PRINTER'S NO. 1294
No. 975 Session of 2005
INTRODUCED BY SCARNATI, BRIGHTBILL, PIPPY, RHOADES, D. WHITE,
ERICKSON, CONTI, GREENLEAF, EARLL, CORMAN, WONDERLING,
ROBBINS, THOMPSON, ARMSTRONG AND BOSCOLA, OCTOBER 27, 2005
REFERRED TO FINANCE, OCTOBER 27, 2005
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," establishing special tax provisions for poverty
11 based on Federal earned income credit.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding a section to
16 read:
17 Section 304.1. Special Tax Provisions for Poverty Based on
18 Federal Earned Income Credit.--(a) Pursuant to section 2(b)(ii)
19 of Article VIII of the Constitution of the Commonwealth of
20 Pennsylvania, which provides for establishing as a class or
21 classes of subjects of taxation the property or privileges of
22 persons who, because of poverty, are determined to be in need of
1 special tax provisions, the General Assembly hereby declares its
2 intent and purpose to exercise its power pursuant to that
3 section by enacting the special tax provisions of this section.
4 (b) Having determined that there are certain persons in this
5 Commonwealth whose incomes are such that imposition of an income
6 tax would deprive them and their dependents of bare necessities
7 of life, and having determined that poverty is a relative
8 concept inextricably joined with actual income and the number of
9 people dependent upon such income, the General Assembly deems it
10 to be a matter of public policy to provide special tax
11 provisions for that class of persons to relieve their economic
12 burden.
13 (c) For taxable years beginning after December 31, 2005, an
14 individual having at least one dependent may claim a refund in
15 the amount by which twenty per cent of the earned income credit
16 allowable under section 32 of the Internal Revenue Code of 1986
17 (Public Law 99-514, 26 U.S.C. § 32) exceeds the tax imposed
18 under this article for the taxable year.
19 Section 2. This act shall take effect immediately.
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