PRINTER'S NO. 4274
No. 2799 Session of 2006
INTRODUCED BY J. TAYLOR AND PETRONE, JUNE 19, 2006
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 19, 2006
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 neighborhood assistance tax
11 credits.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 1904-A of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
16 by adding a subsection to read:
17 Section 1904-A. Tax Credit.--* * *
18 (d) The tax credit granted to business firms may be sold or
19 assigned, in whole or in part, in accordance with regulations
20 promulgated by the secretary that establish guidelines for the
21 approval of such transfers of tax credits.
22 Section 2. Section 1905-A of the act, amended July 7, 2005
1 (P.L.149, No.40), is amended to read:
2 Section 1905-A. Grant of Tax Credit.--The Department of
3 Revenue shall grant a tax credit against any tax due under
4 Article IV, VI, VII, VII-A, VIII, VIII-A, IX, X or XV of this
5 act, or any tax substituted in lieu thereof in an amount which
6 shall not exceed fifty per cent of the total amount invested
7 during the taxable year by the business firm or twenty per cent
8 of qualified investments by a private company in programs
9 approved pursuant to section 1904-A of this act: Provided, That
10 a tax credit of up to [seventy] eighty per cent of the total
11 amount invested during the taxable year by a business firm or up
12 to thirty per cent of the amount of qualified investments by a
13 private company may be allowed for investment in programs where
14 activities fall within the scope of special program priorities
15 as defined with the approval of the Governor in regulations
16 promulgated by the secretary[.], and Provided further, That a
17 tax credit of up to eighty per cent of the total amount invested
18 in comprehensive service projects with five-year commitments and
19 up to ninety per cent for investments in comprehensive service
20 projects with six-year or longer commitments during the taxable
21 year by a business firm shall also be allowed. Such credit shall
22 not exceed [two hundred fifty thousand dollars ($250,000)
23 annually] two million dollars ($2,000,000) annually.[, except in
24 the case of comprehensive service projects which shall be
25 allowed an additional credit equal to seventy per cent of the
26 qualifying investments made in comprehensive service projects;
27 however, such additional credit shall not exceed three hundred
28 fifty thousand dollars ($350,000) annually.] No tax credit shall
29 be granted to any bank, bank and trust company, insurance
30 company, trust company, national bank, savings association,
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1 mutual savings bank or building and loan association for
2 activities that are a part of its normal course of business. Any
3 tax credit not used in the period the investment was made may be
4 carried over for the next five succeeding calendar or fiscal
5 years until the full credit has been allowed. The total amount
6 of all tax credits allowed pursuant to this act shall not exceed
7 eighteen million dollars ($18,000,000) in any one fiscal year.
8 Section 3. This act shall take effect in 60 days.
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