<-1Amending the act of July 2, 2006 (P.L.292, No.65), entitled "An
2act relating to organ and bone marrow donation; providing for
3a special leave of absence for organ and bone marrow donors;
4and providing for a tax credit and for additional duties of
5the Department of Revenue," further providing for
6applicability of act.

<-7Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An 
8act relating to tax reform and State taxation by codifying 
9and enumerating certain subjects of taxation and imposing 
10taxes thereon; providing procedures for the payment, 
11collection, administration and enforcement thereof; providing 
12for tax credits in certain cases; conferring powers and 
13imposing duties upon the Department of Revenue, certain 
14employers, fiduciaries, individuals, persons, corporations 
15and other entities; prescribing crimes, offenses and 
16penalties," codifying the act of July 2, 2006 (P.L.292, 
17No.65), known as the Organ and Bone Marrow Donor Act; further 
18providing for applicability; and making a related repeal.

19The General Assembly finds as follows:

20(1) Each year an estimated 137,000 Americans contract
21leukemia, lymphoma anemia or other fatal blood diseases.

22(2) If a matched bone marrow donor can be found, many of
23these victims can be cured.

1(3) There is now a National Marrow Donor Program, and
2the United States is working with 30 other countries to
3establish a worldwide registry.

4(4) Marrow donation does not involve considerable risk
5to the donor.

6(5) There are approximately 110,500 patients in the
7United States and approximately 8,000 patients in this
8Commonwealth awaiting lifesaving organ transplants.

9(6) Many patients awaiting organ transplants could
10benefit from living organ donation, including approximately
1193,000 kidney patients, 16,900 liver patients and 2,000 lung
12patients.

13(7) Of the more than 1,700 organ transplants performed
14in this Commonwealth in 2010, approximately 300 were from
15living donors.

16(8) There continues to be a great need for bone marrow
17and organ donors among the African-American, Asian, Native
18American and Hispanic communities.

19(9) Potential living bone marrow and organ donors should
20be able to perform their lifesaving service without risk of
21loss of income or employment.

22The General Assembly of the Commonwealth of Pennsylvania
23hereby enacts as follows:

<-24Section 1. Section 6 of act of July 2, 2006 (P.L.292,
25No.65), known as the Organ and Bone Marrow Donor Act, is amended
26to read:

27Section 6. Applicability.

28This act shall apply to tax years commencing on or after
29January 1, 2006[, through any taxable year commencing within
302010, and carryover credits provided for in section 3(c) may be

1used after 2010].

2Section 2. The amendment of section 6 of the act shall apply
3retroactively to December 31, 2010.

<-4Section 1. The act of March 4, 1971 (P.L.6, No.2), known as 
5the Tax Reform Code of 1971, is amended by adding an article to 
6read:

7ARTICLE XVIII

8ORGAN AND BONE MARROW DONATION CREDIT

9Section 1801. Scope.

10This article relates to tax credits for organ and bone marrow
11donation.

12Section 1802. Definitions.

13The following words and phrases when used in this article
14shall have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Business firm." An entity authorized to do business in this
17Commonwealth and subject to the taxes imposed by Article III,
18IV, VI, VII, VIII, IX or XV. This term also includes a natural
19person as such or as a member of a partnership or a shareholder
20in a Pennsylvania S corporation and estates and trusts receiving
21income as set forth in section 1803.

22"Department." The Department of Revenue of the Commonwealth.

23"Leave of absence period." The period, not exceeding five
24working days or the hourly equivalent of five working days per
25employee, during which a business firm provides a paid leave of
26absence to the employee for the purpose of organ or bone marrow
27donation. The term does not include a period during which an
28employee utilizes any annual leave or sick days that the
29employee has been given by the employer.

30"Pass-through entity." A partnership or Pennsylvania S

1corporation as defined in section 301(n.0) and (s.2),
2respectively.

3Section 1803. Organ and bone marrow donor tax credit.

