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SENATE AMENDED
A10399
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
645
Session of
2017
INTRODUCED BY B. O'NEILL, MUSTIO, D. COSTA, P. COSTA, DAVIS,
DEAN, DeLUCA, DRISCOLL, FREEMAN, GAINEY, KAUFER, KINSEY,
KORTZ, LAWRENCE, MARSHALL, MATZIE, McNEILL, MURT, O'BRIEN,
OBERLANDER, PASHINSKI, RAVENSTAHL, READSHAW, REED, SAINATO,
SAMUELSON, SCHLOSSBERG, SCHWEYER, SOLOMON, TAYLOR, NELSON,
ENGLISH, CORR, DOWLING, ROZZI, RADER, MADDEN, STURLA AND
SIMS, FEBRUARY 28, 2017
SENATOR HUTCHINSON, FINANCE, IN SENATE, AS AMENDED,
OCTOBER 3, 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," in realty transfer tax, further providing for
excluded transactions; and, in neighborhood assistance tax
credit, further providing for tax credit and for grant of tax
credit and providing for reporting.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1904-A(c) and 1905-A of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
amended July 13, 2016 (P.L.526, No.84), are amended to read:
Section 1. Section 1102-C.3 of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
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by adding a paragraph to read:
Section 1102-C.3. Excluded Transactions.--The tax imposed by
section 1102-C shall not be imposed upon:
* * *
(25) Beginning on or after December 31, 2015, a transfer of
real estate by a housing authority created under the act of May
28, 1937 (P.L.955, No.265), referred to as the Housing
Authorities Law, to a nonprofit organization which is utilizing
the real estate for the purpose of Rental Assistance
Demonstration administered by the United States Department of
Housing and Urban Development under the Consolidated and Further
Continuing Appropriations Act, 2012 (Public Law 112-55, 125
Stat. 552).
Section 2. Sections 1904-A(c) and 1905-A of the act are
amended to read:
Section 1904-A. Tax Credit.--* * *
(c) The total amount of tax credit granted for programs
approved under this act shall not exceed [eighteen million
dollars ($18,000,000)] thirty-six million dollars ($36,000,000)
of tax credit in any fiscal year.
* * *
Section 1905-A. Grant of Tax Credit.--(a) The Department of
Revenue shall grant a tax credit against any tax due under
Article III, IV, VI, VII, VIII, IX or XV of this act, or any tax
substituted in lieu thereof in an amount which shall not exceed
fifty-five per cent of the total amount contributed during the
taxable year by a business firm or twenty-five per cent of
qualified investments by a private company in programs approved
pursuant to section 1904-A of this act: Provided, That a tax
credit of up to seventy-five per cent of the total amount
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contributed during the taxable year by a business firm or up to
thirty-five per cent of the amount of qualified investments by a
private company may be allowed for investment in programs where
activities fall within the scope of special program priorities
as defined with the approval of the Governor in regulations
promulgated by the secretary, and Provided further, That a tax
credit of up to seventy-five per cent of the total amount
contributed during the taxable year by a business firm in
comprehensive service projects with five-year commitments and up
to eighty per cent of the total amount contributed during the
taxable year by a business firm in comprehensive service
projects with six-year or longer commitments shall be granted,
and Provided further, That a tax credit of up to seventy-five
per cent of the total amount contributed during the taxable year
by a business firm in veterans' housing assistance approved
under section 1904-A(b.3) shall be granted. Such credit shall
not exceed five hundred thousand dollars ($500,000) annually for
contributions or investments to fewer than four projects or one
million two hundred fifty thousand dollars ($1,250,000) annually
for contributions or investments to four or more projects. No
tax credit shall be granted to any bank, bank and trust company,
insurance company, trust company, national bank, savings
association, mutual savings bank or building and loan
association for activities that are a part of its normal course
of business. Any tax credit not used in the period the
contribution or investment was made may be carried over for the
next five succeeding calendar or fiscal years until the full
credit has been allowed. A business firm shall not be entitled
to carry back or obtain a refund of an unused tax credit. The
total amount of all tax credits allowed pursuant to this act
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shall not exceed [eighteen million dollars ($18,000,000)]
thirty-six million dollars ($36,000,000) in any one fiscal year.
Of that amount, two million dollars ($2,000,000) shall be
allocated exclusively for pass-through entities. However, if the
total amounts allocated to either the group of applicants,
exclusive of pass-through entities, or the group of pass-through
entity applicants is not approved in any fiscal year, the unused
portion shall become available for use by the other group of
qualifying taxpayers.
(b) Notwithstanding any other provision of law and except
for the tax credits which are granted under subsection (a) on
the effective date of this subsection, no additional tax credits
may be granted under this article.
Section 2 3. The act is amended by adding a section to read:
Section 1908-A. Reporting.--The Department of Community and
Economic Development shall issue a report within 12 months of
the effective date of this section and each five years
thereafter. The report shall include a funding evaluation of the
neighborhood assistance program and recommendations for the tax
credit, specifically including ways the department can interact
with and promote the inclusion of community organizations that
have not previously been included in projects receiving credits.
Copies of the report shall be submitted to the chair and
minority chair of the Finance Committee of the Senate and the
chair and minority chair of the Finance Committee of the House
of Representatives.
Section 4. The addition of section 1102-C.3(25) of the act
shall apply to a county of the fifth class with a population of
between 115,000 and 118,000 in the 2010 Federal Decennial Census
which filed an appeal with the Board of Finance and Review after
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December 31, 2015.
Section 3 5. This act shall take effect in 60 days JULY 1,
2019. as follows:
(1) This section shall take effect immediately.
(2) Section 4 of this act and the addition of section
1102-C.3(25) of the act shall take effect in 60 days.
(3) The remainder of this act shall take effect July 1,
2019.
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