PRINTER'S NO. 625
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
563
Session of
2019
INTRODUCED BY BLAKE, K. WARD, BREWSTER, SANTARSIERO, FARNESE,
KILLION, COSTA, BOSCOLA, BROWNE, TARTAGLIONE AND HAYWOOD,
APRIL 18, 2019
REFERRED TO FINANCE, APRIL 18, 2019
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 nonprofit animal shelter tax
credit; and imposing duties on the Department of Revenue.
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 XVII-L
NONPROFIT ANIMAL SHELTER TAX CREDIT
Section 1701-L. Scope of article.
This article relates to nonprofit animal shelter tax credits.
Section 1702-L. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Business firm." An entity authorized to do business in this
Commonwealth and subject to taxes imposed under Article III, IV,
VI, VII, VIII, IX or XV. The term includes a pass-through
entity.
"Contribution." A donation of cash, personal property or
services, the value of which is the net cost of the donation to
the donor or the pro rata hourly wage, including benefits, of
the individual performing the services.
"Department." The Department of Revenue of the Commonwealth.
"Nonprofit animal shelter." An establishment that is
operated by a municipality or entity exempt from Federal
taxation under section 501(c)(3) of the Internal Revenue Code of
1986 (Public Law 99-514, 26 U.S.C. ยง 501(c)(3)), provides
temporary homes to animals that are offered for adoption and
operates in this Commonwealth.
"Pass-through entity." A partnership as defined in section
301(n.0) or a Pennsylvania S corporation as defined in section
301(n.1).
"Qualified tax liability." The liability for taxes imposed
under Article III, IV, VI, VII or IX. The term shall not include
any tax withheld by an employer from an employee under Article
III.
"Tax credit." The nonprofit animal shelter tax credit
provided under this article .
Section 1703-L. Nonprofit animal shelter tax credits.
A business firm may claim a tax credit against the qualified
tax liability of the business firm for contributions to a
nonprofit animal shelter.
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Section 1704-L. Credit for nonprofit animal shelter
contributions.
(a) Application.--A business firm may apply to the
department for a tax credit under this article . The application
must be on the form required by the department.
(b) Review and approval.--An application received shall be
reviewed and evaluated by the department.
(c) Information.--In order to qualify for a tax credit, a
business firm must submit information to the department that
enables the department to confirm that the contribution is to a
nonprofit animal shelter.
Section 1705-L. Carryover, carryback and assignment of credit.
(a) General rule.--If a business firm cannot use the entire
amount of the tax credit for the taxable year in which the tax
credit is first approved, the excess may be carried over to
succeeding taxable years and used as a credit against the
qualified tax liability of the business firm for those taxable
years. When the tax credit is carried over to a succeeding
taxable year, the tax credit shall be reduced by the amount that
was used as a credit during the immediately preceding taxable
year. A 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 first shall be applied against the taxpayer's
qualified tax 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).
(c) Carryback or refund prohibited.--A business firm shall
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not be entitled to carry back or obtain a refund of all or any
portion of an unused tax credit granted to the business firm.
Section 1706-L. Limitations and availability.
(a) Aggregate amount.--The aggregate amount of tax credits
awarded in a fiscal year may not exceed $2,000,000.
(b) Total.--A tax credit may not exceed $100,000 for a
business firm.
(c) Normal course of business.--A tax credit may not be
approved for activities that are part of a business firm's
normal course of business.
(d) Availability.--A tax credit shall be made available by
the department on a first- come, first-served basis within the
limitations established under this article and by the
department.
Section 1707-L. Penalty.
A business firm that claims a tax credit that does not equal
the business firm's contribution to a nonprofit animal shelter
in Pennsylvania in a taxable year shall repay to the
Commonwealth the amount of the tax credit claimed under this
article .
Section 2. This act shall take effect in 60 days.
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