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A06859
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2156
Session of
2018
INTRODUCED BY TOBASH, MULLERY, ROEBUCK, QUIGLEY, RYAN, PICKETT,
THOMAS, DAVIS, HICKERNELL, READSHAW, BOBACK, A. DAVIS,
CHARLTON, SCHLOSSBERG, BERNSTINE, FEE, LEWIS, McGINNIS,
STAATS, IRVIN, SOLOMON, SCHLEGEL CULVER, PHILLIPS-HILL,
PASHINSKI, DERMODY, HEFFLEY, J. McNEILL, DRISCOLL, GROVE,
HANNA, A. HARRIS, MARSICO, REESE, RAPP AND COX, APRIL 6, 2018
REFERRED TO COMMITTEE ON EDUCATION, APRIL 6, 2018
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," providing for Career and Technical
Education Partnership Tax Credit Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding an
article to read:
ARTICLE XX-H
CAREER AND TECHNICAL EDUCATION PARTNERSHIP
TAX CREDIT PROGRAM
Section 2001-H. Scope of article.
This article relates to the Career and Technical Education
Partnership Tax Credit Program.
Section 2002-H. Definitions.
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The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Area career and technical education school." Any of the
following:
(1) A specialized public secondary school used
exclusively or principally for the provision of career and
technical education to individuals who are available for
study in preparation for entering the labor market.
(2) The department of a public secondary school
exclusively or principally used for providing career and
technical education in not fewer than five different
occupational fields to individuals who are available for
study in preparation for entering the labor market.
(3) A public or nonprofit technical institution or
career and technical education school used exclusively or
principally for the provision of career and technical
education to individuals who have completed or left secondary
school and who are available for study in preparation for
entering the labor market, if the institution or school
admits, as regular students, individuals who have completed
secondary school and individuals who have left secondary
school.
(4) The department or division of an institution of
higher education that operates under the policies of the
eligible agency and that provides career and technical
education in not fewer than five different occupational
fields leading to immediate employment but not necessarily
leading to a baccalaureate degree, if the department or
division admits, as regular students, individuals who have
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completed secondary school and individuals who have left
secondary school.
"Business firm." An entity which is authorized to do
business in this Commonwealth and subject to taxes imposed by
Article III, IV, VI, VII, VIII, IX, XV or XX of the Tax Reform
Code of 1971 or a tax under Article XVI of the act of May 17,
1921 (P.L.682, No.284), known as The Insurance Company Law of
1921. The term includes a pass-through entity, including a pass-
through entity whose purpose is the making of contributions
under this article and whose shareholders, partners or members
are composed of owners or employees of other business firms.
"Career and technical education." Organized educational
activities which meet all of the following:
(1) Offer a sequence of courses that:
(i) provides individuals with coherent and rigorous
content aligned with challenging academic standards and
relevant technical knowledge and skills needed to prepare
for further education and careers in current or emerging
professions;
(ii) provides technical skill proficiency, an
industry-recognized credential, a certificate or an
associate degree; and
(iii) may include prerequisite courses, other than a
remedial course, that meet the requirements of this
paragraph.
(2) Include competency-based applied learning that
contributes to the academic knowledge, higher-order reasoning
and problem-solving skills, work attitudes, general
employability skills, technical skills, occupation-specific
skills and knowledge of all aspects of an industry, including
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entrepreneurship, and an individual.
"Career and technical partnership organization." A nonprofit
entity which meets all of the following:
(1) Is exempt from Federal taxation under section 501(c)
(3) of the Internal Revenue Code of 1986 (Public Law 99-514,
26 U.S.C. § 1 et seq.).
(2) Provides support or expands access to career and
technical education.
(2) (3) Contributes based on one of the following:
(i) At least 80% of its annual receipts as
contributions to a public school, area career and
technical education school, charter school, regional
charter school , cyber charter school or an institution of
higher education. For purposes of this subparagraph, a
nonprofit entity "contributes" its annual cash receipts
when it expends or otherwise irrevocably encumbers those
funds for expenditure during the then-current fiscal year
of the nonprofit entity or during the next succeeding
fiscal year of the nonprofit entity. A nonprofit entity
shall include a school district foundation, public school
foundation, charter school foundation, cyber charter
school foundation, area career and technical education
school foundation or institution of higher education.
