1Providing for Pennsylvania Workforce Investment Strategy
2Program, for Cooperative Workforce Investment Partnerships,
3for employee training programs and for Pennsylvania Workforce
4Investment Strategy Tax Credit; imposing duties on the
5Department of Community and Economic Development and the
6Department of Revenue; providing for carryover, carryback,
7refund and assignment, for pass-through entity, for
8administration, for limitation and for interim and annual
9reports.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Short title.

13This act shall be known and may be cited as the Pennsylvania
14Workforce Investment Strategy Act.

15Section 2. Definitions.

16The following words and phrases when used in this act shall
17have the meanings given to them in this section unless the
18context clearly indicates otherwise:

19"Department." The Department of Labor and Industry of the
20Commonwealth.

1"Designated representative." A designated representative of
2a business which participates in the program.

3"Local workforce investment board." As defined in section
4103 of the act of December 18, 2001 (P.L.949, No.114), known as
5the Workforce Development Act.

6"Program." The Pennsylvania Workforce Investment Strategy
7Program established in section 3(a).

8"Qualified tax liability." Tax liability imposed on a
9taxpayer under Article III, IV, VI, VII, VIII, IX, XI or XV of
10the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
11Code of 1971, excluding a tax withheld by an employer under
12Article III of the Tax Reform Code of 1971.

13"Qualifying workforce expenditure." Money spent by a
14participating business for purposes directly attributable to the
15implementation and utilization of an employee training program
16established under this act.

17"Taxpayer." A natural person, corporation, business trust,
18limited liability company, partnership, limited liability
19partnership, association or other form of legal business entity
20that:

21(1) is subject to a tax imposed under Article III, IV,
22VI, VII, VIII, IX, XI or XV of the act of March 4, 1971
23(P.L.6, No.2), known as the Tax Reform Code of 1971,
24excluding a tax withheld by an employer under Article III of
25the Tax Reform Code of 1971; and

26(2) is participating in the program.

27Section 3. Pennsylvania Workforce Investment Strategy Program.

28(a) Establishment.--There is hereby established within the
29department a program to be known as the Pennsylvania Workforce
30Investment Strategy Program.

1(b) Legislative intent.--It is the purpose of the program to
2incentivize businesses to organize and collaborate with each
3other to address common personnel needs and training shortfalls.
4Participating businesses shall, with the assistance and
5oversight of the department and the local workforce investment
6board, develop employee training programs and implement them
7utilizing preexisting infrastructure that is readily available.
8The businesses shall be eligible for a tax credit to subsidize a
9portion of their incurred expenses for participation in the
10program.

11(c) Administration.--The program shall be administered by
12the department and shall require local workforce investment
13boards to do the following:

14(1) Identify and actively solicit eligible local
15businesses organized under section 4 for participation in the
16program.

17(2) Work collaboratively with program participants to
18develop and administer training programs in conformity with
19section 5.

20(3) Assist program participants in applying for and
21securing tax credits available under this act.

22(4) Collect quantitative and qualitative data on
23critical program metrics and make a report to the department
24in accordance with section 11.

25Section 4. Cooperative Workforce Investment Partnerships.

26(a) Solicitation.--The local workforce investment board
27shall, in a manner prescribed by the department, biannually
28notify businesses in its jurisdiction of the businesses' ability
29to confederate for the purpose of participation in the program.

30(b) Name.--For the purposes of program participation,

1businesses that elect to confederate under this section shall
2form an entity known as a Cooperative Workforce Investment
3Partnership.

4(c) Unlimited participation.--There shall be no limit to the
5number of Cooperative Workforce Investment Partnerships formed
6in the jurisdiction of a local workforce investment board. There
7shall be no limit to the number of participating businesses
8within a single Cooperative Workforce Investment Partnership.

9(d) Standards for business participation.--Businesses
10forming or participating in a Cooperative Workforce Investment
11Partnership need not be linked by common industry practices,
12products, services, technologies or supply chains but must, in
13the judgment of the local workforce investment board, endure
14similar chronic or immediate personnel needs and training
15shortfalls for similar classes and types of employees who:

16(1) perform substantively similar essential job
17functions;

18(2) possess or require similar knowledge bases and
19critical skills; or

20(3) undergo similar physical demands.

21(e) Application requirements.--A business that elects to
22form a Cooperative Workforce Investment Partnership shall submit
23an application to the local workforce investment board on a form
24and in a manner promulgated by the department. An application
25must include, at minimum, the following:

26(1) date of application;

27(2) name and location of each participating business;

28(3) a declaration of interest signed by a designated
29representative of each participating business;

30(4) the relevant contact information of each designated

1representative;

2(5) the total number of full-time and part-time
3employees of each participating business and the expected
4number of employee program participants;

5(6) if applicable, the name of a labor organization that
6represents the employees of each participating business;

7(7) the chronic or immediate personnel needs and
8training shortfalls commonly endured by a participating
9business;

10(8) a basic description of proposed training curriculum
11designed to relieve or eliminate the needs and shortfalls
12described under paragraph (7);

13(9) a projection of resources needed to effectively
14implement training programs developed under section 5; and

15(10) a mutually agreeable date of commencement for the
16proposed training program.

