PRINTER'S NO. 1371
No. 1122 Session of 1989
INTRODUCED BY DAWIDA, PORTERFIELD, SALVATORE, REIBMAN, O'PAKE,
LYNCH, PECORA, SHAFFER, FISHER, STAPLETON, JONES, BELAN,
FATTAH AND ANDREZESKI, JUNE 28, 1989
REFERRED TO FINANCE, JUNE 28, 1989
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," further providing for employment incentive
11 payments.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 1701-A(f), (g) and (h) of the act of
15 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
16 1971, added December 19, 1985 (P.L.356, No.102), are amended to
17 read:
18 Section 1701-A. Employment Incentive Payments.--* * *
19 (f) The total amount of employment incentive payments
20 authorized by this section shall not exceed twenty-five million
21 dollars ($25,000,000) in any fiscal year. To insure that credits
22 are not claimed in excess of this amount, an employer may claim
1 the incentive payments only upon presentation of an authorizing
2 certificate. Certificates will be issued to the [employe]
3 employer by the Department of Public Welfare upon presentation
4 to the Department of Public Welfare of evidence of a qualifying
5 offer of employment. [The] If necessary to avoid certificate
6 issuances in excess of the maximum authorized amount for any
7 fiscal year, the department shall advise the Department of
8 Public Welfare of the total number of certificates which may be
9 issued in each calendar quarter [consistent with the limitation
10 on total incentive payments. If an employe does not accept the
11 job for which the certificate is authorized, the certificate
12 shall be returned by the employe to the Department of Public
13 Welfare. If an employe terminates employment for any reason
14 prior to the expiration of three years, the employer shall
15 return the certificate, noting the date of the employe's hiring
16 and termination, to the department]. The Department of Public
17 Welfare may issue certificates through the Office of Employment
18 Security and may promulgate regulations to allocate
19 certificates.
20 (g) Employment incentive payments shall not be available for
21 employes hired after June 30, [1989] 1993, unless reenacted by
22 the General Assembly. Not later than [July 1, 1986] September 1,
23 1990, and [July] September 1 each year thereafter, the
24 Department of Public Welfare shall report to the General
25 Assembly on the effectiveness of incentive payments to encourage
26 the employment of cash assistance recipients and recommend
27 whether changes are needed in the program and whether the
28 program should be continued. The report shall contain
29 information, including the number of authorizing certificates
30 issued by the Department of Public Welfare, the number of
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1 authorizing certificates [returned because the welfare recipient
2 did not accept the job, the number of certificates returned
3 because the employe left employment voluntarily, the number
4 returned because the employe became disabled and the number
5 returned because the employe was terminated from employment for
6 cause. The report shall also contain the number and dollar
7 amounts of first, second and third year tax credits claimed by
8 employers in each tax year] accepted by the Department of
9 Revenue from employers as evidence of qualified hires, the
10 number and dollar amounts of [first, second and third year] tax
11 credits approved by the Department of Revenue in each tax year,
12 [the length of time employes retained their jobs, the types of
13 jobs obtained,] the average hourly starting wage of employes
14 hired and the category of assistance received previously by
15 employes hired. The report shall also include an analysis of
16 [the types of businesses which have been issued authorizing
17 certificates during the tax year, and] the types of businesses
18 identified as either corporations or individuals or partnerships
19 which have had tax credits approved by the Department of Revenue
20 [by category of business] and the types of employment positions
21 into which employes have been hired as indicated by Standard
22 [Industrial] Occupational Classification Codes [and by size of
23 business as indicated by the number of employes, and a
24 discussion of]. The report shall describe outreach and publicity
25 efforts by the Department of Public Welfare. The report shall
26 contain similar information about the day care tax credit
27 authorized in subsection (c)(2). Credits may be claimed against
28 taxes payable for tax years beginning January 1, [1986] 1989,
29 and thereafter, and may be claimed for employes hired on or
30 after January 1, [1986] 1989.
19890S1122B1371 - 3 -
1 [(h) This section shall be deemed to be a continuation of
2 the employment incentive payment program authorized heretofore
3 by section 491 of the "Public Welfare Code."]
4 Section 2. This act shall take effect immediately.
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