THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BENNINGHOFF, AUMENT, BAKER, BOYD, B. BOYLE, BRADFORD, D. COSTA, CREIGHTON, DALEY, J. EVANS, FLECK, GINGRICH, GODSHALL, GOODMAN, HARHART, HARKINS, KAUFFMAN, MURT, RAPP, ROCK, ROSS, SWANGER, TOOHIL, VULAKOVICH AND YOUNGBLOOD, SEPTEMBER 29, 2011

REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 29, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," providing for a tax credit for donated dental

services.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding an article to

read:

ARTICLE XVIII-E

DENTAL SERVICES DONATION TAX CREDIT

Section 1801-E.  Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department."  The Department of Revenue of the Commonwealth.

"Pass-through entity."  Any of the following:

(1)  A partnership, limited partnership, limited

liability company, business trust or other unincorporated

entity that for Federal income tax purposes is taxable as a

partnership.

(2)  A Pennsylvania S corporation.

"Practice of dentistry."  As defined in section 2 of the act

of May 1, 1933 (P.L.216, No.76), known as The Dental Law.

"Qualified tax liability."  The liability for taxes imposed

under Article III, IV or VI. The term includes the liability for

taxes imposed under Article III on the owner of a pass-through

entity.

"Tax credit."  The tax credit for donated dental services

under this article.

"Taxpayer."  An entity subject to tax under Article III, IV

or VI. The term includes a pass-through entity.

Section 1802-E.  Tax credit.

A taxpayer that engages in the practice of dentistry and

donates dental services may claim a tax credit equal to 50% of

the aggregate cost of the services donated in the taxable year

against the qualified tax liability of the taxpayer, not to

exceed $5,000. Only the actual cost of dental services donated

may be used to calculate the tax credit.

Section 1803-E.  Guidelines.

The department shall adopt guidelines, including forms,

necessary to administer this article. The department may require

proof of the claim for tax credit.

Section 1804-E.  Applicability.

This article shall apply to taxable years beginning after

December 31, 2011.

Section 2.  This act shall take effect immediately.