PRIOR PRINTER'S NO. 673 PRINTER'S NO. 2313
No. 600 Session of 2005
INTRODUCED BY NAILOR, BLAUM, FAIRCHILD, GABIG, ALLEN, BAKER,
BALDWIN, BASTIAN, BEBKO-JONES, BELARDI, BELFANTI,
BENNINGHOFF, BISHOP, BOYD, BROWNE, BUNT, BUXTON, CALTAGIRONE,
CAPPELLI, CAUSER, CAWLEY, CIVERA, CLYMER, CRAHALLA, DALEY,
DALLY, DeLUCA, DeWEESE, FABRIZIO, FICHTER, FLEAGLE, FLICK,
FORCIER, FRANKEL, GEIST, GEORGE, GERGELY, GILLESPIE,
GINGRICH, GOODMAN, GRELL, GRUCELA, HARHAI, HARRIS, HENNESSEY,
HERMAN, HERSHEY, HESS, HICKERNELL, HUTCHINSON, JAMES,
M. KELLER, KENNEY, KILLION, KIRKLAND, LEACH, LEDERER, LEH,
LESCOVITZ, MACKERETH, MAITLAND, MANDERINO, MANN, MARKOSEK,
MARSICO, McCALL, McGEEHAN, McILHATTAN, METCALFE, R. MILLER,
S. MILLER, MUSTIO, O'NEILL, PALLONE, PETRARCA, PHILLIPS,
PICKETT, PYLE, RAYMOND, READSHAW, REICHLEY, ROHRER, ROSS,
RUBLEY, SAINATO, SAMUELSON, SANTONI, SATHER, SCAVELLO,
SCHRODER, SHANER, B. SMITH, SOLOBAY, STABACK, STERN,
R. STEVENSON, T. STEVENSON, SURRA, E. Z. TAYLOR, THOMAS,
TRUE, WALKO, WATSON, WILT, WOJNAROSKI, YEWCIC, YOUNGBLOOD,
YUDICHAK, ZUG, DENLINGER, SAYLOR, McILHINNEY, KAUFFMAN,
TURZAI, HARPER AND MELIO, FEBRUARY 16, 2005
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 22, 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 military tax credits for employers
11 who pay or subsidize the wages of an employee called to
12 active duty.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
1 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
2 the Tax Reform Code of 1971, is amended by adding a section to
3 read:
4 Section 3003.16. Military Tax Credit.--(a) A credit shall <--
5 exist for an employer who pays an employe's difference in wages
6 between the employe's civilian employment and the employe's
7 military wages pursuant to 51 Pa.C.S. § 7302 (relating to
8 granting military leaves of absence) against any tax due from
9 that employer under Article III, IV, VI, VII, VII-A, VIII, IX,
10 XII or XV of this act and against any payment of estimated tax
11 or payment of tentative tax due from the employer on account of
12 taxes.
13 (b) The amount of the tax credit available to an employer
14 under subsection (a) who elects to subsidize the employe's
15 difference in wages from the employe's civilian employment wages
16 and the employe's military wages shall be equal to one hundred
17 per cent of the employe's subsidized difference in earnings
18 between the employe's civilian wages and the employe's military
19 wages for the period in which the employe is absent from work
20 due to being granted a military leave of absence in accordance
21 with 51 Pa.C.S. § 7302(a).
22 (c) The Secretary of Revenue shall promulgate regulations
23 necessary for the administration of this section.
24 SECTION 3003.16. MILITARY TAX CREDIT FOR CERTAIN <--
25 EMPLOYERS.--(A) AS USED IN THIS SECTION, THE FOLLOWING WORDS
26 AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
27 SUBSECTION:
28 "ACTIVE DUTY." STATE ACTIVE DUTY UNDER 51 PA.C.S § 508
29 (RELATING TO ACTIVE STATE DUTY FOR EMERGENCY) AND ACTIVE DUTY,
30 OTHER THAN ACTIVE DUTY FOR TRAINING, ORDERED UNDER 10 U.S.C. §
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1 101 ET SEQ. (RELATING TO ARMED FORCES) OR 32 U.S.C. § 101 ET
2 SEQ. (RELATING TO NATIONAL GUARD).
3 "ADDITIONAL COMPENSATION." COMPENSATION, THE PAYMENT OF
4 WHICH IS NOT REQUIRED BY FEDERAL OR STATE LAW, PAID BY A
5 SOLDIER'S CIVILIAN EMPLOYER IN THE FORM OF PAYMENT OF THE
6 DIFFERENCE BETWEEN A SOLDIER'S MILITARY PAY AND ALLOWANCES AND
7 HIS CIVILIAN SALARY OR A PERIODIC STIPEND OR OTHER PAYMENT,
8 WHILE THE SOLDIER IS PERFORMING A QUALIFYING PERIOD OF MILITARY
9 SERVICE.
10 "PAY AND ALLOWANCES." THE BASIC PAY, HOUSING AND SUBSISTENCE
11 ALLOWANCES PAID TO MEMBERS OF THE PENNSYLVANIA NATIONAL GUARD
12 AND RESERVE COMPONENTS OF THE ARMED FORCES OF THE UNITED STATES
13 WHEN PERFORMING ACTIVE DUTY.
14 "QUALIFYING PERIODS OF MILITARY SERVICE." A PERIOD OF ACTIVE
15 DUTY, OTHER THAN ACTIVE DUTY FOR TRAINING, OF 30 OR MORE
16 CONSECUTIVE DAYS' DURATION TO WHICH A MEMBER OF THE PENNSYLVANIA
17 NATIONAL GUARD OR OTHER RESERVE COMPONENTS OF THE ARMED FORCES
18 OF THE UNITED STATES IS ORDERED.
19 "SOLDIER." A MEMBER OF THE PENNSYLVANIA NATIONAL GUARD OR
20 RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED STATES
21 PERFORMING A QUALIFYING PERIOD OF MILITARY SERVICE.
22 (B) WHENEVER A SOLDIER PERFORMS A QUALIFYING PERIOD OF
23 MILITARY SERVICE AND THE SOLDIER'S CIVILIAN EMPLOYER PAYS THE
24 SOLDIER ADDITIONAL COMPENSATION, THE EMPLOYER SHALL BE ENTITLED
25 TO A CREDIT AGAINST ANY TAX DUE FROM THE EMPLOYER UNDER ARTICLE
26 III, IV, VI, VII, VIII, IX OR XV OF THIS ACT EQUAL TO 20% OF THE
27 ADDITIONAL COMPENSATION NOT TO EXCEED TWENTY-FIVE THOUSAND
28 DOLLARS ($25,000), PAID TO THE SOLDIER.
29 (C) THE CREDIT ALLOWED BY SUBSECTION (B) SHALL APPLY AGAINST
30 ANY PAYMENT OF ESTIMATED TAX OR PAYMENT OF THE TENTATIVE TAX DUE
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1 FROM THE EMPLOYER ON ACCOUNT OF THE TAXES DESCRIBED IN
2 SUBSECTION (B).
3 (D) THE SECRETARY OF REVENUE SHALL PROMULGATE REGULATIONS
4 NECESSARY FOR THE ADMINISTRATION OF THIS SECTION.
5 Section 2. This act shall apply to all tax years commencing
6 after December 31, 2005.
7 Section 3. This act shall take effect immediately.
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