PRINTER'S NO. 269
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
296
Session of
2019
INTRODUCED BY TOOHIL, RYAN, KAUFFMAN, STEPHENS, BERNSTINE,
SIMMONS, KAUFER, SIMS, ZIMMERMAN, PICKETT, McCLINTON,
STRUZZI, KINSEY, HERSHEY, DiGIROLAMO, MURT, NESBIT, CRUZ,
WHITE, EVERETT, RABB, MIZGORSKI, BROWN, LEWIS, HICKERNELL,
BURGOS, KENYATTA, WHEATLEY, JONES, A. DAVIS, T. DAVIS AND
RAPP, JANUARY 30, 2019
REFERRED TO COMMITTEE ON FINANCE, JANUARY 30, 2019
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 adoption and foster 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 XVIII-H
ADOPTION AND FOSTER CARE TAX CREDIT
Section 1801-H. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Adoption and foster care tax credits." Tax credits for
which the department has issued a certificate under this
article.
"County agency." The county children and youth social
service agency exercising the powers and duties provided for
under section 405 of the act of June 24, 1937 (P.L.2017,
No.396), known as the County Institution District Law, or its
successor, and supervised by the Department of Human Services
under Article IX of the act of June 13, 1967 (P.L.31, No.21),
known as the Human Services Code.
"Department." The Department of Revenue of the Commonwealth.
"Foster child." Either of the following:
(1) A child:
(i) who is the care and responsibility of the
Commonwealth; and
(ii) placed in foster care, as defined in 45 CFR
1355.20 (relating to definitions), under 42 Pa.C.S. §
6351 (relating to disposition of dependent child) or 6352
(relating to disposition of delinquent child).
(2) A child placed under a voluntary placement agreement
under 55 Pa. Code § 3130.65 (relating to voluntary placement
agreement).
"Foster family care agency." A public or private agency that
recruits, approves, supervises and places children with foster
families.
"Foster parent." An individual approved by a foster family
care agency to provide foster family care services to a foster
child.
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"Taxpayer." A foster parent or adoptive parent claiming a
tax credit under this article.
Section 1802-H. Adoption and Foster Care Tax Credit Program.
(a) Establishment.--The Adoption and Foster Care Tax Credit
Program is established to encourage the adoption of children and
the placement of a foster child with foster parents.
(b) Maximum amount.--
(1) A taxpayer may claim a tax credit of $500 per foster
child placement in the tax year that the foster child first
qualifies as a dependent on the taxpayer's Federal tax
return.
(2) A taxpayer may claim a tax credit of $1,000 for an
adopted child in the same tax year that the taxpayer
qualifies for the Federal adoption tax credit.
Section 1803-H. Application process.
(a) Application.--A taxpayer shall complete and submit the
following:
(1) An application for a tax credit authorized under
this article.
(2) Any other supporting information required by the
department, including approval by a foster family care agency
to provide foster family care services to a foster child.
(b) Procedure.--The department shall consult with the
Department of Human Services and the county agency as necessary
to determine whether the taxpayer meets the requirements for the
tax credit.
(c) Notification.--The department shall notify the taxpayer
whether the taxpayer meets the requirements under this article
for the tax credit no later than 60 days after the taxpayer has
submitted the application required under this section.
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Section 1804-H. Tax credits.
(a) Applicable taxes.--A taxpayer may apply the tax credit
awarded under this article to taxes imposed under Article III.
(b) Availability.--Each fiscal year, $10,000,000 in tax
credits shall be made available to the department and may be
awarded by the department in accordance with this article.
Section 1805-H. Carryover, carryback and refund.
(a) General rule.--If a taxpayer cannot use the entire
amount of the tax credit for the taxable year in which the tax
credit is first approved, the excess may be carried over to
succeeding taxable years and used as a credit against the tax
liability of the taxpayer for those taxable years. Each time the
tax credit is carried over to a succeeding taxable year, the tax
credit shall be reduced by the amount that was used as a credit
during the immediately preceding taxable year. The tax credit
under this article may be carried over and applied to succeeding
taxable years for five taxable years following the first taxable
year the taxpayer was entitled to claim the credit.
(b) Application.--A tax credit certificate received by the
department in a taxable year shall first be applied against the
taxpayer's tax liability for the current taxable year as of the
date on which the credit was issued before the tax credit can be
applied against any tax liability under subsection (a).
(c) No carryback or refund.--A taxpayer may not carry back
or obtain a refund of all or any portion of an unused tax credit
granted to the taxpayer under this article.
Section 1806-H. Report to General Assembly.
The Secretary of Revenue shall submit an annual report to the
General Assembly indicating the effectiveness of the credits
provided under this article no later than March 15 following the
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year in which the credits were approved. The report shall
include the amount of credits approved. Notwithstanding any law
providing for the confidentiality of tax records, the
information contained in the report shall be public information.
The report may also include recommendations for changes in the
calculation or administration of the credit.
Section 2. This act shall take effect in 60 days.
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