THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY ORIE, ROBBINS, BRUBAKER, ALLOWAY, BAKER, BREWSTER, BROWNE, COSTA, ERICKSON, FONTANA, KASUNIC, MENSCH, PICCOLA, PIPPY, RAFFERTY, SOLOBAY, STACK, TARTAGLIONE, TOMLINSON, VOGEL, WARD, WASHINGTON, D. WHITE AND FARNESE, FEBRUARY 18, 2011

REFERRED TO FINANCE, FEBRUARY 18, 2011  

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 tax credit for employers of

certain veterans of the armed forces.

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-E

VETERAN EMPLOYER TAX CREDIT

Section 1801-E.  Definitions.

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:

"Department."  The Department of Revenue of the Commonwealth.

"Tax credit."  The tax credit available to employers of

veterans of the armed forces under this article.

"Taxpayer."  An entity subject to tax under Article III, IV

or VI.

"Veteran."  Any honorably discharged veteran of the armed

forces of the United States or a reserve component of the armed

forces as defined under 51 Pa.C.S. § 7301 (relating to

definitions) who completed active duty military service in a

combat or combat-support role during Operation Desert Storm,

Operation Enduring Freedom or Operation Iraqi Freedom or any war

or armed conflict occurring thereafter.

Section 1802-E.  Credit for employment.

(a)  Credit available.--A taxpayer is eligible for a tax

credit as provided in subsection (b) against the tax imposed

under Article III, IV or VI, but shall not include any tax

withheld by an employer from an employee under Article III, if

the taxpayer hires a veteran on or after January 1, 2011.

(b)  Maximum credit.--A taxpayer may claim a tax credit in

the amount of $1,000 for each full-time employee who qualifies

under subsection (a). A taxpayer may claim a credit under this

section only once with respect to each qualified employee and

may not claim a credit if a previous employer of the employee

claimed a credit.

(c)  Claim period.--Claims for a tax credit shall be filed

for the first taxable year for which the taxpayer was entitled

to claim the credit. Failure to comply with this subsection

shall constitute a waiver of the credit.

Section 1803-E.  Carryover and carryback of credit.

(a)  General rule.--If the taxpayer cannot use the entire

amount of the tax credit for the first taxable year in which the

employer is eligible for the credit, then the excess may be

carried over to succeeding taxable years and used as a credit

against the qualified tax liability of the taxpayer 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

that was used as a credit during the immediately preceding

taxable year. The tax credit provided by this article may be

carried over and applied to succeeding taxable years for no more

than three taxable years following the first taxable year for

which the taxpayer was entitled to claim the credit.

(b)  No carryback.--A taxpayer is not entitled to carry back

or obtain a refund of an unused tax credit.

Section 1804-E.  Total amount of credits.

The total amount of tax credits authorized by this article

shall not exceed $5,000,000 in each fiscal year. If the credits

exceed the $5,000,000 cap in a given year, the credits will be

allocated on a pro rata basis.

Section 1805-E.  Regulations.

The department shall prepare any forms that may be necessary

to claim a tax credit, may require proof of the claim for the

tax credit and may adopt rules and regulations to administer the

credit.

Section 2.  The addition of Article XVIII-E of the act shall

apply to tax years beginning after December 31, 2010.

Section 3.  This act shall take effect immediately.