PRINTER'S NO. 505
No. 485 Session of 1999
INTRODUCED BY REINARD, NAILOR, PIPPY, MICOZZIE, ZUG, TRELLO,
L. I. COHEN, RAYMOND, SEYFERT, FLICK, ARMSTRONG, CORRIGAN,
ARGALL, BAKER, RUBLEY, HENNESSEY, E. Z. TAYLOR, COY, HERMAN,
STABACK, STEELMAN, WILLIAMS, SURRA, SEMMEL, FAIRCHILD,
MARSICO, HARHAI, WILT, PISTELLA, M. COHEN AND ROSS,
FEBRUARY 9, 1999
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 9, 1999
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 credit against the corporate net
11 income tax for the cost of electronic data processing
12 systems.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
16 the Tax Reform Code of 1971, is amended by adding a section to
17 read:
18 Section 402.2. Credit Against Tax.--(a) A corporation shall
19 be allowed a credit, to be computed as provided in this section,
20 against the tax liability due and owing in a tax year pursuant
21 to this article. The credit shall be equal to fifty per cent of
1 the cost of a new electronic data processing system. To the
2 extent that the credit exceeds twenty-five per cent of the
3 taxpayer's tax liability otherwise due and owing pursuant to
4 this article, the excess shall be unused in that tax year.
5 (b) The credit allowed under subsection (a) remaining unused
6 may be carried forward to each of the next two tax years as a
7 credit against the tax liability for each of those two years and
8 subject to the limitations of subsection (a).
9 (c) For the purposes of this section, "new electronic data
10 processing equipment" means an information system that:
11 (1) Stores, manipulates, retrieves, displays and prints data
12 that have been electronically recorded.
13 (2) Was purchased, installed and made operational by the
14 corporation in the tax year for which the tax credit provided by
15 this section is claimed.
16 (3) Has never been purchased or put in use before by the
17 purchasing corporation, or any other corporation or individual.
18 (4) Was donated in that tax year for instructional use to a
19 public primary or secondary school, or private primary or
20 secondary school located in this Commonwealth.
21 Section 2. This act shall apply to taxable years commencing
22 on and after January 1, 2000.
23 Section 3. This act shall take effect in 60 days.
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