PRINTER'S NO. 360
No. 325 Session of 2007
INTRODUCED BY RAFFERTY, FONTANA, TARTAGLIONE, WONDERLING, KASUNIC, O'PAKE, ORIE, COSTA, REGOLA, GREENLEAF, RHOADES AND FUMO, MARCH 12, 2007
REFERRED TO FINANCE, MARCH 12, 2007
AN ACT 1 Providing for tax credits to employers against their corporate 2 net income tax liability for hiring employees 55 years of age 3 or older for full-time employment. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Short title. 7 This act shall be known and may be cited as the Continued 8 Employment Tax Credit Act. 9 Section 2. Legislative intent. 10 The General Assembly finds and declares as follows: 11 (1) The public policy of this Commonwealth is to provide 12 all its citizens with the opportunity to work. 13 (2) One obstacle to many is acquiring sustainable 14 employment in a highly competitive job market. 15 (3) The Commonwealth wishes to acknowledge those 16 businesses that consider the interests and needs of their 17 employees. 18 (4) The policy stated in this section can be achieved by
1 providing a tax credit against the corporate net income tax 2 liability to employers who hire a full-time employee 55 years 3 of age or older. 4 Section 3. Authorization of tax credit. 5 Every taxpayer that is an employer engaged in a for-profit 6 business enterprise and that hires a full-time employee who: 7 (1) is 55 years of age or older; and 8 (2) has not been employed during the one-year period 9 prior to being hired by the taxpayer 10 shall be eligible to receive a tax credit against any tax due 11 from the employer under Article IV of the act of March 4, 1971 12 (P.L.6, No.2), known as the Tax Reform Code of 1971, and against 13 any payment of estimated tax or payment of tentative tax due 14 from the employer on account of such taxes. 15 Section 4. Limitations on tax credits. 16 Tax credits awarded under this act shall be subject to the 17 following: 18 (1) Unused tax credits may be carried forward two years 19 from the date they are awarded. If not used within this time 20 period, the tax credits shall expire. 21 (2) Tax credits shall not be refundable. 22 (3) Tax credits shall not be transferable. 23 (4) Except in cases where an eligible employee 24 voluntarily leaves the employment of the taxpayer, becomes 25 disabled or is terminated for cause, no taxpayer shall be 26 entitled to receive the tax credit if the employee is 27 employed by the taxpayer for less than one year. 28 (5) If an eligible employee leaves the employment of the 29 taxpayer voluntarily, becomes disabled or is terminated for 30 cause in less than one year, the tax credit shall be reduced 20070S0325B0360 - 2 -
1 by the proportion of the year not worked. 2 (6) Tax credits under Article IV of the act of March 4, 3 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, 4 shall be in lieu of any allowance for depreciation of 5 property claimed and allowable under section 168 of the 6 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 7 168). 8 (7) The amount of the tax credit allowed shall not 9 exceed the amount of the tax otherwise due from the employer 10 for the taxable year. 11 Section 5. Amount of tax credit. 12 For tax years beginning after January 1, 2007, a tax credit 13 against the tax imposed under Article IV of the act of March 4, 14 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, shall 15 be awarded to each taxpayer eligible under section 3. The amount 16 of tax credit shall be equal to the lesser of $10,000 or 10% of 17 the employees' qualified first year wages for such year. 18 Section 6. Effective date. 19 This act shall take effect in 60 days. L27L72SFL/20070S0325B0360 - 3 -