PRIOR PRINTER'S NO. 511 PRINTER'S NO. 3293
No. 472 Session of 2005
INTRODUCED BY REICHLEY, MUSTIO, YOUNGBLOOD, FORCIER, ADOLPH,
ARMSTRONG, BAKER, BALDWIN, BELFANTI, BOYD, BROWNE,
CALTAGIRONE, COSTA, DeLUCA, FABRIZIO, FAIRCHILD, GEIST,
GERGELY, GINGRICH, GOODMAN, HARRIS, HENNESSEY, KILLION,
KOTIK, MARKOSEK, McILHATTAN, S. MILLER, PETRARCA, PICKETT,
PYLE, READSHAW, ROSS, SAINATO, SEMMEL, SHANER, SOLOBAY,
R. STEVENSON, E. Z. TAYLOR, THOMAS, TURZAI, WHEATLEY, WILT,
ZUG, PALLONE AND DENLINGER, FEBRUARY 14, 2005
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
DECEMBER 12, 2005
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An <--
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for a tax credit for donation of used
11 computers; and further defining "taxable income" relating to
12 the corporate net income tax.
1 AMENDING THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), ENTITLED "AN <--
2 ACT RELATING TO TAX REFORM AND STATE TAXATION BY CODIFYING
3 AND ENUMERATING CERTAIN SUBJECTS OF TAXATION AND IMPOSING
4 TAXES THEREON; PROVIDING PROCEDURES FOR THE PAYMENT,
5 COLLECTION, ADMINISTRATION AND ENFORCEMENT THEREOF; PROVIDING
6 FOR TAX CREDITS IN CERTAIN CASES; CONFERRING POWERS AND
7 IMPOSING DUTIES UPON THE DEPARTMENT OF REVENUE, CERTAIN
8 EMPLOYERS, FIDUCIARIES, INDIVIDUALS, PERSONS, CORPORATIONS
9 AND OTHER ENTITIES; PRESCRIBING CRIMES, OFFENSES AND
10 PENALTIES," PROVIDING FOR A TAX CREDIT FOR DONATION OF USED
11 COMPUTERS; FURTHER DEFINING "TAXABLE INCOME" RELATING TO THE
12 CORPORATE NET INCOME TAX; AND ESTABLISHING A TAX CREDIT FOR
13 TELECOMMUNICATION CARRIERS THAT OFFER TELECOMMUNICATION
14 SERVICES TO PENNSYLVANIA NATIONAL GUARD MEMBERS ORDERED TO
15 ACTIVE FEDERAL OR STATE SERVICE.
1 The General Assembly of the Commonwealth of Pennsylvania
2 hereby enacts as follows:
3 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as <--
4 the Tax Reform Code of 1971, is amended by adding a section to
5 read:
6 Section 314.1. Tax Credit for Donation of Used Computers.--
7 (a) A taxpayer shall be allowed a credit against the tax
8 imposed by this article for the donation of a used computer to a
9 charitable organization, volunteer firemen's organization,
10 nonprofit education institution or religious organization. The
11 credit authorized by this section shall be equal to the fair
12 market value of the used computer multiplied by the rate of tax
13 imposed pursuant to section 302.
14 (b) The credit provided under this section shall not exceed
15 the amount of the tax otherwise due under this article.
16 (c) The Secretary of Revenue may promulgate regulations to
17 implement this section.
18 Section 2. Section 401(3)1 of the act is amended by adding a
19 paragraph to read:
20 Section 401. Definitions.--The following words, terms, and
21 phrases, when used in this article, shall have the meaning
22 ascribed to them in this section, except where the context
23 clearly indicates a different meaning:
24 * * *
25 (3) "Taxable income." 1. * * *
26 (t) An additional deduction shall be allowed from taxable
27 income in the amount of the fair market value of a used computer
28 donated to a charitable organization, volunteer firemen's
29 organization, nonprofit education institution or religious
30 organization.
20050H0472B3293 - 2 -
1 * * *
2 Section 3. This act shall apply to taxable years beginning
3 after December 31, 2005.
