PRINTER'S NO. 2867
No. 2163 Session of 1989
INTRODUCED BY LASHINGER, ANGSTADT, BUSH, FARMER, J. TAYLOR,
GODSHALL, NAHILL, DEMPSEY, ARGALL, HERSHEY, REBER, GRUPPO,
CESSAR, BUNT, WESTON, HECKLER, RAYMOND, GLADECK, MERRY,
CLYMER, DIETTERICK, SERAFINI, JADLOWIEC, MARSICO, FAIRCHILD,
BLACK, GEIST, NAILOR, HESS, KONDRICH, WASS, JOHNSON, SCHULER,
FOX, E. Z. TAYLOR, HERMAN, J. L. WRIGHT, D. W. SNYDER,
J. H. CLARK, DISTLER, GANNON, PHILLIPS, NOYE, McVERRY,
PERZEL, CORNELL, FOSTER, TRELLO, TELEK, CIVERA AND ADOLPH,
DECEMBER 6, 1989
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 6, 1989
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 for a low-income housing tax
11 credit.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding an article to
16 read:
17 ARTICLE XX
18 AFFORDABLE HOUSING TAX CREDIT
19 Section 2001. Declaration of Public Policy.--It is hereby
1 determined and declared as a matter of legislative finding that:
2 (1) The inadequate supply of sales and rental housing units
3 for persons and families of low income, the deterioration of
4 older dwellings, the elimination of substandard dwellings by
5 governmental action and a shortage of suitable housing for
6 elderly and disabled individuals threaten the welfare of this
7 Commonwealth.
8 (2) Therefore, it is hereby declared to be the public policy
9 of the Commonwealth of Pennsylvania to promote the health,
10 safety and welfare of its inhabitants by providing tax credit
11 for business firms which invest in low-income rental housing
12 production within this Commonwealth.
13 Section 2002. Definitions.--Subject to additional
14 definitions contained in subsequent provisions of this article
15 which are applicable to specific provisions of this article, the
16 following words and phrases when used in this article shall have
17 the meanings given to them in this section unless the context
18 clearly indicates otherwise:
19 "Business firm" means any business entity authorized to do
20 business in the Commonwealth of Pennsylvania and subject to
21 taxes imposed by Article IV, VI, VII, VIII, IX, X, XIII or XV.
22 "Credit" means the Pennsylvania low-income housing tax
23 credit.
24 "Federal low-income housing tax credit" means the Federal
25 low-income housing tax credit as provided for in section 42 of
26 the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
27 § 42).
28 Section 2003. Authorization of Credit.--Every business firm
29 which is engaged in a for-profit business enterprise within this
30 Commonwealth and which qualifies for the Federal low-income
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1 housing tax credit shall qualify for the Pennsylvania low-income
2 housing tax credit. A business firm which qualifies for the
3 credit as provided for in this article may apply the credit
4 against any tax due under Article IV, VI, VII, VIII, IX, X, XIII
5 or XV.
6 Section 2004. Calculation of Tax Credit.--The amount of the
7 tax credit available to a business firm which qualifies under
8 this article shall be equal to fifty per cent of the Federal
9 low-income housing tax credit that a business firm is entitled
10 to in the current tax year. The credit must be applied against
11 taxes due in the current tax year. The credit may not be carried
12 back to prior tax years, nor may it be carried forward to future
13 tax years.
14 Section 2005. Powers and Duties.--In addition to those
15 powers created by any other act of the General Assembly, the
16 Secretary of Revenue shall have the power and it shall be his
17 duty to:
18 (1) publish any rules and regulations which may be required
19 to implement this act;
20 (2) publish as a notice in the Pennsylvania Bulletin, no
21 later than November 30, 1990, forms upon which taxpayers may
22 apply for the tax credit authorized by this article;
23 (3) within five (5) months after the close of any calendar
24 year during which tax credits granted pursuant to this article
25 were used, furnish to the members of the General Assembly an
26 annual report providing as to each business firm which used tax
27 credits during the preceding calendar year pursuant to this
28 article, the employer's name, address, standard industrial
29 classification code and the amount of tax credits granted; and
30 (4) the provisions of section 408(b) of the act relating to
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1 confidentiality of information, and any other provisions of law
2 prevent the disclosure of information required pursuant to
3 clause (3), shall not apply when the information is divulged for
4 the purposes of clause (2).
5 Section 2006. Applicability.--This article shall apply to
6 the tax year beginning in 1990 and thereafter.
7 Section 2. This act shall take effect in 60 days.
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