PRINTER'S NO. 258
No. 225 Session of 2007
INTRODUCED BY NAILOR, FAIRCHILD, MELIO, MARSICO, BAKER, BARRAR,
BELFANTI, BENNINGHOFF, BEYER, BISHOP, BOYD, BUXTON,
CALTAGIRONE, CAPPELLI, CAUSER, CLYMER, COHEN, COX, DALLY,
DePASQUALE, EVERETT, FABRIZIO, FRANKEL, GABIG, GEIST, GEORGE,
GIBBONS, GINGRICH, GOODMAN, GRELL, GRUCELA, HARHART, HARPER,
HENNESSEY, HERSHEY, HESS, HUTCHINSON, JAMES, M. KELLER,
KENNEY, KOTIK, LEVDANSKY, MANDERINO, MANN, MARKOSEK,
McGEEHAN, McILHATTAN, METCALFE, MICOZZIE, R. MILLER, MOUL,
MUNDY, MUSTIO, M. O'BRIEN, PAYNE, PETRI, PHILLIPS, PICKETT,
RAMALEY, RAPP, READSHAW, REED, REICHLEY, ROAE, SAINATO,
SAMUELSON, SCAVELLO, SCHRODER, SIPTROTH, SOLOBAY, SONNEY,
STABACK, STERN, R. STEVENSON, TRUE, WALKO, WATSON, J. WHITE,
YOUNGBLOOD AND YUDICHAK, FEBRUARY 5, 2007
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 5, 2007
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 military tax credits for employers
11 who pay or subsidize the wages of an employee called to
12 active duty.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
16 the Tax Reform Code of 1971, is amended by adding a section to
17 read:
1 Section 3003.19. Military Tax Credit for Certain
2 Employers.--(a) As used in this section, the following words
3 and phrases shall have the meanings given to them in this
4 subsection:
5 "Active duty." State active duty under 51 Pa.C.S § 508
6 (relating to active State duty for emergency) and active duty,
7 other than active duty for training, ordered under 10 U.S.C. §
8 101 et seq. (relating to armed forces) or 32 U.S.C. § 101 et
9 seq. (relating to National Guard).
10 "Additional compensation." Compensation, the payment of
11 which is not required by Federal or state law, paid by a
12 soldier's civilian employer in the form of payment of the
13 difference between a soldier's military pay and allowances and
14 his civilian salary or a periodic stipend or other payment,
15 while the soldier is performing a qualifying period of military
16 service.
17 "Pay and allowances." The basic pay, housing and subsistence
18 allowances paid to members of the Pennsylvania National Guard
19 and reserve components of the armed forces of the United States
20 when performing active duty.
21 "Qualifying periods of military service." A period of active
22 duty, other than active duty for training, of thirty or more
23 consecutive days' duration to which a member of the Pennsylvania
24 National Guard or other reserve components of the armed forces
25 of the United States is ordered.
26 "Soldier." A member of the Pennsylvania National Guard or
27 reserve component of the armed forces of the United States
28 performing a qualifying period of military service.
29 (b) Whenever a soldier performs a qualifying period of
30 military service and the soldier's civilian employer pays the
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1 soldier additional compensation, the employer shall be entitled
2 to a credit against any tax due from the employer under Article
3 III, IV, VI, VII, VIII, IX or XV of this act equal to twenty per
4 cent of the additional compensation not to exceed twenty-five
5 thousand dollars ($25,000), paid to the soldier.
6 (c) The credit allowed by subsection (b) shall apply against
7 any payment of estimated tax or payment of the tentative tax due
8 from the employer on account of the taxes described in
9 subsection (b).
10 (d) The Secretary of Revenue shall promulgate regulations
11 necessary for the administration of this section.
12 Section 2. The addition of section 3003.19 of the act shall
13 apply to all tax years commencing after December 31, 2006.
14 Section 3. This act shall take effect immediately.
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