PRINTER'S NO. 2208
No. 1771 Session of 1997
INTRODUCED BY C. WILLIAMS, VEON, CALTAGIRONE, WOJNAROSKI,
SANTONI, GLADECK, STEELMAN, BATTISTO, COY, HERMAN, MANDERINO,
MELIO, REBER, HALUSKA, BUNT, TRICH, RUBLEY, CURRY, PETRARCA,
LEVDANSKY, BOSCOLA, VAN HORNE, ARGALL, GEIST, WILT, WALKO,
JOSEPHS, SEYFERT, GIGLIOTTI, RAMOS, PISTELLA, GORDNER,
BELARDI, LAUGHLIN, DALEY, CORPORA, ROONEY, TIGUE, SHANER,
DENT AND CASORIO, SEPTEMBER 23, 1997
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 23, 1997
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 library development tax credits.
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 XIX-B
17 LIBRARY DEVELOPMENT TAX CREDIT
18 Section 1901-B. Short Title.--This article shall be known
19 and may be cited as the Library Development Tax Credit Act.
1 Section 1902-B. Definitions.--The following words, terms and
2 phrases when used in this article shall have the meanings given
3 to them in this section unless the context clearly indicates
4 otherwise:
5 "Business firm." Any business entity authorized to do
6 business in this Commonwealth and subject to taxes imposed by
7 Article IV, VI, VII, VII-A, VIII, VIII-A, IX, X or XV of this
8 act.
9 "Library." Any local library, county library, district
10 library center or regional library resource center eligible for
11 State-aid or funding under the act of June 14, 1961 (P.L.324,
12 No.188), known as "The Library Code."
13 "Qualified Donation." A donation by a business firm to
14 libraries of cash or cash equivalents, new furnishings or new
15 equipment for the direct purpose of improving the physical
16 infrastructure of libraries or improving access to information
17 and services for library patrons or expanding opportunities for
18 library staff training and development. The term shall include,
19 but not be limited to, capital improvements, donations of new
20 computer software, new computers, new computer peripheral
21 equipment, new equipment or furnishings to be used in
22 conjunction with computers or new furniture.
23 Section 1903-B. Public Policy.--It is hereby declared to be
24 the public policy of this Commonwealth to encourage business
25 firms to invest in the development of this Commonwealth's
26 library system.
27 Section 1904-B. Tax Credit.--(a) Any business firm which
28 makes a qualified donation to a library shall receive a tax
29 credit as provided in subsection (b) if the receiving library
30 and the State Librarian annually approve the proposal of such
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1 business firm. The proposal shall set forth:
2 (1) The donation to be made.
3 (2) The receiving library.
4 (3) The estimated market value of the donation to the
5 library.
6 (4) The plans for providing the donation.
7 (b) The Department of Revenue shall grant a tax credit
8 against any tax due under Article IV, VI, VII, VII-A, VIII,
9 VIII-A, IX, X or XV of this act or any tax substituted in lieu
10 thereof in an amount which shall not exceed one hundred percent
11 of the total market value of a qualified donation that occurs
12 during the taxable year by the business firm. No tax credit
13 shall be granted under this subsection to any business firm for
14 activities that are part of its normal course of business. Any
15 tax credit under this subsection that is not used in the period
16 the qualified donation was given may be carried over for the
17 next five succeeding taxable years until full credit has been
18 allowed.
19 (c) The State Librarian is hereby authorized to promulgate
20 rules and regulations for the approval or disapproval of
21 qualified donations and shall provide a listing of all
22 applications received and their disposition to the General
23 Assembly by October 1 of the following fiscal year.
24 (d) The total amount of all tax credits under this article
25 shall not exceed ten million dollars ($10,000,000) in any fiscal
26 year.
27 Section 2. This act shall apply to taxable years beginning
28 after December 31, 1997.
29 Section 3. This act shall take effect immediately.
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