PRIOR PRINTER'S NO. 1144 PRINTER'S NO. 3437
No. 1028 Session of 1995
INTRODUCED BY GANNON, TRELLO, BOYES, RAYMOND, J. TAYLOR,
SCHRODER, HERSHEY, E. Z. TAYLOR, RUBLEY, HENNESSEY,
S. H. SMITH, HUTCHINSON, GRUITZA, ADOLPH, BROWN, BROWNE,
CIVERA, CLARK, CONTI, DeLUCA, FAJT, JADLOWIEC, KENNEY,
LAWLESS, LUCYK, McCALL, MARKOSEK, MAYERNIK, O'BRIEN, PERZEL,
PRESTON, REINARD, ROONEY, STETLER, WOGAN, WOZNIAK, KAISER,
CORNELL, LEH, SEMMEL, BUNT, FICHTER, BOSCOLA, JAROLIN,
NAILOR, DENT, VAN HORNE, McGILL, GRUPPO, MARSICO, TIGUE, ZUG,
NYCE AND CAWLEY, MARCH 6, 1995
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, APRIL 29, 1996
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 research tax credit.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
14 the Tax Reform Code of 1971, is amended by adding an article to
15 read:
16 ARTICLE XVII-B
17 RESEARCH TAX CREDIT
1 Section 1701-B. Short Title of Article.--This article shall
2 be known and may be cited as the "Research Tax Credit Law."
3 Section 1702-B. Definitions.--The following words, terms and
4 phrases, when used in this article, shall have the meanings
5 ascribed to them in this section, except where the context
6 clearly indicates a different meaning:
7 "Basic research." Any original investigation for the <--
8 advancement of scientific knowledge not having a specific
9 commercial objective.
10 "Credit." The research tax credit made available under the
11 provisions of this article.
12 "In-house research expenses." Any one of the following:
13 (1) Any wages paid or incurred to an employe for qualified
14 services performed by that employe.
15 (2) Any amount paid or incurred for supplies used in the
16 conduct of qualified research.
17 (3) Subject to regulations of the Department of Revenue, any
18 amount paid or incurred to another person for the right to use
19 computers in the conduct of qualified research.
20 "Internal Revenue Code." The Internal Revenue Code of 1986
21 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
22 "Qualified services." Services consisting of engaging in
23 qualified research, or engaging in the direct supervision or
24 direct support of research activities which constitute qualified
25 research.
26 "Research expenses." The sum of the in-house research
27 expenses and the contract research expenses which are paid or
28 incurred by the taxpayer during the taxable year for which the
29 research tax credit is claimed.
30 "Supplies." Any tangible property other than land or
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1 improvements to land and any property of a character subject to
2 depreciation.
3 "Tax liability." The liability for taxes imposed under the
4 act of June 22, 1935 (P.L.414, No.182), known as the "State
5 Personal Property Tax Act," and Articles IV, V and VI of this
6 act.
7 "Wages." Compensation as defined in section 301 of this act.
8 Section 1703-B. Research Tax Credit.--(a) Any taxpayer
9 subject to Article IV, VI or XI of this act shall be eligible
10 for and may claim a research tax credit as provided in this
11 article.
12 (b) (1) Subject to the overall limitation set forth in
13 subclause (2) of this clause, the amount of the research tax
14 credit under this article for any taxable year shall be equal to
15 the sum of:
16 (i) ten per cent of the excess, if any, of the qualified
17 research expenses for the taxable year over the base amount; and
18 (ii) ten per cent of the basic research payments determined
19 under section 1707-B of this article.
20 (2) The amount of the research tax credit under this article
21 for any taxable year shall not exceed fifty per cent of the tax
22 liability for that taxpayer in that tax year.
23 (3) The amount of any research tax credit otherwise
24 allowable which cannot be taken because of the limitation under
25 subclause (2) of this clause may be carried forward to the next
26 seven succeeding tax years.
27 Section 1704-B. Research Expenses.--(a) If any contract
28 research expenses paid or incurred during any taxable year are
29 attributable to qualified research to be conducted after the
30 close of the taxable year, the amount so determined shall be
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1 treated as paid or incurred during the tax year in which the
2 qualified research is conducted.
