PRINTER'S NO. 770
No. 697 Session of 2001
INTRODUCED BY LESCOVITZ, GORDNER, BELARDI, COY, FAIRCHILD,
CALTAGIRONE, GEORGE, M. COHEN, LAUGHLIN, HALUSKA, CAWLEY,
COLAFELLA, HORSEY, TRELLO, BELFANTI, SAINATO, McCALL, SHANER,
HARHAI, BROWNE AND DALEY, FEBRUARY 13, 2001
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 13, 2001
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 an export mentoring tax credit.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
14 the Tax Reform Code of 1971, is amended by adding an article to
15 read:
16 ARTICLE XXII
17 EXPORT MENTORING
18 TAX CREDIT
19 Section 2201. Short Title.--This article shall be known and
20 may be cited as the "Export Mentoring Tax Credit Law."
21 Section 2202. Legislative Intent.--It is the intent of the
1 General Assembly and the purpose of this article to provide
2 incentives to exporting businesses to aid fellow Commonwealth
3 businesses in developing their export capabilities and reaching
4 foreign markets.
5 Section 2203. Definitions.--The following words, terms and
6 phrases, when used in this article, shall have the meanings
7 ascribed to them in this section, except where the context
8 clearly indicates a different meaning:
9 "Department." The Department of Revenue of the Commonwealth.
10 "Mentor." A person, business or organization that meets the
11 criteria in section 2204 and provides mentoring services to
12 Commonwealth businesses.
13 "Pupil business." A business receiving mentoring services in
14 accordance with this article.
15 Section 2204. Eligibility.--Individuals, businesses or
16 organizations shall be eligible for a tax credit for providing
17 mentoring services if all of the following conditions are met:
18 (1) The individual, business or organization is based in
19 this Commonwealth and is currently engaged in international
20 marketing.
21 (2) The individual, business or organization provides a
22 person with at least five years of experience in completing
23 export transactions on a daily basis with knowledge in all of
24 the following areas of an export transaction:
25 (i) Export financing.
26 (ii) Methods of payment.
27 (iii) Methods of shipping.
28 (iv) Foreign market plan development.
29 (v) International quality systems.
30 (vi) International standards and regulations.
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1 (vii) International contracts and law.
2 (viii) Documentation for completion of export transactions.
3 Section 2205. Tax Credit.--(a) All mentors that provide
4 export assistance to pupil businesses shall receive a tax credit
5 against the amount of one of the taxes due under Article III, IV
6 or VI of this act.
7 (b) The amount of the tax credit for each mentor shall be
8 determined by the following:
9 (1) For the tax imposed under Article III, the amount of the
10 tax credit shall not exceed five thousand dollars ($5,000) or
11 fifty per cent of the annual tax paid by the mentor, whichever
12 is less.
13 (2) For the tax imposed under Article IV, the amount of the
14 tax credit shall not exceed one hundred fifty thousand dollars
15 ($150,000) annually or twenty-five per cent of the annual tax
16 paid by the mentor, whichever is less.
17 (3) For the tax imposed under Article VI, the amount of the
18 tax credit shall not exceed one hundred fifty thousand dollars
19 ($150,000) annually or twenty-five per cent of the annual tax
20 paid by the mentor, whichever is less.
21 (c) Any tax credit allowed under this article and not used
22 in the fiscal year during which the investment was made may be
23 carried over for the next five fiscal years or until the full
24 credit has been used.
25 (d) The total amount of all tax credits allowed under this
26 article shall not exceed five million dollars ($5,000,000) in
27 any one fiscal year.
28 Section 2206. Powers and Duties.--The department shall have
29 the power and duty to:
30 (1) Publish rules and regulations to administer and enforce
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1 the provisions of this article.
2 (2) Publish as a notice in the Pennsylvania Bulletin, no
3 later than January 1 of each year, forms upon which taxpayers
4 may apply for the credit authorized by this article.
5 (3) Furnish annually to the members of the General Assembly
6 the following information:
7 (i) The total amount of tax credits used by taxpayers under
8 this article in the preceding fiscal year.
9 (ii) The amount of tax credits granted according to the
10 classification of business as determined by the standard
11 industrial classification code.
12 (iii) The amount of tax credits applied to the personal
13 income tax, corporate net income tax or capital stock-franchise
14 tax.
15 (iv) The total amount of tax credits available under this
16 article in the following fiscal year.
17 (v) The amount of employment, State and local tax revenues,
18 profits, capital investment, increases in export sales and
19 economic growth which may be attributed to the use of this
20 program.
21 Section 2207. Application of Article.--A credit under this
22 article shall apply to a mentor meeting the requirements of this
23 article on the first day of the mentor's taxable year which
24 begins on or after the first day of the first Commonwealth
25 fiscal year following the effective date of this article.
26 Section 2. This act shall expire in five years unless sooner
27 reenacted.
28 Section 3. This act shall take effect July 1, 2001, or
29 immediately, whichever is later.
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