PRINTER'S NO. 582
No. 549 Session of 2005
INTRODUCED BY GREENLEAF, WONDERLING, C. WILLIAMS, ERICKSON, TOMLINSON, BOSCOLA, LEMMOND, RAFFERTY, PIPPY, ORIE, TARTAGLIONE, KITCHEN, O'PAKE, RHOADES, COSTA, LOGAN, KASUNIC, WAUGH AND FERLO, MARCH 31, 2005
REFERRED TO FINANCE, MARCH 31, 2005
AN ACT 1 Providing tax credits for donated services and equipment. 2 The General Assembly of the Commonwealth of Pennsylvania 3 hereby enacts as follows: 4 Section 1. Short title. 5 This act shall be known and may be cited as the Donated 6 Services and Equipment Tax Credit Act. 7 Section 2. Definitions. 8 The following words and phrases when used in this act shall 9 have the meanings given to them in this section unless the 10 context clearly indicates otherwise: 11 "College." An institution chartered within this Commonwealth 12 and duly authorized by law to be called a college or university. 13 "Computer equipment." A data processor which can be 14 programmed in at least two standard computer languages, has a 15 random access memory with a capacity for at least 32,000 bytes 16 and is or can be used connected to a screen for visual display
1 of data. The term also includes a display screen, printer, disk 2 drive and installation costs, if donated with the data 3 processor. 4 "Computer software." Computer programs and instruction in 5 the use of such programs, donated by a corporation. 6 "Corporation." A corporation having capital stock, joint- 7 stock association or limited partnership, either organized under 8 the laws of the United States, this Commonwealth, or any other 9 state, territory or foreign country or dependency and doing 10 business in this Commonwealth, or having capital or property 11 employed or used in this Commonwealth by or in the name of 12 itself or any person, partnership, association, limited 13 partnership, joint-stock association or corporation. The term 14 does not include a building and loan association, bank, bank and 15 trust company, national bank, savings institution, trust company 16 or insurance and surety company. 17 "Department." The Department of Revenue of the Commonwealth. 18 "Donated equipment." Computer or scientific equipment given 19 to a school entity or a college solely for educational purposes, 20 not transferred for money, property, services or other 21 consideration and the original use of which equipment 22 immediately after the donation is by the donee. 23 "Donated services." Computer software or labor donated by an 24 individual to a college or a school entity used either in 25 classroom instruction or programming computer equipment, 26 providing that the individual is an employee of a corporation 27 and has donated the labor with the knowledge and assent of that 28 corporation. 29 "Market value." The retail sale price of computer or 30 scientific equipment. 20050S0549B0582 - 2 -
1 "Residual value." The difference between the market price of 2 computer or scientific equipment and any depreciation allowances 3 which have been authorized for the equipment. 4 "School entity." A school district, joint school district, 5 area vocational-technical school, intermediate unit, private 6 academic school, approved private school or licensed private 7 school. 8 "Scientific equipment." Technical or electronic equipment 9 normally used in teaching science or mathematics, including 10 laboratory equipment which is no older than five years old. 11 Section 3. Credit against taxes. 12 A corporation shall be entitled to a credit against taxes 13 imposed under Article IV of the act of March 4, 1971 (P.L.6, 14 No.2), known as the Tax Reform Code of 1971, for the tax year in 15 which any donated equipment or donated services were donated. 16 The credit shall be calculated as follows: 17 (1) For new computer or scientific equipment, 50% of the 18 market value. 19 (2) For used computer or scientific equipment, 50% of 20 the residual value. 21 (3) For computer software, 50% of the actual cash value 22 of the software. 23 (4) For labor donations, 50% of the wages or salary of 24 the employee whose labor has been donated. 25 Section 4. Note of donation. 26 In accordance with regulations adopted by the department, the 27 corporation shall submit a note of donation which shall include 28 the following: 29 (1) A description of the donated equipment, computer 30 software or donated services. 20050S0549B0582 - 3 -
1 (2) An appraisal of the value of the donated equipment, 2 computer software or donated services. 3 (3) A statement by the donee that the donated equipment, 4 computer software or donated services has been received, 5 identifying the educational use which will be made of the 6 equipment. 7 (4) An affidavit by the donee that no special 8 consideration was made in exchange for the donation. 9 Section 5. Department powers and duties. 10 The department has the power and its duty shall be to adopt 11 rules, regulations, procedures and forms that may be necessary 12 to implement this act. 13 Section 6. Effective date. 14 This act shall take effect in 90 days. B9L72JAM/20050S0549B0582 - 4 -