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 the Tax Credit for New
11Jobs; and providing for the Keystone Job Training Tax Credit.

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

14Section 1. Section 1801-B of the act of March 4, 1971
15(P.L.6, No.2), known as the Tax Reform Code of 1971, amended or
16added June 22, 2001 (P.L.353, No.23) and July 2, 2012 (P.L.751,
17No.85), is 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:

1"Base period." The three years immediately preceding the
2date on which a company may begin creating new jobs which may be
3eligible for job creation tax credits.

4"Department." The Department of Community and Economic
5Development of the Commonwealth.

6"Job creation tax credits." Tax credits for which the
7department has issued a certificate under this article.

8"New job." A full-time job, the average hourly rate,
9excluding benefits, for which must be at least 150% of the
10Federal minimum wage, created within a municipality located in
11this Commonwealth by a company within three years from the start
12date. This term does not include a temporary or seasonal job.

13"Small business." A company that is engaged in a for-profit
14enterprise and that employs 100 or fewer individuals.

15"Start date." The date on which a company may begin creating
16new jobs which may be eligible for job creation tax credits.

17"Unemployed individual." An individual who at the time of
18hiring meets all of the following:

19(1) Is hired on or after July 1, 2012.

20(2) Certifies by signed affidavit, under penalty of
21perjury, that the individual has not been employed during the
2260-day period ending on the date the individual begins
23employment.

24(3) Is not employed by the company to replace another
25employee of the company unless the other employee separated
26from employment voluntarily or for cause.

27(4) Will perform duties connected to the new job for at
28least 52 consecutive weeks.

29"Year one." A one-year period immediately following the
30start date.

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

3"Year two." A one-year period immediately following the end
4of year one.

5Section 2. Section 1802-B, added June 22, 2001 (P.L.353,
6No.23), is amended to read:

7Section 1802-B. Eligibility.

8In order to be eligible to receive job creation tax credits,
9a company must demonstrate to the department the following:

10(1) The company's ability to create the number of jobs
11required by the department within three years from the start
12date.

13[(2) Leadership in the application, development or
14deployment of leading technologies.]

15(3) [Financial] The company's financial stability and
16the project's financial viability.

17(4) The company's express intent to maintain operations
18in this Commonwealth for a period of five years from the date
19the company submits its tax credit certificate to the
20Department of Revenue.

21(5) An affirmation by the company that the decision to
22expand or locate in this Commonwealth was due in large part
23to the availability of a job creation tax credit.

24Section 3. Sections 1803-B and 1804-B of the act, amended or
25added June 22, 2001 (P.L.353, No.23) and July 2, 2012 (P.L.751,
26No.85), are amended to read:

27Section 1803-B. Application process.

28(a) Application.--A company must complete and submit to the
29department a job creation tax credit application.

30(b) Creation of jobs.--Except as provided under this 

1subsection, an applicant must agree to create at least 25 new
2jobs or to increase the applicant's number of employees by at
3least 20% within three years of the start date. A small business 
4applicant must agree to increase the applicant's number of 
5employees by at least 10% within three years after the start 
6date.

7(b.1) Priority.--The department shall review and approve or
8disapprove applications in the order in which they are received
9and shall give priority to applications from taxpayers applying
10for credits for the following types of new employees:

11(1) A dislocated worker as defined in the act of
12December 18, 2001 (P.L.949, No.114), known as the Workforce
13Development Act, who meets any one of the following criteria:

14(i) Has been terminated or laid off or has received
15notice of termination or layoff, and is eligible for or
16has exhausted unemployment compensation benefits.

17(ii) Is unlikely to return to the industry or
18occupation in which the individual was employed.

19(iii) Has been terminated or received notice of
20termination as a result of the permanent closure or
21relocation of a plant, facility or plant operation in
22which the individual was employed.

23(iv) Is chronically unemployed.

24(v) Has limited opportunities of employment in the
25geographic area in which the individual resides.

26(vi) Is an individual who may face substantial
27barriers to employment because of age or disability.

28(2) An individual who has been unemployed for at least 
29six consecutive months. 

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

1application, the department and the company shall execute a
2commitment letter containing the following:

3(1) A description of the project.

4(2) The number of new jobs to be created.

5(3) The amount of private capital investment in the
6project.

