THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY PIPPY, ORIE, PICCOLA, BROWNE, ERICKSON, FONTANA, TOMLINSON, ALLOWAY, FARNESE, EICHELBERGER, KITCHEN, COSTA, MENSCH, EARLL, BOSCOLA AND M. WHITE, JANUARY 27, 2011

REFERRED TO EDUCATION, JANUARY 27, 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," in educational improvement tax credit, further

providing for the definitions of "educational improvement

organization" and "innovative educational program."

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The definitions of "educational improvement

organization" and "innovative educational program" in section

1702-F of the act of March 4, 1971 (P.L.6, No.2), known as the

Tax Reform Code of 1971, added October 9, 2009 (P.L.451, No.48),

are amended to read:

Section 1702-F.  Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Educational improvement organization."  A nonprofit entity

which:

(1)  is exempt from Federal taxation under section 501(c)

(3) of the Internal Revenue Code of 1986 (Public Law 99-514,

26 U.S.C. § 1 et seq.); and

(2)  contributes at least 80% of its annual receipts as

grants to a public school, a chartered school as defined in

section 1376.1(a) or a private school approved in accordance

with section 1376 for innovative educational programs.

For purposes of this definition, a nonprofit entity

"contributes" its annual cash receipts when it expends or

otherwise irrevocably encumbers those funds for expenditure

during the then current fiscal year of the nonprofit entity or

during the next succeeding fiscal year of the nonprofit entity.

* * *

"Innovative educational program."  An advanced academic or

similar program that is not part of the regular academic program

of a public school but that enhances the curriculum or academic

program of [the] a public school, chartered school as defined in

section 1376.1(a) or private school approved in accordance with

section 1376, or provides pre-kindergarten programs to public

school students, students of a chartered school as defined in

section 1376.1(a) or students of a private school approved in

accordance with section 1376.

* * *

Section 2.  This act shall take effect immediately.