PRINTER'S NO. 1378
No. 1129 Session of 1989
INTRODUCED BY REIBMAN, PORTERFIELD, SALVATORE, JONES, STAPLETON,
BELAN, SHAFFER, AFFLERBACH, FISHER, WENGER, O'PAKE,
ANDREZESKI, REGOLI AND WILLIAMS, JUNE 28, 1989
REFERRED TO FINANCE, JUNE 28, 1989
AN ACT
1 Providing a tax credit for donated services.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Donated
6 Services Tax Credit Act.
7 Section 2. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "College." Any institution chartered within this
12 Commonwealth and duly authorized by law to be called a college
13 or university.
14 "Computer software." Computer programs and instruction in
15 the use of the program, donated by a corporation.
16 "Corporation." A corporation having capital stock, joint-
17 stock association or limited partnership, either organized under
1 the laws of this Commonwealth, the United States or any other
2 state, territory or foreign country or dependency and doing
3 business n this Commonwealth, or having capital or property
4 employed or used in this Commonwealth by or in the name of
5 itself or any person, partnership, association, limited
6 partnership, joint-stock association or corporation. The word
7 "corporation" shall not include building and loan associations,
8 banks, bank and trust companies, national banks, savings
9 institutions, trust companies, insurance and surety companies.
10 "Department." The Department of Revenue of the Commonwealth.
11 "Donated services." Computer software or labor donated by an
12 individual to a college or a school entity used either in
13 classroom instruction or programming computer equipment,
14 providing that the individual is an employee of a corporation
15 and has donated his labor with the knowledge and assent of that
16 corporation.
17 "School entity." A school district, joint school district,
18 area vocational-technical school, intermediate unit, private
19 academic school, approved private school or licensed private
20 school.
21 Section 3. Tax credit.
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 the tax year in
25 which the services were donated. The credit shall be computed as
26 follows:
27 (1) The credit for computer software shall be 50% of the
28 actual cash value of the software.
29 (2) The credit for labor donations shall be 50% of the
30 wages or salary of the employee whose labor has been donated.
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1 Section 4. Note of donation; affidavit of donation.
2 In accordance with regulations adopted by the department, the
3 corporation shall submit the following material in order to
4 verify its claim:
5 (1) Note of donation by the taxpayer which shall
6 include:
7 (i) A description of the donated services.
8 (ii) An appraisal of the cash value of donated
9 computer software.
10 (iii) The wages or salary of employees whose labor
11 has been donated.
12 (iv) A statement that no special consideration has
13 been tendered in exchange for the donation.
14 (2) Affidavit of donation by the donee which shall
15 include:
16 (i) A statement that the services have been
17 received.
18 (ii) A description of the educational use which was
19 made of the service.
20 (iii) A log of the hours of donated labor, including
21 the name and social security number of the individuals
22 whose labor was donated.
23 (iv) A statement that individuals whose labor was
24 donated received no special consideration or remuneration
25 from the donee.
26 Section 5. Department powers.
27 The department has the power and its duty shall be to adopt
28 the rules, regulations, procedures and forms as are necessary to
29 implement this act.
30 Section 6. Effective date.
19890S1129B1378 - 3 -
1 This act shall take effect in 90 days.
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