PRINTER'S NO. 446

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

441

Session of

2023

INTRODUCED BY SANTARSIERO, KANE, MUTH, KEARNEY, L. WILLIAMS,

COLLETT, STREET, HUGHES, HAYWOOD, DILLON, COSTA, COMITTA,

TARTAGLIONE AND SAVAL, MARCH 14, 2023

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," providing for construction tax credit

requirements.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 4, 1971 (P.L.6, No.2), known as

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Construction tax credit." A tax credit authorized under any

of the following:

(1) Article XVII-D.

(2) Article XVII-G.

(3) Article XVIII-G.

(4) Article XIX-C.

(5) Article XIX-E.

(6) Article XIX-F.

that has made a capital expenditure of more than $25,000 to

construct, reconstruct, demolish, alter or repair a facility,

the department, in consultation with the Department of Labor and

Industry, shall verify that the taxpayer has:

(1) made good faith efforts to recruit and employ, and

to encourage any contractors or subcontractors of the

taxpayer to recruit and employ, workers from the local labor

market for employment during the construction,

reconstruction, demolition, alteration or repair of the

facility phase; and

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act of August 15, 1961 (P.L.987, No.442), known as the

Pennsylvania Prevailing Wage Act.

(b) New jobs.--A facility for which a construction tax

credit is sought and awarded shall be deemed to meet each of the

minimum requirements

necessary to apply the wage and benefit

rates and related certification of payroll records required by

the Pennsylvania Prevailing Wage Act. A taxpayer or any

contractor or subcontractor of the taxpayer engaged to perform

construction tax credit is sought and awarded for the facility.

(c) Notification.--Before the solicitation of bids or

proposals of any contract or subcontract for a facility for

which a construction tax credit is sought, the taxpayer or the

taxpayers shall notify the Department of Labor and Industry of

the solicitation and request the issuance of a wage and benefit

rate determination for each craft and classification anticipated

to perform at the project facility. Rate requests shall be in

conformity with the procedures of the Pennsylvania Prevailing

Wage Act, and the Department of Labor and Industry shall issue

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alteration or repair of a facility, other than maintenance work,

undertaken in accordance with the act of August 15, 1961

(P.L.987, No.442), known as the Pennsylvania Prevailing Wage

Act, to ensure compliance.

Section 1704-A.2. Violations.

(a) Refund requirement.--In addition to enforcement

authorized under the act of August 15, 1961 (P.L.987, No.442),

known as the Pennsylvania Prevailing Wage Act, and section 1703-

of a facility for which a construction tax credit is awarded, or

ratified the intentional failure by any contractors or

subcontractors of the taxpayer, the taxpayer shall refund 10% of

the amount of the construction tax credit as follows:

(1) in the case of initial construction, for the first

fiscal year for which a tax credit is awarded; or

(2) for the fiscal year in which the

intentional

noncompliance occurred as determined by the Department of

Labor and Industry.

(b) Appeals.--A finding of a violation under subsection (a)

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procedure).

Section 2. This act shall take effect in 60 days.

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