(ii) At least 80% of its annual cash receipts to a
scholarship program. For purposes of this subparagraph, a
nonprofit entity "contributes" its annual cash receipts
to a scholarship program when it expends or otherwise
irrevocably encumbers those funds for distribution during
the then-current fiscal year of the nonprofit entity or
during the next succeeding fiscal year of the nonprofit
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entity.
(iii) At least 80% of its annual cash receipts to a
combination of expenditures under subparagraphs (i) and
(ii).
"Charter school." As defined in section 1703-A.
"Contribution." The donation of any of the following:
(1) Cash or personal property.
(2) Services, the value of which is the net cost of the
donation to the donor or the pro rata hourly wage, including
benefits, of the individual performing the service.
"Cyber charter school." As defined in section 1703-A.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Dual enrollment program." A program which provides an
eligible student with college credits while fulfilling high
school requirements at the same time.
"Eligible student." A student who:
(1) is 22 years of age or younger;
(2) is enrolled in a school, area career and technical
education school, charter school, regional charter school ,
cyber charter school or institution of higher education; and
(3) has enrolled in at least two career and technical
education courses.
"High-demand occupation." A profession that:
(1) is found in the current year high-priority
occupations list developed by the Department of Labor and
Industry; and
(2) requires a credential, certification, licensing,
postsecondary training, an associate's degree, a master's
degree or a doctoral or first professional degree.
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"Institution of higher education." An accredited entity
located in this Commonwealth which is any of the following:
(1) A community college operating under Article XIX-A.
(2) A university within the State System of Higher
Education.
(3) The Pennsylvania State University, the University of
Pittsburgh, Temple University, Lincoln University or any
other institution designated as State-related by the
Commonwealth.
(4) The Thaddeus Stevens College of Technology.
(5) A college established under Article XIX-G.
(6) An institution of higher education located in and
incorporated or chartered by the Commonwealth and entitled to
confer degrees as specified in 24 Pa.C.S. § 6505 (relating to
power to confer degrees) and as provided for by the standards
and qualifications prescribed by the State Board of Education
under 24 Pa.C.S. Ch. 65 (relating to private colleges,
universities and seminaries).
(7) A private school licensed under the act of December
15, 1986 (P.L.1585, No.174), known as the Private Licensed
Schools Act.
(8) A foreign corporation approved to operate an
educational enterprise under 22 Pa. Code Ch. 36 (relating to
foreign corporation standards).
"Nonpublic school." A nonprofit school, other than a public
school within this Commonwealth, at which a resident of this
Commonwealth may legally fulfill the compulsory school
attendance requirements of this act and which meets the
applicable requirements of Title VI of the Civil Rights Act of
1964 (Public Law 88-352, 78 Stat. 241).
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"Parent." An individual who:
(1) is a resident of this Commonwealth; and
(2) either:
(i) has legal custody or guardianship of a student;
or
(ii) keeps in the individual's home a student and
supports the student gratis as if the student were a
lineal descendant of the individual.
"Pass-through entity." A partnership as defined in section
301(n.0) of the Tax Reform Code of 1971, a single-member limited
liability company treated as a disregarded entity for Federal
income tax purposes or a Pennsylvania S corporation as defined
in section 301(n.1) of the Tax Reform Code of 1971. The term
includes a pass-through entity that owns an interest in a pass-
through entity.
"Program." The Career and Technical Education Partnership
Tax Credit Program established under this article.
"Public school." A public elementary school or a public
secondary school at which a resident of this Commonwealth may
legally fulfill the compulsory school attendance requirements of
this act and which meets the applicable requirements of Title VI
of the Civil Rights Act of 1964 .
"Recipient." An applicant who receives a scholarship.
"Regional charter school." As defined in section 1703-A.
"Scholarship." An award under a scholarship program.
"Scholarship program." A program to pay school-related fees
for eligible students to attend a school, area career and
technical education school, charter school, regional charter
school , cyber charter school or institution of higher education
located in this Commonwealth. The following shall apply:
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(1) A scholarship program must include an application
and review process for the purpose of making awards to
eligible students.
(2) Scholarships to eligible students shall be made
without limiting availability to only students of one school,
area career and technical education school, charter school,
regional charter school, cyber charter school or institution
of higher education.
"School." A public or nonpublic secondary school at which a
resident of this Commonwealth may legally fulfill the compulsory
school attendance requirements of this act and which meets the
applicable requirements of Title VI of the Civil Rights Act of
1964.