7(3.1) A statement authorizing the per job credit as a
8single year or multiple year credit.

9(4) The maximum job creation tax credit amount the
10company may claim.

11(5) A signed statement that the company intends to
12maintain its operation in this Commonwealth for five years
13from the start date.

14(6) Such other information as the department deems
15appropriate.

16(d) Commitment letter.--After a commitment letter has been
17signed by both the Commonwealth and the company, the company
18shall receive a job creation tax credit certificate and filing
19information.

20Section 1804-B. Tax credits.

21(a) Maximum amount.--A company may claim a tax credit of
22$1,000 per new job created, or $2,500 per each new job created 
23if the newly created job is filled by an unemployed individual,
24up to the maximum job creation tax credit amount specified in
25the commitment letter, which may not exceed $100,000 annually.

26(b) Determination of new jobs created.--

27(1) New jobs shall be deemed created in year one to the
28extent that the company's average employment by quarter
29during year one exceeds the company's average employment
30level during the company's base period.

1(2) New jobs shall be deemed created in year two to the
2extent that the company's average employment by quarter
3during year two exceeds the company's average employment by
4quarter during year one.

5(3) New jobs shall be deemed created in year three to
6the extent that the company's average employment by quarter
7during year three exceeds the company's average employment by
8quarter during year two.

9(c) Applicable taxes.--A company may apply the tax credit to
10100% of the company's State corporate net income tax, capital
11stock and franchise tax or the capital stock and franchise tax
12of a shareholder of the company if the company is a Pennsylvania
13S corporation, gross premiums tax, gross receipts tax, bank and
14trust company shares tax, mutual thrift institution tax, title
15insurance company shares tax, personal income tax or the
16personal income tax of shareholders of a Pennsylvania S
17corporation or any combination thereof.

18(d) Tax credit term.--A company may claim the job creation
19tax credit for each new job created, as approved by the
20department, for a one-year, two-year or three-year period as 
21authorized by the department, except that no tax credit may be 
22claimed for more than five years from the date the company first
23submits a job creation tax credit certificate.

24(e) Availability of tax credits.--[Each] Subject to section 
251804-C(b), each fiscal year, $10,100,000 in tax credits shall be
26made available to the department and may be awarded by the
27department in accordance with this article. In addition, in any
28fiscal year, the department may reissue or assign prior fiscal
29year tax credits which have been recaptured under section 1806-
30B(a) or (b) and may award prior fiscal year credits not

1previously issued. Prior fiscal year credits may be reissued,
2assigned or awarded by the department without limitation by
3section 1805-B(b).

4Section 4. Section 1805-B of the act, added June 22, 2001
5(P.L.353, No.23), is amended to read:

6Section 1805-B. Prohibitions.

7(a) Prohibitions.--The following actions with regard to job
8creation tax credits are prohibited:

9(1) Approval of jobs that have been created prior to the
10start date.

11(2) Approval for a company which is relocating
12operations from one municipality in this Commonwealth to
13another unless special circumstances exist and the
14municipality that is losing the existing jobs has an
15opportunity to submit comments prior to action by the
16department. If the department approves the tax credits, the
17company must commit to preserving the existing employees, and
18the credit shall apply only to the new jobs.

19(3) The assignment, transfer or use of credits by any
20other company, provided, however, that tax credits may be
21assigned in whole or in part to an affiliated entity. As used
22in this paragraph, the term "affiliated entity" means an
23entity which is part of the same "affiliated group," as
24defined by section 1504(a)(1) of the Internal Revenue Code of
251986 (Public Law 99-514, 26 U.S.C. § 1504(a)(1)), as the
26company awarded the credit.

27(b) Allocations.--Twenty-five percent of the total amount of 
28all tax credits authorized in any fiscal year under section 
291804-B(e) shall be available to companies with fewer than 100 
30employees. Any portion of this allocation not committed by April 

130 of each year shall be available to any [business] company 
2which meets the remaining program criteria.

3Section 5. The act is amended by adding sections to read:

4Section 1807-B. Annual reports.

5(a) Contents.--The department shall prepare an annual report
6on job creation tax credits which at a minimum shall include:

7(1) A list of all job creation tax credit certificates
8provided during the previous fiscal year.

9(2) The name and location of each company receiving job
10creation tax credit certificates.

