Regular Session 2017-2018 Senate Bill 1280 P.N. 2138

PRINTER'S NO. 2138

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1280

Session of

2018

INTRODUCED BY VULAKOVICH, NOVEMBER 13, 2018

REFERRED TO FINANCE, NOVEMBER 13, 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," providing for National Guard service 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

the Tax Reform Code of 1971, is amended by adding an article to

read:

ARTICLE XVIII-H

NATIONAL GUARD SERVICE TAX CREDIT

Section 1801-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:

"Department." The Department of Revenue of the Commonwealth.

"Qualified tax liability." The liability for taxes imposed

under Article III for the taxable year beginning after December

31, 2018, and ending before January 1, 2020, and each taxable

year thereafter.

"Tax credit." The tax credit under this article.

"Taxpayer." An individual subject to payment of taxes under

Article III.

Section 1802-H. Application.

(a) Application to department.--A taxpayer may claim a tax

credit against the qualified tax liability of the taxpayer by

submitting an application for the tax credit in a manner

required by the department. The application shall contain the

following information:

(1) The name and tax identification number of the

taxpayer.

(2) Documentation that the taxpayer meets the

eligibility criteria specified in section 1803-H.

(3) Any other information deemed appropriate by the

department.

(b) Procedure.--The application shall be attached to the

applicant's annual tax return required to be filed under Article

III.

Section 1803-H. Taxpayer eligibility.

(a) Credit.--A taxpayer who is an active member of the

Pennsylvania National Guard and meets all of the following

criteria shall be eligible for a tax credit:

(1) Is a resident of this Commonwealth.

(2) Has at least two full years of service as a member

of the Pennsylvania National Guard.

(3) Is an active member of the Pennsylvania National

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Guard on the date the taxpayer signs the tax return.

(b) Maximum credit.--A taxpayer who qualifies under

subsection (a) may claim a tax credit as follows:

(1) If the taxpayer has completed at least two full

years of service as an active member of the Pennsylvania

National Guard, the taxpayer may claim a tax credit of $500.

(2) If the taxpayer has completed at least six full

years of service as an active member of the Pennsylvania

National Guard, the taxpayer may claim a tax credit of

$1,000.

Section 1804-H. Carryover and carryback.

(a) General rule.--If the taxpayer cannot use the entire

amount of the tax credit for the taxable year in which the

taxpayer is eligible for the credit, the excess may be carried

over to succeeding taxable years and used as a credit against

the qualified tax liability of the taxpayer for those taxable

years. Each time the tax credit is carried over to a succeeding

taxable year, it shall be reduced by the amount that was used as

a credit during the immediately preceding taxable year. The tax

credit may be carried over and applied to succeeding taxable

years for no more than three taxable years following the first

taxable year for which the taxpayer was entitled to claim the

credit.

(b) Application.--A tax credit approved by the department in

a taxable year shall first be applied against the taxpayer's

qualified liability for the current taxable year as of the date

on which the credit was approved before the tax credit can be

applied against any tax liability under subsection (a).

obtain a refund of, sell or assign an unused tax credit.

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Section 1805-H. Self certification.

The making or filing by a taxpayer of any return,

declaration, statement or other document required to be made or

filed under this article shall constitute a certification by the

taxpayer that the statements, including the taxpayer's residency

status and years of service as an active member of the

Pennsylvania National Guard, contained in the return,

declaration, statement or other document are true and that any

copy filed is a true copy.

Section 1806-H. Guidelines.

(a) General rule.--The department shall adopt guidelines,

including forms, necessary to administer this article.

(b) Limitation.--The department shall adopt guidelines that

permit an eligible taxpayer to file a joint State tax return.

Section 1807-H. Report to General Assembly.

No later than June 1, 2020, the department shall submit a

report on the tax credits granted and the applicability of the

tax credit to the retention of active members of the

Pennsylvania National Guard. The report shall include the number

of active members of the Pennsylvania National Guard who

utilized the tax credit as of the date of the report and the

amount of credits approved. The report may include

recommendations for changes in the calculation or administration

of the tax credit. The report shall be submitted to the

chairperson and minority chairperson of the Appropriations

Committee of the Senate, the chairperson and minority

chairperson of the Appropriations Committee of the House of

Representatives, the chairperson and minority chairperson of the

Veterans Affairs and Emergency Preparedness Committee of the

Senate and the chairperson and minority chairperson of the

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Veterans Affairs and Emergency Preparedness Committee of the

House of Representatives. The report may include other

information that the department deems appropriate.

Section 1808-H. Penalty.

A taxpayer who claims a credit under this article but fails

to meet the standards under this article, shall repay the full

amount of the tax credit to the Commonwealth, plus interest as

prescribed under section 351.

Section 2. This act shall take effect immediately.

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