THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY RAFFERTY, TARTAGLIONE, ALLOWAY, COSTA, GREENLEAF, BOSCOLA AND YUDICHAK, APRIL 8, 2011

REFERRED TO FINANCE, APRIL 8, 2011  

AN ACT

Providing for tax credits to employers against their corporate

net income tax liability for hiring employees 55 years of age

or older for full-time employment.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Continued

Employment Tax Credit Act.

Section 2.  Legislative intent.

The General Assembly finds and declares as follows:

(1)  The public policy of this Commonwealth is to provide

all its citizens with the opportunity to work.

(2)  One obstacle to many is acquiring sustainable

employment in a highly competitive job market.

(3)  The Commonwealth wishes to acknowledge those

businesses that consider the interests and needs of their

employees.

(4)  The policy stated in this section can be achieved by

providing a tax credit against the corporate net income tax

liability to employers who hire a full-time employee 55 years

of age or older.

Section 3.  Authorization of tax credit.

Every taxpayer that is an employer engaged in a for-profit

business enterprise and that hires a full-time employee who:

(1)  is 55 years of age or older; and

(2)  has not been employed during the one-year period

prior to being hired by the taxpayer

shall be eligible to receive a tax credit against any tax due

from the employer under Article IV of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, and against

any payment of estimated tax or payment of tentative tax due

from the employer on account of such taxes.

Section 4.  Limitations on tax credits.

Tax credits awarded under this act shall be subject to the

following:

(1)  Unused tax credits may be carried forward two years

from the date they are awarded. If not used within this time

period, the tax credits shall expire.

(2)  Tax credits shall not be refundable.

(3)  Tax credits shall not be transferable.

(4)  Except in cases where an eligible employee

voluntarily leaves the employment of the taxpayer, becomes

disabled or is terminated for cause, no taxpayer shall be

entitled to receive the tax credit if the employee is

employed by the taxpayer for less than one year.

(5)  If an eligible employee leaves the employment of the

taxpayer voluntarily, becomes disabled or is terminated for

cause in less than one year, the tax credit shall be reduced

by the proportion of the year not worked.

(6)  Tax credits under Article IV of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,

shall be in lieu of any allowance for depreciation of

property claimed and allowable under section 168 of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

168).

(7)  The amount of the tax credit allowed shall not

exceed the amount of the tax otherwise due from the employer

for the taxable year.

Section 5.  Amount of tax credit.

For tax years beginning after December 31, 2010, a tax credit

against the tax imposed under Article IV of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, shall

be awarded to each taxpayer eligible under section 3. The amount

of tax credit shall be equal to the lesser of $10,000 or 10% of

the employee's qualified first year wages for such year.

Section 6.  Effective date.

This act shall take effect in 60 days.