1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," providing for definitions; further providing for
11public policy and for tax credit; providing for neighborhood
12assistance contribution; further providing for grant of tax
13credit and for decision in writing; and providing for
14limitations.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

17Section 1. Section 1902-A of the act of March 4, 1971
18(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
19by adding definitions to read:

20Section 1902-A. Definitions.--The following words, terms and
21phrases, when used in this article, shall have the meanings
22ascribed to them in this section, except where the context
23clearly indicates a different meaning:

1* * *

2"Neighborhood assistance contribution." An amount equal to
3100% of withholding tax related to each new job created by the
4nonprofit entity after the effective date of this definition.

5* * *

6"New job." A full-time job, the average hourly rate,
7excluding benefits, of which must be at least 150% of the
8Federal minimum wage, created within a municipality located in
9this Commonwealth by a nonprofit entity.

10"Nonprofit entity." An entity with fewer than 300 employees
11which is incorporated as a not-for-profit entity under the laws
12of this Commonwealth and which is tax exempt under section
13501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-
14514, 26 U.S.C. § 501(c)(3).

15* * *

16"Withholding tax." The amount a nonprofit entity is required
17to withhold from employee compensation under Part VII of Article
18III.

19Section 2. Section 1903-A of the act, added June 16, 1994
20(P.L.279, No.48), is amended to read:

21Section 1903-A. Public Policy.--It is hereby declared to be 
22public policy of this Commonwealth to encourage investment by 
23business firms and nonprofit entities in offering neighborhood 
24assistance and providing job training, education, crime 
25prevention and community services, to encourage contributions by 
26business firms and nonprofit entities to neighborhood 
27organizations which offer and provide such assistance and 
28services and to promote qualified investments made by private 
29companies and nonprofit entities to rehabilitate, expand or 
30improve buildings or land which promote community economic 

1development and which occur in impoverished areas or portions of 
2impoverished areas which have been designated as enterprise 
3zones.

4Section 3. Section 1904-A of the act, amended July 25, 2007
5(P.L.373, No.55) and July 2, 2012 (P.L.751, No.85), is amended
6to read:

7Section 1904-A. Tax Credit.--(a) Any business firm which
8engages or contributes to a neighborhood organization which
9engages in the activities of providing neighborhood assistance,
10comprehensive service projects, job training or education for
11individuals, community services or crime prevention in an
12impoverished area or private company which makes qualified
13investment to rehabilitate, expand or improve buildings or land
14located within portions of impoverished areas which have been
15designated as enterprise zones shall receive a tax credit as
16provided in section 1905-A if the secretary annually approves
17the proposal of such business firm or private company. The
18proposal shall set forth the program to be conducted, the
19impoverished area selected, the estimated amount to be invested
20in the program and the plans for implementing the program.

21(b) The secretary is hereby authorized to promulgate rules
22and regulations for the approval or disapproval of such
23proposals by business firms or private companies. The secretary
24shall provide a report listing of all applications received and
25their disposition in each fiscal year to the General Assembly by
26October 1 of the following fiscal year. The secretary's report
27shall include all taxpayers utilizing the credit and the amount
28of credits approved, sold or assigned. Notwithstanding any law
29providing for the confidentiality of tax records, the
30information in the report shall be public information, and all

1report information shall be posted on the secretary's Internet
2website.

3(b.1) The secretary shall take into special consideration,
4when approving applications for neighborhood assistance tax
5credits, applications which involve:

6(1) multiple projects in various markets throughout this
7Commonwealth; and

8(2) charitable food programs.

9(b.2) The secretary, in cooperation with the Department of
10Agriculture, shall promulgate guidelines for the approval or
11disapproval of applications for tax credits by business firms
12that contribute food or money to charitable food programs.

13(c) [The total amount of tax credit granted for programs
14approved under this act shall not exceed eighteen million
15dollars ($18,000,000) of tax credit in any fiscal year.]
16(Reserved).

17(d) A taxpayer, upon application to and approval by the
18Department of Community and Economic Development, may
19immediately sell or assign, in whole or in part, a neighborhood
20assistance tax credit granted to the business firm under this
21article [if no claim for allowance of the credit is filed within
22one year from the date the credit is granted by the Department
23of Revenue under section 1905-A]. The Department of Community
24and Economic Development and the Department of Revenue shall
25jointly promulgate guidelines for the approval of applications
26under this subsection.

27(e) The purchaser or assignee of a neighborhood assistance
28tax credit under subsection (d) shall immediately claim the
29credit in the taxable year in which the purchase or assignment
30is made. The purchaser or assignee may not carry over, carry

1back, obtain a refund of or sell or assign the neighborhood
2assistance tax credit. The purchaser or assignee shall notify
3the Department of Revenue of the seller or assignor of the
4neighborhood assistance tax credit in compliance with procedures
5specified by the Department of Revenue.

6(f) The neighborhood assistance tax credit approved by the
7Department of Community and Economic Development shall be
8applied against the business firm's tax liability for the taxes
9under section 1905-A for the current taxable year as of the date
10on which the credit was approved before the neighborhood
11assistance tax credit may be carried over, sold or assigned.

