PRINTER'S NO. 1376
No. 1127 Session of 1989
INTRODUCED BY REIBMAN, PORTERFIELD, SALVATORE, JONES, STAPLETON,
BELAN, SHAFFER, AFFLERBACH, FISHER, RHOADES, WENGER, O'PAKE,
ANDREZESKI, REGOLI AND WILLIAMS, JUNE 28, 1989
REFERRED TO FINANCE, JUNE 28, 1989
AN ACT
1 Providing a tax credit for donated 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 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." Any institution chartered within the 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, which
15 has a random access memory with a capacity for at least 32,000
16 bytes and is or can be used connected to a screen for visual
17 display of data. Display screens, printers, disk drives and
1 installation costs, if donated with a data processor, are also
2 eligible for a tax credit.
3 "Corporation." A corporation having capital stock, joint-
4 stock association or limited partnership, either organized under
5 the laws of this Commonwealth, the United States, or any other
6 state, territory or foreign country or dependency and doing
7 business in this Commonwealth, or having capital or property
8 employed or used in this Commonwealth by or in the name of
9 itself or any person, partnership, association, limited
10 partnership, joint-stock association or corporation. The word
11 "corporation" shall not include building and loan associations,
12 banks, bank and trust companies, national banks, savings
13 institutions, trust companies, insurance and surety companies.
14 "Department." The Department of Revenue of the Commonwealth.
15 "Donated equipment." Computer or scientific equipment given
16 to a school entity or a college solely for educational purposes,
17 and not transferred for money, property, services or other
18 consideration. The original use of the equipment immediately
19 after the donation shall be by the donee.
20 "Market value." The retail sale price of computer or
21 scientific equipment.
22 "Residual value." The difference between the market price of
23 computer or scientific equipment and any depreciation allowances
24 which have been authorized for such equipment.
25 "School entity." A school district, joint school district,
26 area vocational-technical school, intermediate unit, private
27 academic school, approved private school or licensed private
28 school.
29 "Scientific equipment." Technical or electronic equipment
30 normally used in teaching science or mathematics, including
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1 laboratory equipment which is no older than five years old.
2 Section 3. Credit against taxes.
3 A corporation shall be entitled to a credit against taxes
4 imposed under Article IV of the act of March 4, 1971 (P.L.6,
5 No.2), known as the Tax Reform Code of 1971, for the tax year in
6 which the equipment was donated. The credit shall be 50% of the
7 market value of new computer or scientific equipment or 50% of
8 the residual value of used computer or scientific equipment.
9 Section 4. Note of donation.
10 In accordance with regulations adopted by the department, the
11 corporation shall submit a note of donation which shall include
12 the following information:
13 (1) A description of the donated equipment.
14 (2) An appraisal of the value of the donated equipment.
15 (3) A statement by the donee that the donated equipment
16 has been received, identifying the educational use which will
17 be made of the equipment and an affidavit that no special
18 consideration was made in exchange for the donation.
19 Section 5. Department powers.
20 The Department of Revenue has the power and its duty shall be
21 to adopt the rules, regulations, procedures and forms as are
22 necessary to implement this act.
23 Section 6. Effective date.
24 This act shall take effect in 90 days.
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