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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BLAKE, COSTA, TARTAGLIONE, FONTANA, SOLOBAY, WOZNIAK, BOSCOLA, YUDICHAK, BREWSTER, KITCHEN AND FARNESE, APRIL 1, 2011 |
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| REFERRED TO FINANCE, APRIL 1, 2011 |
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| AN ACT |
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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 the definitions of "small business" |
11 | and "unemployed individual"; and further providing for |
12 | application process and for tax credits. |
13 | The General Assembly of the Commonwealth of Pennsylvania |
14 | hereby enacts as follows: |
15 | Section 1. Section 1801-B of the act of March 4, 1971 |
16 | (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended |
17 | by adding definitions to read: |
18 | Section 1801-B. Definitions. |
19 | The following words and phrases when used in this article |
20 | shall have the meanings given to them in this section unless the |
21 | context clearly indicates otherwise: |
22 | * * * |
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1 | "Small business." A company that is engaged in a for-profit |
2 | enterprise and that employs 50 or fewer individuals. |
3 | * * * |
4 | "Unemployed individual." An individual who at the time of |
5 | hiring meets all of the following: |
6 | (1) Is hired on or after July 1, 2011. |
7 | (2) Certifies by signed affidavit, under penalty of |
8 | perjury, that the individual has not been employed during the |
9 | 60-day period ending on the date the individual begins |
10 | employment. |
11 | (3) Is not employed by the company to replace another |
12 | employee of the company unless the other employee separated |
13 | from employment voluntarily or for cause. |
14 | (4) Will perform duties connected to the new job for at |
15 | least 52 consecutive weeks. |
16 | * * * |
17 | Section 2. Sections 1803-B(b) and (c) and 1804-B(a), (d) and |
18 | (e) of the act, added June 22, 2001 (P.L.353, No.23), are |
19 | amended to read: |
20 | Section 1803-B. Application process. |
21 | * * * |
22 | (b) Creation of jobs.--[The] Except as provided under this |
23 | subsection, an applicant must agree to create at least 25 new |
24 | jobs or to increase the applicant's number of employees by at |
25 | least 20% within three years of the start date. A small business |
26 | applicant must agree to increase the applicant's number of |
27 | employees by at least 10% within three years after the start |
28 | date. |
29 | (c) Approval.--If the department approves the company's |
30 | application, the department and the company shall execute a |
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1 | commitment letter containing the following: |
2 | (1) A description of the project. |
3 | (2) The number of new jobs to be created. |
4 | (3) The amount of private capital investment in the |
5 | project. |
6 | (3.1) A statement authorizing the per job credit as a |
7 | single year or multiple year credit. |
8 | (4) The maximum job creation tax credit amount the |
9 | company may claim. |
10 | (5) A signed statement that the company intends to |
11 | maintain its operation in this Commonwealth for five years |
12 | from the start date. |
13 | (6) Such other information as the department deems |
14 | appropriate. |
15 | * * * |
16 | Section 1804-B. Tax credits. |
17 | (a) Maximum amount.--A company may claim a tax credit of |
18 | [$1,000] $2,000 per new job created, or $4,000 per each new job |
19 | created if the newly created job is filled by an unemployed |
20 | individual, up to the maximum job creation tax credit amount |
21 | specified in the commitment letter. |
22 | * * * |
23 | (d) Tax credit term.--A company may claim the job creation |
24 | tax credit for each new job created, as approved by the |
25 | department, for a [period determined by the department but not |
26 | to exceed] one-year, two-year or three-year period as authorized |
27 | by the department, except that no tax credit may be claimed for |
28 | more than five years from the date the company first submits a |
29 | job creation tax credit certificate. |
30 | (e) Availability of tax credits.--Each fiscal year, |
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1 | [$22,500,000] $25,000,000 in tax credits shall be made available |
2 | to the department and may be awarded by the department in |
3 | accordance with this article. In addition, in any fiscal year, |
4 | the department may reissue or assign prior fiscal year tax |
5 | credits which have been recaptured under section 1806-B(a) or |
6 | (b) and may award prior fiscal year credits not previously |
7 | issued. Prior fiscal year credits may be reissued, assigned or |
8 | awarded by the department without limitation by section 1805- |
9 | B(b). |
10 | Section 3. A company may claim the tax credit under section |
11 | 1804-B of the act for each newly created job filled by an |
12 | unemployed individual on or after the effective date of this |
13 | section. |
14 | Section 4. This act shall take effect in 60 days. |
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