Regular Session 2023-2024 House Bill 1429 P.N. 1609

PRINTER'S NO. 1609

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1429

Session of

2023

INTRODUCED BY ABNEY, ROZZI, KHAN, A. BROWN, MADDEN, T. DAVIS,

HILL-EVANS, SCHLOSSBERG, SANCHEZ, McANDREW, MERSKI,

PISCIOTTANO, KINSEY, PROBST, BELLMON, INNAMORATO, MAYES,

BENHAM, SMITH-WADE-EL, STEELE, KRAJEWSKI, DELLOSO, KINKEAD,

SALISBURY, BOROWSKI, O'MARA, WAXMAN, CEPEDA-FREYTIZ,

GALLAGHER, CURRY AND PICKETT, JUNE 20, 2023

REFERRED TO COMMITTEE ON FINANCE, JUNE 20, 2023

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 tax credit and for grant of tax credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 1904-A(c) and 1905-A(a) of the act of

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971, are amended to read:

Section 1904-A. Tax Credit.--* * *

approved under this act shall not exceed [thirty-six million

dollars ($36,000,000)] seventy-two million dollars ($72,000,000)

of tax credit in any fiscal year.

* * *

Section 1905-A. Grant of Tax Credit.--(a) The Department of

Revenue shall grant a tax credit against any tax due under

Article III, IV, VI, VII, VIII, IX or XV of this act, or any tax

substituted in lieu thereof in an amount which shall not exceed

[fifty-five] sixty-five per cent of the total amount contributed

during the taxable year by a business firm or twenty-five per

cent of qualified investments by a private company in programs

approved pursuant to section 1904-A of this act: Provided, That

a tax credit of up to [seventy-five] ninety per cent of the

total amount contributed during the taxable year by a business

firm or up to thirty-five per cent of the amount of qualified

investments by a private company may be allowed for investment

in programs where activities fall within the scope of special

program priorities as defined with the approval of the Governor

in regulations promulgated by the secretary, and Provided

further, That a tax credit of up to [seventy-five] ninety per

cent of the total amount contributed during the taxable year by

a business firm in comprehensive service projects with five-year

commitments and up to [eighty] ninety-five per cent of the total

amount contributed during the taxable year by a business firm in

comprehensive service projects with six-year or longer

commitments shall be granted, and Provided further, That a tax

credit of up to [seventy-five] ninety per cent of the total

amount contributed during the taxable year by a business firm in

veterans' housing assistance approved under section 1904-A(b.3)

shall be granted. Such credit shall not exceed [five hundred

thousand dollars ($500,000)] one million dollars ($1,000,000)

annually for contributions or investments to fewer than four

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projects or [one million two hundred fifty thousand dollars

($1,250,000)] two million five hundred thousand dollars

($2,500,000) annually for contributions or investments to four

or more projects. No tax credit shall be granted to any bank,

bank and trust company, insurance company, trust company,

national bank, savings association, mutual savings bank or

building and loan association for activities that are a part of

its normal course of business. Any tax credit not used in the

period the contribution or investment was made may be carried

over for the next five succeeding calendar or fiscal years until

the full credit has been allowed. A business firm shall not be

entitled to carry back or obtain a refund of an unused tax

credit. The total amount of all tax credits allowed pursuant to

this act shall not exceed [thirty-six million dollars

($36,000,000)] seventy-two million dollars ($72,000,000) in any

one fiscal year. Of that amount, two million dollars

($2,000,000) shall be allocated exclusively for pass-through

entities. However, if the total amounts allocated to either the

group of applicants, exclusive of pass-through entities, or the

group of pass-through entity applicants is not approved in any

fiscal year, the unused portion shall become available for use

by the other group of qualifying taxpayers.

* * *

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

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