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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY ARGALL, BRENNAN, DALEY, GEIST, GROVE, HARPER, MANN, MELIO, O'NEILL, PYLE, READSHAW, REICHLEY, SIPTROTH, VULAKOVICH, WANSACZ, WHEATLEY AND FREEMAN, FEBRUARY 18, 2009 |
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| REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 18, 2009 |
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| AN ACT |
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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 |
20 | project. |
21 | (2) Promote public-private partnerships to strengthen, |
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1 | revitalize and preserve communities. |
2 | (3) Support Commonwealth transportation policy by |
3 | promoting shorter commuting times and use of mass transit. |
4 | (4) Support employer compliance with the Clean Air Act |
5 | Amendments of 1990 (Public Law 101-549, 42 U.S.C. § 7401 et |
6 | seq.). |
7 | (5) Promote the controlled, planned, ecologically sound |
8 | and people friendly growth of Pennsylvania communities. |
9 | Section 3. Definitions. |
10 | The following words and phrases when used in this act shall |
11 | have the meanings given to them in this section unless the |
12 | context clearly indicates otherwise: |
13 | "Borrower income." The combined income of an employee-owner |
14 | and any co-owner of an eligible residence who are assisted |
15 | pursuant to the provisions of this act. |
16 | "Department." The Department of Community and Economic |
17 | Development of the Commonwealth. |
18 | "Designated neighborhood." A neighborhood in a city of the |
19 | first class, second class, second class A or third class or a |
20 | borough in Pennsylvania that has been designated as a Live Near |
21 | Your Work area neighborhood where employees may purchase homes |
22 | under an LNYW program. The employee's plan and the designated |
23 | neighborhood must be approved by the Department of Community and |
24 | Economic Development. |
25 | "Eligible employee." An individual who meets all of the |
26 | following criteria: |
27 | (1) Is employed by an employer participating in the Live |
28 | Near Your Work Tax Credit Program. |
29 | (2) Is 18 years of age or older. |
30 | (3) Has a contract to purchase an eligible residence |
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1 | located in the employer's applicable LNYW area. |
2 | (4) Holds or will hold title to an eligible residence |
3 | and certifies that the individual will occupy the residence |
4 | as the primary residence. |
5 | (5) Makes or will make a cash contribution of at least |
6 | $1,000 from the individual's own verifiable funds toward the |
7 | cost of the down payment or settlement costs in connection |
8 | with purchasing an eligible residence. |
9 | (6) Has income not exceeding the maximum allowable |
10 | amount established by the program. |
11 | (7) Meets any additional eligibility requirements |
12 | imposed by the local municipality, the participating employer |
13 | or by the Department of Community and Economic Development |
14 | and is approved by the department. |
15 | "Eligible residence." A residential dwelling unit that |
16 | satisfies all of the following requirements: |
17 | (1) The dwelling unit is, or will be, the primary |
18 | residence of an eligible employee. |
19 | (2) The dwelling unit is located in the Live Near Your |
20 | Work area of the employer of the eligible employee. |
21 | (3) The dwelling unit is a single unit, a townhouse or a |
22 | condominium unit. |
23 | "Income." The amount of Pennsylvania taxable income listed |
24 | on the Pennsylvania Personal Income Tax Return of an eligible |
25 | employee or any co-owner with an eligible employee for the |
26 | calendar year in which assistance under this act is received. |
27 | "Live Near Your Work Program" or "LNYW." The Live Near Your |
28 | Work Program established under section 4. |
29 | "LNYW area." An area within a local municipality that: |
30 | (1) Is designated as the area where eligible employees |
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1 | of an employer may purchase a residence. |
2 | (2) Has a relationship to the employer's worksite |
3 | location that supports the objectives of the program. |
4 | (3) Is approved by the local municipality in which the |
5 | area exists for consistency with the local comprehensive |
6 | zoning plan. |
7 | (4) Is approved by the Department of Community and |
8 | Economic Development. |
9 | "LNYW grant." The funds granted by the employer to the |
10 | eligible employee under the terms of this act. |
11 | "LNYW project." The program operated by the local |
12 | municipality within the Live Near Your Work boundary for the |
13 | local municipality. |
14 | "Local municipality." A city of the first class, second |
15 | class, second class A or third class or borough located within |
16 | this Commonwealth. |
17 | "Settlement costs." Reasonable and customary costs which are |
18 | paid by the buyer of a residence at the time of settlement, |
19 | including, but not limited to: |
20 | (1) Any credit or mortgage application fee. |
