PRINTER'S NO. 59
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
79
Session of
2017
INTRODUCED BY GREENLEAF, BREWSTER, COSTA, SCHWANK, RAFFERTY AND
BOSCOLA, JANUARY 13, 2017
REFERRED TO FINANCE, JANUARY 13, 2017
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for a child-care tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XXII
CHILD-CARE TAX CREDIT
Section 2201. Short title of article.
This article shall be known and may be cited as the Child-
Care Tax Credit Act.
Section 2202. Definitions.
The following words, terms and phrases, when used in this
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article, shall have the meanings given to them in this section,
except where the context clearly indicates otherwise:
" Business firm. " A corporation, partnership or sole
proprietorship authorized to do business in this Commonwealth
and subject to any of the taxes imposed by Article III, IV, VI,
VII, VIII, IX or XV.
" Contributions. " Net payments made to a child-care program
not operated by the business firm for child-care services for
children of employees of the business firm.
" Credit. " The child-care tax credit.
" Net costs. " Amounts, exclusive of start-up expenses,
expended for the operation of a child-care program reduced by
the fees or charges paid by the users of the child-care program
services.
Section 2203. Authorization of credit.
(a) Eligibility.--A business firm that operates its own
child-care program which has been issued a valid license by the
Department of Human Services shall be eligible for the tax
credit.
(b) License from Department of Human Services required.--A
business firm which makes contributions to a child-care program
not operated by the business firm which has been issued a valid
license by the Department of Human Services shall be eligible
for the tax credit.
Section 2204. Calculation of credit.
(a) General rule.--The amount of the tax credit available to
a business firm which qualifies under this article and operates
its own not-for-profit child-care program shall be equal to 100%
of the net costs expended for the operation and maintenance of
the child-care program.
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(b) Amount.--The amount of the tax credit available to a
business firm which qualifies under this article and contributes
to a child-care program not operated by the business firm shall
be equal to 100% of the contributions made by the business firm
to the child-care program.
Section 2205. Taxes against which credit may be taken.
(a) General rule.--Except as provided in subsection (b), the
tax credit provided for in this article may be applied against
any tax due under Article III, IV, VI, VII, VIII, IX or XV.
(b) Nonapplicable against employer withholding taxes.--The
tax credit provided for in this article shall not be applied
against employer withholding taxes required under Article III.
Section 2206. Powers and duties.
In addition to those powers created by any other act, the
Secretary of Revenue shall have the power and it shall be the
secretary's duty to:
(1) Promulgate and publish any rules and regulations
which may be required to implement this article.
(2) Publish as a notice in the Pennsylvania Bulletin
forms upon which taxpayers may apply for the tax credit
authorized by this article.
Section 2. This act shall apply to taxable years beginning
after December 31, 2016.
Section 3. This act shall take effect immediately.
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