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
11credits.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

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.

19The following words and phrases when used in this article
20shall have the meanings given to them in this section unless the
21context clearly indicates otherwise:

22"Base period." The three years preceding the date on which a

1company may begin creating new jobs which may be eligible for
2job creation tax credits.

3"Department." The Department of Community and Economic
4Development of the Commonwealth.

5"Job creation tax credits." Tax credits for which the
6department has issued a certificate under this article.

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
11date.

12"Small business." A company that is engaged in a for-profit
13enterprise and that employs 100 or fewer individuals.

14"Start date." The date on which a company may begin creating
15new jobs which may be eligible for job creation tax credits.

16"Unemployed individual." An individual who at the time of
17hiring meets all of the following:

18[(1) Is hired on or after July 1, 2012.]

19(2) Certifies by signed affidavit, under penalty of
20perjury, that the individual has not been employed during the
2160-day period ending on the date the individual begins
22employment.

23(3) Is not employed by the company to replace another
24employee of the company unless the other employee separated
25from employment voluntarily or for cause.

26(4) Will perform duties connected to the new job for at
27least 52 consecutive weeks.

28"Year one." A one-year period immediately following the
29start date.

30"Year three." A one-year period immediately following the

1end of year two.

2"Year two." A one-year period immediately following the end
3of year one.

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
12commitment letter.

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.