteen million
7 dollars ($19,000,000) in any one fiscal year.
8 Section 2. This act shall take effect in 60 days.
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