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PRINTER'S NO. 147
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
174
Session of
2019
INTRODUCED BY CALTAGIRONE, SAYLOR, READSHAW, DeLUCA, MURT,
HARKINS, KORTZ, YOUNGBLOOD, KINSEY, JOZWIAK, WARREN, HILL-
EVANS, BARRAR, RYAN, DEASY AND MARKOSEK, JANUARY 28, 2019
REFERRED TO COMMITTEE ON FINANCE, JANUARY 28, 2019
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," providing for pediatric cancer research tax
credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-L
PEDIATRIC CANCER RESEARCH TAX CREDIT
Section 1701-L. Scope of article.
This article relates to pediatric cancer research tax
credits.
Section 1702-L. Definitions.
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The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Business firm." An entity authorized to do business in this
Commonwealth and subject to taxes imposed under Article III, IV,
VI, VII, VIII, IX or XV. The term shall include a pass-through
entity.
"Contribution." A donation of cash.
"Department." The Department of Revenue of the Commonwealth.
"Pass-through entity." A partnership as defined under
section 301(n.0) or a Pennsylvania S corporation as defined
under section 301(n.1).
"Pediatric cancer research institution." Any of the
following:
(1) The Children's Hospital of Philadelphia Cancer
Center.
(2) Penn State Children's Hospital Pediatric Hematology-
Oncology and Infusion Clinic.
(3) Abramson Cancer Center of the University of
Pennsylvania.
(4) UPMC Children's Hospital of Pittsburgh.
"Tax credit." A tax credit for pediatric cancer research
authorized under this article.
Section 1703-L. Pediatric cancer research tax credit.
A tax credit shall be granted to a business firm that meets
the requirements under this article for the purposes of funding
pediatric cancer research in this Commonwealth.
Section 1704-L. Restriction on use of contributions.
The contributions received by a pediatric cancer research
center from a business firm claiming a tax credit must be used
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exclusively for pediatric cancer research.
Section 1705-L. Availability of tax credits.
(a) Application.--A business firm may submit an application
to the department for a tax credit. A business firm may receive
a tax credit if a pediatric cancer research institution receives
a contribution from the business firm as determined by the
department and in accordance with this article.
(b) Tax credit availability.--Tax credits under this section
shall be made available by the department on a first- come,
first-served basis.
(c) Contributions.--A contribution by a business firm to a
pediatric cancer research center shall be made no later than 30
days after the business firm receives notice of the approval of
the application under section 1707-L(b).
Section 1706-L. Duties of department.
The department shall have the following duties:
(1) Promulgating regulations necessary to implement this
article.
(2) Creating and publishing forms upon which business
firms may apply for the tax credit under this article.
(3) Approving or disapproving applications submitted by
business firms and providing notice of the approval or
disapproval to applicants under section 1707-L(b).
(4) Granting tax credit certificates in accordance with
section 1708-L.
Section 1707-L. Procedures.
(a) Deadline for filing applications.--Applications for a
tax credit under this article shall be filed not later than
December 31.
(b) Notice.--
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(1) The department shall notify the business firm
regarding the authorization of tax credits and its
determination, including the amount of the credit available.
(2) The department may return an incomplete application
to the business firm or request additional information,
documents or signatures from the business firm.
(c) Appeals.--Appeals from determinations made under
subsection (b) shall be made through the administrative
provisions of this act, applicable to the particular taxes
against which the business firm or its members, shareholders or
beneficiaries claim the tax credits.
Section 1708-L. Grant of tax credit certificates.
In accordance with section 1709-L(a), the department shall
grant a tax credit certificate to a business firm eligible to
receive a tax credit in accordance with this article. The
certificate may be used against a tax liability owed to the
department by a business firm that provides proof of a
contribution to a pediatric cancer research center in the
taxable year in which the contribution is made. The business
firm may apply the credit against any tax due under Article III,
IV, VI, VII, VIII, IX or XV, excluding any tax withheld by an
employer under Article III.
Section 1709-L. Amount of tax credits.
(a) General rule.--The total aggregate amount of all tax
credits approved shall not exceed $10,000,000 in a fiscal year.
(b) Activities.--No tax credit shall be approved for
activities that are part of a business firm's normal course of
business.
(c) Tax liability.--A tax credit granted for any one taxable
year may not exceed the tax liability of a business firm.
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(d) Unused tax credits.--A tax credit not used in the
taxable year the contribution was made may not be carried
forward or carried back and may not be refundable or
transferable.
Section 1710-L. Limitation.
A business firm may not apply for a tax credit after the 10th
fiscal year after the effective date of this article.
Section 1711-L. Applicability.
This article shall apply to fiscal years beginning after June
30, 2019.
Section 2. This act shall take effect in 60 days.
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