"School-related fees." Tuition and fees normally assessed a
student carrying an academic or certification workload as
determined by the school, area career and technical education
school, charter school, regional charter school , cyber charter
school or institution of higher education and including costs
for rental or purchase of equipment, materials or supplies
required of all students in that course of study.
"Secondary school." A school with an eleventh grade.
"Student." An individual who meets all of the following:
(1) Is registered for grades nine through 12.
(2) Is a resident of this Commonwealth.
(3) Attends or is about to attend a public school, area
career and technical education school, charter school,
regional charter school , cyber charter school or institution
of higher education.
"Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
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Section 2003-H. Qualification and application by organizations.
(a) Establishment.--In accordance with section 14 of Article
III of the Constitution of Pennsylvania, the Career and
Technical Education Partnership Tax Credit Program is
established to expand access to high-career and technical
education by encouraging private investment in education, career
and technical education programs and the repair, upkeep,
replacement and upgrading of industry-grade materials and
instructional equipment as approved by participating schools
under section 2009-H .
(b) Information.--To qualify under this article, a career
and technical partnership organization must submit information
to the department that enables the department to confirm that
the organization is exempt from taxation under section 501(c)(3)
of the Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 1 et seq.).
(c) Certification.--
(1) By September 1, 2019, and each September 1
thereafter, a career and technical partnership organization
must certify to the department that the organization is
eligible to participate in the program and must report the
following information to the department:
(i) The number of scholarships awarded during the
immediately preceding school year to eligible students.
(ii) The total and average amounts of the
scholarships awarded during the immediately preceding
school year to eligible students.
(iii) Where the career and technical partnership
organization collects information on a county-by-county
basis, the total number and the total amount of
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scholarships awarded during the immediately preceding
school year to residents of each county in which the
scholarships were awarded.
(iv) The total number of scholarship applications
processed and the amounts of any application fees
charged, either per scholarship application or in the
aggregate through a third-party processor.
(v) The name of any career and technical education
program and the total amount of the contribution made to
those programs during the immediately preceding school
year.
(vi) A description of how each contribution was
utilized during the immediately preceding school year and
a description of vocational and technical education
programs through a coherent sequence of courses to ensure
learning in career and technical education and entry into
a high-demand occupation.
(vii) The name of each school, area career and
technical education school, charter school, regional
charter school , cyber charter school or institution of
higher education that works with high technology
industries to offer voluntary internships and mentoring
programs.
(viii) The name of each school, area career and
technical education school, charter school, regional
charter school , cyber charter school or institution of
higher education where career and technical programs that
received contributions during the immediately preceding
school year were implemented.
(ix) Where the career and technical partnership
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organization collects information on a county-by-county
basis, the total number and the total amount of
contributions made during the immediately preceding
school year for programs at schools, institutions of
higher education and career and technical schools in each
county in which the contributions were made.
(x) The credential earned by each student using a
scholarship, including, but not limited to, a
certificate, industry certification or State license, and
the industry or occupation to which the credential is
linked.
(x) (xi) The organization's Federal Form 990 or
other Federal form indicating the tax status of the
organization for Federal tax purposes, if any, and a copy
of a compilation, review or audit of the organization's
financial statements conducted by a certified public
accounting firm.
(2) The information required under paragraph (1) shall
be submitted on a form provided by the department. By
September 1, 2019, and each September 1 thereafter, the
department shall distribute sample forms, together with the
forms on which the reports are required to be made, to each
listed career and technical partnership organization.
(3) The department may not require any other information
to be provided by career and technical partnership
organizations, except as expressly authorized in this
article.
(4) The department shall consult with the Department of
Education and the Department of Labor and Industry.
(5) A career and technical partnership organization that
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does not meet the requirements of this article shall not be
eligible to participate in the program.
Section 2004-H. Application by business firms.
(a) Application.--A business firm may apply to the
department for a tax credit for contributions to a career and
technical partnership organization under section 2005-H. A
business firm shall receive a tax credit under this article if
the career and technical partnership organization that receives
the contribution appears on the list established under section
2007-H, subject to the limitations in sections 2005-H and 2006-
H.
(b) Availability of tax credits.--Tax credits under this
article shall be made available by the department on a first-
come, first-served basis within the limitation established under
section 2006-H(a).