11(3) An analysis of the effectiveness of the job creation
12tax credits in creating jobs in this Commonwealth.

13(4) Any other information that may be deemed relevant by
14the department.

15(b) Submission.--The annual report shall be submitted to the
16Governor, the Majority Leader of the Senate, the Minority Leader
17of the Senate, the Majority Leader of the House of
18Representatives and the Minority Leader of the House of
19Representatives by March 1 of the first full year following the
20effective date of this section and March 1 of each year
21thereafter.

22Section 1808-B. Notice of availability of tax credits.

23The department shall publish notice of the availability of
24the job creation tax credits on its publicly accessible Internet
25website and make information available annually to the
26Department of Labor and Industry Workforce Investment Board for
27distribution to local boards.

28Section 6. The heading of Article XVIII-C of the act, added
29July 9, 2008 (P.L.922, No.66), is amended to read:

30ARTICLE XVIII-C

1[(RESERVED)]

2KEYSTONE JOB TRAINING TAX CREDIT

3Section 7. The act is amended by adding sections to read:

4Section 1801-C. Definitions.

5The following words and phrases when used in this article
6shall have the meanings given to them in this section unless the
7context clearly indicates otherwise:

8"Department." The Department of Community and Economic
9Development of the Commonwealth.

10"Eligible job." A full-time job in this Commonwealth, the
11annual wage, excluding benefits, for which is at least equal to
12150% of the Federal minimum wage. The term shall not include a
13temporary or seasonal job.

14"Job training." Training designed to provide a trainee with
15the skills and knowledge necessary to meet a company's
16specifications for an occupation or trade that results in the
17trainee's employment or continued employment in an eligible job
18with the company in this Commonwealth.

19"Job training tax credits." Tax credits for providing job
20training authorized under this article.

21"Qualified tax liability." The liability for taxes imposed
22under Article III, IV, VI, VII, VIII, IX or XV. The term shall
23not include liability for any tax withheld or required to be
24withheld by a taxpayer from an employee under Article III.

25"Small business." Any of the following with fewer than 100
26employees at the time the taxpayer applies for a job training
27tax credit under this article and which is operating in this
28Commonwealth:

29(1) A for-profit corporation.

30(2) A limited liability company.

1(3) A partnership.

2(4) A proprietorship.

3"Start date." The effective date of this section.

4"Taxpayer." A small business subject to a tax imposed under
5Article III, IV, VI, VII, VIII, IX or XV.

6"Trainee." An individual receiving job training for which a
7taxpayer applies for a job training tax credit under this
8article.

9"Year four." A one-year period immediately following the end
10of year three.

11"Year one." A one-year period immediately following the
12start date.

13"Year three." A one-year period immediately following the
14end of year two.

15"Year two." A one-year period immediately following the end
16of year one.

17Section 1802-C. Job training tax credits.

18(a) Criteria.--A taxpayer that provides job training from
19and after the start date shall be entitled to a job training tax
20credit against the taxpayer's qualified liability as provided
21under this article. To be eligible for a tax credit, the
22taxpayer must certify and agree in the taxpayer's application to
23all of the following:

24(1) The taxpayer shall maintain the operation of its
25small business in this Commonwealth for at least five years
26following the taxable year for which the taxpayer first
27claims a job training tax credit awarded under this article.

28(2) The taxpayer has the ability to provide a level of
29job training appropriate for the employment or continued
30employment of the trainee, as determined by the department.

1(3) During each taxable year that the taxpayer claims a
2job training tax credit, the taxpayer shall dedicate at least
325% of a trainee's work time to job training for at least six
4months during the trainee's first year of employment.

5(4) If the job training credit is for a new employee,
6the individual was hired for a new position in the taxpayer's
7small business or was hired to fill the position of another
8employee who voluntarily separated from employment with the
9taxpayer.

10(b) Amount.--The following shall apply:

11(1) The tax credit shall be equal to $1,500 for each
12trainee and shall be available for each taxable year that the
13taxpayer provides job training through the end of the taxable
14year in which the end of year four occurs.

15(2) Notwithstanding paragraph (1), a taxpayer may not
16claim more than an aggregate of $100,000 of job training tax
17credits in any taxable year.

18(c) Eligibility for other tax credits.--A taxpayer that
19claims tax credits under any other Federal or State law shall be
20eligible for a job training tax credit if the taxpayer also
21meets the requirements of this article.

