THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY O'PAKE, WASHINGTON, STOUT, KASUNIC, FONTANA, RAFFERTY, KITCHEN, TARTAGLIONE, HUGHES, FERLO, MUSTO, ERICKSON, GREENLEAF, BROWNE, COSTA, LOGAN, WOZNIAK AND STACK, JANUARY 30, 2009

REFERRED TO FINANCE, JANUARY 30, 2009  

AN ACT

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

act relating 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 tax credits.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1804-B of the act of March 4, 1971 (P.L.

6, No.2), known as the Tax Reform Code of 1971, added June 22,

2001 (P.L.353, No.23), is amended to read:

Section 1804-B.  Tax credits.

[(a)  Maximum amount.--A company may claim a tax credit of

$1,000 per new job created up to the maximum job creation tax

credit amount specified in the commitment letter.]

(a.1)  Special and standard tax credits.--

(1)  A company shall be entitled to a tax credit of

$3,000, as approved by the department, for each new job

created after the effective date of this subsection and

before June 30, 2010. New jobs eligible for the special

stimulus tax credit under this paragraph shall be deemed

created to the extent that the company's monthly average

employment during the special stimulus tax credit term

exceeds the company's average employment during the three

years preceding the start date.

(2)  (i)  On and after July 1, 2010, a company may claim

a tax credit of up to $3,000, as approved by the

department, for each job created during any year of the

approved tax credit term, based upon the quality and

overall impact of the jobs.

(ii)  Determination of new jobs created shall be as

follows:

(A)  New jobs shall be deemed created in year one

to the extent that the company's average employment

by quarter during year one exceeds the company's

average employment level during the company's base

period.

(B)  New jobs shall be deemed created in year two

to the extent that the company's average employment

by quarter during year two exceeds the company's

average employment by quarter during year one.

(C)  New jobs shall be deemed created in year

three to the extent that the company's average

employment by quarter during year three exceeds the

company's average employment by quarter during year

two.

[(b)  Determination of new jobs created.--

(1)  New jobs shall be deemed created in year one to the

extent that the company's average employment by quarter

during year one exceeds the company's average employment

level during the company's base period.

(2)  New jobs shall be deemed created in year two to the

extent that the company's average employment by quarter

during year two exceeds the company's average employment by

quarter during year one.

(3)  New jobs shall be deemed created in year three to

the extent that the company's average employment by quarter

during year three exceeds the company's average employment by

quarter during year two.]

(c)  Applicable taxes.--A company may apply the tax credit to

100% of the company's State corporate net income tax, capital

stock and franchise tax or the capital stock and franchise tax

of a shareholder of the company if the company is a Pennsylvania

S corporation, gross premiums tax, gross receipts tax, bank and

trust company shares tax, mutual thrift institution tax, title

insurance company shares tax, personal income tax or the

personal income tax of shareholders of a Pennsylvania S

corporation or any combination thereof.

(d)  Tax credit term.--A company may claim the job creation

tax credit for each new job created, as approved by the

department, for a period determined by the department but not to

exceed five years from the date the company first submits a job

creation tax credit certificate.

(e)  Availability of tax credits.--Each fiscal year,

$22,500,000 in tax credits shall be made available to the

department and may be awarded by the department in accordance

with this article. In addition, in any fiscal year, the

department may reissue or assign prior fiscal year tax credits

which have been recaptured under section 1806-B(a) or (b) and

may award prior fiscal year credits not previously issued. Prior

fiscal year credits may be reissued, assigned or awarded by the

department without limitation by section 1805-B(b).

Section 2.  This act shall take effect immediately.