THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY McCALL, ADOLPH, BAKER, BARRAR, BELFANTI, BISHOP, BOYLE, BRENNAN, BRIGGS, BROOKS, BROWN, BUXTON, CALTAGIRONE, CARROLL, CASORIO, CAUSER, CLYMER, D. COSTA, CREIGHTON, CUTLER, DALEY, DAY, DEASY, DeLUCA, DENLINGER, ELLIS, EVERETT, FAIRCHILD, FARRY, FLECK, FRANKEL, GABLER, GEIST, GEORGE, GIBBONS, GINGRICH, GODSHALL, GOODMAN, GRELL, HARHAI, HARHART, HARKINS, HARPER, HARRIS, HELM, HORNAMAN, HOUGHTON, JOHNSON, KAUFFMAN, W. KELLER, KIRKLAND, KNOWLES, KOTIK, KULA, LENTZ, LEVDANSKY, LONGIETTI, MAJOR, MANN, MARKOSEK, MARSHALL, MARSICO, MATZIE, McGEEHAN, MICOZZIE, MILLER, MILNE, MURPHY, MURT, MUSTIO, OBERLANDER, M. O'BRIEN, O'NEILL, PASHINSKI, PAYTON, PHILLIPS, PICKETT, PRESTON, PYLE, QUIGLEY, RAPP, READSHAW, REESE, REICHLEY, ROHRER, ROSS, SABATINA, SAINATO, SANTARSIERO, SANTONI, SAYLOR, SCAVELLO, SEIP, SIPTROTH, M. SMITH, SOLOBAY, SONNEY, STABACK, STEVENSON, SWANGER, TALLMAN, J. TAYLOR, R. TAYLOR, THOMAS, TRUE, WAGNER, WATSON, WHEATLEY AND YOUNGBLOOD, MAY 11, 2010

REFERRED TO COMMITTEE ON FINANCE, MAY 11, 2010  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act elating to tax reform and State taxation by codifying and

enumerating certain subjects of taxation and imposing taxes

thereon; providing procedures for the payment, collection,

administration and enforcement thereof; providing for tax

credits in certain cases; conferring powers and imposing

duties upon the Department of Revenue, certain employers,

fiduciaries, individuals, persons, corporations and other

entities; prescribing crimes, offenses and penalties,"

further providing for reduction of tax credits.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2902-E of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, added

October 9, 2009 (P.L.451, No.48), is amended to read:

Section 2902-E.  Reduction.

(a)  Article XVII-D.--For the tax credit established under

Article XVII-D, the amount available to be awarded pursuant to

section 1707-D(a) shall be reduced from $75,000,000 per fiscal

year to $42,000,000 in fiscal year 2009-2010 and to $60,000,000

in fiscal year 2010-2011.

(b)  Article XVII-F.--For the tax credit established under

Article XVII-F, the amount available to be awarded pursuant to

section 1706-F(a) shall be reduced from $75,000,000 per fiscal

year to $60,000,000 in fiscal year 2009-2010 [and to $50,000,000

in fiscal year 2010-2011]. The amount available to be awarded

under section 1706-F(a)(1) in fiscal year 2009-2010 and (2)

shall be as follows:

(1)  The total aggregate amount of all tax credits

approved shall not exceed $53,600,000 in fiscal year

2009-2010. No less than $37,967,000 of the total aggregate

amount shall be used to provide tax credits from

contributions from business firms to scholarship

organizations. No less than $15,633,000 of the total

aggregate amount shall be used to provide tax credits for

contributions from business firms to educational improvement

organizations.

(2)  The total aggregate amount of all tax credits

approved for contributions from business firms to pre-

kindergarten scholarship programs shall not exceed $6,400,000

in fiscal year 2009-2010.

[(3)  The total aggregate amount of all tax credits

approved shall not exceed $44,670,000 in fiscal year

2010-2011. No less than $33,502,000 of the total aggregate

amount shall be used to provide tax credits for contributions

from business firms to scholarship organizations. No less

than $11,168,000 of the total aggregate amount shall be used

to provide tax credits for contributions from business firms

to educational improvement organizations.

(4)  The total aggregate amount of all tax credits

approved for contributions from business firms to pre-

kindergarten scholarship programs shall not exceed $5,330,000

in fiscal year 2010-2011.]

Notwithstanding section 1704-F(c), in fiscal year 2009-2010, if

valid applications for tax credits received by the Department of

Community and Economic Development before October 1, 2009,

exceed the limitation under this section, tax credits shall be

made available on a pro-rata basis to all valid applications

received before October 1, 2009.

(c)  Article XVII-B.--For the tax credit established under

Article XVII-B, the amounts available to be awarded pursuant to

section 1709-B(a) shall be equal to 50% of the maximum amounts

otherwise available for award in fiscal year 2009-2010 and 45%

of the maximum amounts otherwise available for award in fiscal

year 2010-2011.

(d)  Certain other credits.--For the tax credits established

under section 206(b) and Articles XVII-A, XVII-E, XVIII-B and

XIX-A and under Chapter 5 Subchapter B and Chapter 9 of the act

of December 1, 2004 (P.L.1750, No.226), known as the First Class

Cities Economic Development District Act, the amounts available

for award to each eligible taxpayer shall be determined such

that the total amount available for award shall be 50% of the

amounts otherwise available for award in total pursuant to the

applicable sections or articles in fiscal year 2009-2010, and

45% of the amounts otherwise available for award in total

pursuant to all applicable sections or articles in fiscal year

2010-2011.

(e)  Hiatus.--Notwithstanding any other provision of law, a

taxpayer is not entitled to a tax credit under Chapter 7 of the

act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known as the

Alternative Energy Investment Act.

Section 2.  This act shall take effect immediately.