(c) Contributions.--A contribution by a business firm to a
career and technical partnership organization shall be made no
later than 60 days following the approval of an application
under subsection (a) or (b).
Section 2005-H. Tax credits.
(a) Business firm.--In accordance with section 2006-H, the
Department of Revenue shall grant a tax credit against any
applicable tax to a business firm providing proof of a
contribution to a career and technical partnership organization
in the taxable year in which the contribution is made in
accordance with the following:
(1) The tax credit shall not exceed 75% of the total
amount contributed during the taxable year by the business
firm.
(2) Except as provided under subsection (g), for fiscal
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year 2018-2019, and each fiscal year thereafter, the tax
credit shall not exceed $750,000 annually per business firm
for contributions made to career and technical partnership
organizations.
(b) Additional amount.--In accordance with section 2006-H,
the Department of Revenue shall grant a tax credit of up to 90%
of the total amount contributed during the taxable year if the
business firm provides a written commitment to provide the
career and technical partnership organization with the same
amount of contribution for two consecutive tax years. The
business firm must provide the written commitment under this
subsection to the department at the time of application.
(c) Restriction on applicability of credits.--No credits
granted under this section shall be applied against tax withheld
by an employer from an employee under Article III of the Tax
Reform Code of 1971.
(d) Time of application for credits.--
(1) Except as provided in paragraph (2), the department
may accept applications for tax credits available during a
fiscal year no earlier than July 1 of each fiscal year.
(2) The application of a business firm for tax credits
available during a fiscal year as part of the second year of
a two-year commitment or as a renewal of a two-year
commitment which was fulfilled in the previous fiscal year
may be accepted no earlier than May 15 preceding the fiscal
year.
(e) Approval of tax credits.--Unless otherwise requested by
the business firm and agreed to by both the business firm and
the department, and unless all authorized credits have already
been awarded, for fiscal year 2019-2020, and each fiscal year
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thereafter, the department shall give written notice of its
approval to each business firm that submitted a completed
application under subsection (d) within 30 days following
receipt of the completed application.
(f) Waiting list.--The department shall maintain a waiting
list consisting of each business firm which chooses to be
included on the list and whose application has not been approved
because all available tax credits have been awarded. A business
firm that was not awarded a tax credit due to a lack of
available tax credits shall be notified of and offered a place
on the waiting list. When tax credits become available, the
department shall award the tax credits to the business firms in
the order in which the business firms were placed on the waiting
list.
(g) Temporary increase in maximum tax credits available.--
(1) If all tax credits authorized under this article for
contributions to career and technical partnership
organizations have not been awarded as of October 1 of a
fiscal year, then for applications accepted by the department
from October 1 through November 30 of that fiscal year, the
limitations specified in subsection (a) shall not apply.
Under this paragraph, the department may accept applications
under section 2004-H from October 1 through November 30 from
a business firm, including a business firm that already
applied for the maximum tax credits available under
subsections (a) and (d), which may apply under section 2004-
H(a) for up to the total amount of tax credits remaining
available for contributions to career and technical
partnership organizations for the fiscal year as specified in
section 2006-H(a).
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(2) The provisions of subsection (b) shall not apply to
applications for tax credits made under this subsection. Tax
credits awarded under this subsection shall not exceed 75% of
the total amount contributed during the taxable year by a
business firm pursuant to an application filed under this
subsection.
(3) Prior to the award of tax credits applied for under
this subsection, the department shall first award tax credits
applied for by a business firm during the period October 1
through November 30 in an amount no greater than the maximum
amount of tax credits for which a business firm is eligible
under subsection (a). The tax credits shall be awarded on a
first-come, first-served basis as set forth in section 2004-
H(c).
Section 2006-H. Limitations.
(a) Amount.--
(1) The total aggregate amount of all tax credits
approved for contributions from business firms to career and
technical partnership organizations shall not exceed
$15,000,000 in a fiscal year.
(2) Beginning July 1, 2019, the department shall
automatically increase the tax credit amount by $5,000,000 if
the amount used in the prior fiscal year is equal to or
greater than 90% of the tax credit amount under paragraph
(1). The department shall immediately submit notice of the
increased dollar amounts to the Legislative Reference Bureau,
which shall publish the notice in the Pennsylvania Bulletin.
(1) Subject to paragraph (2), the total aggregate amount
of all tax credits approved for contributions from business
firms to career and technical partnership organizations shall
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not exceed $15,000,000 in a fiscal year.
