PRINTER'S NO.  958

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

685

Session of

2011

  

  

INTRODUCED BY BLAKE, COSTA, TARTAGLIONE, FONTANA, SOLOBAY, WOZNIAK, BOSCOLA, YUDICHAK, BREWSTER, KITCHEN AND FARNESE, APRIL 1, 2011

  

  

REFERRED TO FINANCE, APRIL 1, 2011  

  

  

  

AN ACT

  

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Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

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act relating to tax reform and State taxation by codifying

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and enumerating certain subjects of taxation and imposing

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taxes thereon; providing procedures for the payment,

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collection, administration and enforcement thereof; providing

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for tax credits in certain cases; conferring powers and

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imposing duties upon the Department of Revenue, certain

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employers, fiduciaries, individuals, persons, corporations

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and other entities; prescribing crimes, offenses and

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penalties," providing for the definitions of "small business"

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and "unemployed individual"; and further providing for

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application process and for tax credits.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Section 1801-B of the act of March 4, 1971

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(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended

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by adding definitions to read:

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Section 1801-B.  Definitions.

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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

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context clearly indicates otherwise:

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"Small business."  A company that is engaged in a for-profit

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enterprise and that employs 50 or fewer individuals.

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* * *

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"Unemployed individual."  An individual who at the time of

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hiring meets all of the following:

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(1)  Is hired on or after July 1, 2011.

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(2)  Certifies by signed affidavit, under penalty of

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perjury, that the individual has not been employed during the

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60-day period ending on the date the individual begins

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employment.

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(3)  Is not employed by the company to replace another

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employee of the company unless the other employee separated

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from employment voluntarily or for cause.

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(4)  Will perform duties connected to the new job for at

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least 52 consecutive weeks.

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* * *

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Section 2.  Sections 1803-B(b) and (c) and 1804-B(a), (d) and

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(e) of the act, added June 22, 2001 (P.L.353, No.23), are

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amended to read:

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Section 1803-B.  Application process.

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* * *

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(b)  Creation of jobs.--[The] Except as provided under this

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subsection, an applicant must agree to create at least 25 new

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jobs or to increase the applicant's number of employees by at

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least 20% within three years of the start date. A small business

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applicant must agree to increase the applicant's number of

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employees by at least 10% within three years after the start

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date.

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(c)  Approval.--If the department approves the company's

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application, the department and the company shall execute a

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commitment letter containing the following:

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(1)  A description of the project.

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(2)  The number of new jobs to be created.

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(3)  The amount of private capital investment in the

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project.

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(3.1)  A statement authorizing the per job credit as a

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single year or multiple year credit.

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(4)  The maximum job creation tax credit amount the

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company may claim.

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(5)  A signed statement that the company intends to

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maintain its operation in this Commonwealth for five years

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from the start date.

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(6)  Such other information as the department deems

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appropriate.

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* * *

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Section 1804-B.  Tax credits.

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(a)  Maximum amount.--A company may claim a tax credit of

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[$1,000] $2,000 per new job created, or $4,000 per each new job

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created if the newly created job is filled by an unemployed

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individual, up to the maximum job creation tax credit amount

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specified in the commitment letter.

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* * *

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(d)  Tax credit term.--A company may claim the job creation

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tax credit for each new job created, as approved by the

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department, for a [period determined by the department but not

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to exceed] one-year, two-year or three-year period as authorized

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by the department, except that no tax credit may be claimed for

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more than five years from the date the company first submits a

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job creation tax credit certificate.

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(e)  Availability of tax credits.--Each fiscal year,

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[$22,500,000] $25,000,000 in tax credits shall be made available

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to the department and may be awarded by the department in

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accordance with this article. In addition, in any fiscal year,

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the department may reissue or assign prior fiscal year tax

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credits which have been recaptured under section 1806-B(a) or

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(b) and may award prior fiscal year credits not previously

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issued. Prior fiscal year credits may be reissued, assigned or

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awarded by the department without limitation by section 1805-

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B(b).

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Section 3.  A company may claim the tax credit under section

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1804-B of the act for each newly created job filled by an

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unemployed individual on or after the effective date of this

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section.

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Section 4.  This act shall take effect in 60 days.

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