Bill Text: PA HB2065 | 2011-2012 | Regular Session | Amended

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Bill Title: Providing for the Vets First Tax Credit Program to honor veterans for their service to our country and provide incentives for their employment.

Spectrum: Moderate Partisan Bill (Democrat 87-24)

Status: (Engrossed - Dead) 2012-10-25 - Referred to FINANCE [HB2065 Detail]

Download: Pennsylvania-2011-HB2065-Amended.html

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PRIOR PRINTER'S NO. 2857 PRINTER'S NO. 3713
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2065 Session of2011
INTRODUCED BY BARBIN, HORNAMAN, MURT, KAVULICH, BISHOP, BOYD, B. BOYLE, K. BOYLE, BRADFORD, BRENNAN, BRIGGS, BROWNLEE, BURNS, BUXTON, CALTAGIRONE, CARROLL, COHEN, CONKLIN, D. COSTA, P. COSTA, CREIGHTON, CRUZ, CURRY, DALEY, DAVIS, DAVIDSON, DEASY, DELISSIO, DeLUCA, DePASQUALE, DERMODY, DeWEESE, DONATUCCI, D. EVANS, FABRIZIO, FRANKEL, FREEMAN, GALLOWAY, GERBER, GEORGE, GERGELY, GIBBONS, GOODMAN, HALUSKA, HANNA, HARHAI, HARKINS, JOHNSON, JOSEPHS, W. KELLER, KIRKLAND, KORTZ, KOTIK, KULA, LONGIETTI, MAHONEY, MALONEY, MANN, MARKOSEK, MATZIE, McGEEHAN, MILLARD, MIRABITO, MUNDY, MURPHY, NEUMAN, M. O'BRIEN, PARKER, PASHINSKI, PAYTON, PETRARCA, PRESTON, RAVENSTAHL, READSHAW, REICHLEY, SABATINA, SAINATO, SAMUELSON, SANTARSIERO, SANTONI, SHAPIRO, SIMMONS, K. SMITH, M. SMITH, STABACK, STEPHENS, STERN, STURLA, SWANGER, WILLIAMS, YOUNGBLOOD, CUTLER, THOMAS, WATERS, WHEATLEY, WHITE, CAUSER, SACCONE, VULAKOVICH, MICCARELLI, MULLERY, O'NEILL, STEVENSON, HESS, V. BROWN, FARRY, BOBACK, QUINN, SONNEY, SCAVELLO AND R. BROWN, DECEMBER 7, 2011
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 11, 2012
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for the Vets First Tax Credit Program
to honor veterans for their service to our country and
provide incentives for their employment.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XVIII-C of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, added July
9, 2008 (P.L.922, No.66), is amended to read:
ARTICLE XVIII-C
[(RESERVED)]
THE VETS FIRST TAX CREDIT PROGRAM
Section 1801-C. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Eligible job." A full-time job in this Commonwealth, the
annual wage, excluding benefits, for which is at least equal to
the average annual wage in the county where the job is located
as posted on the Department of Labor and Industry's publicly
accessible Internet website. The term does not include a
temporary or seasonal job.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV, VI, VII, VIII, IX or XV. The term shall
not include liability for any tax withheld or required to be
withheld by a taxpayer from an employee under Article III.
"Small business." A for-profit corporation, limited
liability company, partnership or proprietorship operating in
this Commonwealth with fewer than 100 employees at the time the
taxpayer applies for a Vets First tax credit under this article.
"Start date." The effective date of this section.
"Taxpayer." An individual or small business subject to a tax
imposed under Article III, IV, VI, VII, VIII, IX or XV. The term <--
shall not include a small business that does not file combined
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income tax returns with the Department of Revenue with its in-
State or out-of-State subsidiaries and other affiliates.
"Veteran." An individual who meets all of the following:
(1) Served in the active United States military,
including service in a reserve component or National Guard.
(2) Was released or discharged from active military
service under conditions other than dishonorable, after
September 30, 2001.
(3) Has not worked in an eligible job for at least six
months prior to being hired by a taxpayer.
"Vets First tax credits." Tax credits for hiring veterans
authorized under this article.
"Year one." A one-year period immediately following the
start date.
"Year two." A one-year period immediately following the end
of year one.
"Year three." A one-year period immediately following the
end of year two.
"Year four." A one-year period immediately following the end
of year three.
Section 1802-C. Vets First tax credits.
(a) Criteria.--A taxpayer that employs a veteran in an
eligible job shall be entitled to qualify for a Vets First tax <--
credit against the taxpayer's qualified tax liability as
provided in this article. In order to be eligible for a tax
credit, the taxpayer shall certify and agree to the following:
(1) The veteran was hired for a new position in the
taxpayer's small business or was hired to fill the position
of another employee who voluntarily separated from employment
with the taxpayer.
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(2) The taxpayer shall continue the operation of its