(2) Beginning July 1, 2019, and each July 1 thereafter,
the department shall automatically increase the tax credit
amount by $5,000,000 if the amount used in the prior fiscal
year is equal to or greater than 90% of the total tax credit
amount approved in the prior fiscal year or the amount
published by the Legislative Reference Bureau under
subparagraphs (i) and (ii). The following shall apply:
(i) The department shall immediately submit notice
of the increased dollar amounts to the Legislative
Reference Bureau.
(ii) The Legislative Reference Bureau shall publish
the notice in the Pennsylvania Bulletin.
(b) Activities.--No tax credit shall be approved for
activities that are a part of a business firm's normal course of
business.
(c) Tax liability.--
(1) Except as provided in paragraph (2), a tax credit
granted for any one taxable year may not exceed the tax
liability of a business firm.
(2) In the case of a credit granted to a pass-through
entity which elects to distribute the credit under this
article, a tax credit granted for any one taxable year and
distributed to a shareholder, member or partner may not
exceed the tax liability of the shareholder, member or
partner.
(d) Use.--A tax credit not used by the applicant in the
taxable year the contribution was made or in the year designated
by the shareholder, member or partner to whom the credit was
transferred under this article may not be carried forward or
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carried back and is not refundable or transferable.
(e) Nontaxable income.--A scholarship received by an
eligible student shall not be considered to be taxable income
for the purposes of Article III of the Tax Reform Code of 1971.
(f) Financial assistance.--A scholarship received by a
recipient shall not impact an appropriation, education funding
or other financial assistance received by the school which is
attended by the recipient.
Section 2007-H. Lists.
By June 30, 2019, and each June 30 thereafter, the Department
of Revenue shall provide a list of all career and technical
partnership organizations receiving contributions from business
firms granted a tax credit under this article to the General
Assembly.
Section 2008-H. Guidelines.
Within 90 days of the effective date of this section, in
consultation with the Department of Education and the Department
of Labor and Industry, the department shall develop guidelines
to determine the eligibility of a career and technical education
program.
Section 2009-H. School participation in program.
(a) Election.--By February 15, 2019, and each February 15
thereafter, a school, area career and technical education
school, charter school, regional charter school , cyber charter
school or institution of higher education may elect to
participate in the program for the following school year.
(b) Notice.--
(1) A school, area career and technical education
school, charter school, regional charter school, cyber
charter school or institution of higher education that elects
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to participate under subsection (a) must notify the
Department of Education of the intent to participate.
(2) For a school district, the notice under paragraph
(1) must be submitted on a form developed by the Department
of Education and shall specify all of the following:
(i) Each school within the school district which the
school district intends to make a participating public
school.
(ii) The amount of tuition and school-related fees
attributable to each available seat. The amount under
this subparagraph shall not exceed the amount calculated
under section 2561.
(3) For a nonpublic school, area career and technical
education school, charter school, regional charter school ,
cyber charter school or institution of higher education, the
notice under paragraph (1) must be submitted on a form
developed by the Department of Education and shall specify
the amount of tuition and school-related fees attributable to
an available seat. The amount under this paragraph shall not
exceed the amount calculated under section 2561. that a
school under this paragraph would have charged to a student
who had not received a scholarship under this article. For
the amounts received in a scholarship, the resident school
district is not liable for school payment.
(c) Tuition rates.--
(1) No school district of a participating public school,
participating nonpublic school, area career and technical
education school, charter school, regional charter school ,
cyber charter school or institution of higher education may
charge a recipient a higher tuition rate or school-related
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fee than the school district of the participating public
school, participating nonpublic school, area career and
technical education school, charter school, regional charter
school , cyber charter school or institution of higher
education would have charged to a similarly situated student
who is not receiving a scholarship.
(2) Notwithstanding the provisions of section 2561, a
school district of a participating public school may charge a
recipient a tuition rate that is lower than that charged to
students who are not recipients of scholarships.
(d) Participating public school criteria.--The following
criteria apply to a participating public school:
(1) Except as otherwise provided in this article, a
school district shall enroll students in a participating
public school on a lottery basis from a pool of recipients
who meet the application deadline set by the Department of
Education until the participating public school fills the
school's available seats. The pool may not include a
recipient who:
(i) Has been expelled or is in the process of being
expelled under section 1317.2 or 1318 and applicable
regulations of the State Board of Education.
