PRIOR PRINTER'S NO. 1057 PRINTER'S NO. 4028
No. 905 Session of 2007
INTRODUCED BY KING, SOLOBAY, LENTZ, LEVDANSKY, BAKER, BASTIAN,
BENNINGTON, BOYD, CARROLL, CAUSER, CONKLIN, COSTA, COX,
CUTLER, DALLY, DeWEESE, J. EVANS, EVERETT, FLECK, GABIG,
GALLOWAY, GEIST, GEORGE, GIBBONS, GOODMAN, MACKERETH,
MAHONEY, MANN, MARKOSEK, MARSHALL, McCALL, MURT, QUIGLEY,
QUINN, READSHAW, REED, SAYLOR, SCAVELLO, SIPTROTH, K. SMITH,
R. STEVENSON, TANGRETTI, GRUCELA, HARHAI, HARPER, HARRIS,
HORNAMAN, HUTCHINSON, JAMES, KENNEY, KESSLER, KIRKLAND,
KORTZ, KOTIK, KULA, McGEEHAN, McILVAINE SMITH, MICOZZIE,
M. O'BRIEN, PALLONE, PETRARCA, PETRONE, THOMAS, VEREB,
VULAKOVICH, WALKO, WANSACZ, WATERS, J. WHITE, YOUNGBLOOD,
BRENNAN, FABRIZIO, DENLINGER AND BROOKS, MARCH 22, 2007
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 24, 2008
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," authorizing a tax credit for volunteer <--
11 firefighters for purposes of personal income tax. PROVIDING <--
12 FOR A VOLUNTEER RESPONDER RETENTION AND RECRUITMENT TAX
13 CREDIT.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
17 the Tax Reform Code of 1971, is amended by adding an article to
18 read:
1 ARTICLE XVIII-C
2 VOLUNTEER FIREFIGHTER TAX CREDIT <--
3 Section 1801-C. Short title.
4 This article shall be known and may be cited as the Volunteer
5 Firefighter Tax Relief Law.
6 Section 1802-C. Definitions.
7 The following words and phrases when used in this article
8 shall have the meanings given to them in this section unless the
9 context clearly indicates otherwise:
10 "Department." The Department of Revenue of the Commonwealth.
11 "Firefighting service hour." An hour during which a
12 volunteer firefighter provides firefighting services in response
13 to an emergency call.
14 "Secretary." The Secretary of Revenue of the Commonwealth.
15 "Taxpayer." An individual who is subject to tax under
16 Article III.
17 "Volunteer firefighter." The term shall have the same
18 meaning given to it under section 2 of the act of June 11, 1968
19 (P.L.149, No.84), known as the Volunteer Firefighters' Relief
20 Association Act.
21 Section 1803-C. Credit authorized.
22 (a) General rule.--A taxpayer who is a volunteer
23 firefighter, responds to an emergency call and has the
24 taxpayer's name entered on the fire log in a taxable year may
25 apply for a tax credit from tax imposed under Article III. By
26 September 15, the taxpayer must submit an application to the
27 department that sets forth the number of firefighting service
28 hours in the calendar year that ended in the prior calendar
29 year.
30 (b) Amount.--A taxpayer that is qualified under subsection
20070H0905B4028 - 2 -
1 (a) shall receive a volunteer firefighter tax credit for the
2 taxable year in the amount of the product of:
3 (1) the number of firefighting service hours times the
4 service rate established in accordance with section 1804-C;
5 and
6 (2) the rate of tax established in section 302.
7 (c) Award notification.--The department shall notify the
8 taxpayer of the amount of credit awarded under this article.
9 Section 1804-C. Establishment of service rate.
10 The secretary shall prescribe by regulation a service rate
11 equal to an amount of reasonable compensation for the services
12 provided by volunteer firefighters. The secretary may, in his
13 sole discretion, by regulation annually adjust the service rate.
14 Section 1805-C. Report to General Assembly.
15 The secretary shall submit an annual report to the General
16 Assembly indicating the effectiveness of the credit provided by
17 this article not later than March 15 following the year in which
18 the credits are approved. The report shall include the number of
19 taxpayers utilizing the credit as of the date of the report and
20 the number of credits approved and utilized. The report may also
21 include any recommendations for changes in the calculation or
22 administration of the credit.
