PRINTER'S NO. 1856
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1456
Session of
2017
INTRODUCED BY STURLA, FREEMAN, READSHAW, KINSEY AND DONATUCCI,
MAY 25, 2017
REFERRED TO COMMITTEE ON FINANCE, MAY 25, 2017
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 neighborhood assistance tax credit, further
providing for definitions, for public policy and for tax
credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "neighborhood organization" in
section 1902-A of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971, amended July 13, 2016 (P.L.526,
No.84), is amended and the section is amended by adding
definitions to read:
Section 1902-A. Definitions.--The following words, terms and
phrases, when used in this article, shall have the meanings
ascribed to them in this section, except where the context
clearly indicates a different meaning:
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* * *
"Business firm fund." A fund held by a business firm that
provides education, job training and neighborhood assistance in
an impoverished area for its exclusive use, benefit or purposes,
but does not include:
(1) a fund held for a business firm by a trustee that is
not an institution; or
(2) a fund in which a beneficiary that is not a business
firm has an interest other than possible rights that could
arise upon violation or failure of the purposes of the fund.
* * *
"Endowment fund." A business firm fund, or any part thereof,
not wholly expendable by the business firm on a current basis
under the terms of the applicable gift instrument.
* * *
"Gift instrument." A will, deed, grant, conveyance,
agreement, memorandum, writing or other governing document,
including the terms of any business firm solicitations from
which a business firm fund resulted, under which property is
transferred to or held by a business firm as a business firm
fund.
* * *
"Neighborhood organization." Any organization performing
community services, offering neighborhood assistance or
providing job training, affordable housing, domestic violence or
veterans' housing assistance, education or crime prevention,
including through the use of endowment funds, in an impoverished
area, holding a ruling from the Internal Revenue Service of the
United States Department of the Treasury that the organization
is exempt from income taxation under the provisions of the
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Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. ยง 1
et seq.) and approved by the Department of Community and
Economic Development.
* * *
Section 2. Section 1903-A of the act is amended to read:
Section 1903-A. Public Policy.--It is hereby declared to be
public policy of this Commonwealth to encourage investment by
business firms in offering neighborhood assistance and providing
job training, education, crime prevention and community
services, including through the use of endowment funds, to
encourage contributions by business firms to neighborhood
organizations which offer and provide such assistance and
services and to promote qualified investments made by private
companies to rehabilitate, expand or improve buildings or land
which promote community economic development and which occur in
portions of impoverished areas which have been designated as
enterprise zones.
Section 3. Section 1904-A(a) of the act, amended July 13,
2016 (P.L.526, No.84), is amended to read:
Section 1904-A. Tax Credit.--(a) Any business firm which
engages or contributes to a neighborhood organization which
engages in the activities of providing neighborhood assistance,
comprehensive service projects, affordable housing, domestic
violence or veterans' housing assistance, job training or
education for individuals, community services or crime
prevention, including through the use of endowment funds, in an
impoverished area or private company which makes qualified
investment to rehabilitate, expand or improve buildings or land
located within portions of impoverished areas which have been
designated as enterprise zones shall receive a tax credit as
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provided in section 1905-A if the secretary annually approves
the proposal of such business firm or private company. The
proposal shall set forth the program to be conducted, the
impoverished area selected, the estimated amount to be invested
in the program and the plans for implementing the program.
* * *
Section 4. This act shall take effect in 60 days.
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