Regular Session 2015-2016 House Bill 1501 P.N. 2344

PRINTER'S NO. 2344

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1501

Session of

2015

INTRODUCED BY CALTAGIRONE, SCHLOSSBERG, MURT, McNEILL,

YOUNGBLOOD, ROZZI, D. COSTA, COHEN, ACOSTA, HARHAI, HARKINS,

DAVIS, BULLOCK, KORTZ AND THOMAS, OCTOBER 14, 2015

REFERRED TO COMMITTEE ON URBAN AFFAIRS, OCTOBER 14, 2015

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 neighborhood assistance tax credit, further

providing for definitions, for public policy, for tax credit

and for grant of tax credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definition of "community services" in section

1902-A of the act of March 4, 1971 (P.L.6, No.2), known as the

Tax Reform Code of 1971, amended July 2, 2012 (P.L.751, No.85),

is amended and the section is amended by adding definitions to

read:

Section 1902-A. Definitions.--The following words, terms and

phrases, when used in this article, shall have the meanings

ascribed to them in this section, except where the context

clearly indicates a different meaning:

* * *

"Community services." Any type of counseling and advice,

emergency assistance, food assistance, homeless housing

assistance or medical care furnished to individuals or groups in

an impoverished area.

* * *

"Homeless housing assistance." A program or project designed

to prevent or reduce homelessness or provide greater access to

housing or shelter for individuals who are homeless or at

immediate risk of becoming homeless.

* * *

"Land bank jurisdiction." As defined in 68 Pa.C.S. § 2103

(relating to definitions).

* * *

Section 2. Section 1903-A of the act, added June 16, 1994

(P.L.279, No.48), is amended to read:

Section 1903-A. Public Policy.--It is hereby declared to be

public policy of this Commonwealth to encourage investment by

business firms in offering neighborhood assistance and providing

job training, education, crime prevention and community

services, to encourage contributions by business firms to

neighborhood organizations which offer and provide such

assistance and services and to promote qualified investments

made by private companies to rehabilitate, expand or improve

buildings or land which promote community economic development

and which occur in portions of impoverished areas which have

been designated as enterprise zones[.] or, in a case involving

homeless housing assistance, which are located in a land bank

jurisdiction.

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Section 3. Section 1904-A(a), (b.1) and (c) of the act,

amended July 25, 2007 (P.L.373, No.55) and July 2, 2012

(P.L.751, No.85), are amended and the section is amended by

adding a subsection to read:

Section 1904-A. Tax Credit.--(a) Any business firm which

engages or contributes to a neighborhood organization which

engages in the activities of providing neighborhood assistance,

comprehensive service projects, job training or education for

individuals, community services or crime prevention in an

impoverished area or private company which makes qualified

investment to rehabilitate, expand or improve buildings or land

located within portions of impoverished areas which have been

designated as enterprise zones or, in a case involving homeless

housing assistance, which are located in a land bank

jurisdiction shall receive a tax credit as provided in section

1905-A if the secretary annually approves the proposal of such

business firm or private company. The proposal shall set forth

the program to be conducted, the impoverished area selected, the

estimated amount to be invested in the program and the plans for

implementing the program.

* * *

(b.1) The secretary shall take into special consideration,

when approving applications for neighborhood assistance tax

credits, applications which involve:

(1) multiple projects in various markets throughout this

Commonwealth; and

(2) charitable food programs[.]; and

(3) homeless housing assistance.

* * *

(b.3) The secretary, in cooperation with the Department of

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Human Services, shall promulgate guidelines for the approval or

disapproval of applications for tax credits by business firms

that provide homeless housing assistance.

approved under this act shall not exceed [eighteen million

dollars ($18,000,000)] thirty-five million dollars ($35,000,000)

of tax credit in any fiscal year.

* * *

Section 4. Section 1905-A of the act, amended July 25, 2007

(P.L.373, No.55), is amended to read:

Section 1905-A. Grant of Tax Credit.--The Department of

Revenue shall grant a tax credit against any tax due under

Article III, IV, VI, VII, VIII, IX or XV of this act, or any tax

substituted in lieu thereof in an amount which shall not exceed

fifty-five per cent of the total amount contributed during the

taxable year by a business firm or twenty-five per cent of

qualified investments by a private company in programs approved

pursuant to section 1904-A of this act: Provided, That a tax

credit of up to seventy-five per cent of the total amount

contributed during the taxable year by a business firm or up to

thirty-five per cent of the amount of qualified investments by a

private company may be allowed for investment in programs where

activities fall within the scope of special program priorities

as defined with the approval of the Governor in regulations

promulgated by the secretary, and Provided further, That a tax

credit of up to seventy-five per cent of the total amount

contributed during the taxable year by a business firm in

comprehensive service projects with five-year commitments and up

to eighty per cent of the total amount contributed during the

taxable year by a business firm in comprehensive service

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projects with six-year or longer commitments shall be granted.

Such credit shall not exceed five hundred thousand dollars

($500,000) annually for contributions or investments to fewer

than four projects or one million two hundred fifty thousand

dollars ($1,250,000) annually for contributions or investments

to four or more projects. No tax credit shall be granted to any

bank, bank and trust company, insurance company, trust company,

national bank, savings association, mutual savings bank or

building and loan association for activities that are a part of

its normal course of business. Any tax credit not used in the

period the contribution or investment was made may be carried

over for the next five succeeding calendar or fiscal years until

the full credit has been allowed. A business firm shall not be

entitled to carry back or obtain a refund of an unused tax

credit. The total amount of all tax credits allowed pursuant to

this act shall not exceed [eighteen million dollars

($18,000,000)] thirty-five million dollars ($35,000,000) in any

one fiscal year. Of that amount, two million dollars

($2,000,000) shall be allocated exclusively for pass-through

entities. However, if the total amounts allocated to either the

group of applicants, exclusive of pass-through entities, or the

group of pass-through entity applicants is not approved in any

fiscal year, the unused portion shall become available for use

by the other group of qualifying taxpayers.

Section 5. This act shall take effect in 60 days.

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