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 community-based services tax credit, further
11providing for definitions and for amount of tax credits<-; and 
12providing for tax credit hiatus.

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

15Section 1. Sections 1702-I and 1706-I of the act of March 4,
161971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added 
17July 2, 2012 (P.L.751, No.85), are amended to read:

18Section 1702-I. Definitions.

19The following words and phrases when used in this article
20shall have the meanings given to them in this section unless the
21context clearly indicates otherwise:

1"Business firm." An entity, including a pass-through entity, 
2authorized to do business in this Commonwealth and subject to 
3taxes imposed under Article III, IV, VI, VII, VIII, IX or XV.

4"Contribution." A donation of cash, personal property or 
5services, the value of which is the net cost of the donation to 
6the donor or the pro rata hourly wage, including benefits, of 
7the individual performing the service.

8"Department." The Department of Community and Economic 
9Development of the Commonwealth.

10"Individual." An individual who is eligible for community-
11based services funded through the Office of Developmental 
12Programs and the Office of Mental Health and Substance Abuse 
13Services of the Department of Public Welfare.

14"Provider." A nonprofit entity that meets all of the 
15following:

16(1) Provides community-based services to individuals
17with intellectual disabilities or mental illness.

18(2) Is exempt from Federal taxation under section 501(c)
19(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 
2026 U.S.C. § 1 et seq.).

21Section 1706-I. Amount of tax credits.

22(a) General rule.--The total aggregate amount of all tax
23credits approved shall not exceed $3,000,000 in a fiscal year.

24(b) Activities.--No tax credit shall be approved for
25activities that are part of a business firm's normal course of
26business.

27(c) Tax liability.--A tax credit granted for any one taxable
28year may not exceed the tax liability of a business firm.

29(d) Use.--A tax credit not used in the taxable year the
30contribution was made may not be carried forward or carried back

1and is not refundable or transferable.

2(e) Pass-through entity.--

3(1) If a pass-through entity has any unused tax credit
4under section 1705-I, it may elect in writing, according to
5procedures established by the Department of Revenue, to
6transfer all or a portion of the credit to a shareholder,
7member or partner in proportion to the share of the entity's
8distributive income to which the shareholder, member or
9partner is entitled.

10(2) A pass-through entity and a shareholder, member or
11partner of a pass-through entity may not claim the credit
12under paragraph (1) for the same contribution.

13(3) A shareholder, member or partner of a pass-through
14entity to whom a credit is transferred under paragraph (1)
15shall immediately claim the credit in the taxable year in
16which the transfer is made. The shareholder, member or
17partner may not carry forward, carry back, obtain a refund of
18or sell or assign the credit.

<-19Section 2. The act is amended by adding an article to read:

20ARTICLE XXIX-G

21TAX CREDIT HIATUS

22Section 2901-G. Hiatus.

23Notwithstanding any other provision of law, for fiscal year
242014-2015 and 2015-2016, a taxpayer is not entitled to a tax
25credit under any of the following provisions:

26(1) Section 902.1.

27(2) Article XVII-B.

28(3) Article XVII-E.

29(4) Article XVII-H.

30(5) Article XVII-I.

1(6) Article XVIII-B.

2(7) Article XVIII-E.

3(8) Article XVIII-F.

4(9) Article XIX-A.

5(10) Article XIX-C.

6(11) 12 Pa.C.S. § 3706 (relating to keystone innovation 
7zone tax credits).

8(12) Section 517, 518 or 519 of the act of October 6, 
91998 (P.L.705, No.92), known as the Keystone Opportunity 
10Zone, Keystone Opportunity Expansion Zone and Keystone 
11Opportunity Improvement Zone Act.

12(13) The act of October 25, 2012 (P.L.1664, No.206), 
13known as the Promoting Employment Across Pennsylvania Act.

14Section <-2 3. This act shall take effect immediately.