PRINTER'S NO. 1841
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1263
Session of
2015
INTRODUCED BY HUGHES, SCHWANK, BREWSTER, FONTANA, COSTA, HAYWOOD
AND WILLIAMS, MAY 18, 2016
REFERRED TO FINANCE, MAY 18, 2016
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 and for tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "neighborhood organization" 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 May 7, 1997 (P.L.85,
No.7), is amended and the section is amended by adding a
definition 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:
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"Affordable housing." Housing that serves median-income,
low-income, very low-income and extremely low-income families as
those terms are defined in section 3 of the United States
Housing Act of 1937 (50 Stat. 888, 42 U.S.C. § 1437 et seq.)
based on the area median income as determined by the Federal
Housing Finance Agency.
* * *
"Neighborhood organization." Any organization performing
community services, offering neighborhood assistance or
providing job training, affordable housing, education or crime
prevention in an impoverished area, holding a ruling from the
Internal Revenue Service of the United States Department of the
Treasury that the organization is exempt from income taxation
under the provisions of the Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. § 1 et seq.) and approved by the
Department of Community [Affairs] and Economic Development.
* * *
Section 2. Section 1904-A(a) of the act, amended July 25,
2007 (P.L.373, No.55), is amended 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, affordable housing, 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 shall receive a
tax credit as provided in section 1905-A if the secretary
annually approves the proposal of such business firm or private
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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.
* * *
Section 3. This act shall take effect in 60 days.
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