12Section 4. The act is amended by adding a section to read:

13Section 1904.1-A. Neighborhood Assistance Contribution.--(a)
14(1) A nonprofit entity may make a neighborhood assistance
15contribution to a neighborhood organization which engages in the
16activities of providing neighborhood assistance, comprehensive
17service projects, job training or education for individuals,
18community services or crime prevention in an impoverished area
19or may make a qualified investment to rehabilitate, expand or
20improve buildings or land located in an impoverished area if the
21secretary annually approves the proposal of the nonprofit
22entity.

23(2) The proposal under paragraph (1) shall set forth the
24program in which the contribution will be made, the impoverished
25area selected, the estimated amount to be contributed to the
26program and the plans for implementing the program.

27(b) The secretary is authorized to promulgate rules and
28regulations for the approval or disapproval of neighborhood
29assistance contributions by nonprofit entities under this
30section. The secretary shall provide a report listing all

1applications received and their disposition in each fiscal year
2to the General Assembly by October 1 of the following fiscal
3year. The secretary's report shall include all nonprofit
4entities making neighborhood assistance contributions and the
5amount of contributions made. Notwithstanding any law providing
6for the confidentiality of tax records, the information in the
7report shall be public information and all report information
8shall be posted on the Department of Community and Economic
9Development's Internet website.

10(c) The secretary shall take into special consideration,
11when approving applications for neighborhood assistance
12contributions, applications which involve multiple projects in
13various markets throughout this Commonwealth.

14(d) A nonprofit entity may make a neighborhood assistance
15contribution for each new job created, as approved by the
16department, for a three-year period beginning in the year in
17which the new job is created. Upon completion of the three-year
18period, the nonprofit entity shall remit the tax contribution to
19the Commonwealth as required under Part VII of Article III.

20(e) A nonprofit entity may not claim more than two hundred
21fifty thousand dollars ($250,000) in neighborhood assistance
22contributions in any taxable year.

23Section 5. Section 1905-A of the act, amended July 25, 2007
24(P.L.373, No.55), is amended to read:

25Section 1905-A. Grant of Tax Credit.--The Department of
26Revenue shall grant a tax credit against any tax due under
27Article III, IV, VI, VII, VIII, IX or XV of this act, or any tax
28substituted in lieu thereof in an amount which shall not exceed
29fifty-five per cent of the total amount contributed during the
30taxable year by a business firm or twenty-five per cent of

1qualified investments by a private company in programs approved
2pursuant to section 1904-A of this act: Provided, That a tax
3credit of up to seventy-five per cent of the total amount
4contributed during the taxable year by a business firm or up to
5thirty-five per cent of the amount of qualified investments by a
6private company may be allowed for investment in programs where
7activities fall within the scope of special program priorities
8as defined with the approval of the Governor in regulations
9promulgated by the secretary, and Provided further, That a tax
10credit of up to seventy-five per cent of the total amount
11contributed during the taxable year by a business firm in
12comprehensive service projects with five-year commitments and up
13to eighty per cent of the total amount contributed during the
14taxable year by a business firm in comprehensive service
15projects with six-year or longer commitments shall be granted.
16Such credit shall not exceed five hundred thousand dollars
17($500,000) annually for contributions or investments to fewer
18than four projects or one million two hundred fifty thousand
19dollars ($1,250,000) annually for contributions or investments
20to four or more projects. No tax credit shall be granted to any
21bank, bank and trust company, insurance company, trust company,
22national bank, savings association, mutual savings bank or
23building and loan association for activities that are a part of
24its normal course of business. Any tax credit not used in the
25period the contribution or investment was made may be carried
26over for the next five succeeding calendar or fiscal years until
27the full credit has been allowed. A business firm shall not be
28entitled to carry back or obtain a refund of an unused tax
29credit. [The total amount of all tax credits allowed pursuant to
30this act shall not exceed eighteen million dollars ($18,000,000)

1in any one fiscal year. Of that amount, two million dollars
2($2,000,000) shall be allocated exclusively for pass-through
3entities. However, if the total amounts allocated to either the
4group of applicants, exclusive of pass-through entities, or the
5group of pass-through entity applicants is not approved in any
6fiscal year, the unused portion shall become available for use
7by the other group of qualifying taxpayers.]

8Section 6. Section 1906-A of the act, amended May 7, 1997
9(P.L.85, No.7), is amended to read:

10Section 1906-A. Decision in Writing.--The decision of the
11secretary to approve or disapprove a proposal pursuant to
12section 1904-A [of this act] or 1904.1-A shall be in writing,
13and, if it approves the proposal, it shall state the maximum
14credit allowable to the business firm or contribution allowable 
15by the nonprofit entity. A copy of the decision of the secretary
16shall be transmitted to the Governor and to the Secretary of
17Revenue.

18Section 7. The act is amended by adding a section to read:

19Section 1908-A. Limitations.--The total amount of all tax
20credits and neighborhood assistance contributions allowed
21pursuant to this act shall not exceed eighteen million dollars
22($18,000,000) in any one fiscal year. Of that amount, two
23million dollars ($2,000,000) shall be allocated exclusively for
24pass-through entities, except that if the total amounts
25allocated to either the group of applicants, exclusive of pass-
26through entities, or the group of pass-through entity applicants
27are not approved in any fiscal year, the unused portion shall
28become available for use by the other group of qualifying
29taxpayers.

30Section 8. This act shall take effect in 60 days.