3 (b) As used in this section, "contract research expenses"
4 means sixty-five per cent of any amount paid or incurred by the
5 taxpayer to any person, other than an employe of the taxpayer,
6 for qualified research.
7 Section 1705-B. Base Amount.--(a) (1) The base amount is
8 equivalent to the product of the fixed-base per centage and the
9 average annual gross receipts of the taxpayer for the four
10 taxable years immediately preceding the tax year for which the
11 research tax credit is claimed.
12 (2) In no event shall the base amount be less than fifty per
13 cent of the qualified research expenses for the taxable year for
14 which the credit is claimed.
15 (b) (1) Except as provided in subclause (2) of this clause,
16 the fixed-base percentage is the percentage which the qualified
17 research expenses of the taxpayer for the four taxable years
18 immediately preceding the tax year for which the credit is
19 claimed is to the gross receipts of the taxpayer for such years.
20 (2) The fixed-base percentage for a taxpayer who has less
21 than four taxable years shall be determined in the same manner
22 as set forth in subclause (1) of this clause using the number of
23 immediately preceding taxable years to arrive at the per
24 centage.
25 (3) In no event shall the fixed-base percentage exceed
26 sixteen per cent.
27 (c) (1) Gross receipts for any taxable year shall only
28 consist of gross receipts which are effectively connected with
29 the conduct of a trade or business within the Commonwealth.
30 (2) The determination of whether gross receipts are
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1 effectively connected with the conduct of a trade or business
2 within this Commonwealth shall be made by reference to the
3 standard established in sections 401(3)2(a)(16) and (17) of this
4 act.
5 Section 1706-B. Qualified Research.--(a) Qualified research
6 is research which complies with all of the following criteria:
7 (1) Expenditures on the research may be treated as expenses
8 under section 175 of the Internal Revenue Code.
9 (2) Research is undertaken for the purpose of discovering
10 information which is technological in nature and the application
11 of which information is intended to be useful in the development
12 of a new or improved business component for the taxpayer.
13 (3) Substantially all of the activities constitute elements
14 of a process of experimentation for a purpose described in
15 clause (b) of this section.
16 (b) (1) Research may qualify for a credit under this
17 article if that research relates to any of the following:
18 (i) A new or improved function.
19 (ii) Performance.
20 (iii) Reliability or quality.
21 (2) A tax credit under this article shall not be allowed for
22 any of the following types of research:
23 (i) Any research conducted after the beginning of commercial
24 production of the business component.
25 (ii) Any research related to the adaptation of an existing
26 business component to a particular customer's need.
27 (iii) Any research related to the reproduction of an
28 existing business component from a physical examination of the
29 business component itself or from plans, blueprints, detailed
30 specifications or publicly available information with respect to
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1 the business component.
2 (iv) Any efficiency survey; activity related to management
3 function or technique; market research, testing or development;
4 routine data collection; or routine or ordinary testing or
5 inspection for quality control.
6 (v) Any research with respect to computer software which is
7 developed by or for the benefit of the taxpayer, other than
8 computer software for use in an activity which constitutes
9 qualified research, or a production process which meets the
10 requirements of clause (a) of this section.
11 (vi) Any research conducted outside the Commonwealth. If the
12 taxpayer has research within and without Pennsylvania and cannot
13 determine the amount of Pennsylvania qualified research expenses
14 for the period beginning after December 31, 1991, and before
15 January 1, 1995, the amount to be used in the numerator for the
16 fixed based percentage should be qualified research and
17 development expenditures everywhere for the period multiplied by
18 the average of the payroll and property factors used on the
19 corporation's Corporate Tax Report for the Corporate Net Income
20 Tax imposed under Article IV of this act for the corresponding
21 years in question.
22 (vii) Any research in the social sciences, arts or the
23 humanities.
24 (viii) Any research to the extent funded by a grant,
25 contract or otherwise by another person or governmental entity.
26 Section 1707-B. Basic Research Payments.--(a) For purposes
27 of section 1703-B of this article, the amount of any basic
28 research payments shall be equal to the excess of such basic
29 research payments over the qualified organization base period
30 amount. The portion of the basic research payment which does not
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1 exceed the qualified organization base period amount shall be
2 treated as contract research expenses.
