PRINTER'S NO. 1468
No. 1179 Session of 1999
INTRODUCED BY GREENLEAF, CONTI, WOZNIAK, HELFRICK, LEMMOND,
DENT, MUSTO, COSTA, WENGER, TILGHMAN, BOSCOLA, EARLL,
GERLACH, HOLL, KASUNIC, KITCHEN, KUKOVICH, RHOADES,
SALVATORE, SLOCUM, TARTAGLIONE, TOMLINSON, WAGNER AND WAUGH,
NOVEMBER 8, 1999
REFERRED TO FINANCE, NOVEMBER 8, 1999
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," providing for a child-care tax credit.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
14 the Tax Reform Code of 1971, is amended by adding an article to
15 read:
16 ARTICLE XXII
17 CHILD-CARE TAX CREDIT
18 Section 2201. Short Title.--This article shall be known and
19 may be cited as the Child-Care Tax Credit Act.
20 Section 2202. Definitions.--The following words, terms and
1 phrases, when used in this article, shall have the meanings
2 ascribed to them in this section, except where the context
3 clearly indicates otherwise:
4 "Business firm." A corporation, partnership or sole
5 proprietorship authorized to do business in this Commonwealth
6 and subject to any of the taxes imposed by Article III, IV, VI,
7 VII, VIII, IX, X, XIII or XV of this act.
8 "Contributions." Net payments made to a child-care program
9 not operated by the business firm for child-care services for
10 children of employees of the business firm.
11 "Credit." The child-care tax credit.
12 "Net costs." Amounts, exclusive of startup expenses,
13 expended for the operation of a child-care program reduced by
14 the fees or charges paid by the users of the child-care program
15 services.
16 Section 2203. Authorization of Credit.--(a) A business firm
17 that operates its own child-care program which has been issued a
18 valid license by the Department of Public Welfare shall be
19 eligible for the tax credit.
20 (b) A business firm which makes contributions to a child-
21 care program not operated by the business firm which has been
22 issued a valid license by the Department of Public Welfare shall
23 be eligible for the tax credit.
24 Section 2204. Calculation of Credit.--(a) The amount of the
25 tax credit available to a business firm which qualifies under
26 this article and operates its own not-for-profit child-care
27 program shall be equal to one hundred per cent of the net costs
28 expended for the operation and maintenance of the child-care
29 program.
30 (b) The amount of the tax credit available to a business
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1 firm which qualifies under this article and contributes to a
2 child-care program not operated by the business firm shall be
3 equal to one hundred per cent of the contributions made by the
4 business firm to the child-care program.
5 Section 2205. Taxes Against Which Credit may be Taken.--(a)
6 Except as provided in subsection (b), the tax credit provided
7 for in this article may be applied against any tax due under
8 Article III, IV, VI, VII, VIII, IX, X, XIII or XV of this act.
9 (b) The tax credit provided for in this article shall not be
10 applied against employer withholding taxes required under
11 Article III of this act.
12 Section 2206. Powers and Duties.--In addition to those
13 powers created by any other act, the Secretary of Revenue shall
14 have the power and it shall be the secretary's duty to:
15 (1) Promulgate and publish any rules and regulations which
16 may be required to implement this article.
17 (2) Publish as a notice in the Pennsylvania Bulletin forms
18 upon which taxpayers may apply for the tax credit authorized by
19 this article.
20 Section 2. This act shall apply to the taxable year
21 beginning January 1, 2000.
22 Section 3. This act shall take effect immediately.
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