PRINTER'S NO. 410
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
414
Session of
2017
INTRODUCED BY RAFFERTY, GREENLEAF, SCAVELLO, YUDICHAK, COSTA AND
BOSCOLA, FEBRUARY 27, 2017
REFERRED TO FINANCE, FEBRUARY 27, 2017
AN ACT
Providing for tax credits to employers against their corporate
net income tax liability for hiring employees 55 years of age
or older for full-time employment.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Continued
Employment Tax Credit Act.
Section 2. Legislative intent.
The General Assembly finds and declares as follows:
(1) The public policy of this Commonwealth is to provide
all its citizens with the opportunity to work.
(2) One obstacle to many is acquiring sustainable
employment in a highly competitive job market.
(3) The Commonwealth wishes to acknowledge those
businesses that consider the interests and needs of their
employees.
(4) The policy stated in this section can be achieved by
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providing a tax credit against the corporate net income tax
liability to employers who hire a full-time employee 55 years
of age or older.
Section 3. Authorization of tax credit.
To be eligible to receive a tax credit against tax due from
an employer under Article IV of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, and against the
payment of estimated tax or payment of tentative tax due from
the employer on account of the taxes a taxpayer that is an
employer, with at least four employees, engaged in a for-profit
business enterprise must hire a full-time employee who:
(1) is 55 years of age or older; and
(2) has not been employed during the one-year period
prior to being hired by the taxpayer.
Section 4. Limitations on tax credits.
Tax credits awarded under this act shall be subject to the
following:
(1) Unused tax credits may be carried forward two years
from the date they are awarded. If not used within this time
period, the tax credits shall expire.
(2) Tax credits may not be refundable.
(3) Tax credits may not be transferable.
(4) Except in cases where an eligible employee
voluntarily leaves the employment of the taxpayer, becomes
disabled or is terminated for cause, no taxpayer shall be
entitled to receive the tax credit if the employee is
employed by the taxpayer for less than one year.
(5) If an eligible employee leaves the employment of the
taxpayer voluntarily, becomes disabled or is terminated for
cause in less than one year, the tax credit shall be reduced
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by the proportion of the year not worked.
(6) Tax credits under Article IV of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
shall be in lieu of an allowance for depreciation of property
claimed and allowable under section 168 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. ยง 168).
(7) The amount of the tax credit allowed shall not
exceed the amount of the tax otherwise due from the employer
for the taxable year.
Section 5. Amount of tax credit.
For tax years beginning after December 31, 2014, a tax credit
against the tax imposed under Article IV of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, shall
be awarded to each taxpayer eligible under section 3. The amount
of tax credit shall be equal to the lesser of $10,000 or 10% of
the employee's qualified first-year wages for the year.
Section 6. Effective date.
This act shall take effect in 60 days.
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