1Providing for Pennsylvania Workforce Investment Strategy
2Program, for Cooperative Workforce Investment Partnerships,
3for employee training programs and for Pennsylvania Workforce
4Investment Strategy Tax Credit; imposing duties on the
5Department of Community and Economic Development and the
6Department of Revenue; providing for carryover, carryback,
7refund and assignment, for pass-through entity, for
8administration, for limitation and for interim and annual
9reports.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Short title.

13This act shall be known and may be cited as the Pennsylvania
14Workforce Investment Strategy Act.

15Section 2. Definitions.

16The following words and phrases when used in this act shall
17have the meanings given to them in this section unless the
18context clearly indicates otherwise:

19"Department." The Department of Labor and Industry of the

1Commonwealth.

2"Designated representative." A designated representative of
3a business which participates in the program.

4"Local workforce investment board." As defined in section
5103 of the act of December 18, 2001 (P.L.949, No.114), known as
6the Workforce Development Act.

7"Program." The Pennsylvania Workforce Investment Strategy
8Program established in section 3(a).

9"Qualified tax liability." Tax liability imposed on a
10taxpayer under Article III, IV, VI, VII, VIII, IX, XI or XV of
11the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
12Code of 1971, excluding a tax withheld by an employer under
13Article III of the Tax Reform Code of 1971.

14"Qualifying workforce expenditure." Money spent by a
15participating business for purposes directly attributable to the
16implementation and utilization of an employee training program
17established under this act. <-The term shall include money paid to 
18a local workforce investment board by a participating business 
19for administrative costs associated with the implementation of 
20and compliance with this act.

21"Taxpayer." A natural person, corporation, business trust,
22limited liability company, partnership, limited liability
23partnership, association or other form of legal business entity
24that:

25(1) is subject to a tax imposed under Article III, IV,
26VI, VII, VIII, IX, XI or XV of the act of March 4, 1971
27(P.L.6, No.2), known as the Tax Reform Code of 1971,
28excluding a tax withheld by an employer under Article III of
29the Tax Reform Code of 1971; and

30(2) is participating in the program.

1Section 3. Pennsylvania Workforce Investment Strategy Program.

2(a) Establishment.--There is hereby established within the
3department a program to be known as the Pennsylvania Workforce
4Investment Strategy Program.

5(b) Legislative intent.--It is the purpose of the program to
6incentivize businesses to organize and collaborate with each
7other to address common personnel needs and training shortfalls.
8Participating businesses shall, with the assistance and
9oversight of the department and the local workforce investment
10board, develop employee training programs and implement them
11utilizing preexisting infrastructure that is readily available.
12The businesses shall be eligible for a tax credit to subsidize a
13portion of their incurred expenses for participation in the
14program.

15(c) Administration.--The program shall be administered by
16the department and shall require local workforce investment
17boards to do the following:

18(1) Identify and actively solicit eligible local
19businesses organized under section 4 for participation in the
20program.

21(2) Work collaboratively with program participants to
22develop and administer training programs in conformity with
23section 5.

24(3) Assist program participants in applying for and
25securing tax credits available under this act.

26(4) Collect quantitative and qualitative data on
27critical program metrics and make a report to the department
28in accordance with section 11.

29Section 4. Cooperative Workforce Investment Partnerships.

30(a) Solicitation.--The local workforce investment board

1shall, in a manner prescribed by the department, biannually
2notify businesses in its jurisdiction of the businesses' ability
3to confederate for the purpose of participation in the program.

4(b) Name.--For the purposes of program participation,
5businesses that elect to confederate under this section shall
6form an entity known as a Cooperative Workforce Investment
7Partnership.

8(c) Unlimited participation.--There shall be no limit to the
9number of Cooperative Workforce Investment Partnerships formed
10in the jurisdiction of a local workforce investment board. There
11shall be no limit to the number of participating businesses
12within a single Cooperative Workforce Investment Partnership.

13(d) Standards for business participation.--Businesses
14forming or participating in a Cooperative Workforce Investment
15Partnership need not be linked by common industry practices,
16products, services, technologies or supply chains but must, in
17the judgment of the local workforce investment board, endure
18similar chronic or immediate personnel needs and training
19shortfalls for similar classes and types of employees who:

20(1) perform substantively similar essential job
21functions;

22(2) possess or require similar knowledge bases and
23critical skills; or

24(3) undergo similar physical demands.

