PRINTER'S NO. 710
No. 666 Session of 1989
INTRODUCED BY O'PAKE, REGOLI, WILLIAMS, STOUT, REIBMAN,
PORTERFIELD, AFFLERBACH, MUSTO, LYNCH, BODACK, STAPLETON,
LINCOLN, MELLOW, ANDREZESKI, BELAN, LEWIS, FUMO, DAWIDA,
SCANLON, STEWART, JONES, PUNT, ROSS AND WILT, MARCH 13, 1989
REFERRED TO FINANCE, MARCH 13, 1989
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 a tax credit to corporations that
11 provide child day-care facilities or subsidies for their
12 employees.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
16 the Tax Reform Code of 1971, is amended by adding a section to
17 read:
18 Section 402.1. Tax Credits for Child Day Care.--(a) Any
19 corporation required to pay the taxes imposed under section 402
20 may receive a tax credit of fifty per cent against the taxes due
21 under this article for any moneys expended towards the
22 following:
1 (1) The planning, site-preparation, construction, renovation
2 or acquisition of a nonprofit day-care facility used principally
3 by the employes of the corporation, so long as no one
4 corporation receives more than twenty thousand dollars ($20,000)
5 in tax credits and the department allows no more than five
6 hundred thousand dollars ($500,000) in total tax credits to
7 corporations that apply each tax year.
8 (2) The subsidizing of the employes of the corporation for
9 their cost of having child day-care services provided to their
10 children, so long as no one corporation receives more than fifty
11 thousand dollars ($50,000) in tax credits and the department
12 allows no more than five hundred thousand dollars ($500,000) in
13 total tax credits to corporations that apply each tax year.
14 (b) Services eligible for credits shall include child care
15 given in a child's home other than by a parent, by a nonparent
16 relative in the relative's home, by a neighbor in the neighbor's
17 home and by a licensed or registered day-care facility.
18 (c) Grant moneys received by an employer from the
19 Commonwealth as a reimbursement for child care expenses shall
20 not be considered as moneys expended by the employer for
21 purposes of this credit.
22 (d) The Secretary of Revenue and the Secretary of Labor and
23 Industry shall:
24 (1) Promulgate those rules and regulations necessary to
25 implement this section.
26 (2) Publish, as a notice in the Pennsylvania Bulletin, forms
27 upon which corporations may apply for the tax credit authorized
28 by this section within ninety days of the effective date of this
29 section.
30 (e) (1) Applications for tax credits shall be filed by
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1 corporations not later than January 31 of the next calendar year
2 for credits due during the preceding calendar year.
3 (2) Not later than June 1 of each year, each corporation
4 that has filed a complete application for credits under this
5 section shall be notified regarding the amount of credits
6 awarded to the corporation. An application shall be deemed
7 complete and processible only if it is signed and contains the
8 corporation's name, address, tax identification number and
9 sufficient other information and documentation necessary to
10 determine the amount of the credit.
11 Section 2. This act shall take effect immediately.
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