PRINTER'S NO. 4147
No. 2701 Session of 2008
INTRODUCED BY ARGALL, ADOLPH, BOYD, BRENNAN, CARROLL, CUTLER, DePASQUALE, EVERETT, FRANKEL, GEIST, GINGRICH, GOODMAN, HARHART, HENNESSEY, HERSHEY, HESS, KORTZ, KOTIK, MANDERINO, MANN, MARSICO, MICOZZIE, R. MILLER, MOYER, MYERS, READSHAW, ROSS, SCAVELLO, SIPTROTH, STURLA, SWANGER, J. TAYLOR, WALKO, WATSON AND YOUNGBLOOD, JULY 2, 2008
REFERRED TO COMMITTEE ON COMMERCE, JULY 2, 2008
AN ACT 1 Providing for the establishment of cooperative community 2 development programs throughout this Commonwealth utilizing 3 the resources of the Commonwealth, local municipalities and 4 employers to encourage employees to locate near and reside in 5 communities located close to employer worksites; establishing 6 a tax credit program to encourage employer participation; and 7 imposing additional powers and duties on the Department of 8 Community and Economic Development and the Department of 9 Revenue. 10 The General Assembly of the Commonwealth of Pennsylvania 11 hereby enacts as follows: 12 Section 1. Short title. 13 This act shall be known and may be cited as the Live Near 14 Your Work Program Act. 15 Section 2. Legislative purpose. 16 The General Assembly by enactment of this legislative 17 proposal intends to accomplish the following objectives: 18 (1) Stimulate home ownership in designated neighborhoods 19 which qualify for participation in a Live Near Your Work
1 project. 2 (2) Promote public-private partnerships to strengthen, 3 revitalize and preserve communities. 4 (3) Support Commonwealth transportation policy by 5 promoting shorter commuting times. 6 (4) Support employer compliance with the Clean Air Act 7 Amendments of 1990 (Public Law 101-549, 42 U.S.C. § 7401 et 8 seq.). 9 (5) Promote the controlled, planned, ecologically sound 10 and people friendly growth of Pennsylvania communities. 11 Section 3. Definitions. 12 The following words and phrases when used in this act shall 13 have the meanings given to them in this section unless the 14 context clearly indicates otherwise: 15 "Department." The Department of Community and Economic 16 Development of the Commonwealth. 17 "Designated neighborhood." A neighborhood in a city of the 18 first class, second class, second class A or third class or a 19 borough in Pennsylvania that has been designated as a Live Near 20 Your Work area neighborhood where employees may purchase homes 21 under an LNYW program. The business's plan and the designated 22 neighborhood must be approved by the Department of Community and 23 Economic Development. 24 "Eligible employee." An individual who meets all of the 25 following criteria: 26 (1) Is employed by an employer participating in the Live 27 Near Your Work Tax Credit Program. 28 (2) Is 18 years of age or older. 29 (3) Has a contract to purchase an eligible residence 30 located in the employer's applicable LNYW area. 20080H2701B4147 - 2 -
1 (4) Holds or will hold title to an eligible residence. 2 (5) Makes or will make a cash contribution of at least 3 $1,000 toward the cost of the down payment or settlement 4 costs in connection with purchasing an eligible residence. 5 (6) Is willing to disclose household income. 6 (7) Meets any additional eligibility requirements 7 imposed by the local municipality, the participating employer 8 or by the Department of Community and Economic Development 9 and is approved by the department. 10 "Eligible residence." A residential dwelling unit that 11 satisfies all of the following requirements: 12 (1) The dwelling unit is the primary residence of an 13 eligible employee. 14 (2) The dwelling unit is located in the Live Near Your 15 Work area of the employer of the eligible employee. 16 (3) The dwelling unit is a single unit, a townhouse or a 17 condominium unit. 18 "Household income." The combined income of an employee-owner 19 and any co-owner of an eligible residence who are assisted 20 pursuant to the provisions of this act. 21 "Income." The amount of Pennsylvania taxable income listed 22 on the Pennsylvania Personal Income Tax Return of an eligible 23 employee or any co-owner with an eligible employee for the 24 calendar year in which assistance under this act is received. 25 "LNYW." The acronym derived from the Live Near Your Work 26 Program established under section 4. 27 "LNYW area." An area within a local municipality that: 28 (1) Is designated as the area where eligible employees 29 of an employer may purchase a residence. 30 (2) Has a relationship to the employer's worksite 20080H2701B4147 - 3 -
1 location that supports the objectives of the program. 2 (3) Is approved by the local municipality in which the 3 area exists for consistency with the local comprehensive 4 zoning plan. 5 (4) Is approved by the Department of Community and 6 Economic Development. 7 "LNYW grant." The funds granted by the employer to the 8 eligible employee under the terms of this act. The minimum 9 amount of a Live Near Your Work grant shall be $1,500. 10 "LNYW project." The program operated by the local 11 municipality within the Live Near Your Work boundary for the 12 local municipality. 13 "Local municipality." A city of the first class, second 14 class, second class A or third class or borough located within 15 this Commonwealth. 16 "Program." The Live Near Your Work Program established under 17 section 4. 18 "Settlement costs." Those costs which are paid by the buyer 19 of a residence at the time of settlement, including, but not 20 limited to: 21 (1) Any credit or mortgage application fee. 22 (2) Any title insurance premium and title search fees. 23 (3) Any attorney fees. 24 (4) Any document preparation fee. 25 (5) Any real property inspection or appraisal fees. 26 (6) Any portion of the Realty Transfer Tax paid by the 27 purchaser. 28 Section 4. LNYW Program. 29 The department shall establish, implement and administer the 30 Live Near Your Work Program. The program shall be a cooperative 20080H2701B4147 - 4 -