4 Section 4. This act shall take effect immediately.
5 SECTION 1. THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS <--
6 THE TAX REFORM CODE OF 1971, IS AMENDED BY ADDING A SECTION TO
7 READ:
8 SECTION 314.1. TAX CREDIT FOR DONATION OF USED COMPUTERS.--
9 (A) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE TAX
10 IMPOSED BY THIS ARTICLE FOR THE DONATION OF A USED COMPUTER TO A
11 CHARITABLE ORGANIZATION, VOLUNTEER FIREMEN'S ORGANIZATION,
12 NONPROFIT EDUCATION INSTITUTION OR RELIGIOUS ORGANIZATION. THE
13 CREDIT AUTHORIZED BY THIS SECTION SHALL BE EQUAL TO THE FAIR
14 MARKET VALUE OF THE USED COMPUTER MULTIPLIED BY THE RATE OF TAX
15 IMPOSED PURSUANT TO SECTION 302.
16 (B) THE CREDIT PROVIDED UNDER THIS SECTION SHALL NOT EXCEED
17 THE AMOUNT OF THE TAX OTHERWISE DUE UNDER THIS ARTICLE.
18 (C) THE SECRETARY OF REVENUE MAY PROMULGATE REGULATIONS TO
19 IMPLEMENT THIS SECTION.
20 SECTION 2. SECTION 401(3)1 OF THE ACT IS AMENDED BY ADDING A
21 PARAGRAPH TO READ:
22 SECTION 401. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND
23 PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANING
24 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
25 CLEARLY INDICATES A DIFFERENT MEANING:
26 * * *
27 (3) "TAXABLE INCOME." 1. * * *
28 (T) AN ADDITIONAL DEDUCTION SHALL BE ALLOWED FROM TAXABLE
29 INCOME IN THE AMOUNT OF THE FAIR MARKET VALUE OF A USED COMPUTER
30 DONATED TO A CHARITABLE ORGANIZATION, VOLUNTEER FIREMEN'S
20050H0472B3293 - 3 -
1 ORGANIZATION, NONPROFIT EDUCATION INSTITUTION OR RELIGIOUS
2 ORGANIZATION.
3 * * *
4 SECTION 3. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
5 ARTICLE XVIII-C
6 PENNSYLVANIA NATIONAL GUARD
7 TELECOMMUNICATION ACCESS TAX CREDIT
8 SECTION 1801-C. SHORT TITLE.
9 THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE
10 PENNSYLVANIA NATIONAL GUARD TELECOMMUNICATION ACCESS PROGRAM.
11 SECTION 1802-C. DEFINITIONS.
12 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
13 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
14 CONTEXT CLEARLY INDICATES OTHERWISE:
15 "ACTIVE MEMBER." A MEMBER OF THE PENNSYLVANIA NATIONAL GUARD
16 ORDERED TO ACTIVE FEDERAL OR STATE SERVICE OR IS INJURED WHILE
17 ON FEDERAL OR STATE ACTIVE DUTY.
18 "TAX CREDIT." THE PENNSYLVANIA NATIONAL GUARD
19 TELECOMMUNICATION ACCESS TAX CREDIT ESTABLISHED BY THIS ARTICLE.
20 "TELECOMMUNICATION CARRIER." AN ENTITY THAT PROVIDES
21 TELECOMMUNICATION SERVICES SUBJECT TO THE JURISDICTION OF THE
22 PENNSYLVANIA PUBLIC UTILITY COMMISSION.
23 "TELECOMMUNICATION SERVICES." INCLUDES, BUT IS NOT LIMITED
24 TO, ANY SERVICE PROVIDED TO FACILITATE THE ORIGINATION,
25 TRANSMISSION, EMISSION OR RECEPTION OF SIGNS, SIGNALS, DATA,
26 WRITINGS, IMAGES AND SOUNDS OR INTELLIGENCE OF ANY NATURE BY
27 TELEPHONE, INCLUDING CELLULAR TELEPHONES, WIRE, RADIO,
28 ELECTROMAGNETIC, PHOTOELECTRONIC OR PHOTO-OPTICAL SYSTEM AND
29 ALSO ANY SERVICE PROVIDED BY ANY CABLE TELEVISION, SATELLITE,
30 MICROWAVE OR WIRELESS DISTRIBUTION SYSTEM OR FACILITY,
20050H0472B3293 - 4 -
