PRINTER'S NO. 3539
No. 587 Session of 2006
INTRODUCED BY HARHAI, BEYER, CALTAGIRONE, DeLUCA, DeWEESE,
FABRIZIO, FREEMAN, GOODMAN, GRUCELA, HARPER, KOTIK,
MANDERINO, PETRARCA, REICHLEY, SIPTROTH, STURLA, TANGRETTI,
E. Z. TAYLOR, THOMAS, WALKO, WANSACZ, WILT AND YUDICHAK,
FEBRUARY 9, 2006
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 9, 2006
A RESOLUTION
1 Directing the Legislative Budget and Finance Committee to study
2 charitable giving in order to identify recommendations for
3 allowing Pennsylvania S corporations access to the
4 Neighborhood Assistance Tax Credit.
5 WHEREAS, The Neighborhood Assistance Tax Credit was designed
6 to encourage businesses to invest capital to be used to provide
7 eligible services to, and improve the quality of, low-income
8 individuals and distressed neighborhoods; and
9 WHEREAS, The Neighborhood Assistance Tax Credit applies to
10 vital economic development activities such as job creation and
11 the rehabilitation, expansion and physical improvements of
12 buildings and land within designated areas of this Commonwealth;
13 and
14 WHEREAS, The Neighborhood Assistance Tax Credit is currently
15 available to corporations which are subject to corporate net
16 income tax and the capital stock franchise tax, such as
17 insurance companies, utilities, banks, savings and loans, thrift
1 institutions, title insurance companies and trust companies; and
2 WHEREAS, The Neighborhood Assistance Tax Credit is currently
3 not available to any Pennsylvania S corporation, limited
4 liability company or partnership with tax liability under
5 Article III of the act of March 4, 1971 (P.L.6, No.2), known as
6 the Tax Reform Code of 1971; and
7 WHEREAS, The exclusion of Pennsylvania S corporations from
8 eligibility for the Neighborhood Assistance Tax Credit has a
9 chilling effect on their participation in the economic
10 revitalization of distressed communities in this Commonwealth
11 and disregards an important Commonwealth economic resource; and
12 WHEREAS, Permitting Pennsylvania S corporations to receive a
13 Neighborhood Assistance Tax Credit would allow a significant and
14 previously untapped source of economic stimulus to join fellow
15 business leaders in increasing the economic force of
16 Pennsylvania; therefore be it
17 RESOLVED, That the House of Representatives direct the
18 Legislative Budget and Finance Committee, in consultation with
19 necessary experts and specialists, to conduct a study to examine
20 charitable giving in this Commonwealth, specifically in order to
21 identify recommendations for allowing Pennsylvania S
22 corporations access to the Neighborhood Assistance Tax Credit;
23 and be it further
24 RESOLVED, That the committee make a report, with
25 recommendations as appropriate, to the Speaker of the House of
26 Representatives and the members of the Finance Committee by July
27 31, 2006.
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