PRINTER'S NO. 2387
No. 1836 Session of 1983
INTRODUCED BY IRVIS, MANDERINO, WAMBACH, KUKOVICH, MURPHY,
RICHARDSON, DAWIDA, DEAL, LINTON, FREEMAN, PISTELLA, COWELL,
PRESTON, MARKOSEK, MICHLOVIC, DeLUCA, TRELLO, PIEVSKY,
DOMBROWSKI, ALDERETTE, JAROLIN, COSLETT, CAPPABIANCA, WILSON
AND WACHOB, DECEMBER 14, 1983
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 14, 1983
AN ACT
1 Amending the act of November 29, 1967 (P.L.636, No.292),
2 entitled "An act granting a tax credit to certain business
3 firms who contribute to neighborhood organizations or who
4 engage in activities which tend to upgrade impoverished
5 areas," providing tax credits for business firms for
6 contributions to the Homeowners Emergency Mortgage Assistance
7 Fund; and making a repeal.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 3 and 4 of the act of November 29, 1967
11 (P.L.636, No.292), known as the Neighborhood Assistance Act,
12 amended November 26, 1978 (P.L.1272, No.304), are amended to
13 read:
14 Section 3. (a) It is hereby declared to be public policy of
15 the Commonwealth of Pennsylvania to encourage investment by
16 business firms in offering neighborhood assistance and providing
17 job training, education, crime prevention, and community
18 services and to encourage contributions by business firms to
19 neighborhood organizations which offer and provide such
1 assistance and services.
2 (b) It is further declared to be the public policy of the
3 Commonwealth of Pennsylvania to encourage contributions by
4 business firms to the Homeowners Emergency Mortgage Assistance
5 Fund created in section 408-C of the act of December 3, 1959
6 (P.L.1688, No.621), known as the Housing Finance Agency Law.
7 Section 4. Any business firm which engages or contributes to
8 a neighborhood organization which engages in the activities of
9 providing neighborhood assistance, job training or education for
10 individuals, community services, or crime prevention in an
11 impoverished area shall receive a tax credit as provided in
12 section 5 of this act if the Secretary of Community Affairs
13 annually approves the proposal of such business firm. The
14 proposal shall set forth the program to be conducted, the
15 impoverished area selected, the estimated amount to be invested
16 in the program and the plans for implementing the program. The
17 Secretary of Community Affairs is hereby authorized to
18 promulgate rules and regulations for the approval or disapproval
19 of such proposals by business firms. The total amount of tax
20 credit granted for programs approved under this act [for the
21 first fiscal year] shall not exceed [one million seven hundred
22 fifty thousand dollars ($1,750,000) to be increased by no more
23 than one million seven hundred fifty thousand dollars
24 ($1,750,000) each succeeding fiscal year until the total tax
25 credit granted reaches eight million seven hundred fifty
26 thousand dollars ($8,750,000) and thereafter no more than] eight
27 million seven hundred fifty thousand dollars ($8,750,000) of tax
28 credit [shall be approved] in any fiscal year.
29 Section 2. Section 5 of the act, amended July 9, 1976
30 (P.L.925, No.174), is amended to read:
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1 Section 5. The Department of Revenue shall grant a tax
2 credit against any tax due under Article IV of the act of March
3 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
4 or against any tax due from a bank, bank and trust company,
5 trust company, insurance company, other than a foreign fire or
6 casualty insurance company, national bank, savings association,
7 mutual savings bank or building and loan association, under
8 Article VII, Article VIII [or], Article IX, Article XV or
9 Article XVI of the act of March 4, 1971 (P.L.6, No.2)[, or the
10 act of June 22, 1964 (P.L.16, No.2), known as "The Mutual Thrift
11 Institutions Tax Act"] or any tax substituted in lieu thereof in
12 an amount which shall not exceed fifty per cent of the total
13 amount invested during the taxable year by the business firm in
14 programs approved pursuant to section 4 of this act: Provided,
15 That a tax credit of up to seventy per cent may be allowed for
16 investment in programs where activities fall within the scope of
17 special program priorities as defined with the approval of the
18 Governor in regulations promulgated by the Secretary of the
19 Department of Community Affairs. Regulations establishing
20 special program priorities are to be promulgated during the
21 first month of each fiscal year and at such times during the
22 year as the public interest dictates. Such credit shall not
23 exceed two hundred fifty thousand dollars ($250,000) annually
24 provided that no tax credit shall be granted to any bank, bank
25 and trust company, insurance company, trust company, national
26 bank, savings association, mutual savings bank or building and
27 loan association for activities that are a part of its normal
28 course of business: Provided, That any tax credit not used in
29 the period the investment was made may be carried over for the
30 next five succeeding calendar or fiscal years until the full
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1 credit has been allowed: And, provided further, That the total
2 amount of all tax credits allowed pursuant to this act shall not
3 exceed eight million seven hundred fifty thousand dollars
4 ($8,750,000) in any one fiscal year.
5 Section 3. The act is amended by adding sections to read:
6 Section 5.1. Any business firm which contributes to the
7 Homeowners Emergency Mortgage Assistance Fund shall receive a
8 tax credit as provided in section 5.2. The total amount of tax
9 credits granted under this section for the first fiscal year
10 shall not exceed fifteen million dollars ($15,000,000) nor shall
11 the total amount of tax credits granted for fiscal years 1984-
12 1985, 1985-1986 or 1986-1987 exceed fifteen million dollars
13 ($15,000,000) in any fiscal year.
14 Section 5.2. The Department of Revenue shall grant a tax
15 credit against any tax due under Articles IV, VII, VIII, IX, XV
16 and XVI of the act of March 4, 1971 (P.L.6, No.2), known as the
17 "Tax Reform Code of 1971," or against any tax due from an
18 insurance company other than a foreign fire casualty insurance
19 company. A tax credit of seventy (70) percent of contributions
20 made to the Homeowners Emergency Mortgage Assistance Fund shall
21 be allowed. Contributions to the Homeowners Emergency Mortgage
22 Assistance Fund and any tax credit pursuant thereto not used in
23 the period in which the contribution was made may be carried
24 over for the next five succeeding calendar or fiscal years until
25 the full credit has been allowed; provided that the total amount
26 of all tax credits allowed pursuant to this section shall not
27 exceed the limitations provided for in section 5.1. The
28 Department of Revenue may provide for proportional credits in
29 the event that total credits exceed fifteen million dollars
30 ($15,000,000) in any fiscal year.
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1 Section 4. Section 410-C(a), (b), (c) and (d) of the act of
2 December 3, 1959 (P.L.1688, No.621), known as the Housing
3 Finance Agency Law, is repealed.
4 Section 5. This act shall take effect immediately.
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