1Providing for a State tax credit program for work provided by a
2licensed vocational facility to a business under contract
3with the facility.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Vocational
8Facility Service Contract Tax Credit Act.

9Section 2. Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Business firm." A corporation, partnership or sole 
14proprietorship authorized to do business in this Commonwealth 
15and subject to taxes imposed under Article III, IV, VI, VII, 
16VIII, IX or XV of the act of March 4, 1971 (P.L.6, No.2), known 
17as the Tax Reform Code of 1971.

18"Credit." A vocational facility service contract tax credit 

1provided to businesses under contract with licensed vocational 
2facilities.

3"Department." The Department of Revenue of the 
4Commonwealth."

5"Vocational facility." An organization through which 
6rehabilitative, habilitative or handicapped employment or 
7employment training is provided to one or more disabled clients 
8for part of a 24-hour day and is licensed under 55 Pa. Code Ch. 
92390 (relating to vocational facilities) or an agency affiliated 
10with the Pennsylvania Industries for the Blind and Handicapped.

11"Work." Commercial activities that improve employment 
12opportunities for individuals who have disabilities, including, 
13but not limited to, production, packaging, assembly, food 
14service, custodial service and clerical service.

15Section 3. Authorization of credit.

16(a) General rule.--Subject to the limitations provided in
17subsection (b), a business firm may claim as a credit against
18the taxes imposed by the Commonwealth an amount equal to 5% of
19the annual amount that the business firm paid in the taxable
20year to a vocational facility for work performed by the facility
21for the business firm pursuant to a contract. The department
22shall grant a tax credit against a tax liability owed to the
23department by a business firm that provides proof of a contract
24with a vocational facility for work paid for in the taxable
25year.

26(b) Limitation.--The maximum amount that a business firm may
27claim under this section in a taxable year is $25,000 for each
28vocational facility with which the business firm contracts for
29work to be performed.

30Section 4. Applicability.

1This act shall apply to taxable years beginning after
2December 31, 2013.

3Section 5. Expiration.

4This act shall expire July 1, 2019.

5Section 20. Effective date.

6This act shall take effect July 1, 2013, or immediately,
7whichever is later.