1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations 
9and other entities; prescribing crimes, offenses and 
10penalties," providing for a child-care tax credit.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as 
14the Tax Reform Code of 1971, is amended by adding an article to 
15read:

16ARTICLE XXII

17CHILD-CARE TAX CREDIT

18Section 2201.  Short title of article.

19This article shall be known and may be cited as the Child-
20Care Tax Credit Act.

21Section 2202.  Definitions.

1The following words, terms and phrases, when used in this
2article, shall have the meanings given to them in this section,
3except where the context clearly indicates otherwise:

4"Business firm."  A corporation, partnership or sole 
5proprietorship authorized to do business in this Commonwealth 
6and subject to any of the taxes imposed by Article III, IV, VI, 
7VII, VIII, IX or XV.

8"Contributions."  Net payments made to a child-care program 
9not operated by the business firm for child-care services for 
10children of employees of the business firm.

11"Credit."  The child-care tax credit.

12"Net costs."  Amounts, exclusive of start-up expenses, 
13expended for the operation of a child-care program reduced by 
14the fees or charges paid by the users of the child-care program 
15services.

16Section 2203.  Authorization of credit.

17(a)  Eligibility.--A business firm that operates its own
18child-care program which has been issued a valid license by the
19Department of Public Welfare shall be eligible for the tax
20credit.

21(b)  License from Department of Public Welfare required.--A
22business firm which makes contributions to a child-care program
23not operated by the business firm which has been issued a valid
24license by the Department of Public Welfare shall be eligible
25for the tax credit.

26Section 2204.  Calculation of credit.

27(a)  General rule.--The amount of the tax credit available to
28a business firm which qualifies under this article and operates
29its own not-for-profit child-care program shall be equal to 100%
30of the net costs expended for the operation and maintenance of

1the child-care program.

2(b)  Amount.--The amount of the tax credit available to a
3business firm which qualifies under this article and contributes
4to a child-care program not operated by the business firm shall
5be equal to 100% of the contributions made by the business firm
6to the child-care program.

7Section 2205.  Taxes against which credit may be taken.

8(a)  General rule.--Except as provided in subsection (b), the
9tax credit provided for in this article may be applied against
10any tax due under Article III, IV, VI, VII, VIII, IX or XV.

11(b)  Nonapplicable against employer withholding taxes.--The
12tax credit provided for in this article shall not be applied
13against employer withholding taxes required under Article III.

14Section 2206.  Powers and duties.

15In addition to those powers created by any other act, the
16Secretary of Revenue shall have the power and it shall be the
17secretary's duty to:

18(1)  Promulgate and publish any rules and regulations
19which may be required to implement this article.

20(2)  Publish as a notice in the Pennsylvania Bulletin
21forms upon which taxpayers may apply for the tax credit
22authorized by this article.

23Section 2.  This act shall apply to taxable years beginning
24after December 31, 2012.

25Section 3.  This act shall take effect immediately.