PRINTER'S NO. 697
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY BLAKE, FERLO, TEPLITZ, STACK, FONTANA, BREWSTER, YUDICHAK, KASUNIC, BROWNE, SOLOBAY, COSTA, TARTAGLIONE, FARNESE, WASHINGTON, HUGHES AND SCHWANK, MARCH 15, 2013
REFERRED TO FINANCE, MARCH 15, 2013
1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," further providing for definitions and for tax
14Section 1. Sections 1801-B and 1804-B of the act of March 4,
151971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
16amended or added June 22, 2001 (P.L.353, No.23) and July 2, 2012
17(P.L.751, No.85), are amended to read:
18Section 1801-B. Definitions.
22"Base period." The three years preceding the date on which a
7"New job." A full-time job, the average hourly rate,
8excluding benefits, for which must be at least 150% of the
9Federal minimum wage, created within a municipality located in
10this Commonwealth by a company within three years from the start
18[(1) Is hired on or after July 1, 2012.]
30"Year three." A one-year period immediately following the
1end of year two.
4Section 1804-B. Tax credits.
5(a) Maximum amount.--A company may claim a tax credit of
6$1,000 per new job created, or $2,500 per each new job created
7if the newly created job is filled by an unemployed individual
8hired after June 30, 2012, and before July 1, 2013, or $4,000
9per each new job created if the newly created job is filled by
10an unemployed individual hired after June 30, 2013, up to the
11maximum job creation tax credit amount specified in the
13(b) Determination of new jobs created.--
14(1) New jobs shall be deemed created in year one to the
15extent that the company's average employment by quarter
16during year one exceeds the company's average employment
17level during the company's base period.
18(2) New jobs shall be deemed created in year two to the
19extent that the company's average employment by quarter
20during year two exceeds the company's average employment by
21quarter during year one.
22(3) New jobs shall be deemed created in year three to
23the extent that the company's average employment by quarter
24during year three exceeds the company's average employment by
25quarter during year two.
26(c) Applicable taxes.--A company may apply the tax credit to
27100% of the company's State corporate net income tax, capital
28stock and franchise tax or the capital stock and franchise tax
29of a shareholder of the company if the company is a Pennsylvania
30S corporation, gross premiums tax, gross receipts tax, bank and
1trust company shares tax, mutual thrift institution tax, title
2insurance company shares tax, personal income tax or the
3personal income tax of shareholders of a Pennsylvania S
4corporation or any combination thereof.
5(d) Tax credit term.--A company may claim the job creation
6tax credit for each new job created, as approved by the
7department, for a one-year, two-year or three-year period as
8authorized by the department, except that no tax credit may be
9claimed for more than five years from the date the company first
10submits a job creation tax credit certificate. Nothing under
11this article shall be construed to prohibit the department from
12awarding the total amount of tax credit authorized for a
13multiple year tax credit in the first year in which the new job
14is created and the tax credit earned.
15(e) Availability of tax credits.--Each fiscal year,
16$10,100,000 in tax credits shall be made available to the
17department and may be awarded by the department in accordance
18with this article. In addition, in any fiscal year, the
19department may reissue or assign prior fiscal year tax credits
20which have been recaptured under section 1806-B(a) or (b) and
21may award prior fiscal year credits not previously issued. Prior
22fiscal year credits may be reissued, assigned or awarded by the
23department without limitation by section 1805-B(b).
24Section 2. This act shall take effect in 60 days.