PRINTER'S NO. 85
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
138
Session of
2015
INTRODUCED BY GREENLEAF, BROWNE, TARTAGLIONE, VULAKOVICH,
BREWSTER, ALLOWAY, BOSCOLA AND RAFFERTY, JANUARY 14, 2015
REFERRED TO FINANCE, JANUARY 14, 2015
AN ACT
Providing tax credits for services and equipment donated to
colleges and school entities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Donated
Services and Equipment Tax Credit Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"College." An institution chartered within this Commonwealth
and duly authorized by law to be called a college or university.
"Computer equipment." A data processor which can be
programmed in at least two standard computer languages, has a
random access memory with a capacity for at least 32,000 bytes
and is or can be used connected to a screen for visual display
of data. The term also includes a display screen, printer, disk
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drive and installation costs, if donated with the data
processor.
"Computer software." Computer programs and instruction in
the use of such programs, donated by a corporation.
"Corporation." A corporation having capital stock, joint-
stock association or limited partnership, either organized under
the laws of the United States, this Commonwealth, or any other
state, territory or foreign country or dependency and doing
business in this Commonwealth, or having capital or property
employed or used in this Commonwealth by or in the name of
itself or any person, partnership, association, limited
partnership, joint-stock association or corporation. The term
does not include a building and loan association, bank, bank and
trust company, national bank, savings institution, trust company
or insurance and surety company.
"Department." The Department of Revenue of the Commonwealth.
"Donated equipment." Computer or scientific equipment given
to a college or school entity solely for educational purposes,
not transferred for money, property, services or other
consideration and the original use of which equipment
immediately after the donation is by the donee.
"Donated services." Computer software or labor donated by an
individual to a college or school entity used either in
classroom instruction or programming computer equipment,
providing that the individual is an employee of a corporation
and has donated the labor with the knowledge and assent of that
corporation.
"Market value." The retail sale price of computer or
scientific equipment.
"Residual value." The difference between the market price of
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computer or scientific equipment and any depreciation allowances
which have been authorized for the equipment.
"School entity." A school district, joint school district,
area vocational-technical school, intermediate unit, private
academic school, approved private school or licensed private
school.
"Scientific equipment." Technical or electronic equipment
normally used in teaching science or mathematics, including
laboratory equipment which is no older than five years.
Section 3. Credit against taxes.
A corporation shall be entitled to a credit against taxes
imposed under Article IV of the act of March 4, 1971 (P.L.6, No.
2), known as the Tax Reform Code of 1971, for the tax year in
which any donated equipment or donated services were donated.
The credit shall be calculated as follows:
(1) For new computer or scientific equipment, 50% of the
market value.
(2) For used computer or scientific equipment, 50% of
the residual value.
(3) For computer software, 50% of the actual cash value
of the software.
(4) For labor donations, 50% of the wages or salary of
the employee whose labor has been donated.
Section 4. Note of donation.
In accordance with regulations adopted by the department, the
corporation shall submit a note of donation which shall include
the following:
(1) A description of the donated equipment, computer
software or donated services.
(2) An appraisal of the value of the donated equipment,
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computer software or donated services.
(3) A statement by the donee that the donated equipment,
computer software or donated services has been received,
identifying the educational use which will be made of the
equipment.
(4) An affidavit by the donee that no special
consideration was made in exchange for the donation.
Section 5. Department powers and duties.
The department shall adopt rules, regulations, procedures and
forms as necessary to implement this act.
Section 6. Effective date.
This act shall take effect in 90 days.
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