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," providing for nonprofit animal shelter tax
11credit.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15the Tax Reform Code of 1971, is amended by adding an article to
16read:

17ARTICLE XVII-J

18NONPROFIT ANIMAL SHELTER TAX CREDIT

19Section 1701-J. Scope of article.

20This article relates to nonprofit animal shelter tax credits.

21Section 1702-J. Definitions.

1The following words and phrases, when used in this article,
2shall have the meanings given to them in this section unless the
3context clearly indicates otherwise:

4"Business firm." An entity authorized to do business in this
5Commonwealth and subject to taxes imposed under Article III, IV,
6VI, VII, VIII, IX or XV. The term includes a pass-through
7entity.

8"Contribution." A donation of cash, personal property or
9services, the value of which is the net cost of the donation to
10the donor or the pro rata hourly wage, including benefits, of
11the individual performing the services.

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

13"Nonprofit animal shelter." An establishment that is
14operated by a municipality or entity exempt from Federal
15taxation under section 501(c)(3) of the Internal Revenue Code of
161986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), provides
17temporary homes to animals that are offered for adoption and
18operates in this Commonwealth.

19"Pass-through entity." A partnership as defined in section
20301(n.0) or a Pennsylvania S corporation as defined in section
21301(n.1).

22"Qualified tax liability." The liability for taxes imposed
23under Article III, IV, VI, VII or IX. The term shall not include
24any tax withheld by an employer from an employee under Article
25III.

26"Tax credit." The nonprofit animal shelter tax credit
27provided under this article.

28Section 1703-J. Nonprofit animal shelter tax credits.

29A business firm may claim a tax credit against the qualified
30tax liability of the business firm for contributions to a

1nonprofit animal shelter.

2Section 1704-J. Credit for nonprofit animal shelter
3contributions.

4(a) Application.--A business firm may apply to the
5department for a tax credit under this article. The application
6shall be on the form required by the department.

7(b) Review and approval.--Each application received must be
8reviewed and evaluated by the department.

9(c) Information.--In order to qualify for a tax credit, a
10business firm must submit information to the department that
11enables the department to confirm that the contribution is to a
12nonprofit animal shelter.

13Section 1705-J. Carryover, carryback and assignment of credit.

14(a) General rule.--If a business firm cannot use the entire
15amount of the tax credit for the taxable year in which the tax
16credit is first approved, the excess may be carried over to
17succeeding taxable years and used as a credit against the
18qualified tax liability of the business firm for those taxable
19years. Each time the tax credit is carried over to a succeeding
20taxable year, the tax credit shall be reduced by the amount that
21was used as a credit during the immediately preceding taxable
22year. A tax credit may be carried over and applied to succeeding
23taxable years for no more than three taxable years following the
24first taxable year for which the taxpayer was entitled to claim
25the credit.

26(b) Application.--A tax credit approved by the department in
27a taxable year first shall be applied against the taxpayer's
28qualified tax liability for the current taxable year as of the
29date on which the credit was approved before the tax credit can
30be applied against any tax liability under subsection (a).

1(c) Carryback or refund prohibited.--A business firm shall
2not be entitled to carry back or obtain a refund of all or any
3portion of an unused tax credit granted to the business firm.

4Section 1706-J. Limitations and availability.

5(a) Aggregate amount.--The aggregate amount of tax credits
6awarded in a fiscal year may not exceed $2,000,000.

7(b) Total.--A tax credit may not exceed $100,000 for each
8business firm.

9(c) Normal course of business.--A tax credit may not be
10approved for activities that are part of a business firm's
11normal course of business.

12(d) Availability.--A tax credit shall be made available by
13the department on a first-come, first-served basis within the
14limitations established under this article and by the
15department.

16Section 1707-J. Penalty.

17A business firm which claims a tax credit that does not equal
18the business firm's contribution to a nonprofit animal shelter
19in Pennsylvania in a taxable year shall repay to the
20Commonwealth the amount of the tax credit claimed under this
21article.

22Section 2. This act shall take effect in 60 days.