Bill Text: PA HB2403 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for small business job creation tax credits.

Spectrum: Strong Partisan Bill (Democrat 19-1)

Status: (Introduced - Dead) 2010-04-12 - Referred to FINANCE [HB2403 Detail]

Download: Pennsylvania-2009-HB2403-Introduced.html

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PRINTER'S NO. 3509
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2403 Session of2010
INTRODUCED BY BRADFORD, BELFANTI, BRENNAN, BROWN, BURNS, CALTAGIRONE, DePASQUALE, FAIRCHILD, HARHAI, HOUGHTON, JOSEPHS, KORTZ, LONGIETTI, MURPHY, M. O'BRIEN, READSHAW, SANTARSIERO, SIPTROTH, M. SMITH AND GIBBONS, APRIL 12, 2010
REFERRED TO COMMITTEE ON FINANCE, APRIL 12, 2010
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 small business job creation tax
credits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVIII-E
SMALL BUSINESS
JOB CREATION TAX CREDITS
Section 1801-E. 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.
"Employee." An individual who is a citizen or lawful
resident of the United States who receives wages, remuneration,
compensation or tips from a qualified employer for work
performed within this Commonwealth.
"Qualified employer." Any employer other than the United
States, any state, or any instrumentality thereof, or any state
or local authority, that employs full-time employees within this
Commonwealth.
"Qualified payroll." The amount of all wages as defined in
section 4(x) of the act of December 5, 1936 (2nd Sp.Sess., 1937
P.L.2897, No.1), known as the Unemployment Compensation Law,
paid or incurred by a qualified employer to the employees of the
employer.
"Qualified payroll increase." The amount by which a
qualified employer's qualified payroll for the quarter exceeds
the qualified payroll for the quarter of the calendar year
preceding the year in which the qualified quarter falls.
"Qualified quarter."
(1) The calendar quarter which includes the date of the
enactment of this section.
(2) Each of the three calendar quarters immediately
following the quarter.
"Small business job creation tax credits." Tax credits
granted by the Department of Revenue under this section.
"Transition quarter." A qualified quarter with respect to
which the qualified payroll increase cannot be determined under
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section 1802-E(g) solely because the employer was not in
existence during the quarter of the calendar year preceding the
year in which the qualified quarter falls.
Section 1802-E. Commonwealth small business job creation tax
credits.
(a) Establishment of credit.--The Department of Revenue
shall grant a tax credit against the applicable tax due from
business income from each qualified employer for each qualified
quarter an amount equal to the credit amount.
(b) Calculation of credit amount.--For purposes of this
section, the credit amount with respect to any qualified quarter
is equal to the applicable percentage of the qualified payroll
increase of the employer for the qualified quarter.
(c) Applicable percentage.--For purposes of subsection (b),
the applicable percentage regarding a qualified quarter is:
(1) in the case of an employer that employs 99 or fewer
employees during the quarter, 4%; and
(2) in the case of an employer that employs more than 99
but fewer than 251 employees during the quarter, 3%.
(d) Dollar limitation.--Except as provided in subsection
(g), the total credit amount with respect to the tax credit an
employer shall receive for each new employee hired during a
qualifying quarter shall not exceed $500 per employee or $10,250
in total.
(e) Carryover and carryback.--A tax credit not used in the
period the tax credit was earned may be carried over for the
next three succeeding years until the full credit has been
allowed. An employer shall not be entitled to carry back or
obtain a refund of an unused tax credit.
(f) Maintenance of base employment requirement.--This
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section shall not apply to any qualified employer for any
qualified quarter if the total number of employees of the
employer during the quarter is less than the total number of the
employees during the quarter preceding the quarter, determined
by not taking into account any employee who is a seasonal
employee during the preceding quarter.
(g) New employers.--
(1) In the case of a qualified employer which comes into
existence after this section becomes effective, and before
January 1, 2012, the total credit amount regarding the tax
credit an employer shall receive for each new employee hired
during a qualifying quarter shall not exceed $250 per
employee or $5,125 in total.
(2) In the case of a qualified employer which comes into
existence after the last day of the calendar quarter which is
five calendar quarters before the date of the enactment of
this section, and before the date of enactment, the qualified
payroll increase of the employer for any transition quarter
shall be the amount, if any, by which the employer's
qualified payroll for the quarter exceeds the qualified
payroll of the quarter preceding the quarter. In this
subsection, the term "qualified quarter" means:
(i) The first calendar quarter for which the
qualified employer is in existence.
(ii) Each of the three quarters following the
quarter specified in subparagraph (i). The qualified
payroll increase of the employer for the quarter
described in subparagraph (i) shall be equal to the
amount of the employer's qualified payroll for the
quarter.
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(iii) The qualified payroll increase of the employer
for any quarter described in subparagraph (i) shall be
the amount, if any, by which the employer's qualified
payroll for the quarter exceeds the qualified payroll of
the quarter preceding the quarter.
Section 1803-E. Department duties.
(a) Enforcement regulations.--The department shall
promulgate regulations with regard to application for and
enforcement of this section. This shall include, but is not
limited to, acceptable forms and proof of jobs created.
(b) Investigation and report on enforcement actions.--Not
later than six months after this article becomes effective and
quarterly thereafter, the Secretary of Community and Economic
Development shall submit a report to the Finance Committee of
the Senate and the Finance Committee of the House of
Representatives on the enforcement measures taken to prevent and
penalize fraud related to this section, including:
(1) General statistics related to the application of the
section.
(2) Cases of fraud.
(3) The status of investigatory, enforcement and
prosecutorial actions related to the cases.
Section 1804-E. Publication of recipient employers.
The department shall publish and update as necessary a list
of each qualified employer that receives a tax credit under this
section on the publicly accessible Internet website of the
department.
Section 2. This act shall take effect in 60 days.
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