PRINTER'S NO. 1059
No. 907 Session of 2007
INTRODUCED BY J. TAYLOR, PETRONE, SHAPIRO, CAPPELLI, COHEN,
DENLINGER, FABRIZIO, FRANKEL, GEIST, HENNESSEY, JAMES,
KENNEY, KILLION, KIRKLAND, KOTIK, MACKERETH, McGEEHAN, MURT,
MUSTIO, MYERS, PALLONE, PYLE, READSHAW, REICHLEY, RUBLEY,
SOLOBAY, STURLA, WALKO AND WHEATLEY, MARCH 22, 2007
REFERRED TO COMMITTEE ON FINANCE, MARCH 22, 2007
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," further providing, in neighborhood assistance tax
11 credits, for the definition of "qualified investments," for
12 public policy, for tax credit and for grant of tax credit.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The definition of "qualified investments" in
16 section 1902-A of the act of March 4, 1971 (P.L.6, No.2), known
17 as the Tax Reform Code of 1971, amended May 7, 1997 (P.L.85,
18 No.7), is amended to read:
19 Section 1902-A. Definitions.--The following words, terms and
20 phrases, when used in this article, shall have the meanings
21 ascribed to them in this section, except where the context
1 clearly indicates a different meaning:
2 * * *
3 "Qualified investments." Any investments made by a business
4 firm or private company which promote community economic
5 development pursuant to a plan which has been developed in
6 cooperation with and approved by a neighborhood organization
7 operating pursuant to a plan for the administration of tax
8 credits approved by the Department of Community and Economic
9 Development.
10 * * *
11 Section 2. Section 1903-A of the act, added June 16, 1994
12 (P.L.279, No.48), is amended to read:
13 Section 1903-A. Public Policy.--It is hereby declared to be
14 public policy of this Commonwealth to encourage investment by
15 business firms in offering neighborhood assistance and providing
16 job training, education, crime prevention and community
17 services, to encourage contributions by business firms to
18 neighborhood organizations which offer and provide such
19 assistance and services and to promote qualified investments
20 made by business firms or private companies to rehabilitate,
21 expand or improve buildings or land which promote community
22 economic development and which occur in portions of impoverished
23 areas which have been designated as enterprise zones.
24 Section 3. Section 1904-A(a) of the act, amended April 23,
25 1998 (P.L.239, No.45), is amended and the section is amended by
26 adding subsections to read:
27 Section 1904-A. Tax Credit.--(a) Any business firm which
28 engages or contributes to a neighborhood organization which
29 engages in the activities of providing neighborhood assistance,
30 comprehensive service projects, job training or education for
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1 individuals, community services or crime prevention in an
2 impoverished area or business firm or private company which
3 makes qualified investment to rehabilitate, expand or improve
4 buildings or land located within portions of impoverished areas
5 which have been designated as enterprise zones shall receive a
6 tax credit as provided in section 1905-A if the secretary
7 annually approves the proposal of such business firm or private
8 company. The proposal shall set forth the program to be
9 conducted, the impoverished area selected, the estimated amount
10 to be invested in the program and the plans for implementing the
11 program.
12 * * *
13 (b.1) The secretary shall take into special consideration,
14 when approving applications for neighborhood assistance tax
15 credits, applications which involve multiple projects in various
16 markets throughout this Commonwealth.
17 * * *
18 (d) A taxpayer, upon application to and approval by the
19 Department of Community and Economic Development, may sell or
20 assign, in whole or in part, a neighborhood assistance tax
21 credit granted to the taxpayer under this article if no claim
22 for allowance of the credit is filed within one year from the
23 date the credit is granted by the Department of Revenue under
24 section 1905-A. The Department of Community and Economic
25 Development and the Department of Revenue shall jointly
26 promulgate guidelines for the approval of applications under
27 this subsection.
28 (e) The purchaser or assignee of a portion of a neighborhood
29 assistance tax credit under subsection (d) shall immediately
30 claim the credit in the taxable year in which the purchase or
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1 assignment is made. The purchaser or assignee may not carry
2 over, carry back, obtain a refund of or assign the neighborhood
3 assistance tax credit. The purchaser or assignee shall notify
4 the Department of Revenue of the seller or assignor of the
5 neighborhood assistance tax credit in compliance with procedures
6 specified by the Department of Revenue.
7 Section 4. Section 1905-A of the act, amended July 7, 2005
8 (P.L.149, No.40), is amended to read:
9 Section 1905-A. Grant of Tax Credit.--The Department of
10 Revenue shall grant a tax credit against any tax due under
11 Article IV, VI, VII, [VII-A,] VIII, [VIII-A,] IX, X or XV of
12 this act, or any tax substituted in lieu thereof in an amount
13 which shall not exceed fifty per cent of the total amount
14 [invested] contributed during the taxable year by the business
15 firm or twenty per cent of qualified investments by a business
16 firm, private company in programs approved pursuant to section
17 1904-A of this act: Provided, That a tax credit of up to
18 [seventy] eighty per cent of the total amount [invested]
19 contributed during the taxable year by a business firm or up to
20 thirty per cent of the amount of qualified investments by a
21 business firm or private company may be allowed for investment
22 in programs where activities fall within the scope of special
23 program priorities as defined with the approval of the Governor
24 in regulations promulgated by the secretary[.], and Provided
25 further, That a tax credit of up to eighty per cent of the total
26 amount invested in comprehensive service projects with five-year
27 commitments and up to ninety per cent for investments in
28 comprehensive service projects with six-year or longer
29 commitments during the taxable year by a business firm shall
30 also be allowed. Such credit shall not exceed [two hundred fifty
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1 thousand dollars ($250,000) annually, except in the case of
2 comprehensive service projects which shall be allowed an
3 additional credit equal to seventy per cent of the qualifying
4 investments made in comprehensive service projects; however,
5 such additional credit shall not exceed three hundred fifty
6 thousand dollars ($350,000) annually.] five hundred thousand
7 dollars ($500,000) annually for a single project or two million
8 dollars ($2,000,000) annually for four or more projects. No tax
9 credit shall be granted to any bank, bank and trust company,
10 insurance company, trust company, national bank, savings
11 association, mutual savings bank or building and loan
12 association for activities that are a part of its normal course
13 of business. Any tax credit not used in the period the
14 contribution or investment was made may be carried over for the
15 next five succeeding calendar or fiscal years until the full
16 credit has been allowed. The total amount of all tax credits
17 allowed pursuant to this act shall not exceed eighteen million
18 dollars ($18,000,000) in any one fiscal year.
19 Section 5. This act shall apply to neighborhood assistance
20 projects existing on or after the effective date of this
21 section.
22 Section 6. This act shall take effect in 60 days.
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