1Providing for tax incentives for employers who provide child
2day-care services for employees.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1.  Short title.

6This act shall be known and may be cited as the Employee
7Child Day-Care Tax Incentive Act.

8Section 2.  Definitions.

9The following words and phrases when used in this act shall
10have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Department."  The Department of Revenue of the Commonwealth.

13"Employee."  An individual who provides services to another
14person in return for compensation. The term includes an
15independent contractor.

16"Employee child day care."  Care for a preschool child of an
17employee during the working hours of the employee.

1"Employer."  A person who receives services from an
2individual in return for compensation.

3"Furnish employee child day care."  To do any of the
4following:

5(1)  Provide for employee child day care, regardless of
6whether the care is provided on the premises of the employer.

7(2)  Reimburse an employee for any portion of the cost of
8employee child day care.

9Section 3.  Tax credit.

10(a)  Eligibility.--An employer who furnishes employee child
11day care is eligible for a tax credit under subsection (b) in
12the amount of the employer's cost in furnishing employee child
13day care.

14(b)  Use.--An employer who is eligible under subsection (a)
15may utilize the tax credit as follows:

16(1)  If the employer is an individual, the credit is
17available for the individual against the tax imposed under
18Article III of the act of March 4, 1971 (P.L.6, No.2), known
19as the Tax Reform Code of 1971.

20(2)  If the employer is a partnership or unincorporated
21association, the credit is available on a pro rata basis for
22each partner or member against the tax imposed under Article
23III of the Tax Reform Code of 1971.

24(3)  If the employer is a corporation, the credit is
25available against the tax imposed under Article IV of the Tax
26Reform Code of 1971.

27Section 4.  Department.

28The department shall promulgate regulations to administer
29this act.

30Section 19.  Applicability.

1This act shall apply to taxable years beginning after
2December 31, 2012.

3Section 20.  Effective date.

4This act shall take effect immediately.