PRINTER'S NO. 520

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

496

Session of

2017

INTRODUCED BY SCHLOSSBERG, CHARLTON, BULLOCK, DONATUCCI,

DRISCOLL, LONGIETTI, MADDEN, McNEILL, NEILSON, O'BRIEN,

ROEBUCK, ROZZI, SAYLOR, SCHWEYER AND SIMMONS,

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," providing for livable home tax credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 4, 1971 (P.L.6, No.2), known as

Section 1802-H. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Credit." The livable home tax credit provided for under

this article.

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Purchase of a new residence." A transaction involving the

first sale of a residence or dwelling.

(a) General rule.--For taxable years beginning on or after

January 1, 2018, a taxpayer who purchases a new residence or

renovates an existing residence shall be allowed a credit

against the tax imposed under section 302 if the new residence

or the renovation of the existing residence is designed to

improve accessibility, provide universal visitability and meets

the eligibility requirements established by guidelines developed

by the department.

(b) Limitation.--The credit shall be allowed for the taxable

year in which the residence is purchased or the renovation of

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the taxpayer as provided under section 1805-H.

(d) Exception.--The provisions of this section shall not be

applicable for taxable years beginning on or after January 1,

2019.

Section 1804-H. Tax credit for taxable years beginning on or

after January 1, 2019.

(a) General rule.--For taxable years beginning on or after

January 1, 2019, a taxpayer shall be allowed a credit against

eligibility requirements established by guidelines developed by

the department.

(b) Construction contractors.--A construction contractor

shall be allowed a credit against the tax imposed under section

302 for a portion of the total amount it expended in

constructing a new residential structure or unit or renovating

an existing residential structure or unit if the new residential

structure or unit or the renovating of the existing residential

structure or unit is designed to improve accessibility, provide

universal visitability and meets the eligibility requirements

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construction of each new residential structure or unit; or

(2) 50% of the total amount expended, not to exceed

$5,000, for the renovation of each existing residence or

residential structure or unit.

(d) Prohibition.--No credit may be allowed under this

section for the purchase, construction or renovation of

residential rental property.

Section 1805-H. Procedure.

under this article for a fiscal year shall not exceed

$1,000,000. In each year, the department shall allocate $500,000

in credits for the purchase or construction of new residences

and $500,000 in credits for the renovation of existing

residences or residential structures or units. If the amount of

credits approved in a fiscal year for the purchase or

construction of new residences is less than $500,000, the

secretary shall allocate the remaining balance of the credits

for the renovation of existing residences or residential

structures or units. If the amount of credits approved in a

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fiscal year, the department shall issue the credits pro rata

based upon the amount of credit approved for each person and the

amount of credits allocated by the secretary. The secretary may

not:

(1) issue a credit relating to transactions or dealings

between affiliated entities; or

(2) issue a credit more than once to the same or

different persons relating to the same renovation or

construction or renovation of the residence or residential

structure or unit is completed exceeds the person's income tax

liability imposed for the taxable year, the amount that exceeds

the tax liability may be carried over for credit against the

income taxes of the person in the next seven taxable years or

until the total amount of the credit issued has been taken,

whichever is sooner.

(b) Credits to certain business entities.--Credits granted

to a partnership, limited liability company or electing small

business corporation (S corporation) shall be allocated to the

Section 2. This act shall take effect in 60 days.

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