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PRINTER'S NO. 3513
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2418
Session of
2018
INTRODUCED BY WHEATLEY, MURT, READSHAW, BULLOCK, DRISCOLL,
D. COSTA, ROZZI, O'BRIEN, GAINEY, SIMS, McNEILL, SCHLOSSBERG,
CALTAGIRONE, NEILSON, BIZZARRO, KORTZ, McCLINTON AND KINSEY,
MAY 8, 2018
REFERRED TO COMMITTEE ON FINANCE, MAY 8, 2018
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 personal income tax, further providing for
classes of income; and, in corporate net income tax, further
providing for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a subsection to read:
Section 303. Classes of Income.--* * *
(a.10) The following apply:
(1) An additional deduction shall be allowed from taxable
income for an employer's qualified first-year wages on the
annual personal income tax return , which shall be in the
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following amount:
(i) Ten per cent deduction for not less than 120 hours
worked and thirty per cent deduction for not less than 400 hours
worked for an employe who is a veteran of the United States
Armed Forces or National Guard and:
(A) is a member of a family receiving assistance from the
Supplemental Nutrition Assistance Program (SNAP) for at least
three months during a fifteen-month period ending on the hiring
date;
(B) was hired within one year of discharge or release from
active duty or was unemployed for at least six months in the
year ending on the hiring date and is entitled to compensation
for a service-connected disability; or
(C) has had aggregate periods of unemployment of not less
than four weeks and not more than six months during the one-year
period ending on the employe's hiring date.
(ii) Nine per cent deduction for not less than 120 hours
worked and twenty-seven per cent deduction for not less than 400
hours worked for an employe receiving Temporary Assistance for
Needy Families (TANF).
(iii) Eight per cent deduction for not less than 120 hours
worked and twenty-four per cent deduction for not less than 400
hours worked for an employe who was not less than 18 years of
age nor more than 39 years of age at the employe's hiring date
and is a member of a family that:
(A) has received assistance from SNAP for six months during
the one-year period ending on the hiring date; or
(B) received assistance from SNAP for a total of three
months during the five months ending on the employe's hiring
date.
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(iv) Seven per cent deduction for not less than 120 hours
worked and twenty-one per cent deduction for not less than 400
hours worked for an employe who has received rehabilitative
assistance under the act of December 20, 1988 (P.L.1306,
No.167), known as the Vocational Rehabilitation Act.
(v) Six per cent deduction for not less than 120 hours
worked and eighteen per cent deduction for not less than 400
hours worked for an employe who has been convicted of a felony
and was hired not more than one year after the employe was
convicted or released from prison, whichever is later.
(vi) Five per cent deduction for not less than 120 hours
worked and fifteen per cent deduction for not less than 400
hours worked for an employe who received Federal Supplemental
Security Income (SSI) during any month ending within the sixty-
day period prior to the employe's hiring date.
(2) The department may request any documentation the
department deems necessary from an employer to verify that the
employer qualifies for the deduction under this subsection.
(3) The deduction under this subsection shall not result in
taxable income being less than zero.
(4) For the purposes of this subsection, the following terms
or phrases shall have the following meanings:
(i) "Hiring date" means the date on which the employer hired
an employe.
(ii) "Qualified first-year wages" means the qualified wages
paid to an employe for services rendered during the one-year
period beginning on the employe's hiring date.
(iii) "Qualified wages" means the wages paid or incurred by
an employer during the taxable year to a member of an employe
group listed under paragraph (1).
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(iv) "Veteran" means a former member of the military or
naval service of the United States or National Guard who:
(A) served on active duty for more than one hundred eighty
days;
(B) was discharged or released from active duty for a
service-connected disability; or
(C) was not on active duty during the sixty-day period
ending on the hiring date.
* * *
Section 2. Section 401(3)1 of the act is amended by adding a
phrase to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(3) "Taxable income." * * *
(b.2) The following apply:
(1) An additional deduction shall be allowed from taxable
income for an employer's qualified first-year wages, which shall
be in the following amount:
(i) Ten per cent deduction for not less than 120 hours
worked and thirty per cent deduction for not less than 400 hours
worked for an employe who is a veteran of the United States
Armed Forces or National Guard and:
(A) is a member of a family receiving assistance from the
Supplemental Nutrition Assistance Program (SNAP) for at least
three months during a fifteen-month period ending on the hiring
date;
(B) was hired within one year of discharge or release from
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active duty or was unemployed for at least six months in the
year ending on the hiring date and is entitled to compensation
for a service-connected disability; or
(C) has had aggregate periods of unemployment of not less
than four weeks and not more than six months during the one-year
period ending on the employe's hiring date.
(ii) Nine per cent deduction for not less than 120 hours
worked and twenty-seven per cent deduction for not less than 400
hours worked for an employe receiving Temporary Assistance for
Needy Families (TANF).
(iii) Eight per cent deduction for not less than 120 hours
worked and twenty-four per cent deduction for not less than 400
hours worked for an employe who was not less than 18 years of
age nor more than 39 years of age at the employe's hiring date
and is a member of a family that:
(A) has received assistance from the SNAP for six months
during the one-year period ending on the hiring date; or
(B) received assistance from the SNAP for a total of three
months during the five months ending on the employe's hiring
date.
(iv) Seven per cent deduction for not less than 120 hours
worked and twenty-one per cent deduction for not less than 400
hours worked for an employe who has received rehabilitative
assistance under the act of December 20, 1988 (P.L.1306,
No.167), known as the Vocational Rehabilitation Act.
(v) Six per cent deduction for not less than 120 hours
worked and eighteen per cent deduction for not less than 400
hours worked for an employe who has been convicted of a felony
and was hired not more than one year after the employe was
convicted or released from prison, whichever is later.
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(vi) Five per cent deduction for not less than 120 hours
worked and fifteen per cent deduction for not less than 400
hours worked for an employe who received Federal Supplemental
Security Income (SSI) during any month ending within the sixty-
day period prior to the employe's hiring date.
(2) The department may request any documentation the
department deems necessary from an employer to verify that the
employer qualifies for the deduction under this phrase.
(3) The deduction under this phrase shall not result in
taxable income being less than zero.
(4) For the purposes of this phrase, the following terms or
phrases shall have the following meanings:
(i) "Hiring date" means the date on which the employer hired
an employe.
(ii) "Qualified first-year wages" means the qualified wages
paid to an employe for services rendered during the one-year
period beginning on the employe's hiring date.
(iii) "Qualified wages" means the wages paid or incurred by
an employer during the taxable year to a member of an employe
group listed under paragraph (1).
(iv) "Veteran" means a former member of the military or
naval service of the United States or National Guard who:
(A) served on active duty for more than one hundred eighty
days;
(B) was discharged or released from active duty for a
service-connected disability; or
(C) was not on active duty during the sixty-day period
ending on the hiring date.
* * *
Section 3. This act shall take effect in 60 days.
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