THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY FRANKEL, BELFANTI, BRENNAN, CALTAGIRONE, DeLUCA, DONATUCCI, FREEMAN, GEORGE, GIBBONS, HORNAMAN, JOSEPHS, KOTIK, MAHONEY, MANDERINO, MANN, McGEEHAN, McILVAINE SMITH, MELIO, MURT, M. O'BRIEN, READSHAW, SCAVELLO, SIPTROTH, K. SMITH, SOLOBAY, STABACK AND WALKO, JANUARY 28, 2009

REFERRED TO COMMITTEE ON FINANCE, JANUARY 28, 2009  

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," establishing a tax credit for small businesses

offering 12 weeks of paid family and medical leave annually;

providing for tax credits for participating businesses; and

conferring powers and imposing duties upon the Department of

Revenue.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Article XVIII-C heading of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added

July 9, 2008 (P.L.922, No.66), is amended to read:

ARTICLE XVIII-C

[(Reserved)]

PAID FAMILY AND MEDICAL LEAVE TAX CREDIT

Section 2.  The act is amended by adding sections to read:

Section 1801-C.  Short title.

This article shall be known and may be cited as the Paid

Family and Medical Leave Tax Credit Act.

Section 1802-C.  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:

"Business firm."  A corporation, partnership, sole

proprietorship or other entity with 500 employees or fewer that

is authorized to do business in this Commonwealth and subject to

any of the taxes imposed by Article III, IV, V, VI, VII, VIII,

IX, X or XV.

"Employee."  An individual who has worked for a business firm

for at least 12 months and for 1,250 hours during the last year

and is eligible for family and medical leave under the Family

and Medical Leave Act of 1993 (Public Law 103-3, 29 U.S.C. §

2601 et seq.).

"Family and Medical Leave Act of 1993."  The Family and

Medical Leave Act of 1993 (Public Law 103-3, 29 U.S.C. § 2601 et

seq.).

"Family leave."  Time away from work to care for any of the

following:

(1)  A person in an employee's family.

(2)  A newborn, newly adopted child or a child.

(3)  A spouse.

(4)  A parent with a serious health condition.

"Medical leave."  Time away from work to seek medical

treatment or to recover from an employee's own serious health

condition.

"Tax credit."  The paid family and medical leave tax credit

established by this article.

Section 1803-C.  Purpose.

It shall be the purpose of this article to provide fiscal

incentives to small business owners to encourage them to provide

to employees 12 weeks of paid family and medical leave which may

be used consecutively with any leave granted under the Family

and Medical Leave Act of 1993.

Section 1804-C.  Authorization of credit.

A business firm with fewer than 500 employees that chooses to

offer to employees 12 weeks of paid family and medical leave

which may be used consecutively and in addition to any leave

permitted under the Family and Medical Leave Act of 1993 shall

be eligible to receive the tax credit.

Section 1805-C.  Calculation of credit.

The amount of the tax credit available to a business firm

which qualifies under this article shall be calculated as

follows:

(1)  Business firms with 50 employees or fewer shall be

eligible to receive a 50% tax credit.

(2)  Business firms with 50 to 100 employees shall be

eligible to receive a 40% tax credit.

(3)  Business firms with 101 to 200 employees shall be

eligible to receive a 25% tax credit.

(4)  Business firms with 201 to 300 employees shall be

eligible to receive a 20% tax credit.

(5)  Business firms with 301 to 400 employees shall be

eligible to receive a 15% tax credit.

(6)  Business firms with 401 to 500 employees shall be

eligible to receive a 10% tax credit.

Section 1806-C.  Taxes against which credit may be taken.

The tax credit may be applied against any tax due under

Article III, IV, V, VI, VII, VIII, IX, X or XV.

Section 1807-C.  Limit on total credit.

The following limits are imposed on the tax credits:

(1)  The total tax credit that may be claimed by any

single business firm shall not exceed $10,000 in any one

year.

(2)  The total amount of all tax credits granted under

this article shall not exceed $10,000,000 in any one fiscal

year.

Section 1808-C.  Powers and duties.

The Department of Revenue shall have the power and duty to do

all of the following:

(1)  Promulgate and publish any rules and regulations

which may be required to implement this article.

(2)  Publish as a notice in the Pennsylvania Bulletin

forms upon which taxpayers may apply for the tax credit.

(3)  Within five months after the close of any calendar

year during which tax credits granted under this article were

used, furnish to the members of the General Assembly an

annual report concerning each business firm which used tax

credits during the preceding calendar year pursuant to this

article: the employer's name, address, standard industrial

classification code and the amount of tax credits granted.

Section 3.  This act shall apply to taxable years beginning

on and after January 1, 2008.

Section 4.  This act shall take effect immediately.