23 Section 1806-C. Regulations.
24 The secretary shall promulgate regulations necessary for the
25 implementation and administration of this article.
26 Section 2. This act shall take effect in 60 days.
27 VOLUNTEER RESPONDER RETENTION <--
28 AND RECRUITMENT TAX CREDIT
29 SECTION 1801-C. DEFINITIONS.
30 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
20070H0905B4028 - 3 -
1 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
2 CONTEXT CLEARLY INDICATES OTHERWISE:
3 "ACTIVE VOLUNTEER." A VOLUNTEER FOR A VOLUNTEER AMBULANCE
4 SERVICE, VOLUNTEER FIRE COMPANY OR VOLUNTEER RESCUE COMPANY
5 CERTIFIED BY THE COMMISSIONER AND THE DIRECTOR AS MEETING THE
6 CRITERIA OF THIS ACT.
7 "COMMISSIONER." THE STATE FIRE COMMISSIONER APPOINTED
8 PURSUANT TO SECTION 3 OF THE ACT OF NOVEMBER 13, 1995 (P.L.604,
9 NO.61), KNOWN AS THE STATE FIRE COMMISSIONER ACT.
10 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
11 "DIRECTOR." THE DIRECTOR OF THE EMERGENCY MEDICAL SERVICES
12 OFFICE IN THE DEPARTMENT OF HEALTH.
13 "QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED
14 UNDER ARTICLE III.
15 "TAX CREDIT." THE TAX CREDIT AVAILABLE TO ACTIVE VOLUNTEERS
16 UNDER THIS ARTICLE.
17 "TAXPAYER." AN INDIVIDUAL SUBJECT TO PAYMENT OF TAXES UNDER
18 ARTICLE III.
19 "VOLUNTEER AMBULANCE SERVICE." AS DEFINED IN SECTION 102 OF
20 THE ACT OF JULY 31, 2003 (P.L.73, NO.17), KNOWN AS THE VOLUNTEER
21 FIRE COMPANY AND VOLUNTEER AMBULANCE SERVICE GRANT ACT.
22 "VOLUNTEER FIRE COMPANY." AS DEFINED IN SECTION 102 OF THE
23 ACT OF JULY 31, 2003 (P.L.73, NO.17), KNOWN AS THE VOLUNTEER
24 FIRE COMPANY AND VOLUNTEER AMBULANCE SERVICE GRANT ACT.
25 "VOLUNTEER RESCUE COMPANY." AS DEFINED IN SECTION 102 OF THE
26 ACT OF JULY 31, 2003 (P.L.73, NO.17), KNOWN AS THE VOLUNTEER
27 FIRE COMPANY AND VOLUNTEER AMBULANCE SERVICE GRANT ACT.
28 SECTION 1802-C. APPLICATION.
29 (A) APPLICATION TO DEPARTMENT.--A TAXPAYER MAY SUBMIT AN
30 APPLICATION FOR A TAX CREDIT UNDER THIS ARTICLE IN A MANNER
20070H0905B4028 - 4 -
1 REQUIRED BY THE DEPARTMENT. THE APPLICATION SHALL CONTAIN THE
2 FOLLOWING INFORMATION:
3 (1) THE NAMES AND TAX IDENTIFICATION NUMBER OF THE
4 TAXPAYER.
5 (2) THE NAME AND LOCATION OF THE VOLUNTEER FIRE COMPANY,
6 VOLUNTEER AMBULANCE SERVICE OR VOLUNTEER RESCUE COMPANY OF
7 WHICH THE TAXPAYER IS AN ACTIVE VOLUNTEER.
8 (3) ANY OTHER INFORMATION DEEMED APPROPRIATE BY THE
9 DEPARTMENT.
10 (B) APPROVAL.--THE DEPARTMENT SHALL REVIEW AND APPROVE OR
11 DISAPPROVE EACH APPLICATION IN THE ORDER IN WHICH IT IS
12 RECEIVED. UPON A DETERMINATION THAT THE TAXPAYER IS AN ACTIVE
13 VOLUNTEER, THE DEPARTMENT MAY APPROVE THE TAXPAYER FOR A TAX
14 CREDIT.
15 SECTION 1803-C. TAXPAYER CREDIT.
16 A TAXPAYER MAY CLAIM A TAX CREDIT AGAINST THE QUALIFIED TAX
17 LIABILITY OF THE TAXPAYER.
18 SECTION 1804-C. TAXPAYER ELIGIBILITY.
19 (A) CREDIT FOR EMPLOYMENT.--A TAXPAYER SHALL BE ELIGIBLE FOR
20 A TAX CREDIT UNDER SUBSECTION (B) AGAINST THE TAX IMPOSED UNDER
21 ARTICLE III IF THE TAXPAYER IS AN ACTIVE VOLUNTEER WITHIN THIS
22 COMMONWEALTH.
23 (B) MAXIMUM CREDIT.--THE FOLLOWING SHALL APPLY:
