PRINTER'S NO. 947
No. 785 Session of 2005
INTRODUCED BY T. STEVENSON, BAKER, BALDWIN, BASTIAN, BEBKO-
JONES, BELFANTI, CALTAGIRONE, CAPPELLI, CORRIGAN, CRAHALLA,
CREIGHTON, CURRY, DALLY, DeWEESE, DIVEN, FLEAGLE, FORCIER,
GEIST, GINGRICH, GRUCELA, HARPER, HENNESSEY, HERMAN,
HUTCHINSON, JAMES, KIRKLAND, KOTIK, LaGROTTA, LESCOVITZ,
MANN, MARKOSEK, McCALL, McGEEHAN, McGILL, McILHATTAN, MELIO,
R. MILLER, MUSTIO, NAILOR, O'NEILL, PETRARCA, PHILLIPS,
PISTELLA, READSHAW, REED, ROBERTS, SAINATO, SATHER, SAYLOR,
SCAVELLO, SHANER, STABACK, SURRA, THOMAS, WALKO, WILT,
WOJNAROSKI, YOUNGBLOOD, ZUG, E. Z. TAYLOR, ARMSTRONG, BARRAR,
SOLOBAY, M. KELLER, McILHINNEY, ROSS, GOOD, LEVDANSKY,
HARRIS, S. MILLER, RAPP, WANSACZ, LEACH, YUDICHAK, MARSICO
AND DeLUCA, MARCH 14, 2005
REFERRED TO COMMITTEE ON FINANCE, MARCH 14, 2005
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," authorizing a tax credit for volunteer
11 firefighters for purposes of personal 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 an article to
16 read:
17 ARTICLE XVIII-C
1 VOLUNTEER FIREFIGHTER TAX CREDIT
2 Section 1801-C. Short Title.--This article shall be known
3 and may be cited as the "Volunteer Firefighter Tax Relief Law."
4 Section 1802-C. Definitions.--The following words, terms and
5 phrases, when used in this article, shall have the meanings
6 ascribed to them in this section, except where the context
7 clearly indicates a different meaning:
8 "Department" means the Department of Revenue of the
9 Commonwealth.
10 "Firefighting service hour" means an hour during which a
11 volunteer firefighter provides firefighting services in response
12 to an emergency call.
13 "Secretary" means the Secretary of Revenue of the
14 Commonwealth.
15 "Taxpayer" means an individual who is subject to tax under
16 Article III.
17 "Volunteer firefighter" shall have the same meaning given to
18 it under section 2 of the act of June 11, 1968 (P.L.149, No.84),
19 known as the "Volunteer Firefighters' Relief Association Act."
20 Section 1803-C. Credit Authorized.--(a) A taxpayer who is a
21 volunteer firefighter, responds to an emergency call and has the
22 taxpayer's name entered on the fire log in a taxable year may
23 apply for a tax credit from tax imposed under Article III. By
24 September 15, the taxpayer must submit an application to the
25 department that sets forth the number of firefighting service
26 hours in the calendar year that ended in the prior calendar
27 year.
28 (b) A taxpayer that is qualified under subsection (a) shall
29 receive a volunteer firefighter tax credit for the taxable year
30 in the amount of the product of:
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1 (1) the number of firefighting service hours times the
2 service rate established in accordance with section 1804-C; and
3 (2) the rate of tax established in section 302.
4 (c) The department shall notify the taxpayer of the amount
5 of credit awarded under this article.
6 Section 1804-C. Establishment of Service Rate.--The
7 secretary shall prescribe by regulation a service rate equal to
8 an amount of reasonable compensation for the services provided
9 by volunteer firefighters. The secretary may, in his sole
10 discretion, by regulation annually adjust the service rate.
11 Section 1805-C. Report to General Assembly.--The secretary
12 shall submit an annual report to the General Assembly indicating
13 the effectiveness of the credit provided by this article not
14 later than March 15 following the year in which the credits are
15 approved. The report shall include the number of taxpayers
16 utilizing the credit as of the date of the report and the number
17 of credits approved and utilized. The report may also include
18 any recommendations for changes in the calculation or
19 administration of the credit.
20 Section 1806-C. Regulations.--The secretary shall promulgate
21 regulations necessary for the implementation and administration
22 of this article.
23 Section 2. This act shall take effect in 60 days.
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