PRINTER'S NO. 631
No. 603 Session of 1999
INTRODUCED BY COY, GRUCELA, SOLOBAY, STETLER, DeWEESE, RAMOS,
BELFANTI, HANNA, TRAVAGLIO, LEVDANSKY, MELIO, PESCI, McCALL,
LAWLESS, M. COHEN, PRESTON, DeLUCA, SCRIMENTI, BARRAR,
CORRIGAN, SAINATO, KENNEY, GEORGE, VAN HORNE, TRELLO, CURRY,
YOUNGBLOOD, HARHAI, YUDICHAK, ROBERTS, STABACK, MANDERINO,
LUCYK, READSHAW, WALKO, THOMAS, HERMAN, STURLA, SURRA, ALLEN,
SEMMEL, L. I. COHEN, WILLIAMS, STEELMAN AND DALEY,
FEBRUARY 17, 1999
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 17, 1999
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," further providing for personal income tax
11 definitions; and providing for a higher education credit
12 against personal income tax.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 301 of the act of March 4, 1971 (P.L.6,
16 No.2), known as the Tax Reform Code of 1971, is amended by
17 adding a definition to read:
18 Section 301. Definitions.--The following words, terms and
19 phrases when used in this article shall have the meaning
20 ascribed to them in this section except where the context
1 clearly indicates a different meaning. Unless specifically
2 provided otherwise, any reference in this article to the
3 Internal Revenue Code shall include the Internal Revenue Code of
4 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), as amended to
5 January 1, 1997:
6 * * *
7 (o.2a) "Qualified institution of higher education" means an
8 educational institution which has the authority from a state to
9 confer degrees for the satisfactory completion of programs in
10 postsecondary education.
11 * * *
12 Section 2. The act is amended by adding a section to read:
13 Section 304.1. Credit for Higher Education.--(a) A taxpayer
14 is entitled to a credit against the tax imposed by this article
15 in accordance with this section.
16 (b) A taxpayer is eligible for the credit under this section
17 if any of the following clauses apply:
18 (1) The taxpayer is an individual who:
19 (i) is matriculated at a qualified institution of higher
20 education; and
21 (ii) pays more than half of the taxpayer's tuition at that
22 institution.
23 (2) The taxpayer:
24 (i) is the parent of a child who is matriculated at a
25 qualified institution of higher education; and
26 (ii) pays more than half of that child's tuition at that
27 institution.
28 (3) The taxpayer:
29 (i) is the spouse of an individual who is matriculated at a
30 qualified institution of higher education; and
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1 (ii) pays more than half of that individual's tuition at
2 that institution.
3 (c) The amount of the credit under subsection (b) shall be
4 the per cent specified in section 302(a)(2) or (b)(2) times up
5 to five thousand dollars ($5,000) of the amount spent by the
6 taxpayer on:
7 (1) tuition for the taxpayer under subsection (b)(1);
8 (2) tuition for each child under subsection (b)(2); and
9 (3) tuition for the spouse under subsection (b)(3).
10 Section 3. The addition of sections 301(o.2a) and 304.1 of
11 the act shall apply to taxable years beginning after December
12 31, 1998.
13 Section 4. This act shall take effect immediately.
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