3 (b) As used in this section, the term "basic research
4 payment" means any amount paid in cash during the tax year for
5 which credit is claimed by the taxpayer to a qualified
6 organization for basic research if such payment is made under
7 written agreement between that taxpayer and the qualified
8 organization and the basic research is to be performed by that
9 qualified organization.
10 (c) (1) The qualified organization base period amount is an
11 amount equal to the sum of the minimum basic research amount
12 plus the maintenance-of-effort amount.
13 (2) Minimum basic research amount is an amount equal to the
14 greater of:
15 (i) one per cent of the average of the sum of amount paid or
16 incurred during the base period for in-house research expenses
17 and any contract research expenses; or
18 (ii) the amounts treated as contract expenses during the
19 base period by reason of clause (a) of this section. The minimum
20 basic research amount for any base period shall not be less than
21 fifty per cent of the basic research payments for the tax year
22 for which credit is claimed.
23 (3) Maintenance-of-effort amount is an amount equal to the
24 excess, if any, of an amount equal to the average of the
25 nondesignated higher education contributions paid by the
26 taxpayer during the base period multiplied by the cost-of-living
27 adjustment for the calendar year in which the tax year begins
28 over the amount of nondesignated higher education contributions
29 paid by the taxpayer during the tax year for which credit is
30 claimed.
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1 (4) Nondesignated higher education contribution is any
2 amount paid by a taxpayer to a qualified institution of higher
3 education for which a deduction is allowable under section 170
4 of the Internal Revenue Code and which amount was not used to
5 compute a credit under this article or as a basic research
6 payment for purposes of this article.
7 (5) Cost-of-living adjustment for any calendar year is the
8 cost-of-living adjustment for such calendar year calculated
9 under section 1(f)(3) of the Internal Revenue Code.
10 Section 1708-B. Qualified Organizations.--The term
11 "qualified organization" means any of the following
12 organizations which are located within this Commonwealth:
13 (1) Any educational organization which is an institution of
14 higher education.
15 (2) Any scientific research organization which meets the
16 requirements of section 501(a) and (c)(3) of the Internal
17 Revenue Code, is organized primarily to conduct scientific
18 research and is not a private foundation.
19 (3) Any scientific tax-exempt organization which meets the
20 requirements of section 501(c)(3) or (6) and 501(a) of the
21 Internal Revenue Code, is organized and operated primarily to
22 promote scientific research by institutions of higher education
23 under written agreements and currently expends all of its funds
24 or substantially all of its basic research payments received for
25 grants to or contracts with institutions of higher education for
26 basic research.
27 Section 1709-B. Shareholder or Partner Pass-through.--(a)
28 If a pass-through entity does not have an eligible tax liability
29 against which the research expense tax credit may be applied, a
30 shareholder or partner of the pass-through entity is entitled to
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1 a research tax credit equal to the research expense tax credit
2 determined for the pass-through entity for the taxable year
3 multiplied by the percentage of the pass-through entity's
4 distributive income to which the shareholder or partner is
5 entitled.
6 (b) The credit provided under clause (a) of this section is
7 in addition to any research expense tax credit to which a
8 shareholder or partner of a pass-through entity is otherwise
9 entitled under this article. However, a pass-through entity and
10 a shareholder or partner of the pass through entity may not
11 claim a credit under this article for the same qualified
12 research expenses.
13 Section 2. This act shall take effect immediately.
14 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH. <--
15 "INTERNAL REVENUE CODE." THE INTERNAL REVENUE CODE OF 1986
16 (PUBLIC LAW 99-514, 26 U.S.C. § 1 ET SEQ.).