1 INCLUDING, BUT NOT LIMITED TO, ANY AND ALL ELECTRONIC, DATA,
2 VIDEO, AUDIO, INTERNET ACCESS, TELEPHONIC, MICROWAVE AND RADIO
3 COMMUNICATIONS, TRANSMISSIONS, SIGNALS AND SERVICES.
4 SECTION 1803-C. PURPOSE.
5 THE PURPOSE OF THIS ARTICLE IS TO PROVIDE FISCAL INCENTIVES
6 TO TELECOMMUNICATION CARRIERS THAT PROVIDE ACCESS TO
7 TELECOMMUNICATION SERVICES AT NO COST TO ACTIVE MEMBERS.
8 SECTION 1804-C. AUTHORIZATION OF CREDIT.
9 A TELECOMMUNICATION CARRIER THAT OFFERS ACTIVE MEMBERS ACCESS
10 TO TELECOMMUNICATION SERVICES AT NO COST SHALL BE ELIGIBLE TO
11 RECEIVE A TAX CREDIT.
12 SECTION 1805-C. CALCULATION OF TAX CREDIT.
13 THE AMOUNT OF THE TAX CREDIT AVAILABLE TO A TELECOMMUNICATION
14 CARRIER WHICH QUALIFIES UNDER THIS ARTICLE SHALL BE CALCULATED
15 USING ONLY ONE OF THE FOLLOWING:
16 (1) A TELECOMMUNICATION CARRIER THAT ASSIGNS
17 TELECOMMUNICATION SERVICES TO AN ACTIVE MEMBER SHALL BE
18 ELIGIBLE TO RECEIVE A 50% TAX CREDIT FOR THE COST OF THOSE
19 SERVICES.
20 (2) A TELECOMMUNICATION CARRIER THAT ASSIGNS
21 TELECOMMUNICATION SERVICES TO AN ACTIVE MEMBER THAT USES THE
22 SERVICES ASSIGNED SHALL BE ELIGIBLE FOR A 100% TAX CREDIT FOR
23 THE COST OF THOSE SERVICES.
24 SECTION 1806-C. TAXES AGAINST WHICH TAX CREDIT MAY BE TAKEN.
25 THE TAX CREDIT MAY BE APPLIED AGAINST ANY TAX DUE UNDER
26 ARTICLE III, IV OR V.
27 SECTION 1807-C. LIMIT ON TOTAL CREDIT.
28 THE FOLLOWING LIMITS ARE IMPOSED ON THE TAX CREDITS:
29 (1) THE TOTAL TAX CREDIT THAT MAY BE CLAIMED BY ANY
30 SINGLE TELECOMMUNICATION CARRIER SHALL BE NOT MORE THAN
20050H0472B3293 - 5 -
1 $250,000 IN ANY ONE SINGLE YEAR.
2 (2) THE TOTAL AMOUNT OF ALL TAX CREDITS GRANTED UNDER
3 THIS ARTICLE SHALL BE NOT MORE THAN $5,000,000 IN ANY ONE
4 FISCAL YEAR.
5 SECTION 1808-C. POWERS AND DUTIES.
6 THE DEPARTMENT OF REVENUE SHALL HAVE THE POWER AND DUTY TO DO
7 ALL OF THE FOLLOWING:
8 (1) PROMULGATE AND PUBLISH ANY RULES AND REGULATIONS
9 WHICH MAY BE REQUIRED TO IMPLEMENT THIS ARTICLE.
10 (2) PUBLISH AS A NOTICE IN THE PENNSYLVANIA BULLETIN
11 FORMS UPON WHICH TAXPAYERS MAY APPLY FOR THE TAX CREDIT.
12 (3) WITHIN FIVE MONTHS AFTER THE CLOSE OF ANY CALENDAR
13 YEAR DURING WHICH TAX CREDITS GRANTED UNDER THIS ARTICLE WERE
14 USED, FURNISH TO THE MEMBERS OF THE GENERAL ASSEMBLY AN
15 ANNUAL REPORT CONCERNING EACH TELECOMMUNICATION CARRIER WHICH
16 USED TAX CREDITS DURING THE PRECEDING CALENDAR YEAR PURSUANT
17 TO THIS ARTICLE WHICH INCLUDES ALL OF THE FOLLOWING:
18 (I) THE NAME AND ADDRESS OF THE TELECOMMUNICATION
19 CARRIER.
20 (II) THE NUMBER OF ACTIVE MEMBERS THAT WERE ASSIGNED
21 TELECOMMUNICATION SERVICES.
22 (III) THE NUMBER OF ACTIVE MEMBERS THAT USED THEIR
23 ASSIGNED TELECOMMUNICATION SERVICES.
24 (IV) THE TOTAL AMOUNT OF TELECOMMUNICATION SERVICES
25 USED BY ACTIVE MEMBERS.
26 (V) THE AMOUNT OF TAX CREDITS GRANTED.
27 SECTION 4. THIS ACT SHALL APPLY TO TAXABLE YEARS BEGINNING
28 AFTER DECEMBER 31, 2005.
29 SECTION 5. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
A14L72MSP/20050H0472B3293 - 6 -