PRINTER'S NO. 1963
No. 1643 Session of 1989
INTRODUCED BY SEMMEL, HALUSKA, STAIRS, TRELLO, ARGALL, NAHILL,
McVERRY, CARLSON, CIVERA, J. TAYLOR, HOWLETT, BOYES, REBER,
GIGLIOTTI, J. L. WRIGHT, NOYE, GODSHALL, HASAY, TELEK, MELIO,
SERAFINI, FOX, MAIALE, CLYMER, DIETTERICK, E. Z. TAYLOR,
HERMAN, KENNEY, MERRY, ANGSTADT AND JOHNSON, JUNE 6, 1989
REFERRED TO COMMITTEE ON FINANCE, JUNE 6, 1989
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for a credit against the corporate net
11 income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding a section to
16 read:
17 Section 402.1. Credit Against Tax.--(a) A corporation shall
18 be allowed a credit, to be computed as provided in this section,
19 against its corporate net income tax. The credit shall be an
20 amount equal to:
21 (1) Fifty per cent of the net costs expended by the
1 corporation during the tax year for the operation and
2 maintenance by the corporation of a not-for-profit adult day-
3 care center for parents of the corporation's employes, plus
4 fifty per cent of the annual depreciation allowance or capital
5 expenditures for the construction or renovation of the adult
6 day-care center, if the following requirements are met:
7 (i) The adult day-care center has been issued a valid
8 license and certified by the Department of Public Welfare.
9 (ii) Parents of the taxpayer's employes utilize the center
10 on a regular basis.
11 (iii) At least fifty per cent of the employes utilizing the
12 adult day-care center are not stockholders who own more than ten
13 per cent in value of the stock of the corporation.
14 (iv) The adult day-care program equitably benefits groups of
15 employes who qualify under a classification set up by the
16 employer which is not discriminatory in favor of highly
17 compensated individuals, officers, shareholders or owners or
18 their dependents.
19 (v) At least eighty per cent of the individuals utilizing
20 the adult day-care center shall be parents of the corporation's
21 employes.
22 (2) Fifty per cent of the contributions made by a
23 corporation to adult day-care center not operated by the
24 corporation, if the following requirements are met:
25 (i) The adult day-care center has been issued a valid
26 license and certified by the Department of Public Welfare.
27 (ii) At least fifty per cent of the employes utilizing the
28 adult day-care center are not stockholders who own more than ten
29 per cent in value of the stock of the corporation.
30 (iii) The adult day-care program equitably benefits groups
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1 of employes who qualify under a classification set up by the
2 corporation which is not discriminatory in favor of highly
3 compensated individuals, officers, shareholders or owners or
4 their dependents.
5 (3) Fifty per cent of the contributions made by the
6 corporation to be used in Pennsylvania toward the purchase by
7 the corporation's employes of adult day care for the employes'
8 parents from a licensed adult day-care provider other than that
9 provided for in clauses (1) and (2), provided that the adult
10 day-care program equitably benefits groups of employes who
11 qualify under a classification set up by the corporation which
12 is not discriminatory in favor of highly compensated
13 individuals, officers, shareholders or owners or their
14 dependents.
15 (b) The credit allowed under this section for any taxable
16 year shall not exceed the amount due that year pursuant to this
17 article.
18 (c) As used in this section, the term "highly compensated
19 individuals" means those individuals who, in the aggregate,
20 receive the top twenty-five per cent of all employe compensation
21 paid by the taxpayer.
22 Section 2. This act shall apply to taxable years commencing
23 on and after January 1, 1990.
24 Section 3. This act shall take effect in 60 days.
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