25(e) Application requirements.--A business that elects to
26form a Cooperative Workforce Investment Partnership shall submit
27an application to the local workforce investment board on a form
28and in a manner promulgated by the department. An application
29must include, at minimum, the following:

30(1) date of application;

1(2) name and location of each participating business;

2(3) a declaration of interest signed by a designated
3representative of each participating business;

4(4) the relevant contact information of each designated
5representative;

6(5) the total number of full-time and part-time
7employees of each participating business and the expected
8number of employee program participants;

9(6) if applicable, the name of a labor organization that
10represents the employees of each participating business;

11(7) the chronic or immediate personnel needs and
12training shortfalls commonly endured by a participating
13business;

14(8) a basic description of proposed training curriculum
15designed to relieve or eliminate the needs and shortfalls
16described under paragraph (7);

17(9) a projection of resources needed to effectively
18implement training programs developed under section 5; and

19(10) a mutually agreeable date of commencement for the
20proposed training program.

21(f) Approval process.--The department shall approve an
22application for the formation of a Cooperative Workforce
23Investment Partnership if each business satisfies the basic
24standards for program participation in subsection (d) and
25satisfactorily demonstrates its ability and intention to work
26with the local workforce investment board to develop and
27implement a comprehensive employee training program. The
28department may remove a single business participant from the
29Cooperative Workforce Investment Partnership if the business
30does not meet the basic standards for program participation in

1subsection (d) or fails to satisfactorily demonstrate its
2ability and intention to work with the local workforce
3investment board to develop and implement a comprehensive
4employee training program.

5(g) Disbandment or removal.--The local workforce investment
6board may, with approval from the department, disband a
7Cooperative Workforce Investment Partnership or remove a single
8participating business for failure to comply with program
9requirements.

10(h) Replacement.--Consistent with the application and
11approval requirements of this section, a new Cooperative
12Workforce Investment Partnership may be instituted to replace a
13partnership that has been disbanded under subsection (g).

14(i) Business participant penalty period.--A participating
15business that has been removed from the Cooperative Workforce
16Investment Partnership may reapply in a manner consistent with
17the application and approval requirements of this section after
18serving a six-month penalty period.

19(j) Authority of department.--The department may institute
20and establish additional guidelines and procedures as are
21necessary to implement the requirements of this section.

22Section 5. Employee training programs.

23(a) Preliminary meeting.---Upon the formation of a
24Cooperative Workforce Investment Partnership, the local
25workforce investment board shall meet with a designated
26representative of each participating business to define and
27establish:

28(1) the broad needs and critical challenges facing the
29business participants, including global, national, regional,
30State and local industry trends;

1(2) infrastructure, technology and skill needs of the
2participating businesses and their employees;

3(3) immediately available resources and services;

4(4) information and resources needed to address gaps in
5the business's understanding of the business's industry;

6(5) current barriers to economic success, regional
7competitiveness, innovation, long-term financial health and
8industrial viability;

9(6) short-term and long-term personnel needs and current
10skill gaps amongst incumbent workers;

11(7) inefficiencies and inadequacies of current employee
12training programs, if applicable; and

13(8) other logistical or infrastructural barriers to
14meeting business goals and objectives.

15(b) Action plan.--In consultation and with final approval
16from the local workforce investment board, designated
17representatives of each participating business shall establish
18an action plan for the implementation of an employee training
19program. At minimum, the action plan shall include:

20(1) the name of each employee participating in the
21employee training program;

22(2) employee training program instructors and minimum
23certification;

24(3) the curriculum of the employee training program;

25(4) the venue of the employee training program;

26(5) frequency and duration of the employee training
27program; and

28(6) any and all resources needed to adequately implement
29the employee training program.

30(c) Implementation.--No employee training program may

1commence before an action plan has been submitted to and
2approved by the local workforce investment board. Upon approval
3of the action plan by the local workforce investment board, the
4Cooperative Workforce Investment Partnership may implement its
5employee training program.

6(d) Utilization of preexisting infrastructure.--An employee
7training program proposed under subsection (b) and approved
8under subsection (c) must emphasize the utilization of
9preexisting infrastructure for the purpose of training program
10implementation.

11(e) Skill-specific focus.--Curricula proposed under
12subsection (b) and approved under subsection (c) must be focused
13on providing employees with skill-specific occupational
14training.

15Section 6. Pennsylvania Workforce Investment Strategy Tax
16Credit.

17(a) Tax credit certificate.--The following apply:

18(1) A taxpayer shall complete and submit to the
19Department of Community and Economic Development a
20Pennsylvania Workforce Investment Strategy Tax Credit
21application on the form required by the Department of
22Community and Economic Development. The application must
23include the following:

24(i) name and address of the taxpayer;

25(ii) proof of participation in the program;

26(iii) documentation supporting the qualifying
27workforce expenditures; and

28(iv) any other information as requested by the
29Department of Community and Economic Development.

30(2) The Department of Community and Economic

1Development, in conjunction with the department and the
2Department of Revenue, shall review the applications on a
3first-come, first-served basis.

4(3) If the Department of Community and Economic
5Development approves the taxpayer's application, the
6Department of Community and Economic Development shall issue
7a tax credit certificate equal to <-60% 90% of the total
8qualifying workforce expenditures.