17(f) Approval process.--The department shall approve an
18application for the formation of a Cooperative Workforce
19Investment Partnership if each business satisfies the basic
20standards for program participation in subsection (d) and
21satisfactorily demonstrates its ability and intention to work
22with the local workforce investment board to develop and
23implement a comprehensive employee training program. The
24department may remove a single business participant from the
25Cooperative Workforce Investment Partnership if the business
26does not meet the basic standards for program participation in
27subsection (d) or fails to satisfactorily demonstrate its
28ability and intention to work with the local workforce
29investment board to develop and implement a comprehensive
30employee training program.

1(g) Disbandment or removal.--The local workforce investment
2board may, with approval from the department, disband a
3Cooperative Workforce Investment Partnership or remove a single
4participating business for failure to comply with program
5requirements.

6(h) Replacement.--Consistent with the application and
7approval requirements of this section, a new Cooperative
8Workforce Investment Partnership may be instituted to replace a
9partnership that has been disbanded under subsection (g).

10(i) Business participant penalty period.--A participating
11business that has been removed from the Cooperative Workforce
12Investment Partnership may reapply in a manner consistent with
13the application and approval requirements of this section after
14serving a six-month penalty period.

15(j) Authority of department.--The department may institute
16and establish additional guidelines and procedures as are
17necessary to implement the requirements of this section.

18Section 5. Employee training programs.

19(a) Preliminary meeting.---Upon the formation of a
20Cooperative Workforce Investment Partnership, the local
21workforce investment board shall meet with a designated
22representative of each participating business to define and
23establish:

24(1) the broad needs and critical challenges facing the
25business participants, including global, national, regional,
26State and local industry trends;

27(2) infrastructure, technology and skill needs of the
28participating businesses and their employees;

29(3) immediately available resources and services;

30(4) information and resources needed to address gaps in

1the business's understanding of the business's industry;

2(5) current barriers to economic success, regional
3competitiveness, innovation, long-term financial health and
4industrial viability;

5(6) short-term and long-term personnel needs and current
6skill gaps amongst incumbent workers;

7(7) inefficiencies and inadequacies of current employee
8training programs, if applicable; and

9(8) other logistical or infrastructural barriers to
10meeting business goals and objectives.

11(b) Action plan.--In consultation and with final approval
12from the local workforce investment board, designated
13representatives of each participating business shall establish
14an action plan for the implementation of an employee training
15program. At minimum, the action plan shall include:

16(1) the name of each employee participating in the
17employee training program;

18(2) employee training program instructors and minimum
19certification;

20(3) the curriculum of the employee training program;

21(4) the venue of the employee training program;

22(5) frequency and duration of the employee training
23program; and

24(6) any and all resources needed to adequately implement
25the employee training program.

26(c) Implementation.--No employee training program may
27commence before an action plan has been submitted to and
28approved by the local workforce investment board. Upon approval
29of the action plan by the local workforce investment board, the
30Cooperative Workforce Investment Partnership may implement its

1employee training program.

2(d) Utilization of preexisting infrastructure.--An employee
3training program proposed under subsection (b) and approved
4under subsection (c) must emphasize the utilization of
5preexisting infrastructure for the purpose of training program
6implementation.

7(e) Skill-specific focus.--Curricula proposed under
8subsection (b) and approved under subsection (c) must be focused
9on providing employees with skill-specific occupational
10training.

11Section 6. Pennsylvania Workforce Investment Strategy Tax
12Credit.

13(a) Tax credit certificate.--The following apply:

14(1) A taxpayer shall complete and submit to the
15Department of Community and Economic Development a
16Pennsylvania Workforce Investment Strategy Tax Credit
17application on the form required by the Department of
18Community and Economic Development. The application must
19include the following:

20(i) name and address of the taxpayer;

21(ii) proof of participation in the program;

22(iii) documentation supporting the qualifying
23workforce expenditures; and

24(iv) any other information as requested by the
25Department of Community and Economic Development.

26(2) The Department of Community and Economic
27Development, in conjunction with the department and the
28Department of Revenue, shall review the applications on a
29first-come, first-served basis.

30(3) If the Department of Community and Economic

1Development approves the taxpayer's application, the
2Department of Community and Economic Development shall issue
3a tax credit certificate equal to 60% of the total qualifying
4workforce expenditures.

