PRINTER'S NO. 2898
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1876
Session of
2015
INTRODUCED BY SANTORA, MILLARD, BAKER, TAYLOR, BOYLE, BLOOM,
DRISCOLL, WARD, KAUFFMAN, ROTHMAN, TRUITT, KILLION, QUIGLEY,
BARRAR, READSHAW, WATSON, MARSICO, HICKERNELL, GROVE, SAYLOR,
PETRI, A. HARRIS, MAJOR, LAWRENCE, MOUL AND GILLEN,
FEBRUARY 29, 2016
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 29, 2016
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in educational tax credits, further providing for
tax credits and for limitations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The General Assembly finds and declares as
follows:
(1) The educational tax credits authorized under Article
XVII-F provide critical education funding that allows parents
to choose the school that best meets the needs of their child
and supports innovative educational programs.
(2) As permanent statutory tax credit programs, no
annual appropriation or reauthorization is necessary for the
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programs to continue to operate, even amid a budget impasse.
(3) Because of the structure of the application and
approval process, the orderly operation of the programs is
necessary to ensure that funding for the programs is
available at the beginning of the school year and the
contributions from business firms that fund the programs can
be made during the correct taxable year.
(4) The confidence of the contributing business firms in
the programs is necessary to ensure continued participation.
(5) Inconsistent operation of the programs during a
budget impasse goes against the intent of the General
Assembly and poses a risk to the continued vitality of the
programs.
(6) No provision of Article XVII-F permits the
Department of Community and Economic Development to withhold
award letters pending the enactment of a final budget.
(7) The General Assembly reaffirms that the programs
authorized under Article XVII-F are intended to not be halted
during a budget impasse.
Section 2. Sections 1705-F and 1706-F of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended by adding subsections to read:
Section 1705-F. Tax credits.
* * *
(g.1) Approval of tax credits.--Unless otherwise requested
by the business firm and agreed to by both the business firm and
the department, and unless all authorized credits have already
been awarded:
(1) For fiscal year 2015-2016, no later than 10 days
after the effective date of this subsection, the department
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shall give written notice of its approval to each business
firm that submitted a completed application under subsection
(g).
(2) For fiscal years 2016-2017, and each fiscal year
thereafter, the department shall give written notice of its
approval to each business firm that submitted a completed
application under subsection (g) by August 15, or 30 days
following receipt of the completed application, whichever is
later.
(3) For fiscal years 2015-2016, and each fiscal year
thereafter, the department shall give written notice of its
approval to each business firm that submitted a completed
application under subsection (j)(2) within 30 days following
receipt of the completed application.
* * *
Section 1706-F. Limitations.
* * *
(d.1) Fiscal year 2015-2016.--Tax credits awarded in fiscal
year 2015-2016 to a business firm making an approved
contribution to a scholarship organization, pre-kindergarten
scholarship organization, opportunity scholarship organization
or educational improvement organization may be used in the
taxable year in which a completed application was submitted by
the business firm or the taxable year in which the contribution
was made by the business firm, as determined by the business
firm.
* * *
Section 3. This act shall take effect immediately.
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