24 (1) A TAXPAYER WHO QUALIFIES UNDER SUBSECTION (A) MAY
25 CLAIM A TAX CREDIT AS FOLLOWS:
26 (I) FOR THE TAX YEAR BEGINNING IN THE 2009 CALENDAR
27 YEAR, $100.
28 (II) FOR THE TAX YEAR BEGINNING IN THE 2010 CALENDAR
29 YEAR, $200.
30 (III) FOR THE TAX YEAR BEGINNING IN THE 2011
20070H0905B4028 - 5 -
1 CALENDAR YEAR, $300.
2 (IV) FOR THE TAX YEAR BEGINNING IN THE 2012 CALENDAR
3 YEAR, $400.
4 (V) FOR THE TAX YEAR BEGINNING IN THE 2013 CALENDAR
5 YEAR, AND EACH YEAR THEREAFTER, $500.
6 (2) (I) IF THE TAXPAYER IS NOT AN ACTIVE VOLUNTEER FOR
7 THE ENTIRE TAX YEAR, THE AMOUNT OF THE TAX CREDIT SHALL
8 BE PRORATED AND THE CREDIT AMOUNT SHALL EQUAL THE MAXIMUM
9 AMOUNT OF CREDIT FOR THE TAX YEAR, DIVIDED BY 12,
10 MULTIPLIED BY THE NUMBER OF MONTHS IN THE TAX YEAR THE
11 TAXPAYER WAS AN ACTIVE VOLUNTEER. THE CREDIT SHALL BE
12 ROUNDED TO THE NEAREST $5.
13 (II) IF THE TAXPAYER IS AN ACTIVE VOLUNTEER DURING
14 ANY PART OF A MONTH, THE TAXPAYER SHALL BE CONSIDERED AN
15 ACTIVE VOLUNTEER FOR THE ENTIRE MONTH.
16 SECTION 1805-C. CARRY OVER AND CARRYBACK.
17 (A) GENERAL RULE.--IF THE TAXPAYER CANNOT USE THE ENTIRE
18 AMOUNT OF THE TAX CREDIT FOR THE FIRST TAXABLE YEAR IN WHICH THE
19 TAXPAYER IS ELIGIBLE FOR THE CREDIT, THE EXCESS MAY BE CARRIED
20 OVER TO SUCCEEDING TAXABLE YEARS AND USED AS A CREDIT AGAINST
21 THE QUALIFIED TAX LIABILITY OF THE TAXPAYER FOR THOSE TAXABLE
22 YEARS. EACH TIME THE TAX CREDIT IS CARRIED OVER TO A SUCCEEDING
23 TAXABLE YEAR, IT SHALL BE REDUCED BY THE AMOUNT THAT WAS USED AS
24 A CREDIT DURING THE IMMEDIATELY PROCEEDING TAXABLE YEAR. THE TAX
25 CREDIT PROVIDED BY THIS ARTICLE MAY BE CARRIED OVER AND APPLIED
26 TO SUCCEEDING TAXABLE YEARS FOR NO MORE THAN THREE TAXABLE YEARS
27 FOLLOWING THE FIRST TAXABLE YEAR FOR WHICH THE TAXPAYER WAS
28 ENTITLED TO CLAIM THE CREDIT.
29 (B) APPLICATION.--A TAX CREDIT APPROVED BY THE DEPARTMENT IN
30 A TAXABLE YEAR SHALL FIRST BE APPLIED AGAINST THE TAXPAYER'S
20070H0905B4028 - 6 -
1 QUALIFIED LIABILITY FOR THE CURRENT TAXABLE YEARS AS OF THE DATE
2 ON WHICH THE CREDIT WAS APPROVED BEFORE THE TAX CREDIT CAN BE
3 APPLIED AGAINST ANY TAX LIABILITY UNDER SUBSECTION (A).