17 "PENNSYLVANIA BASE AMOUNT." BASE AMOUNT AS DEFINED IN
18 SECTION 41(C) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
19 99-514, 26 U.S.C. § 1 ET SEQ.) EXCEPT THAT REFERENCES TO
20 "QUALIFIED RESEARCH EXPENSES" SHALL MEAN "PENNSYLVANIA QUALIFIED
21 RESEARCH EXPENSES" AND REFERENCES TO "QUALIFIED RESEARCH" SHALL
22 MEAN "PENNSYLVANIA QUALIFIED RESEARCH."
23 "PENNSYLVANIA QUALIFIED RESEARCH." QUALIFIED RESEARCH AS
24 DEFINED IN SECTION 41(D) OF THE INTERNAL REVENUE CODE OF 1986
25 (PUBLIC LAW 99-514, 26 U.S.C. § 1 ET SEQ.), EXCEPT THAT THE TERM
26 DOES NOT INCLUDE QUALIFIED RESEARCH CONDUCTED OUTSIDE
27 PENNSYLVANIA.
28 "PENNSYLVANIA QUALIFIED RESEARCH EXPENSE." QUALIFIED
29 RESEARCH EXPENSE AS DEFINED IN SECTION 41(D) OF THE INTERNAL
30 REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1 ET SEQ.),
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1 EXCEPT THAT THE TERM DOES NOT INCLUDE EXPENSES INCURRED FOR
2 QUALIFIED RESEARCH CONDUCTED OUTSIDE PENNSYLVANIA.
3 "QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED
4 UNDER THE ACT OF JUNE 22, 1935 (P.L.414, NO.182), KNOWN AS THE
5 "STATE PERSONAL PROPERTY TAX ACT," OR ARTICLES IV OR VI OF THIS
6 ACT.
7 "RESEARCH TAX CREDIT." THE CREDIT PROVIDED UNDER THIS
8 ARTICLE.
9 "SECRETARY." THE SECRETARY OF REVENUE OF THE COMMONWEALTH.
