PRINTER'S NO. 1379
No. 1130 Session of 1989
INTRODUCED BY REIBMAN, PORTERFIELD, SALVATORE, JONES, STAPLETON,
BELAN, SHAFFER, AFFLERBACH, FISHER, RHOADES, O'PAKE,
ANDREZESKI, REGOLI AND WILLIAMS, JUNE 28, 1989
REFERRED TO FINANCE, JUNE 28, 1989
AN ACT
1 Providing a tax credit for summer internships for teachers.
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 Educational
6 Internship 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 "Corporation." A corporation having capital stock, a joint-
12 stock association or a limited partnership organized under the
13 laws of this Commonwealth, the United States, or any other
14 state, territory or dependency or a foreign country which is
15 doing business in this Commonwealth or has capital or property
16 employed or used in this Commonwealth. The term does not include
17 building and loan associations, banks, bank and trust companies,
1 national banks, savings institutions, trust companies, insurance
2 companies and surety companies.
3 "Department." The Department of Revenue of the Commonwealth.
4 "School entity." A school district, joint school district,
5 area vocational technical school or intermediate unit.
6 "Summer internship." Employment by a corporation of a
7 teacher during the period between the closing of a school year
8 and the opening of the following school year for which the
9 teacher receives compensation from the corporation.
10 "Teacher." A full-time professional employee, as defined in
11 section 1101 of the act of March 10, 1949 (P.L.30, No.14), known
12 as the Public School Code of 1949, who devotes 50% or more of
13 his or her time to teaching or other direct educational
14 activities.
15 Section 3. Tax credit.
16 (a) Computation.--A corporation shall be entitled to a
17 credit against taxes imposed under Article IV of the act of
18 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
19 1971, for the tax year in which it offers summer internships.
20 Such a credit shall be for 50% of the compensation which the
21 teacher receives for the summer internship.
22 (b) Limitation.--Total credits under subsection (a) shall
23 not exceed $200,000 in any taxable year. Unused tax credit
24 allowed shall be a carryover to the succeeding taxable year
25 until the full tax credit has been allowed.
26 Section 4. Affidavits.
27 In accordance with regulations promulgated by the department,
28 the corporation shall submit the following material in order to
29 verify its claim:
30 (1) A description of the summer internship.
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1 (2) A statement that the summer internship was
2 completed.
3 (3) Documentation of all compensation paid to the
4 teacher for the summer internship.
5 Section 5. Duties of governing boards of school entities.
6 The governing board of each school entity shall approve the
7 placement of any teacher in its employ in a summer internship
8 and shall notify the department, in writing, that approval has
9 been granted. Failure of the governing board to approve
10 placement in a summer internship shall be cause for denying tax
11 credits to a corporation. The governing board shall not certify
12 a summer internship which, in its estimation, does not directly
13 relate to the teacher's instructional responsibilities.
14 Section 6. Powers of department.
15 The department shall promulgate such rules, regulations and
16 procedures as it deems necessary to implement this act.
17 Section 7. Effective date.
18 This act shall take effect in 90 days.
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