4 (C) LIMITATIONS.--A TAXPAYER IS NOT ENTITLED TO CARRY BACK,
5 OBTAIN A REFUND OF, SELL OR ASSIGN AN UNUSED TAX CREDIT.
6 SECTION 1806-C. TOTAL AMOUNT OF CREDITS.
7 (A) GENERAL RULE.--THE TOTAL AMOUNT OF TAX CREDITS
8 AUTHORIZED BY THIS ARTICLE SHALL NOT EXCEED $8,500,000 IN EACH
9 FISCAL YEAR. IF THE CREDITS EXCEED THE $8,500,000 CAP IN A GIVEN
10 YEAR, THE CREDITS SHALL BE ALLOCATED ON A PRO RATA BASIS.
11 (B) ALLOCATION.--IF THE TOTAL AMOUNT OF THE TAX CREDITS
12 APPLIED FOR BY ALL TAXPAYERS UNDER THIS ARTICLE EXCEEDS THE
13 AMOUNT ALLOCATED, THE TAX CREDIT TO BE RECEIVED BY EACH
14 APPLICANT SHALL BE THE PRODUCT OF THE ALLOCATED AMOUNT
15 MULTIPLIED BY THE QUOTIENT OF THE TAX CREDIT APPLIED FOR BY THE
16 APPLICANT DIVIDED BY THE TOTAL OF ALL TAX CREDITS APPLIED FOR BY
17 ALL APPLICANTS, THE ALGEBRAIC EQUIVALENT OF WHICH IS:
18 TAXPAYER'S TAX CREDIT = AMOUNT ALLOCATED FOR THOSE CREDITS X
19 (TAX CREDIT APPLIED FOR BY THE APPLICANT/TOTAL
20 OF ALL CREDITS APPLIED FOR BY ALL APPLICANTS).
21 SECTION 1807-C. POINT SYSTEM.
22 (A) GENERAL RULE.--THE COMMISSIONER AND THE DIRECTOR SHALL
23 JOINTLY DEVELOP AND IMPLEMENT A POINT SYSTEM ESTABLISHING THE
24 ANNUAL REQUIREMENTS FOR CERTIFICATION OF ACTIVE VOLUNTEERS.
25 (B) FACTORS.--TO DETERMINE WHETHER TO CERTIFY AN INDIVIDUAL
26 AS AN ACTIVE VOLUNTEER, THE POINT SYSTEM SHALL CONSIDER THE
27 FOLLOWING FACTORS:
28 (1) THE NUMBER OF EMERGENCY CALLS RESPONDED TO.
29 (2) THE VOLUNTEER'S LEVEL OF TRAINING AND PARTICIPATION
30 IN FORMAL TRAINING AND DRILLS.
20070H0905B4028 - 7 -
1 (3) TIME SPENT ON ADMINISTRATION AND SUPPORT ACTIVITIES,
2 INCLUDING FUNDRAISING AND MAINTENANCE OF FACILITIES AND
3 EQUIPMENT.
4 (4) INVOLVEMENT IN OTHER PROJECTS THAT DIRECTLY BENEFIT
5 THE ORGANIZATION'S FINANCIAL VIABILITY, EMERGENCY RESPONSE OR
6 OPERATIONAL READINESS.
7 SECTION 1808-C. APPLICATION PROCESS.
8 (A) APPLICATION.--AN ACTIVE VOLUNTEER MAY APPLY TO THE
9 DEPARTMENT FOR A CERTIFICATION BY FILING AN APPLICATION ON THE
10 FORM REQUIRED BY THE DEPARTMENT. THE APPLICATION SHALL CONTAIN
11 THE FOLLOWING INFORMATION:
12 (1) THE NAME OF THE ACTIVE VOLUNTEER.