10 "TAXPAYER." AN ENTITY SUBJECT TO TAX UNDER THE ACT OF JUNE
11 22, 1935 (P.L.414, NO.182), KNOWN AS THE "STATE PERSONAL
12 PROPERTY TAX ACT," OR ARTICLES IV OR VI OF THIS ACT.
13 SECTION 1703-B. CREDIT FOR RESEARCH EXPENSE.--(A) A
14 TAXPAYER WHO INCURS PENNSYLVANIA QUALIFIED RESEARCH EXPENSE IN A
15 PARTICULAR TAXABLE YEAR IS ENTITLED TO A RESEARCH TAX CREDIT AS
16 PROVIDED IN THIS ARTICLE.
17 (B) A TAXPAYER WHO IS QUALIFIED UNDER SUBSECTION (A) OF THIS
18 SECTION SHALL RECEIVE A RESEARCH TAX CREDIT FOR THE TAXABLE YEAR
19 IN THE AMOUNT OF TEN PER CENT MULTIPLIED BY THE REMAINDER OF THE
20 TAXPAYER'S TOTAL PENNSYLVANIA QUALIFIED RESEARCH EXPENSES FOR
21 THE TAXABLE YEAR, MINUS THE TAXPAYER'S PENNSYLVANIA BASE AMOUNT.
22 SECTION 1704-B. AMOUNT OF CREDIT; CARRYOVER AND CARRYBACK OF
23 CREDIT; REFUND OF CREDIT.--(A) THE AMOUNT OF THE CREDIT
24 PROVIDED BY THIS ARTICLE THAT A TAXPAYER USES DURING A
25 PARTICULAR TAXABLE YEAR MAY NOT EXCEED FIFTY PER CENT OF THE
26 QUALIFIED TAX LIABILITY FOR THE TAXABLE YEAR. IF THE CREDIT
27 PROVIDED BY THIS ARTICLE EXCEEDS FIFTY PER CENT OF THE QUALIFIED
28 TAX LIABILITY FOR THE TAXABLE YEAR FOR WHICH THE CREDIT IS FIRST
29 CLAIMED, THEN THE EXCESS MAY BE CARRIED OVER TO SUCCEEDING
30 TAXABLE YEARS AND USED AS A CREDIT AGAINST THE QUALIFIED TAX
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1 LIABILITY OTHERWISE DUE AND PAYABLE BY THE TAXPAYER DURING THOSE
2 TAXABLE YEARS; PROVIDED THAT THE TOTAL AMOUNT OF CREDIT USED IN
3 ANY TAX YEAR MAY NOT EXCEED FIFTY PER CENT OF THE QUALIFIED TAX
4 LIABILITY FOR THAT TAXABLE YEAR. EACH TIME THAT THE CREDIT IS
5 CARRIED OVER TO A SUCCEEDING TAXABLE YEAR, IT IS TO BE REDUCED
6 BY THE AMOUNT WHICH WAS USED AS A CREDIT DURING THE IMMEDIATELY
7 PRECEDING TAXABLE YEAR. THE CREDIT PROVIDED BY THIS ARTICLE MAY
8 BE CARRIED FORWARD AND APPLIED TO SUCCEEDING TAXABLE YEARS FOR
9 NOT MORE THAN SEVEN TAXABLE YEARS FOLLOWING THE UNUSED CREDIT
10 YEAR.
11 (B) A CREDIT EARNED BY A TAXPAYER IN A PARTICULAR TAXABLE
12 YEAR SHALL BE APPLIED AGAINST THE TAXPAYER'S QUALIFIED TAX
13 LIABILITY FOR THAT TAXABLE YEAR BEFORE ANY CREDIT CARRYOVER IS
14 APPLIED AGAINST THAT LIABILITY UNDER SUBSECTION (A) OF THIS
15 SECTION.
16 (C) A TAXPAYER IS NOT ENTITLED TO ANY CARRYBACK OR REFUND OF
17 ANY UNUSED CREDIT.
18 SECTION 1705-B. APPLICATION OF INTERNAL REVENUE CODE.--THE
19 PROVISIONS OF SECTION 41 OF THE INTERNAL REVENUE CODE AND THE
20 REGULATIONS PROMULGATED IN RESPECT TO THOSE PROVISIONS ARE
21 APPLICABLE TO THE INTERPRETATION AND ADMINISTRATION BY THE
22 DEPARTMENT OF THE CREDIT PROVIDED BY THIS ARTICLE.
23 SECTION 1706-B. DETERMINATION OF QUALIFIED RESEARCH
24 EXPENSES.--IN PRESCRIBING STANDARDS FOR DETERMINING WHICH
25 QUALIFIED RESEARCH EXPENSES ARE CONSIDERED PENNSYLVANIA
26 QUALIFIED RESEARCH EXPENSES FOR PURPOSES OF COMPUTING THE CREDIT
27 PROVIDED BY THIS ARTICLE, THE DEPARTMENT MAY CONSIDER:
28 (1) THE PLACE WHERE THE SERVICES ARE PERFORMED;
