PRINTER'S NO. 3890
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2573
Session of
2020
INTRODUCED BY BROWN, KORTZ, DeLUCA, SCHWEYER, CIRESI, GAINEY,
READSHAW, TOMLINSON, STEPHENS, FRITZ, RADER, BARRAR, BOBACK,
WARREN AND YOUNGBLOOD, JUNE 8, 2020
REFERRED TO COMMITTEE ON FINANCE, JUNE 8, 2020
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 an automated external defibrillator
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-I
AUTOMATED EXTERNAL DEFIBRILLATOR TAX CREDIT
Section 1801-I. 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:
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"Automated external defibrillator" or "AED." A portable
device that uses electric shock to restore a stable heart rhythm
to an individual in cardiac arrest.
"Department." The Department of Revenue of the Commonwealth.
"Pass-through entity." Any of the following:
(1) A partnership, limited partnership, limited
liability company, business trust or other unincorporated
entity that for Federal income tax purposes is taxable as a
partnership.
(2) A Pennsylvania S corporation.
"Qualified tax liability." The liability for taxes imposed
under Article III or IV for taxable years beginning after
December 31, 2020.
"Small business." An employer that employed an average of
fewer than 50 full-time equivalent employees during the
immediately preceding taxable year.
"Tax credit." The automated external defibrillator tax
credit established under this article.
"Taxpayer." An entity authorized to do business in this
Commonwealth and subject to taxes imposed under Article III or
IV. The term does not include an individual.
Section 1802-I. Automated External Defibrillator Tax Credit.
The Automated External Defibrillator Tax Credit is
established to encourage the placement of automated external
defibrillators in publicly and privately accessible buildings in
this Commonwealth.
Section 1803-I. Application process.
(a) Application.--A taxpayer must apply to the department
for approval of a tax credit, in a form and manner prescribed by
the department.
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(b) Awarding tax credits.--The department may not award more
than $5,000 in tax credits to any single taxpayer for a single
taxable year.
(c) Proration.--
(1) If at the close of the fiscal year, a portion of the
amount authorized in Section 1804-I(b) has not been awarded,
the remaining balance shall be awarded to any taxpayer who
already received in the taxable year a tax credit, up to the
balance of the cost to the taxpayer for the purchase of an
automated external defibrillator under section 1804-I(a) in
excess of the limitation under subsection (b).
(2) If the balance under paragraph (1) is insufficient
for the department to award the eligible taxpayers the
balance of the automatic external defibrillators in the
aggregate, the tax credit under this subsection shall be
prorated among all applicants that have qualified for the tax
credit.
(d) Notification.--The department shall notify the taxpayer
whether the taxpayer meets the requirements under this article
for the tax credit no later than 60 days after the taxpayer has
submitted the application required under this article.
Section 1804-I. Amount of tax credit.
(a) Amount of tax credit.--The amount of the tax credit
shall be the cost to the taxpayer for the purchase, other than
for resale, of an automated external defibrillator for use by
any individual present in the building, located in this
Commonwealth, where the automated external defibrillator is
placed during the taxable year, not to exceed $500 per unit
purchased.
(b) Limitation on amount.--The department shall allocate no
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more than $10,000,000 in tax credits for a single taxable year
as follows:
(1) Not more than $5,000,000 shall be allocated
exclusively for small businesses.
(2) The remainder shall be allocated to applicants that
are not small businesses.
(c) Duration of tax credit --A tax credit awarded under this
article is limited to the qualified liability of a taxpayer in
the taxable year in which the automated external defibrillator
was purchased. The tax credit may not be sold, assigned, passed
through, carried forward, carried back or refunded. No credits
granted under this section shall be applied against any tax
withheld by an employer from an employer under Article III.
Section 1805-I. Shareholder, owner or member pass-through.
(a) Pennsylvania S corporation shareholder.--If a
Pennsylvania S corporation does not have an eligible tax
liability against which the tax credit may be applied, a
shareholder of the Pennsylvania S corporation shall be entitled
to a tax credit equal to the tax credit determined for the
Pennsylvania S corporation for the taxable year multiplied by
the percentage of the Pennsylvania S corporation's distributive
income to which the shareholder is entitled.
(b) Pass-through entity owner or member.--If a pass-through
entity other than a Pennsylvania S corporation does not have an
eligible tax liability against which the tax credit may be
applied, an owner or member of the pass-through entity is
entitled to a tax credit equal to the tax credit determined for
the pass-through entity for the taxable year multiplied by the
percentage of the pass-through entity's distributive income to
which the owner or member is entitled.
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(c) Additional tax credit.--The tax credit provided under
subsection (a) or (b) shall be in addition to any tax credit to
which a shareholder, owner or member of a pass-through entity is
otherwise entitled under this article, except that a pass-
through entity and a shareholder, owner or member of a pass-
through entity may not claim a tax credit under this article for
the same purchase of an AED.
Section 1806-I. Report to General Assembly.
The Secretary of Revenue shall submit an annual report to the
General Assembly indicating the effectiveness of the tax credits
provided under this article no later than March 15 following the
year in which the tax credits were approved and each March 15
thereafter. The report shall include the amount of tax credits
approved and the number automated external defibrillators for
which a tax credit was received during the preceding taxable
year.
Section 1807-I. Administration.
The department shall promulgate regulations and issue
guidelines necessary to implement this article, including
information on the recommended placement of automated external
defibrillators in consultation with the Department of Health.
Section 2. The addition of Article XVIII-I of the act shall
apply to taxable years beginning after December 31, 2020.
Section 3. This act shall take effect immediately.
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