Bill Text: PA SB589 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for a State tax credit program for work provided by a licensed vocational facility to a business under contract with the facility.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-02-18 - Referred to FINANCE [SB589 Detail]

Download: Pennsylvania-2011-SB589-Introduced.html

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PRINTER'S NO. 598
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 589 Session of2011
INTRODUCED BY BROWNE, EARLL, RAFFERTY, MENSCH, ORIE, FONTANA, SOLOBAY, KASUNIC AND TARTAGLIONE, FEBRUARY 18, 2011
REFERRED TO FINANCE, FEBRUARY 18, 2011
AN ACT
Providing for a State tax credit program for work provided by a
licensed vocational facility to a business under contract
with the facility.
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 Vocational
Facility Service Contract 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:
"Business firm." A corporation, partnership or sole
proprietorship authorized to do business in this Commonwealth
and subject to taxes imposed under Article III, IV, VI, VII,
VIII, IX or XV of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971.
"Credit." A vocational facility service contract tax credit
provided to businesses under contract with licensed vocational
facilities.
"Department." The Department of Revenue of the
Commonwealth."
"Vocational facility." An organization through which
rehabilitative, habilitative or handicapped employment or
employment training is provided to one or more disabled clients
for part of a 24-hour day and is licensed under 55 Pa. Code Ch.
2390 (relating to vocational facilities) or an agency affiliated
with the Pennsylvania Industries for the Blind and Handicapped.
"Work." Commercial activities that improve employment
opportunities for individuals who have disabilities, including,
but not limited to, production, packaging, assembly, food
service, custodial service and clerical service.
Section 3. Authorization of credit.
(a) General rule.--Subject to the limitations provided in
subsection (b), a business firm may claim as a credit against
the taxes imposed by the Commonwealth an amount equal to 5% of
the annual amount that the business firm paid in the taxable
year to a vocational facility for work performed by the facility
for the business firm pursuant to a contract. The department
shall grant a tax credit against a tax liability owed to the
department by a business firm that provides proof of a contract
with a vocational facility for work paid for in the taxable
year.
(b) Limitation.--The maximum amount that a business firm may
claim under this section in a taxable year is $25,000 for each
vocational facility with which the business firm contracts for
work to be performed.
Section 4. Applicability.
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This act shall apply to taxable years beginning after
December 31, 2011.
Section 5. Expiration.
This act shall expire July 1, 2017.
Section 20. Effective date.
This act shall take effect July 1, 2011, or immediately,
whichever is later.
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