29 (2) THE RESIDENCE OR BUSINESS LOCATION OF THE PERSON OR
30 PERSONS PERFORMING THE SERVICE;
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1 (3) THE PLACE WHERE QUALIFIED RESEARCH SUPPLIES ARE
2 CONSUMED; AND
3 (4) OTHER FACTORS THAT THE DEPARTMENT DETERMINES ARE
4 RELEVANT FOR THE DETERMINATION.
5 SECTION 1707-B. TIME LIMITATIONS.--NOTWITHSTANDING THE OTHER
6 PROVISIONS OF THIS ARTICLE, A TAXPAYER IS NOT ENTITLED TO A
7 CREDIT FOR PENNSYLVANIA QUALIFIED RESEARCH EXPENSE INCURRED IN
8 TAX YEARS BEGINNING AFTER DECEMBER 31, 2002. NOTWITHSTANDING
9 SECTION 41 OF THE INTERNAL REVENUE CODE, THE TERMINATION DATE IN
10 SECTION 41(H) OF THE INTERNAL REVENUE CODE DOES NOT APPLY TO A
11 TAXPAYER WHO IS ELIGIBLE FOR THE CREDIT UNDER THIS ARTICLE FOR
12 THE TAXABLE YEAR IN WHICH THE PENNSYLVANIA QUALIFIED RESEARCH
13 EXPENSE IS INCURRED.
14 SECTION 1708-B. TRANSITIONAL RULE.--(A) FOR THE PURPOSE OF
15 CALCULATING PENNSYLVANIA QUALIFIED RESEARCH EXPENSES USED IN
16 CALCULATING THE PENNSYLVANIA BASE AMOUNT FOR TAXABLE YEARS FROM
17 1992-1995, INCLUSIVE, IF THE TAXPAYER HAS QUALIFIED RESEARCH
18 EXPENSES WITHIN AND WITHOUT PENNSYLVANIA AND IS UNABLE TO
19 DETERMINE THE AMOUNT OF PENNSYLVANIA QUALIFIED RESEARCH
20 EXPENSES, THE TAXPAYER MAY MAKE A SUBSTITUTE CALCULATION AS
21 PROVIDED IN SUBSECTION (B) OF THIS SECTION.
22 (B) AS PROVIDED IN SUBSECTION (A) OF THIS SECTION, THE
23 SECRETARY MAY ALLOW THE TAXPAYER TO CALCULATE PENNSYLVANIA
24 QUALIFIED RESEARCH EXPENSES BY MULTIPLYING QUALIFIED RESEARCH
25 EXPENSES EVERYWHERE BY THE AVERAGE OF THE PAYROLL AND PROPERTY
26 FACTORS CALCULATED IN ACCORDANCE WITH ARTICLE IV OF THIS ACT FOR
27 THE CORRESPONDING YEARS IN QUESTION.
28 SECTION 1709-B. LIMITATION ON CREDITS.--(A) THE TOTAL
29 AMOUNT OF CREDITS AUTHORIZED BY THIS ARTICLE AND AWARDED BY THE
30 SECRETARY SHALL NOT EXCEED TEN MILLIONS DOLLARS ($10,000,000) IN
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1 ANY TAXABLE YEAR. FOR THE PURPOSES OF THIS SECTION, THE TERM
2 "TAXABLE YEAR" SHALL MEAN THE FISCAL YEAR OF EVERY TAXPAYER
3 WHICH BEGINS IN A SPECIFIED CALENDAR YEAR.
4 (B) THE SECRETARY SHALL ADOPT SUCH PROCEDURES AS MAY BE
5 NECESSARY FOR THE ADMINISTRATION OF THIS SECTION TO INSURE THAT
6 THE LIMITS PROVIDED IN SUBSECTION (A) ARE NOT EXCEEDED. THESE
7 PROCEDURES MAY, AT THE DISCRETION OF THE SECRETARY, INCLUDE
8 PROVISIONS FOR AN ESTIMATED AWARD OF CREDIT AND ADJUSTMENTS IN
9 THE AWARDS BASED ON SETTLED TAX RETURNS.
10 (C) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A TAXPAYER
11 WHO HAS AN UNPAID QUALIFIED TAX LIABILITY DUE TO A CHANGE IN THE
12 AMOUNT OF CREDIT AWARDED BY THE SECRETARY AND WHO PAYS THAT
13 LIABILITY WITHIN 45 DAYS OF BEING NOTIFIED BY THE DEPARTMENT OF
14 SUCH LIABILITY SHALL NOT BE LIABLE FOR ANY INTEREST OR PENALTY
15 WITH RESPECT TO THAT UNPAID QUALIFIED TAX LIABILITY.
16 SECTION 2. THE SECRETARY OF REVENUE SHALL SUBMIT A REPORT TO
17 THE GENERAL ASSEMBLY INDICATING THE EFFECTIVENESS OF THE CREDIT
18 PROVIDED BY THIS ACT NO LATER THAN MAY 1, 2002. SUCH REPORT
19 SHALL INCLUDE THE CHANGE IN RESEARCH ACTIVITIES IN PENNSYLVANIA
20 SINCE THE CREDIT WAS AUTHORIZED, THE NUMBER OF TAXPAYERS
21 UTILIZING THE CREDIT AS OF THE DATE OF THE REPORT, THE AMOUNT OF
22 CREDITS EARNED AND UTILIZED, AND ESTIMATES OF THE NUMBER AND
23 ANNUAL EARNINGS OF JOBS WHICH CAN BE DIRECTLY ATTRIBUTED TO THE
24 EXISTENCE OF THE CREDIT PROVIDED BY THIS ACT. THE REPORT SHOULD
25 ALSO INCLUDE ANY RECOMMENDATIONS FOR CHANGES IN THE CALCULATION
26 OR ADMINISTRATION OF THE CREDIT.
27 SECTION 3. THIS ACT SHALL APPLY TO TAX YEARS BEGINNING ON OR
28 AFTER JANUARY 1, 1996.
29 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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