PRINTER'S NO. 341
No. 335 Session of 1999
INTRODUCED BY O'PAKE, MELLOW, HELFRICK, BELAN, STAPLETON, BODACK, WAGNER, KASUNIC, MUSTO, EARLL, PUNT, DENT, SLOCUM, WAUGH, BOSCOLA, SCHWARTZ, STOUT, TARTAGLIONE, WOZNIAK AND COSTA, FEBRUARY 8, 1999
REFERRED TO FINANCE, FEBRUARY 8, 1999
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 a tax credit to corporations that 11 provide child day-care facilities or subsidies for their 12 employees. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as 16 the Tax Reform Code of 1971, is amended by adding a section to 17 read: 18 Section 402.2. Tax Credits for Child Day Care.--(a) Any 19 corporation required to pay the taxes imposed under section 402 20 may receive a tax credit of fifty per cent against the taxes due 21 under this article for any moneys expended towards the 22 following:
1 (1) The planning, site preparation, construction, renovation 2 or acquisition of a nonprofit day-care facility used principally 3 by the employes of the corporation, so long as no one 4 corporation receives more than twenty thousand dollars ($20,000) 5 in tax credits and the department allows no more than five 6 hundred thousand dollars ($500,000) in total tax credits to 7 corporations that apply each tax year. 8 (2) Subsidizing employes of the corporation for the cost of 9 having child day-care services provided to the children, so long 10 as no one corporation receives more than fifty thousand dollars 11 ($50,000) in tax credits and the department allows no more than 12 five hundred thousand dollars ($500,000) in total tax credits to 13 corporations that apply each tax year. 14 (b) Services eligible for credits shall include child care 15 given in a child's home other than by a parent, by a nonparent 16 relative in the relative's home, by a neighbor in the neighbor's 17 home and by a licensed or registered day-care facility. 18 (c) Grant moneys received by an employer from the 19 Commonwealth as a reimbursement for child care expenses shall 20 not be considered as moneys expended by the employer for 21 purposes of this credit. 22 (d) The Secretary of Revenue and the Secretary of Labor and 23 Industry shall: 24 (1) Promulgate rules and regulations necessary to implement 25 this section. 26 (2) Publish, as a notice in the Pennsylvania Bulletin, 27 within ninety days of the effective date of this section, forms 28 upon which corporations may apply for the tax credit authorized 29 by this section. 30 (e) (1) Applications for tax credits shall be filed by 19990S0335B0341 - 2 -
1 corporations not later than January 31 of the next calendar year 2 for credits due during the preceding calendar year. 3 (2) Not later than June 1 of each year, each corporation 4 that has filed a complete application for credits under this 5 section shall be notified regarding the amount of credits 6 awarded to the corporation. An application shall be deemed 7 complete and processible only if it is signed and contains the 8 corporation's name, address, tax identification number and other 9 information and documentation necessary to determine the amount 10 of the credit. 11 Section 2. This act shall take effect immediately. A7L72DMS/19990S0335B0341 - 3 -