small business for at least five years following the taxable
year for which the taxpayer first claims a Vets First tax
credit awarded under this article.
(b) Amount.--The tax credit shall be equal to $4,000 for <--
(b) Amount.-- <--
(1) The tax credit shall be equal to $4,000 for each
veteran hired from and after the start date and shall be
available annually through the end of year three so long as
the veteran has been continuously employed in the eligible
job from the date hired until the end of year three. The tax
credit shall be available through the end of year four for
each veteran who has been continuously employed in the
eligible job from the date hired until the end of year four
who resides in this Commonwealth and has resided in this
Commonwealth since the date the veteran was released or
discharged from active military service under conditions
other than dishonorable.
(2) The provisions of this subsection shall be subject <--
to the limitations in section 1804-C.
(c) Eligibility for other tax credits.--A taxpayer that
claims tax credits under any other Federal or State law shall be
eligible for a Vets First tax credit so long as the taxpayer
also meets the applicable requirements of this article.
Section 1803-C. Application and award.
(a) Annual application required.--A taxpayer wishing to
claim a Vets First tax credit shall apply to the department on a
form required by the department. An application shall be
submitted for each tax year that the taxpayer desires to claim
the tax credit and shall contain such information as the
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department deems necessary for the department to determine that
the taxpayer is entitled to qualifies for the tax credit or <--
credits for which the taxpayer is applying. The department shall
review and approve or disapprove applications in the order in
which they are received.
(b) Award.--Upon determining that the taxpayer is entitled <--
to qualifies for one or more Vets First tax credits, the <--
department shall award the credits and issue a Vets First tax
credit certificate to the taxpayer.
Section 1804-C. Limitations.
(a) Use by taxpayer.--A taxpayer may not carry over, carry
back, assign or obtain a refund of any portion of a Vets First
tax credit.
(b) Aggregate amount of awards.--No more than $50,000,000 in
Vets First tax credits shall be awarded in any fiscal year.
(c) Length of program.--A taxpayer is not entitled to a Vets <--
First tax credit in taxable years ending December 31 of the year
in which the end of year four occurs and beyond shall not be <--
eligible to apply for Vets First tax credits after the fourth
taxable year following the effective date of this section.
Section 1805-C. Repayment and penalty.
(a) Repayment.--A taxpayer who has claimed one or more Vets
First tax credits and fails to meet any of the criteria required
under section 1802-C, or a taxpayer who has received a Vets
First tax credit in error shall repay to the Commonwealth the
amount of all tax credits claimed.
(b) Penalty.--If it is determined that the failure or error
referred to in subsection (a) occurred as a result of fraud
perpetrated by the taxpayer, the taxpayer, in addition to being
required to repay the amount of all tax credits claimed, shall
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be subject to such other appropriate penalties and remedies as
may be provided in this act or in other applicable law.
Section 1806-C. Report.
The department shall submit an annual report to the Governor,
the Majority Leader of the Senate, the Minority Leader of the
Senate, the Majority Leader of the House of Representatives and
the Minority Leader of the House of Representatives on March 1
of each year following the effective date of this section. The
report shall include the following information:
(1) A description of the Vets First tax credit
certificates issued by the department during the preceding
period, including the amount of the credits awarded to each
taxpayer and the taxpayer's name and address.
(2) The number of veterans who are residents of this <--
Commonwealth and who were hired by each taxpayer to whom a
Vets First tax credit certificate has been issued and who are <--
residents of the Commonwealth.
Section 1807-C. Notice to public.
The department shall, not later than 60 days following the
effective date of this section, publish notice of the following
on its publicly accessible Internet website:
(1) Availability of the Vets First tax credits.
(2) Guidelines for the awarding of Vets First tax
credits.
(3) A downloadable copy of the application form.
Section 2. This act shall take effect in 30 days.
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