THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GREENLEAF, TARTAGLIONE, KASUNIC, BROWNE, FOLMER, RAFFERTY, TOMLINSON, ALLOWAY, GORDNER, SOLOBAY AND COSTA, JANUARY 12, 2011

REFERRED TO FINANCE, JANUARY 12, 2011  

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 a child-care 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 XXII

CHILD-CARE TAX CREDIT

Section 2201.  Short title of article.

This article shall be known and may be cited as the Child-

Care Tax Credit Act.

Section 2202.  Definitions.

The following words, terms and phrases, when used in this

article, shall have the meanings given to them in this section,

except where the context clearly indicates otherwise:

"Business firm."  A corporation, partnership or sole

proprietorship authorized to do business in this Commonwealth

and subject to any of the taxes imposed by Article III, IV, VI,

VII, VIII, IX or XV.

"Contributions."  Net payments made to a child-care program

not operated by the business firm for child-care services for

children of employees of the business firm.

"Credit."  The child-care tax credit.

"Net costs."  Amounts, exclusive of start-up expenses,

expended for the operation of a child-care program reduced by

the fees or charges paid by the users of the child-care program

services.

Section 2203.  Authorization of credit.

(a)  Eligibility.--A business firm that operates its own

child-care program which has been issued a valid license by the

Department of Public Welfare shall be eligible for the tax

credit.

(b)  License from Department of Public Welfare required.--A

business firm which makes contributions to a child-care program

not operated by the business firm which has been issued a valid

license by the Department of Public Welfare shall be eligible

for the tax credit.

Section 2204.  Calculation of credit.

(a)  General rule.--The amount of the tax credit available to

a business firm which qualifies under this article and operates

its own not-for-profit child-care program shall be equal to 100%

of the net costs expended for the operation and maintenance of

the child-care program.

(b)  Amount.--The amount of the tax credit available to a

business firm which qualifies under this article and contributes

to a child-care program not operated by the business firm shall

be equal to 100% of the contributions made by the business firm

to the child-care program.

Section 2205.  Taxes against which credit may be taken.

(a)  General rule.--Except as provided in subsection (b), the

tax credit provided for in this article may be applied against

any tax due under Article III, IV, VI, VII, VIII, IX or XV.

(b)  Nonapplicable against employer withholding taxes.--The

tax credit provided for in this article shall not be applied

against employer withholding taxes required under Article III.

Section 2206.  Powers and duties.

In addition to those powers created by any other act, the

Secretary of Revenue shall have the power and it shall be the

secretary's duty to:

(1)  Promulgate and publish any rules and regulations

which may be required to implement this article.

(2)  Publish as a notice in the Pennsylvania Bulletin

forms upon which taxpayers may apply for the tax credit

authorized by this article.

Section 2.  This act shall apply to taxable years beginning

after December 31, 2010.

Section 3.  This act shall take effect immediately.