THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BISHOP, BOYD, BUXTON, CALTAGIRONE, CARROLL, COHEN, DALEY, DePASQUALE, DONATUCCI, FLECK, FRANKEL, GEORGE, GOODMAN, HENNESSEY, M. KELLER, MANDERINO, MUNDY, M. O'BRIEN, PALLONE, PETRARCA, PRESTON, READSHAW, REICHLEY, SCAVELLO, SIPTROTH, SOLOBAY, STABACK, STERN, WALKO, WATSON, WHITE AND YOUNGBLOOD, FEBRUARY 10, 2009

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 10, 2009  

AN ACT

Providing for tax incentives for employers who provide child

day-care services for employees.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Employee

Child Day Care Tax Incentive Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department."  The Department of Revenue of the Commonwealth.

"Employee."  An individual who provides services to another

person in return for compensation. The term includes an

independent contractor.

"Employee child day care."  Care for a preschool child of an

employee during the working hours of the employee.

"Employer."  A person who receives services from an

individual in return for compensation.

"Furnish employee child day care."  To do any of the

following:

(1)  Provide for employee child day care, regardless of

whether the care is provided on the premises of the employer.

(2)  Reimburse an employee for any portion of the cost of

employee child day care.

Section 3.  Tax credit.

(a)  Eligibility.--An employer who furnishes employee child

day care is eligible for a tax credit under subsection (b) in

the amount of the employer's cost in furnishing employee child

day care.

(b)  Use.--An employer who is eligible under subsection (a)

may utilize the tax credit as follows:

(1)  If the employer is an individual, the credit is

available for the individual against the tax imposed under

Article III of the act of March 4, 1971 (P.L.6, No.2), known

as the Tax Reform Code of 1971.

(2)  If the employer is a partnership or unincorporated

association, the credit is available on a pro rata basis for

each partner or member against the tax imposed under Article

III of the Tax Reform Code of 1971.

(3)  If the employer is not subject to taxation under

Article III of the Tax Reform Code of 1971, the credit is

available against the applicable tax imposed by the Tax

Reform Code of 1971.

Section 4.  Department.

The department shall promulgate regulations to administer

this act.

Section 5.  Applicability.

This act shall apply to taxable years beginning after

December 31, 2008.

Section 6.  Effective date.

This act shall take effect in 60 days.