PRINTER'S NO. 1377
No. 1128 Session of 1989
INTRODUCED BY REIBMAN, PORTERFIELD, SALVATORE, JONES, STAPLETON,
BELAN, SHAFFER, AFFLERBACH, FISHER, RHOADES, WENGER, O'PAKE,
ANDREZESKI, REGOLI AND WILLIAMS, JUNE 28, 1989
REFERRED TO FINANCE, JUNE 28, 1989
AN ACT
1 Providing for tax credits to corporations donating computer
2 equipment to libraries.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Library
7 Donated Equipment Tax Credit Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Computer equipment." A data processor which can be
13 programmed in at least two standard computer languages, which
14 has a random access memory with a capacity for at least 32,000
15 bytes and is or can be used connected to a screen for visual
16 display of data. Display screens, printers, disk drives,
17 installation costs and software, if donated with a data
1 processor, are also eligible for a tax credit.
2 "Corporation." A corporation having capital stock, joint-
3 stock association or limited partnership, either organized under
4 the laws of this Commonwealth, the United States or any other
5 state, territory or foreign country or dependency, and doing
6 business in this Commonwealth, or having capital or property
7 employed or used in this Commonwealth by or in the name of
8 itself or any person, partnership, association, limited
9 partnership, joint-stock association or corporation. The term
10 "corporation" shall not include building and loan associations,
11 banks, bank and trust companies, national banks, savings
12 institutions, trust companies, insurance and surety companies.
13 "Department." The Department of Revenue of the Commonwealth.
14 "Library." A local library, county library, district library
15 center or a regional resource center as defined by the act of
16 June 14, 1961 (P.L.324, No.188), known as The Library Code.
17 "Market value." The retail sale price of computer equipment.
18 "Residual value." The difference between the market value of
19 computer equipment and any depreciation allowances or discounts
20 which have been authorized for such equipment.
21 Section 3. Credit against taxes.
22 A corporation shall be entitled to a credit against taxes
23 imposed under Article IV of the act of March 4, 1971 (P.L.6,
24 No.2), known as the Tax Reform Code of 1971, for donations of
25 computer equipment to a library. The credit shall be taken in
26 the tax year in which the computer equipment was donated. The
27 credit shall be 50% of the market value of new computer
28 equipment or 50% of the residual value of used computer
29 equipment. The donated equipment must serve a public purpose or
30 improve the general operation of the library.
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1 Section 4. Approval of donation.
2 The board of directors, library board or governing body of a
3 library shall have the right to accept or reject any donated
4 equipment.
5 Section 5. Note of donation and affidavit of donation.
6 In accordance with regulations adopted by the department, the
7 corporation shall submit the following material in order to
8 verify its claim for a tax credit:
9 (1) Note of donation by the corporation which shall
10 include:
11 (i) A description of the computer equipment.
12 (ii) An appraisal of the value of donated computer
13 equipment.
14 (iii) A statement that no special consideration has
15 been tendered in exchange for the donation.
16 (2) Affidavit of donation by the donee which shall
17 include:
18 (i) A statement that the computer equipment has been
19 accepted.
20 (ii) A description of the use which will be made of
21 the computer equipment.
22 (iii) A statement that the corporation which donated
23 the computer equipment received no special consideration
24 or remuneration from the donee.
25 Section 6. Department powers.
26 The Department of Revenue has the power and its duty shall be
27 to adopt such rules, regulations, procedures and forms as are
28 necessary to implement this act.
29 Section 7. Effective date.
30 This act shall take effect in 90 days.
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