PRINTER'S NO. 2360
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2053
Session of
2021
INTRODUCED BY SHUSTERMAN, N. NELSON, HILL-EVANS, GUENST,
FREEMAN, DELLOSO, KINSEY, SCHLOSSBERG, SANCHEZ, WEBSTER,
DeLUCA, D. WILLIAMS, FRANKEL, HANBIDGE, McNEILL, DRISCOLL,
KIM AND STURLA, NOVEMBER 4, 2021
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 4, 2021
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 Pennsylvania Child and Dependent
Care 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 XIX-H
PENNSYLVANIA CHILD AND DEPENDENT CARE TAX CREDIT
Section 1901-H. Scope of article.
This article establishes the Pennsylvania Child and Dependent
Care Tax Credit.
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Section 1902-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.
"Internal Revenue Code." The Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. ยง 1 et seq.), as amended.
"Qualifying individual." As defined in section 21(b)(1) of
the Internal Revenue Code.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Taxpayer." An individual subject to tax under Article III,
IV, VII, VIII, IX or XV.
Section 1903-H. Application.
(a) Authorization.--A taxpayer may submit an application for
a tax credit under this article in a manner required by the
department no later than 30 days after the date of returns.
(b) Contents.--The application under this section must
contain the following information:
(1) The name and tax identification number of the
taxpayer.
(2) Verification that the taxpayer is eligible for the
Federal tax credit under section 21 of the Internal Revenue
Code.
(3) Any other information deemed appropriate by the
department.
(c) Procedure.--The application under this section must be
attached to the applicant's annual tax return required to be
filed.
Section 1904-H. Taxpayer eligibility.
(a) Credit.--A taxpayer shall be eligible for a tax credit
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under subsection (b) if the taxpayer qualifies for the tax
credit established under section 21 of the Internal Revenue
Code.
( b) Maximum credit.--A taxpayer who qualifies under
subsection (a) may claim a tax credit of:
(1) $350 if there is one qualifying individual; or
(2) $700 if there are two or more qualifying
individuals.
Section 1905-H. Refund.
A tax credit under this article that is 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 tax credit was approved.
Section 1906-H. Total amount of credits.
(a) Limit.--The total amount of tax credits authorized by
this article shall not exceed $10,000,000.
( b) Pro rata basis.--If the amount under subsection (a) is
insufficient for the tax credits provided under this article,
money shall be disbursed to applicants on a pro rata basis.
Section 1907-H. Report to General Assembly.
(a) Requirement.--No later than March 15 following the year
in which the tax credits under this article were approved, the
secretary shall submit an annual report to the General Assembly
indicating the effectiveness of the tax credit under this
article.
(b) Contents.--The report under this section:
(1) Shall include the names of all taxpayers utilizing
the tax credit as of the date of the report and the amount of
tax credits approved and utilized by each taxpayer.
(2) May include any recommendations for changes in the
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calculation or administration of the tax credit.
(c) Public information.--Notwithstanding any law providing
for the confidentiality of tax records, the information
contained in the report under this section shall be public
information.
Section 1908-H. Penalty.
A taxpayer who claims a tax 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.
Section 1909-H. Guidelines.
The department may establish guidelines as necessary to
implement this article.
Section 2. This act shall apply to taxable years beginning
after December 31, 2021.
Section 3. This act shall take effect immediately.
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