1 effort between the Commonwealth, local municipalities and 2 employers to designate LNYW areas within local municipalities 3 where LNYW projects may be located and where employer assistance 4 may be given to eligible employees to purchase residential 5 dwelling units within the LNYW project. 6 Section 5. Employer eligibility criteria for participation in 7 LNYW Program. 8 (a) Specific criteria.--Any employer who wishes to 9 participate in a program and designate an LNYW area shall meet 10 all of the following requirements: 11 (1) In conjunction with the local municipality, apply to 12 the department for the approval of a designated area or areas 13 within a local municipality as an LNYW area. 14 (2) Agree to provide an LNYW cash grant equal to at 15 least $1,500 per household to each participating employee who 16 purchases a residential dwelling unit within an LNYW area to 17 reimburse the employee for a portion of the settlement costs 18 incurred for the purchase. 19 (3) In coordination with the local municipality 20 designate an LNYW area. 21 (4) Coordinate participation in the program with the 22 local municipality. 23 (5) Submit all other materials to and comply with any 24 restrictions imposed by the local municipality or the 25 department. 26 (6) Make all contributions in the form of a cash grant. 27 (7) Designate LNYW area neighborhoods within a 28 reasonable distance by bicycle or by foot from the 29 participating employer. 30 (b) Additional criteria.--Consistent with the purposes of 20080H2701B4147 - 5 -
1 this act, the department shall and a local municipality may 2 promulgate and adopt additional criteria necessary to carry out 3 the provisions of this act. 4 (c) Multiple employer locations.--If an employer has more 5 than one worksite location, there may be an LNYW area for each 6 worksite location, each of which shall comply with this act and 7 any department and local municipal regulations regarding the 8 designation and approval of an LNYW area. The LNYW areas for an 9 employer under this section may overlap. In addition to any 10 other requirements of this act, an employee and a residence 11 shall only be eligible if the residence is located in the LNYW 12 area of the employer for the worksite location where the 13 employee works. 14 Section 6. Employee eligibility to participate in LNYW Program. 15 In addition to any other criteria established by the 16 department, the local municipality and the employer for 17 participation by an employee, an employee who has a Pennsylvania 18 taxable income in excess of $90,000 in the year of application 19 for a cash grant shall not be eligible for participation. 20 Section 7. LNYW tax credit. 21 (a) Eligibility.--Each employer who establishes an approved 22 LNYW area and makes a minimum of $12,000 per taxable year of 23 cash grants to eligible employees shall, subject to subsection 24 (b), be eligible to receive a tax credit equal to 50% of the 25 amount of money invested in the LNYW area and paid as cash 26 grants. 27 (b) Annual approval.--The department and each local 28 municipality where the employer has an approved LNYW area shall 29 annually certify to the Department of Revenue that the employer 30 applicant for a tax credit has complied with the provisions of 20080H2701B4147 - 6 -
1 this act and the regulations promulgated by the department and 2 local municipality. 3 (c) Grant of tax credit.--The Department of Revenue, after 4 receipt of an application under subsection (a) and the 5 certification under subsection (b), shall grant a tax credit as 6 provided in subsection (a) to be used by the employer to satisfy 7 any Pennsylvania tax liability due under Article III, IV, VI, 8 VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6, No.2), 9 known as the Tax Reform Code of 1971. 10 (d) Annual limitations.--Annually, the total amount of tax 11 credits approved under this section shall not exceed $2,000,000. 12 (e) Employer limitations.--The following limitations shall 13 apply to any employer who receives a tax credit under this 14 section: 15 (1) The tax credit used in any one taxable year shall 16 not exceed the tax liability of the employer. 17 (2) An employer which is a bank, bank and trust company, 18 insurance company, trust company, national bank, savings 19 association, mutual savings bank or building and loan 20 association shall not be eligible to receive any tax credits 21 under this section for activities that are part of their 22 normal course of business. 23 (f) Carryforward of unused tax credit.--Any tax credit not 24 used in the period the investment was made may be carried 25 forward for the next five succeeding calendar or fiscal years 26 until the full credit has been exhausted. 27 Section 8. Taxability of cash grant. 28 Any LNYW cash grant received under this act shall not be 29 taxable for any purposes under Article III of the act of March 30 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. 20080H2701B4147 - 7 -
1 Section 9. Additional duties of department. 2 (a) Annual list of approved LNYW areas.--The department 3 shall compile a list of all applications for LNYW areas 4 submitted under this act. The list shall also include the 5 disposition of each application. This list shall be submitted by 6 the department to the Governor and the General Assembly annually 7 on or before October 1. 8 (b) Written response.--The decision of the Secretary of 9 Community and Economic Development to approve or disapprove an 10 application under section 7 shall be in writing, and, if the 11 proposal is approved, it shall state the maximum credit 12 allowable to the employer. A copy of the decision of the 13 secretary shall be transmitted to the Secretary of Revenue. 14 Section 10. Expiration. 15 This act shall expire July 1, 2010. 16 Section 11. Effective date. 17 This act shall take effect in 90 days. F2L71DMS/20080H2701B4147 - 8 -