13 (2) THE NAME AND ADDRESS OF THE VOLUNTEER FIRE COMPANY,
14 VOLUNTEER AMBULANCE SERVICE OR VOLUNTEER RESCUE COMPANY WHERE
15 THE ACTIVE VOLUNTEER IS A MEMBER.
16 (3) ANY OTHER INFORMATION DEEMED TO BE APPROPRIATE BY
17 THE DEPARTMENT.
18 SECTION 1809-C. CERTIFICATION.
19 (A) SELF CERTIFICATION.--THE ACTIVE VOLUNTEER SHALL SIGN AND
20 SUBMIT THE APPLICATION TO THE CHIEF OF THE VOLUNTEER FIRE
21 COMPANY OR THE SUPERVISOR OR CHIEF OF THE VOLUNTEER AMBULANCE
22 SERVICE OR VOLUNTEER RESCUE COMPANY FIRE OR EMS DEPARTMENT WHERE
23 HE OR SHE SERVES.
24 (B) LOCAL SIGN-OFF.--THE CHIEF OF THE VOLUNTEER FIRE
25 COMPANY, THE SUPERVISOR OR CHIEF OF THE VOLUNTEER AMBULANCE
26 SERVICE OR VOLUNTEER RESCUE COMPANY SHALL SIGN THE APPLICATION
27 ATTESTING TO THE INDIVIDUAL'S STATUS AS AN ACTIVE VOLUNTEER. THE
28 APPLICATION SHALL THEN BE FORWARDED TO THE DEPARTMENT FOR FINAL
29 REVIEW AND PROCESSING.
30 (C) DEPARTMENTAL REVIEW.--THE DEPARTMENT SHALL REVIEW AND
20070H0905B4028 - 8 -
1 APPROVE OR DISAPPROVE THE APPLICATIONS IN THE ORDER IN WHICH
2 THEY ARE RECEIVED.
3 SECTION 1810-C. REGULATIONS.
4 THE DEPARTMENT SHALL ADOPT REGULATIONS, INCLUDING FORMS,
5 NECESSARY TO ADMINISTER THIS ARTICLE. THE DEPARTMENT MAY REQUIRE
6 PROOF OF THE CLAIM FOR TAX CREDIT.
7 SECTION 1811-C. REPORT TO GENERAL ASSEMBLY.
8 NO LATER THAN JUNE 1, 2010, AND SEPTEMBER 1 OF EACH YEAR
9 THEREAFTER, THE DEPARTMENT SHALL SUBMIT A REPORT ON THE TAX
10 CREDITS GRANTED UNDER THIS ARTICLE AND THE APPLICABILITY OF THE
11 TAX CREDIT TO THE RETENTION OF ACTIVE VOLUNTEERS OF A VOLUNTEER
12 AMBULANCE SERVICE, VOLUNTEER FIRE COMPANY OR VOLUNTEER RESCUE
13 COMPANY. THE REPORT SHALL INCLUDE THE NAMES OF TAXPAYERS WHO
14 UTILIZED THE CREDIT AS OF THE DATE OF THE REPORT AND THE AMOUNT
15 OF CREDITS APPROVED. THE REPORT MAY INCLUDE RECOMMENDATIONS FOR
16 CHANGES IN THE CALCULATION OR ADMINISTRATION OF THE TAX CREDIT.
17 THE REPORT SHALL BE SUBMITTED TO THE CHAIRMAN AND MINORITY
18 CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE SENATE, THE
19 CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE
20 OF THE HOUSE OF REPRESENTATIVES, THE CHAIRMAN AND MINORITY
21 CHAIRMAN OF THE FINANCE COMMITTEE OF THE SENATE AND THE CHAIRMAN
22 AND MINORITY CHAIRMAN OF THE FINANCE COMMITTEE OF THE HOUSE OF
23 REPRESENTATIVES. THE REPORT MAY INCLUDE OTHER INFORMATION THAT
24 THE DEPARTMENT DEEMS APPROPRIATE.
25 SECTION 1812-C. PENALTY.
26 A TAXPAYER WHO CLAIMS A CREDIT UNDER THIS ARTICLE BUT FAILS
27 TO MEET THE STANDARDS UNDER SECTION 1803-C SHALL REPAY THE FULL
28 AMOUNT OF THE TAX CREDIT TO THE COMMONWEALTH.
29 SECTION 2. THIS ACT SHALL APPLY TO ALL TAXABLE YEARS
30 BEGINNING ON OR AFTER JANUARY 1, 2009.
20070H0905B4028 - 9 -
1 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
C19L72DMS/20070H0905B4028 - 10 -