PRINTER'S NO. 927
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
784
Session of
2015
INTRODUCED BY BARBIN, SAINATO, BARRAR, SIMS, KINSEY, SCHWEYER,
ENGLISH, BROWNLEE, YOUNGBLOOD, SCHREIBER, BURNS, V. BROWN,
FARINA, D. COSTA, STEPHENS, DAVIS, BAKER, DeLUCA, PASHINSKI,
DRISCOLL, READSHAW, ROZZI, GOODMAN, HARHAI, McNEILL,
A. HARRIS, DEASY, BOBACK, COHEN, FRANKEL, MAHONEY AND GILLEN,
MARCH 13, 2015
REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
PREPAREDNESS, MARCH 13, 2015
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 the Vets First tax credit to honor
veterans for their service to our country and provide
incentives for their employment.
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 XVIII-G
THE VETS FIRST TAX CREDIT
Section 1801-G. Definitions.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
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:
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Eligible job." A full-time job in this Commonwealth, the
annual wage, excluding benefits, for which is at least equal to
the average annual wage in the county where the job is located
as posted on the Department of Labor and Industry's publicly
accessible Internet website. The term does not include a
temporary or seasonal job.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV, VI, VII, VIII, IX or XV. The term shall
not include liability for any tax withheld or required to be
withheld by a taxpayer from an employee under Article III.
"Small business." A for-profit corporation, limited
liability company, partnership or proprietorship operating in
this Commonwealth with fewer than 100 employees at the time the
taxpayer applies for a Vets First tax credit under this article.
"Start date." The effective date of this article.
"Taxpayer." An individual or small business subject to a tax
imposed under Article III, IV, VI, VII, VIII, IX or XV. The term
shall not include an individual or small business that is
delinquent, at the time the credit is awarded, in the payment of
any taxes or any other amounts to the Federal Government, the
Commonwealth or any political subdivision.
"Veteran." An individual who meets all of the following:
(1) Served in the active United States military,
including service in a reserve component or National Guard.
(2) Was released or discharged from active military
20150HB0784PN0927 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
service under conditions other than dishonorable, after
September 30, 2001.
(3) Has not worked for at least six months prior to
being hired by a taxpayer in an eligible job or in a job in
another state that is substantially similar to an eligible
job.
"Vets First tax credits." Tax credits for hiring veterans
authorized under this article.
"Year one." A one-year period immediately following the
start date.
"Year two." A one-year period immediately following the end
of year one.
"Year three." A one-year period immediately following the
end of year two.
"Year four." A one-year period immediately following the end
of year three.
Section 1802-G. Vets First tax credits.
(a) Criteria.--A taxpayer that employs a veteran in an
eligible job shall qualify for a Vets First tax credit against
the taxpayer's qualified tax liability as provided in this
article. In order to be eligible for a Vets First tax credit,
the taxpayer shall certify and agree to the following:
(1) The veteran was hired for a new position in the
taxpayer's small business or was hired to fill the position
of another employee who voluntarily separated from employment
with the taxpayer.
(2) The taxpayer shall continue the operation of its
small business for at least five years following the taxable
year for which the taxpayer first claims a Vets First tax
credit awarded under this article.
20150HB0784PN0927 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Amount.--
(1) The Vets First tax credit shall be equal to $1,000
for each veteran hired from and after the start date and
shall be available annually through the end of year three so
long as the veteran has been continuously employed in the
eligible job from the date hired until the end of year three.
The Vets First tax credit shall be available through the end
of year four for each veteran who has been continuously
employed in the eligible job from the date hired until the
end of year four if the veteran resides in this Commonwealth
and has resided in this Commonwealth since the date the
veteran was released or discharged from active military
service under conditions other than dishonorable.
(2) The provisions of this subsection shall be subject
to the limitations in section 1804-G.
(c) Eligibility for other tax credits.--A taxpayer that
claims tax credits under any other Federal or State law shall be
eligible for a Vets First tax credit so long as the taxpayer
also meets the applicable requirements of this article.
Section 1803-G. Application and award.
(a) Annual application required.--A taxpayer wishing to
claim a Vets First tax credit shall apply to the department on a
form required by the department. An application shall be
submitted for each tax year that the taxpayer desires to claim
the Vets First tax credit and shall contain information as the
department deems necessary for the department to determine that
the taxpayer qualifies for the Vets First tax credit or credits
for which the taxpayer is applying. The department shall review
and approve or disapprove applications in the order in which
they are received.
20150HB0784PN0927 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(b) Award.--Upon determining that the taxpayer qualifies for
one or more Vets First tax credits, the department shall award
the credits and issue a Vets First tax credit certificate to the
taxpayer.
Section 1804-G. Limitations.
(a) Use by taxpayer.--A taxpayer may not carry over, carry
back or obtain a refund of any portion of a Vets First tax
credit.
(b) Aggregate amount of awards.--No more than $12,500,000 in
Vets First tax credits shall be awarded in any fiscal year.
(c) Length of program.--A taxpayer shall not be eligible to
apply for Vets First tax credits after the fourth taxable year
following the effective date of this section .
Section 1805-G. Sale or assignment.
(a) Sale or assignment.--A taxpayer, upon application to and
approval by the department, may sell or assign, in whole or in
part, a Vets First tax credit granted to the taxpayer under this
article. The department shall establish guidelines for the
approval of applications under this subsection.
(b) Claim and use.--The purchaser or assignee of a portion
of a Vets First tax credit under subsection (a) shall
immediately claim the credit in the taxable year in which the
purchase or assignment is made. The amount of the Vets First
credit that a purchaser or assignee may use against any one
qualified tax liability may not exceed 75% of such qualified tax
liability for the taxable year. The purchaser or assignee may
not carry over, carry back, obtain a refund of or assign the
Vets First tax credit. The purchaser or assignee shall notify
the department of the seller or assignor of the Vets First tax
credit in compliance with procedures specified by the
20150HB0784PN0927 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
department.
Section 1806-G . Repayment and penalty.
(a) Repayment.--A taxpayer who has claimed one or more Vets
First tax credits and fails to meet any of the criteria required
under section 1802-G, or a taxpayer who has received a Vets
First tax credit in error shall repay to the Commonwealth the
amount of all Vets First tax credits claimed.
(b) Penalty.--If it is determined that the failure or error
referred to in subsection (a) occurred as a result of fraud
perpetrated by the taxpayer, the taxpayer, in addition to being
required to repay the amount of all Vets First tax credits
claimed, shall be subject to other appropriate penalties and
remedies as may be provided in this act or in other applicable
law.
Section 1807-G . Report.
The department shall submit an annual report to the Governor,
the Majority Leader of the Senate, the Minority Leader of the
Senate, the Majority Leader of the House of Representatives and
the Minority Leader of the House of Representatives on March 1
of each year following the effective date of this section. The
report shall include the following information:
(1) A description of the Vets First tax credit
certificates issued by the department during the preceding
period, including the amount of the Vets First tax credits
awarded to each taxpayer and the taxpayer's name and address.
(2) The number of veterans who are residents of this
Commonwealth and who were hired by each taxpayer to whom a
Vets First tax credit certificate has been issued.
Section 1808-G . Notice to public.
The department shall, not later than 60 days following the
20150HB0784PN0927 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
effective date of this section, publish notice of the following
on its publicly accessible Internet website:
(1) Availability of the Vets First tax credits.
(2) Guidelines for the awarding of Vets First tax
credits.
(3) A downloadable copy of the application form.
Section 2. This act shall take effect in 30 days.
20150HB0784PN0927 - 7 -
1
2
3
4
5
6
7