5(4) In granting tax credit certificates under this act,
6the Department of Community and Economic Development:

7(i) may not grant more than $3 million in tax credit
8certificates in fiscal year 2014-2015;

9(ii) may not grant more than $7 million in tax
10credit certificates in fiscal year 2015-2016;

11(iii) may not grant more than $10 million in tax
12credit certificates in fiscal year 2016-2017; and

13(iv) may not grant more than $75,000 in tax credit
14certificates to a single taxpayer in any fiscal year.

15(b) Claiming tax credit.--Upon presenting a tax credit
16certificate to the Department of Revenue, the taxpayer may claim
17a tax credit against the qualified tax liability.

18Section 7. Carryover, carryback, refund and assignment.

19(a) General rule.--If a qualified taxpayer cannot use the
20entire amount of the tax credit for the taxable year in which
21the tax credit is first approved, the excess may be carried over
22to succeeding taxable years and used as a credit against the
23qualified tax liability of the qualified taxpayer for those
24taxable years. When the tax credit is carried over to a
25succeeding taxable year, it shall be reduced by the amount that
26was used as a credit during the immediately preceding taxable
27year. The tax credit provided by this act may be carried over
28and applied to succeeding taxable years for not more than seven
29taxable years following the first taxable year for which the
30qualified taxpayer was entitled to claim the credit.

1(b) Application.--A tax credit certificate received by the
2department in a taxable year first shall be applied against the
3qualified taxpayer's qualified tax liability for the current
4taxable year as of the date on which the credit was issued
5before the tax credit can be applied against any qualified tax
6liability under subsection (a).

7(c) No carryback or refund.--A qualified taxpayer may not
8carry back or obtain a refund of all or any portion of an unused
9tax credit granted to the qualified taxpayer under this act.

10(d) Sale or assignment.--The following shall apply:

11(1) A qualified taxpayer, upon application to and
12approval by the Department of Community and Economic
13Development, may sell or assign, in whole or in part, a tax
14credit granted to the qualified taxpayer under this act.

15(2) Before an application is approved, the department
16must find that the applicant filed the required State tax
17reports and returns for all applicable taxable years and paid
18any balance of State tax due as determined at settlement,
19assessment or determination by the department.

20(e) Purchasers and assignees.--The purchaser or assignee of
21all or a portion of a tax credit obtained under section 6 shall
22immediately claim the credit in the taxable year in which the
23purchase or assignment is made. The purchaser or assignee may
24not carry forward, carry back or obtain a refund of or sell or
25assign the tax credit. The purchaser or assignee shall notify
26the department of the seller or assignor of the tax credit in
27compliance with procedures specified by the department.

28Section 8. Pass-through entity.

29(a) General rule.--If a pass-through entity has any unused
30tax credit under section 6, it may elect in writing, according

1to procedures established by the department, to transfer all or
2a portion of the credit to shareholders, members or partners in
3proportion to the share of the entity's distributive income to
4which the shareholder, member or partner is entitled.

5(b) Limitation.--A pass-through entity and a shareholder,
6member or partner of a pass-through entity may not claim the
7credit under subsection (a) for the same qualified expenditure.

8(c) Application.--A shareholder, member or partner of a
9pass-through entity to whom a credit is transferred under
10subsection (a) shall immediately claim the credit in the taxable
11year in which the transfer is made. The shareholder, member or
12partner may not carry forward, carry back, obtain a refund of or
13sell or assign the credit.

14Section 9. Administration.

15The Department of Community and Economic Development, the
16Department of Revenue and the department shall jointly develop
17written guidelines for the implementation of the tax credit
18provisions of this act.

19Section 10. Limitation.

20A taxpayer may not apply for or utilize tax credits after
21June 30, 2018.

22Section 11. Interim and annual reports.

23(a) Interim reports.--A local workforce investment board
24that has participated in the program shall, in a manner
25promulgated by the department, submit a biannual report to the
26department in accordance with subsection (c).

27(b) Annual report.--On an annual basis, the department shall
28compile the interim reports collected under subsection (a) and
29submit a final report in accordance with subsection (c) to:

30(1) the Governor;

1(2) the Auditor General;

2(3) the chairman and minority chairman of the
3Appropriations Committee of the Senate;

4(4) the chairman and minority chairman of the Labor and
5Industry Committee of the Senate;

6(5) the chairman and minority chairman of the
7Appropriations Committee of the House of Representatives; and

8(6) the chairman and minority chairman of the Labor and
9Industry Committee of the House of Representatives.

10(c) Report contents.--In addition to information or analysis
11deemed necessary by the department, the interim and final
12reports must include, at minimum, the number of Cooperative
13Workforce Investment Partnerships formed, employee training
14programs implemented, program participation, notable progress
15and outcomes for program participants and financial costs
16endured.

17Section 12. Effective date.

18This act shall take effect immediately.