1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in neighborhood assistance tax credit, further
11providing for definitions, for tax credit and for grant of
12tax credit; and making editorial changes.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. The definition of "neighborhood organization" in
16section 1902-A of the act of March 4, 1971 (P.L.6, No.2),
17known as the Tax Reform Code of 1971, amended May 7, 1997 
18(P.L.85, No.7), is amended to read:

19Section 1902-A. Definitions.--The following words, terms and
20phrases, when used in this article, shall have the meanings

1ascribed to them in this section, except where the context
2clearly indicates a different meaning:

3* * *

4"Neighborhood organization." Any organization performing
5community services, offering neighborhood assistance or
6providing job training, veterans' housing assistance, education
7or crime prevention in an impoverished area, holding a ruling
8from the Internal Revenue Service of the United States
9Department of the Treasury that the organization is exempt from
10income taxation under the provisions of the Internal Revenue
11Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) and
12approved by the Department of Community [Affairs] and Economic 
13Development.

14* * *

15Section 2. Section 1904-A of the act, amended or added July
1625, 2007 (P.L.373, No.55) and July 2, 2012 (P.L.751, No.85), is
17amended to read

18Section 1904-A. Tax Credit.--(a) Any business firm which
19engages or contributes to a neighborhood organization which
20engages in the activities of providing neighborhood assistance,
21comprehensive service projects, veterans' housing assistance,
22job training or education for individuals, community services or
23crime prevention in an impoverished area or private company
24which makes qualified investment to rehabilitate, expand or
25improve buildings or land located within portions of
26impoverished areas which have been designated as enterprise
27zones shall receive a tax credit as provided in section 1905-A
28if the secretary annually approves the proposal of such business
29firm or private company. The proposal shall set forth the
30program to be conducted, the impoverished area selected, the

1estimated amount to be invested in the program and the plans for
2implementing the program.

3(b)  The secretary is hereby authorized to promulgate rules
4and regulations for the approval or disapproval of such
5proposals by business firms or private companies. The secretary
6shall provide a report listing of all applications received and
7their disposition in each fiscal year to the General Assembly by
8October 1 of the following fiscal year. The secretary's report
9shall include all taxpayers utilizing the credit and the amount
10of credits approved, sold or assigned. Notwithstanding any law
11providing for the confidentiality of tax records, the
12information in the report shall be public information, and all
13report information shall be posted on the secretary's Internet
14website.

15(b.1)  The secretary shall take into special consideration,
16when approving applications for neighborhood assistance tax
17credits, applications which involve:

18(1)  multiple projects in various markets throughout this
19Commonwealth; and

20(2)  charitable food programs.

21(b.2)  The secretary, in cooperation with the Department of
22Agriculture, shall promulgate guidelines for the approval or
23disapproval of applications for tax credits by business firms
24that contribute food or money to charitable food programs.

25(b.3) The secretary, in cooperation with the Department of
26Military and Veterans Affairs, shall promulgate guidelines for
27the approval or disapproval for tax credits by business firms
28that contribute to veterans' housing assistance.

29(c) The total amount of tax credit granted for programs
30approved under this act shall not exceed [eighteen million

1dollars ($18,000,000)] twenty-one million dollars ($21,000,000)
2of tax credit in any fiscal year.

3(d)  A taxpayer, upon application to and approval by the
4Department of Community and Economic Development, may sell or
5assign, in whole or in part, a neighborhood assistance tax
6credit granted to the business firm under this article if no
7claim for allowance of the credit is filed within one year from
8the date the credit is granted by the Department of Revenue
9under section 1905-A. The Department of Community and Economic
10Development and the Department of Revenue shall jointly
11promulgate guidelines for the approval of applications under
12this subsection.

13(e)  The purchaser or assignee of a neighborhood assistance
14tax credit under subsection (d) shall immediately claim the
15credit in the taxable year in which the purchase or assignment
16is made. The purchaser or assignee may not carry over, carry
17back, obtain a refund of or sell or assign the neighborhood
18assistance tax credit. The purchaser or assignee shall notify
19the Department of Revenue of the seller or assignor of the
20neighborhood assistance tax credit in compliance with procedures
21specified by the Department of Revenue.

22(f)  The neighborhood assistance tax credit approved by the
23Department of Community and Economic Development shall be
24applied against the business firm's tax liability for the taxes
25under section 1905-A for the current taxable year as of the date
26on which the credit was approved before the neighborhood
27assistance tax credit may be carried over, sold or assigned.

28Section 3. Section 1905-A of the act, amended July 25, 2007
29(P.L.373, No.55), is amended to read:

30Section 1905-A. Grant of Tax Credit.--The Department of

1Revenue shall grant a tax credit against any tax due under
2Article III, IV, VI, VII, VIII, IX or XV of this act, or any tax
3substituted in lieu thereof in an amount which shall not exceed
4fifty-five per cent of the total amount contributed during the
5taxable year by a business firm or twenty-five per cent of
6qualified investments by a private company in programs approved
7pursuant to section 1904-A of this act: Provided, That a tax
8credit of up to seventy-five per cent of the total amount
9contributed during the taxable year by a business firm or up to
10thirty-five per cent of the amount of qualified investments by a
11private company may be allowed for investment in programs where
12activities fall within the scope of special program priorities
13as defined with the approval of the Governor in regulations
14promulgated by the secretary, and Provided further, That a tax
15credit of up to seventy-five per cent of the total amount
16contributed during the taxable year by a business firm in
17comprehensive service projects with five-year commitments and up
18to eighty per cent of the total amount contributed during the
19taxable year by a business firm in comprehensive service
20projects with six-year or longer commitments shall be
21granted[.], and Provided further, That a tax credit of up to 
22ninety per cent of the total amount contributed during the 
23taxable year by a business firm in veterans' housing assistance 
24approved under section 1904-A(b.3) shall be granted. Such credit
25shall not exceed five hundred thousand dollars ($500,000)
26annually for contributions or investments to fewer than four
27projects or one million two hundred fifty thousand dollars
28($1,250,000) annually for contributions or investments to four
29or more projects. No tax credit shall be granted to any bank,
30bank and trust company, insurance company, trust company,

1national bank, savings association, mutual savings bank or
2building and loan association for activities that are a part of
3its normal course of business. Any tax credit not used in the
4period the contribution or investment was made may be carried
5over for the next five succeeding calendar or fiscal years until
6the full credit has been allowed. A business firm shall not be
7entitled to carry back or obtain a refund of an unused tax
8credit. The total amount of all tax credits allowed pursuant to
9this act shall not exceed eighteen million dollars [eighteen 
10million dollars ($18,000,000)] twenty-one million dollars 
11($21,000,000) in any one fiscal year. Of that amount, two
12million dollars ($2,000,000) shall be allocated exclusively for
13pass-through entities and three million dollars ($3,000,000) 
14shall be allocated exclusively to business firms that contribute 
15to veterans' housing assistance approved under section 1904-
16A(b.3). However, if the total amounts allocated to either the
17group of applicants, exclusive of pass-through entities, or the
18group of pass-through entity applicants is not approved in any
19fiscal year, the unused portion shall become available for use
20by the other group of qualifying taxpayers.

21Section 4. This act shall take effect in 60 days.