9(4) In granting tax credit certificates under this act,
10the Department of Community and Economic Development:

11(i) may not grant more than $3 million in tax credit
12certificates in fiscal year 2014-2015;

13(ii) may not grant more than $7 million in tax
14credit certificates in fiscal year 2015-2016;

15(iii) may not grant more than $10 million in tax
16credit certificates in fiscal year 2016-2017; and

17(iv) may not grant more than $75,000 in tax credit
18certificates to a single taxpayer in any fiscal year.

19(b) Claiming tax credit.--Upon presenting a tax credit
20certificate to the Department of Revenue, the taxpayer may claim
21a tax credit against the qualified tax liability.

22Section 7. Carryover, carryback, refund and assignment.

23(a) General rule.--If a qualified taxpayer cannot use the
24entire amount of the tax credit for the taxable year in which
25the tax credit is first approved, the excess may be carried over
26to succeeding taxable years and used as a credit against the
27qualified tax liability of the qualified taxpayer for those
28taxable years. When the tax credit is carried over to a
29succeeding taxable year, it shall be reduced by the amount that
30was used as a credit during the immediately preceding taxable

1year. The tax credit provided by this act may be carried over
2and applied to succeeding taxable years for not more than seven
3taxable years following the first taxable year for which the
4qualified taxpayer was entitled to claim the credit.

5(b) Application.--A tax credit certificate received by the
6department in a taxable year first shall be applied against the
7qualified taxpayer's qualified tax liability for the current
8taxable year as of the date on which the credit was issued
9before the tax credit can be applied against any qualified tax
10liability under subsection (a).

11(c) No carryback or refund.--A qualified taxpayer may not
12carry back or obtain a refund of all or any portion of an unused
13tax credit granted to the qualified taxpayer under this act.

14(d) Sale or assignment.--The following shall apply:

15(1) A qualified taxpayer, upon application to and
16approval by the Department of Community and Economic
17Development, may sell or assign, in whole or in part, a tax
18credit granted to the qualified taxpayer under this act.

19(2) Before an application is approved, the department
20must find that the applicant filed the required State tax
21reports and returns for all applicable taxable years and paid
22any balance of State tax due as determined at settlement,
23assessment or determination by the department.

24(e) Purchasers and assignees.--The purchaser or assignee of
25all or a portion of a tax credit obtained under section 6 shall
26immediately claim the credit in the taxable year in which the
27purchase or assignment is made. The purchaser or assignee may
28not carry forward, carry back or obtain a refund of or sell or
29assign the tax credit. The purchaser or assignee shall notify
30the department of the seller or assignor of the tax credit in

1compliance with procedures specified by the department.

2Section 8. Pass-through entity.

3(a) General rule.--If a pass-through entity has any unused
4tax credit under section 6, it may elect in writing, according
5to procedures established by the department, to transfer all or
6a portion of the credit to shareholders, members or partners in
7proportion to the share of the entity's distributive income to
8which the shareholder, member or partner is entitled.

9(b) Limitation.--A pass-through entity and a shareholder,
10member or partner of a pass-through entity may not claim the
11credit under subsection (a) for the same qualified expenditure.

12(c) Application.--A shareholder, member or partner of a
13pass-through entity to whom a credit is transferred under
14subsection (a) shall immediately claim the credit in the taxable
15year in which the transfer is made. The shareholder, member or
16partner may not carry forward, carry back, obtain a refund of or
17sell or assign the credit.

18Section 9. Administration.

19The Department of Community and Economic Development, the
20Department of Revenue and the department shall jointly develop
21written guidelines for the implementation of the tax credit
22provisions of this act.

23Section 10. Limitation.

24A taxpayer may not apply for or utilize tax credits after
25June 30, 2018.

26Section 11. Interim and annual reports.

27(a) Interim reports.--A local workforce investment board
28that has participated in the program shall, in a manner
29promulgated by the department, submit a biannual report to the
30department in accordance with subsection (c).

1(b) Annual report.--On an annual basis, the department shall
2compile the interim reports collected under subsection (a) and
3submit a final report in accordance with subsection (c) to:

4(1) the Governor;

5(2) the Auditor General;

6(3) the chairman and minority chairman of the
7Appropriations Committee of the Senate;

8(4) the chairman and minority chairman of the Labor and
9Industry Committee of the Senate;

10(5) the chairman and minority chairman of the
11Appropriations Committee of the House of Representatives; and

12(6) the chairman and minority chairman of the Labor and
13Industry Committee of the House of Representatives.

14(c) Report contents.--In addition to information or analysis
15deemed necessary by the department, the interim and final
16reports must include, at minimum, the number of Cooperative
17Workforce Investment Partnerships formed, employee training
18programs implemented, program participation, notable progress
19and outcomes for program participants and financial costs
20endured.

21Section 12. Effective date.

22This act shall take effect immediately.