(ii) Has been recruited by the school district or
its representatives for athletic purposes.
(2) The enrollment of recipients may not place the
school district in violation of a valid and binding
desegregation order.
(3) Priority shall be given to:
(i) An existing recipient.
(ii) A recipient who is a sibling of a student
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currently enrolled in the school district.
(e) Participating entity criteria.--The following criteria
shall apply:
(1) The participating nonpublic school, area career and
technical education school, charter school, regional charter
school , cyber charter school or institution of higher
education may not discriminate on a basis which is illegal
under Federal or State laws applicable to nonpublic schools.
(2) The participating nonpublic school, area career and
technical education school, charter school, regional charter
school , cyber charter school or institution of higher
education shall comply with section 1521.
(3) The participating nonpublic school, area career and
technical education school, charter school, regional charter
school , cyber charter school or institution of higher
education may not recruit a student for athletic purposes.
(f) Student rules, policies and procedures.--
(1) Prior to enrollment of a recipient, a school
district of a participating public school, participating
nonpublic school, participating area career and technical
education school, participating charter school, participating
regional charter school , participating cyber charter school
or participating institution of higher education shall inform
the parent of a recipient of each rule, policy and procedure
of the participating public school, participating nonpublic
school, participating area career and technical education
school, participating charter school, participating regional
charter school , participating cyber charter school or
participating institution of higher education, including any
academic policy, disciplinary rule or administrative
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procedure of the participating public school, participating
nonpublic school, participating area career and technical
education school, participating charter school, participating
regional charter school , participating cyber charter school
or participating institution of higher education.
(2) Enrollment of a recipient in a participating public
school, participating nonpublic school, participating area
career and technical education school, participating charter
school, participating regional charter school , participating
cyber charter school or participating institution of higher
education shall constitute acceptance of any rule, policy or
procedure of the participating public school, participating
nonpublic school, participating area career and technical
education school, participating charter school, participating
regional charter school , participating cyber charter school
or participating institution of higher education.
(g) Transportation.--
(1) Transportation of recipients of school age, as
defined in section 2002-B, shall be provided under section
1361.
(2) Reimbursement shall be as follows:
(i) Transportation of a recipient of school age, as
defined in section 2002-B, attending a participating
public school shall be subject to reimbursement under
section 2541.
(ii) Transportation of a recipient of school age, as
defined in section 2002-B, attending a participating
nonpublic school, participating area career and technical
education school, participating charter school,
participating regional charter school , participating
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cyber charter school or participating institution of
higher education shall be subject to reimbursement under
sections 2509.3 and 2541.
(h) Construction.--Nothing in this article shall be
construed to:
(1) Prohibit a participating nonpublic school from
limiting admission to a particular grade level, a single
gender or areas of concentration of the participating
nonpublic school, including mathematics, science and the
arts.
(2) Authorize the Commonwealth or any of its agencies,
officers or political subdivisions to impose additional
requirements on a participating nonpublic school which are
not otherwise authorized under the laws of this Commonwealth
or to require a participating nonpublic school to enroll a
recipient if the participating nonpublic school does not
offer appropriate programs or is not structured or equipped
with the necessary facilities to meet the special needs of
the recipient or does not offer a particular program
requested.
Section 2010-H. Scholarships.
(a) Notice.--By February 1, 2019, and each February 1
thereafter, the department shall provide all career and
technical partnership organizations with a list of each
participating public school, area career and technical education
school, charter school, regional charter school , cyber charter
school or institution of higher education in this Commonwealth
located within each county.
(b) Award.--
(1) A career and technical partnership organization may
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award a scholarship to an eligible student who plans to
enroll in the upcoming school year at a participating public
school, area career and technical education school, charter
school, regional charter school , cyber charter school or
institution of higher education in this Commonwealth
providing career and technical education selected by the
parent or guardian of the applicant.
(2) If an eligible student who received a scholarship
for the prior school year resides within the attendance
boundary of a participating public school, area career and
technical education school, charter school, regional charter
school , cyber charter school or institution of higher
education in this Commonwealth that was removed from the list
provided by the department under subsection (a), the eligible
student may receive a scholarship.
(3) The scholarship may be for each year of enrollment
in a participating public school, area career and technical
education school, charter school, regional charter school ,
cyber charter school or institution of higher education for
up to five years or until the eligible student reaches 23
years of age, whichever occurs first, if the applicant
otherwise remains eligible.
