PRIOR PRINTER'S NOS. 2387, 2402 PRINTER'S NO. 2439
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,
WACHOB, SALVATORE, WESTON AND CALTAGIRONE, DECEMBER 14, 1983
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JANUARY 31, 1984
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 SECTION 3 of the act of November <--
11 29, 1967 (P.L.636, No.292), known as the Neighborhood Assistance
12 Act, amended November 26, 1978 (P.L.1272, No.304), are IS <--
13 amended to 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
1 neighborhood organizations which offer and provide such
2 assistance and services.
3 (b) It is further declared to be the public policy of the
4 Commonwealth of Pennsylvania to encourage contributions by
5 business firms to the Homeowners Emergency Mortgage Assistance
6 Fund created in section 408-C of the act of December 3, 1959
7 (P.L.1688, No.621), known as the Housing Finance Agency Law.
8 SECTION 2. SECTION 4 OF THE ACT, AMENDED NOVEMBER 26, 1978 <--
9 (P.L.1272, NO.304), IS REENACTED AND AMENDED TO READ:
10 Section 4. Any business firm which engages or contributes to
11 a neighborhood organization which engages in the activities of
12 providing neighborhood assistance, job training or education for
13 individuals, community services, or crime prevention in an
14 impoverished area shall receive a tax credit as provided in
15 section 5 of this act if the Secretary of Community Affairs
16 annually approves the proposal of such business firm. The
17 proposal shall set forth the program to be conducted, the
18 impoverished area selected, the estimated amount to be invested
19 in the program and the plans for implementing the program. The
20 Secretary of Community Affairs is hereby authorized to
21 promulgate rules and regulations for the approval or disapproval
22 of such proposals by business firms. The total amount of tax
23 credit granted for programs approved under this [act for the
24 first fiscal year] section shall not exceed [one million seven
25 hundred fifty thousand dollars ($1,750,000) to be increased by
26 no more than one million seven hundred fifty thousand dollars
27 ($1,750,000) each succeeding fiscal year until the total tax
28 credit granted reaches eight million seven hundred fifty
29 thousand dollars ($8,750,000) and thereafter no more than] eight
30 million seven hundred fifty thousand dollars ($8,750,000) of tax
19830H1836B2439 - 2 -
1 credit [shall be approved] in any fiscal year.
2 Section 2 3. Section 5 of the act, amended July 9, 1976 <--
3 (P.L.925, No.174), is amended to read:
4 Section 5. The Department of Revenue shall grant a tax
5 credit against any tax due under Article IV of the act of March
6 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
7 or against any tax due from a bank, bank and trust company,
8 trust company, insurance company, other than a foreign fire or
9 casualty insurance company, national bank, savings association,
10 mutual savings bank or building and loan association, under
11 Article VII, Article VIII [or], Article IX, Article XV or
12 Article XVI of the act of March 4, 1971 (P.L.6, No.2)[, or the
13 act of June 22, 1964 (P.L.16, No.2), known as "The Mutual Thrift
14 Institutions Tax Act"] or any tax substituted in lieu thereof in
15 an amount which shall not exceed fifty per cent of the total
16 amount invested during the taxable year by the business firm in
17 programs approved pursuant to section 4 of this act: Provided,
18 That a tax credit of up to seventy per cent may be allowed for
19 investment in programs where activities fall within the scope of
20 special program priorities as defined with the approval of the
21 Governor in regulations promulgated by the Secretary of the
22 Department of Community Affairs. Regulations establishing
23 special program priorities are to be promulgated during the
24 first month of each fiscal year and at such times during the
25 year as the public interest dictates. Such credit shall not
26 exceed two hundred fifty thousand dollars ($250,000) annually
27 provided that no tax credit shall be granted to any bank, bank
28 and trust company, insurance company, trust company, national
29 bank, savings association, mutual savings bank or building and
30 loan association for activities that are a part of its normal
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1 course of business: Provided, That any tax credit not used in
2 the period the investment was made may be carried over for the
3 next five succeeding calendar or fiscal years until the full
4 credit has been allowed: And, provided further, That the total
5 amount of all tax credits allowed pursuant to this [act] section
6 shall not exceed eight million seven hundred fifty thousand
7 dollars ($8,750,000) in any one fiscal year.
8 Section 3 4. The act is amended by adding sections to read: <--
9 Section 5.1. Any business firm which contributes to the
10 Homeowners Emergency Mortgage Assistance Fund shall receive a
11 tax credit as provided in section 5.2. The total amount of tax
12 credits granted under this section for the first fiscal year
13 shall not exceed fifteen million dollars ($15,000,000) nor shall
14 the total amount of tax credits granted for fiscal years 1984-
15 1985, 1985-1986 or 1986-1987 exceed fifteen million dollars
16 ($15,000,000) in any fiscal year.
17 Section 5.2. The Department of Revenue shall grant a tax
18 credit against any tax due under Articles IV, VII, VIII, XV and
19 XVI of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax
20 Reform Code of 1971," or against any tax due under Article IX of
21 the Tax Reform Code from an insurance company other than a
22 foreign fire or casualty insurance company. A tax credit of
23 seventy (70) percent of contributions made to the Homeowners
24 Emergency Mortgage Assistance Fund shall be allowed.
25 Contributions to the Homeowners Emergency Mortgage Assistance
26 Fund and any tax credit pursuant thereto not used in the period
27 in which the contribution was made may be carried over for the
28 next five succeeding calendar or fiscal years until the full
29 credit has been allowed; provided that the total amount of all
30 tax credits allowed pursuant to this section shall not exceed
19830H1836B2439 - 4 -
1 the limitations provided for in section 5.1. The Department of
2 Revenue may provide for proportional credits in the event that
3 total credits exceed fifteen million dollars ($15,000,000) in
4 any fiscal year.
5 Section 4 5. Section 410-C(a), (b), (c) and (d) of the act <--
6 of December 3, 1959 (P.L.1688, No.621), known as the Housing
7 Finance Agency Law, is repealed.
8 SECTION 6. THIS ACT SHALL BE RETROACTIVE TO AND INCLUDE <--
9 DECEMBER 23, 1983.
10 Section 5 7. This act shall take effect retroactively on <--
11 December 23, 1983. IMMEDIATELY. <--
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