PRINTER'S NO. 1328
No. 1164 Session of 1991
INTRODUCED BY KENNEY, BELARDI, ARMSTRONG, WOGAN, TANGRETTI,
MICOZZIE, HALUSKA, SAURMAN, JOHNSON, NAHILL AND E. Z. TAYLOR,
APRIL 17, 1991
REFERRED TO COMMITTEE ON FINANCE, APRIL 17, 1991
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for a tax credit for rent reductions.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
14 the Tax Reform Code of 1971, is amended by adding an article to
15 read:
16 ARTICLE XXI
17 RENT REDUCTION TAX CREDIT
18 Section 2101. Short Title.--This article shall be known and
19 may be cited as the Landlord Rent Reduction Tax Credit Act.
20 Section 2102. Definitions.--The following words, terms and
21 phrases, when used in this article, shall have the meanings
1 ascribed to them in this section, except where the context
2 clearly indicates a different meaning:
3 "Agency." The Pennsylvania Housing Finance Agency.
4 "Credit." The rent reduction tax credit provided for in this
5 article.
6 "Department." The Department of Revenue of the Commonwealth.
7 "Landlord." An individual or corporation engaged in the
8 business of renting dwelling units, subject to the act of April
9 6, 1951 (P.L.69, No.20), known as The Landlord and Tenant Act of
10 1951, and subject to either the State personal income or
11 corporate net income tax, as provided by Article III and Article
12 IV of this act.
13 Section 2103. Authorization of Credit.--Every landlord
14 engaged in the business of renting dwelling units shall be
15 entitled to a credit against either the personal income tax or
16 the corporate net income tax if both of the following
17 requirements are met:
18 (1) The landlord provides a reduced rent to low-income
19 tenants who either exceed the age of sixty-two or are
20 permanently disabled from a physical or mental condition.
21 (2) The rent charged for the elderly or disabled tenants is
22 at least fifteen per cent less than the rent charged to other
23 tenants for comparable units within the same real property.
24 Section 2104. Calculation of Tax Credit.--(a) The amount of
25 the tax credit available to a landlord who qualifies under this
26 article shall be equal to fifty per cent of the total rent
27 reductions allowed during the taxable year to the elderly or
28 disabled tenants. The maximum credit available to an individual
29 or corporation for each taxable year shall not exceed ten
30 thousand dollars ($10,000) or the total amount of tax imposed by
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1 Article III or IV of this act.
2 (b) If the amount of the credit exceeds a landlord's tax
3 liability for any taxable year, the amount which exceeds the tax
4 liability may be carried over for credit against the taxes
5 levied by Articles III and IV for not more than five successive
6 tax years until the total amount of the tax credit has been
7 taken.
8 Section 2105. Procedure.--The agency shall certify to the
9 department that the landlord claiming a credit is providing rent
10 reductions as authorized by this act. The agency shall establish
11 regulations detailing the requirements and procedures applicable
12 to claiming the rent reduction tax credit. The agency may also
13 request that the landlord submit records and other documents
14 which indicate that the requirements of this act have been
15 satisfied. The total amount of credits which may be approved by
16 the agency in any fiscal year shall not exceed ten million
17 dollars ($10,000,000).
18 Section 2106. Applicability.--This article shall apply to
19 tax years commencing on and after January 1, 1992, and to each
20 tax year thereafter.
21 Section 2. This act shall take effect immediately.
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