4(a) Qualification.--

5(1) Except as set forth in paragraph (2), every business
6firm which provides one or more paid leaves of absence to
7employees for the specific purpose of organ or bone marrow
8donation shall qualify for the organ or bone marrow donor tax
9credit. A business firm which qualifies for the credit may
10apply that credit against any tax due under Article III, IV,
11VI, VII, VIII, IX or XV.

12(2) Notwithstanding paragraph (1), the credit shall not
13be applied against any tax withheld by an employer from an
14employee under Article III.

15(b) Calculation of credit.--

16(1) The tax credit amount shall be equal to the amount
17of employee compensation paid during the leave of absence
18period, the cost of temporary replacement help, if any,
19during the leave of absence period and any miscellaneous
20expenses authorized by regulation that are incurred in
21connection with the leave of absence period. Credits
22calculated for a business firm subject to tax in another
23state shall be apportioned to this Commonwealth in the manner
24specified by regulation.

25(2) If the employee on paid leave of absence is employed
26by a business firm organized as a pass-through entity, the
27credit shall be calculated in proportion to the member's or
28shareholder's portion of the pass-through entity's income. In
29the case of a trust or estate with income credited to or
30distributed to a beneficiary, the credit shall be measured in

1proportion to the beneficiary's share of income.

2(c) Unused credit.--Credits not used for the taxable year
3during which a leave of absence was granted may be carried over
4for three taxable years. Credits shall not be carried back
5against preceding taxable years and shall not be refundable.

6Section 1804. Duties of department.

7(a) Duties enumerated.--The department shall:

8(1) In the manner provided by law, promulgate the
9regulations necessary to implement section 1803.

10(2) Create and publish forms upon which taxpayers may
11apply for the tax credit authorized by this article.

12(3) Within five months after the close of any calendar
13year during which tax credits granted pursuant to this
14article were used, furnish to the members of the General
15Assembly an annual report providing, as to each business firm
16which used tax credits during the preceding calendar year
17pursuant to this article, the employer's name, address,
18standard industrial classification code and the amount of tax
19credits granted.

20(b) Certain provisions not to apply.--The provisions of
21sections 353(f) and 408(b), relating to confidentiality of
22information, and any other provisions of law preventing the
23disclosure of information required under subsection (a)(3),
24shall not apply when the information is divulged for the
25purposes of subsection (a)(3).

26Section 1805. Procedures.

27(a) Deadline for filing applications.--Applications for tax
28credits shall be filed not later than the 15th day of the fourth
29month following the close of the business firm's taxable year.

30(b) Notification of tax credit authorization and incomplete

1applications.--

2(1) The department shall notify the business firm
3regarding the authorization of tax credits, including the
4amount of the credit available.

5(2) The department may return an incomplete application
6to the business firm or request additional information,
7documents or signatures from the business firm.

8(3) An application shall be complete and processible
9only if it is signed by an authorized representative of the
10business firm and contains the individual's or entity's name,
11identifying numbers, address and sufficient proof, which the
12department may require at its discretion, including written
13verification by a physician or similar documentation of the
14length and purpose of the donor's leave and the amount of the
15employee's compensation and costs associated with temporary
16replacement help and proof that temporary replacement help is
17needed because of the donor's leave.

18(c) Appeals.--Appeals from determinations made pursuant to
19this article shall be made through the administrative provisions
20of this act, applicable to the particular taxes against which
21the business firm or its members, shareholders or beneficiaries
22claim such credits.

23Section 1806. Applicability.

24(a) Prior law.--This article shall not affect taxable years
25governed by section 6 of the former act of July 2, 2006 
26(P.L.292, No.65), known as the Organ and Bone Marrow Donor Act.

27(b) Current law.--This article shall apply to taxable years
28beginning after December 31, 2010.

29Section 2. Repeals are as follows:

30(1) The General Assembly declares that the repeal under

1paragraph (2) is necessary to effectuate the addition of
2Article XVIII of the act.

3(2) The act of July 2, 2006 (P.L.292, No.65), known as
4the Organ and Bone Marrow Donor Act, is repealed.

5Section 3. This act shall take effect <-in 60 days 
<-6immediately.