(4) In awarding scholarships, a career and technical
partnership organization shall give preference to any of the
following:
(i) An eligible student who received a scholarship
for the prior school year.
(ii) An eligible student who would like to enroll in
a participating public school, area career and technical
education school, charter school , or regional charter
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school or cyber charter school with a waiting list.
(iii) An eligible student participating in dual
enrollment programs that meet the requirements of the
law.
(iv) An eligible student enrolled in courses that
will result in employment in a high-demand occupation.
(c) Home schooling.--A career and technical partnership
organization shall not award a scholarship to an applicant for
enrollment in a home education program under section 1327.1.
Section 2011-H. Carryover, carryback, refund and assignment.
(a) Carryover.--If a taxpayer cannot use the entire amount
of the tax credit for the taxable year in which the taxpayer is
eligible for the credit, the excess may be carried over to
succeeding taxable years and used as a credit against the
taxpayer's tax liability for those taxable years. Each time that
the tax credit is carried over to a succeeding taxable year it
shall be reduced by the amount of tax credits claimed during the
immediately preceding taxable year. The tax credits awarded
under this act may not be utilized for tax years beginning after
December 31, 2020.
(b) Carryback or refund.--A taxpayer may not be entitled to
carry back or obtain a refund of an unused tax credit.
(c) Sale or assignment.--A taxpayer, upon application to and
approval by the Department of Revenue, may sell or assign, in
whole or in part, a tax credit granted to the taxpayer under
this article if the taxpayer does not have a tax liability
against which the tax credit may be applied in a taxable year in
which the tax credit is permitted to be claimed. The Department
of Revenue shall establish guidelines for the approval of an
application under this subsection. Before an application is
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approved, the Department of Revenue shall make a finding that
the taxpayer and its assignee have filed the required State tax
reports and returns for the taxable years and paid any balance
of State tax due as determined by the Department of Revenue.
(d) Purchaser and assignee.--The purchaser or assignee of a
tax credit under subsection (c) shall immediately claim the
credit against its tax liability in the taxable year in which
the purchase or assignment is made. The purchaser or assignee
may not carry back, carry forward or obtain a refund of or sell
or assign the tax credit. The purchaser or assignee shall notify
the Department of Revenue of the seller or assignor of the tax
credit in compliance with procedures specified by the Department
of Revenue.
Section 2012-H. Original jurisdiction.
The Pennsylvania Supreme Court shall have exclusive and
original jurisdiction to hear a challenge or to render a
declaratory judgment concerning the constitutionality of this
article. The Pennsylvania Supreme Court may take an action as
the court deems appropriate, consistent with the Pennsylvania
Supreme Court's retaining jurisdiction over the matter, to find
facts or to expedite a final judgment in connection with a
challenge or request for declaratory relief.
Section 2013-H. Annual report to General Assembly.
(a) Submittal.--
(1) No later than June 1, 2019, and September 1 of each
year thereafter, the Secretary of Community and Economic
Development shall submit a report to the General Assembly
summarizing the effectiveness of the tax credits provided by
this article.
(2) The report shall be submitted to all of the
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following:
(i) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(ii) The chairperson and minority chairperson of the
Education Committee of the Senate.
(iii) The chairperson and minority chairperson of
the Appropriations Committee of the House of
Representatives.
(iv) The chairperson and minority chairperson of the
Education Committee of the House of Representatives.
(b) Contents.--The report shall include the following
information:
(1) The amount of tax credits claimed for contributions
to a career and technical partnership organization during the
fiscal year.
(2) A funding evaluation of the program and
recommendations.
Section 2. Within 10 days of the development of the
guidelines under section 2008-H of the act, the Department of
Community and Economic Development shall provide notice of the
development of the guidelines to the Legislative Reference
Bureau, which shall publish the notice in the Pennsylvania
Bulletin.
Section 3. The addition of Article XX-H of the act shall
apply to taxable years commencing after December 31, 2018.
Section 4. This act shall take effect as follows:
(1) The following shall take effect immediately:
(i) This section.
(ii) Section 2 of this act.
(iii) Section 3 of this act.
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(iv) The addition of sections 2001-H, 2002-H and
2008-H of the act.
(2) The remainder of this act shall take effect 30 days
after publication in the Pennsylvania Bulletin of the notice
under section 2 of this act.
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