22Section 1803-C. Application and award.

23(a) Application.--A taxpayer wishing to claim a job training
24tax credit shall apply to the department on a form required by
25the department. The application shall contain information as the
26department deems necessary for the department to determine that
27the taxpayer is entitled to the tax credit or credits for which
28the taxpayer is applying.

29(b) Priority.--The department shall review and approve or
30disapprove applications in the order in which they are received

1and shall give priority to applications from taxpayers applying
2for tax credits for the following types of trainees:

3(1) A dislocated worker as defined in section 701-A of
4the act of December 18, 2001 (P.L.949, No.114), known as the
5Workforce Development Act, who meets any of the following
6criteria:

7(i) Has been terminated or laid off or has received
8notice of termination or layoff and is eligible for or
9has exhausted unemployment compensation benefits.

10(ii) Is unlikely to return to the industry or
11occupation in which the individual was employed.

12(iii) Has been terminated or received notice of
13termination as a result of the permanent closure or
14relocation of a plant, facility or plant operation in
15which the individual was employed.

16(iv) Is chronically unemployed.

17(v) Has limited opportunities of employment in the
18geographic area in which the individual resides.

19(vi) Is an individual who may face substantial
20barriers to employment because of age or disability.

21(2) An individual who has been unemployed for at least
22six consecutive months.

23(3) An underemployed individual who requires training to
24meet industry demands or increased employment opportunities.

25(4) An individual who will receive job training related
26to a high priority occupation within this Commonwealth, as
27identified in consultation with the Department of Labor and
28Industry, including a green job, a clean and renewable energy
29job or a job within an industry cluster.

30(c) Award.--Upon determining that the taxpayer is entitled

1to one or more job training tax credits, the department shall
2award the credits and issue a job training tax credit
3certificate to the taxpayer.

4Section 1804-C. Limitations.

5(a) Use by taxpayer.--A taxpayer may not carry over, carry
6back, assign or obtain a refund of any portion of a job training
7tax credit.

8(b) Aggregate amount of awards.--Twenty-five percent of the
9amount available for tax credits under section 1804-B(e) in any
10fiscal year shall be available for job training credits under
11this article.

12(c) Length of program.--A taxpayer shall not be entitled to
13a job training tax credit in taxable years ending December 31 of
14the year in which the end of year four occurs and beyond.

15Section 1805-C. Repayment and penalty.

16(a) Repayment.--A taxpayer who has claimed one or more job
17training tax credits and fails to meet any of the criteria
18required under section 1802-C or a taxpayer who has received a
19job training tax credit in error shall repay to the Commonwealth
20the amount of all tax credits claimed.

21(b) Penalty.--If it is determined that the failure or error
22referred to under subsection (a) occurred as a result of fraud
23perpetrated by the taxpayer, the taxpayer, in addition to being
24required to repay the amount of all tax credits claimed, shall
25be subject to other appropriate penalties and remedies as
26provided by law.

27Section 1806-C. Reports.

28(a) Taxpayer reports.--Within 30 days following the close of
29each taxable year that a taxpayer claims a job training tax
30credit awarded under this article, the taxpayer shall submit a

1written report to the department describing all job training
2provided to trainees hired in new positions in the taxpayer's
3small business during the taxable year.

4(b) Department reports.--On or before March 1 of each
5calendar year, the department shall submit a written report to
6the Governor, the Majority Leader of the Senate, the Minority
7Leader of the Senate, the Majority Leader of the House of
8Representative and the Minority Leader of the House of
9Representatives containing the following information:

10(1) A list of all job training tax credit certificates
11issued by the department during the previous calendar year
12and the name and location of each taxpayer to whom the
13certificates were issued.

14(2) An analysis of the effectiveness of the job training
15tax credits issued in creating new eligible jobs or retaining
16existing eligible jobs.

17(3) Any other information the department deems relevant
18with respect to the job training tax credit program
19established under this article.

20Section 1807-C. Notice.

21The department shall, no later than 60 days following the
22effective date of this section, post the following on its
23publicly accessible Internet website:

24(1) The availability and start date of the job training
25tax credits.

26(2) Guidelines for the awarding of the job training tax
27credits.

28(3) A downloadable copy of the application form.

29Section 8. This act shall take effect in 30 days.