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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session


Posted: February 19, 2013 04:38 PM
From: Senator Patrick M. Browne
To: All Senate members
Subject: Vocational Facility Service Contract Tax Credit Act
In the near future, I intend to re-introduce legislation that was Senate Bill 589 in the 2011-12 legislative session.

This legislation would permit a business firm to claim as a credit against the taxes imposed by the Commonwealth an amount equal to five percent of the annual amount that the business firm paid in the taxable year to a vocational facility for work performed by the facility for the business firm pursuant to the contract.

Specifically, the Department of Revenue shall grant a tax credit against a tax liability owed to the Department by a business firm that provides proof of a contract with a vocational facility for work paid for in the taxable year. The maximum amount that any business firm may claim under this subsection in a taxable year is $25,000 for each vocational facility with which the business firm contracts for work to be performed.

“Vocational facility” is defined as an organization through which rehabilitative, habilitative or handicapped employment or employment training is provided to one or more disables clients for part of a 24 hour day and is licensed under 55 PA Code Chapter 2390 or a Pennsylvania Industries for the Blind and Handicapped affiliated agency. Therefore, this tax credit applies only to those firms that contract with organizations that employ people with disabilities.

Cosponsors of Senate Bill 589 included: Senators RAFFERTY, MENSCH, FONTANA, SOLOBAY, KASUNIC and TARTAGLIONE.

Introduced as SB844