21 | (2) Any title insurance premium and title search fees. |
22 | (3) Any attorney fees. |
23 | (4) Any document preparation fee. |
24 | (5) Any real property inspection or appraisal fees. |
25 | (6) Any portion of the Realty Transfer Tax paid by the |
26 | buyer. |
27 | Section 4. Live Near Your Work Program. |
28 | The department shall establish, implement and administer the |
29 | Live Near Your Work Program. The LNYW Program shall be a |
30 | cooperative effort between the Commonwealth, local |
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1 | municipalities and employers to designate LNYW areas within |
2 | local municipalities where LNYW projects may be located and |
3 | where employer assistance may be given to eligible employees to |
4 | purchase eligible residences within the LNYW project. |
5 | Section 5. Employer eligibility criteria for participation in |
6 | LNYW Program. |
7 | (a) Specific criteria.--Any employer who wishes to |
8 | participate in a program and designate an LNYW area shall meet |
9 | all of the following requirements: |
10 | (1) In conjunction with the local municipality, apply to |
11 | the department for the approval of a designated area or areas |
12 | within a local municipality as an LNYW area. |
13 | (2) Agree to provide an LNYW cash grant equal to at |
14 | least $500 per household to each participating employee who |
15 | purchases a residential dwelling unit within an LNYW area to |
16 | reimburse the employee for a portion of the settlement costs |
17 | incurred for the purchase. |
18 | (3) In coordination with the local municipality |
19 | designate an LNYW area. |
20 | (4) Coordinate participation in the LNYW Program with |
21 | the local municipality. |
22 | (5) Submit all other materials to and comply with any |
23 | restrictions imposed by the local municipality or the |
24 | department. |
25 | (6) Make all contributions in the form of a cash grant. |
26 | (7) Designate LNYW area neighborhoods within a |
27 | reasonable distance by bicycle or by foot or mass transit |
28 | from the participating employer. |
29 | (b) Additional criteria.--Consistent with the purposes of |
30 | this act, the department shall, and a local municipality may, |
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1 | promulgate and adopt additional criteria necessary to carry out |
2 | the provisions of this act. |
3 | (c) Multiple employer locations.--If an employer has more |
4 | than one worksite location, there may be an LNYW area for each |
5 | worksite location, each of which shall comply with this act and |
6 | any department and local municipal regulations regarding the |
7 | designation and approval of an LNYW area. The LNYW areas for an |
8 | employer under this section may overlap. In addition to any |
9 | other requirements of this act, an employee and a residence |
10 | shall only be eligible if the residence is located in the LNYW |
11 | area of the employer for the worksite location where the |
12 | employee works. |
13 | Section 6. Employee eligibility to participate in LNYW Program. |
14 | In addition to any other criteria established by the |
15 | department, the local municipality and the employer for |
16 | participation by an employee, an employee who has a Pennsylvania |
17 | taxable income in excess of 150% of Statewide median income in |
18 | the year of application for a cash grant shall not be eligible |
19 | 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 |
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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 or for which they receive credit |
23 | under the Community Reinvestment Act of 1977 (91 Stat. 1111, |
24 | 12 U.S.C. § 2901 et seq.). |
25 | (f) Carryforward of unused tax credit.--Any tax credit not |
26 | used in the period the investment was made may be carried |
27 | forward for the next five succeeding calendar or fiscal years |
28 | until the full credit has been exhausted. |
29 | Section 8. Taxability of cash grant. |
30 | Any LNYW cash grant received under this act shall not be |
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1 | taxable for any purposes under Article III of the act of March |
2 | 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. |
3 | Section 9. Additional duties of department. |
4 | (a) Annual list of approved LNYW areas.--The department |
5 | shall compile a list of all applications for LNYW areas |
6 | submitted under this act. The list shall also include the |
7 | disposition of each application. This list shall be submitted by |
8 | the department to the Governor and the General Assembly annually |
9 | on or before October 1. |
10 | (b) Written response.--The decision of the Secretary of |
11 | Community and Economic Development to approve or disapprove an |
12 | application under section 7 shall be in writing, and if the |
13 | proposal is approved, it shall state the maximum credit |
14 | allowable to the employer. A copy of the decision of the |
15 | secretary shall be transmitted to the Secretary of Revenue. |
16 | Section 10. Expiration. |
17 | This act shall expire July 1, 2012. |
18 | Section 11. Effective date. |
19 | This act shall take effect in 90 days. |
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