Bill Text: PA SB337 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for a State tax credit for personal contributions to certain charitable organizations that provide assistance to the working poor.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-02-20 - Referred to FINANCE [SB337 Detail]

Download: Pennsylvania-2009-SB337-Introduced.html

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PRINTER'S NO. 335
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 337 Session of2009
INTRODUCED BY McILHINNEY, WILLIAMS, TOMLINSON, BOSCOLA, RAFFERTY, WOZNIAK, O'PAKE, LEACH, GREENLEAF AND WONDERLING, FEBRUARY 20, 2009
REFERRED TO FINANCE, FEBRUARY 20, 2009
AN ACT
Providing for a State tax credit for personal contributions to
certain charitable organizations that provide assistance to
the working poor.
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 Pennsylvania
Charity 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:
"Department." The Department of Revenue of the Commonwealth.
"Low-income residents." Persons whose household income is
less than 150% of the Federal poverty level.
"Qualifying charitable organization." A charitable
organization that is exempt from Federal income taxation under
section 501(c)(3) of the Internal Revenue Code of 1986 (Public
Law 99-514, 26 U.S.C § 501(c)(3)), or is a designated community
action agency that receives community services block grant
program moneys pursuant to 42 U.S.C. § 9901 (relating to
purposes and goals). The organization must spend at least 50% of
its budget on services to residents of this Commonwealth who
receive temporary assistance for needy families' benefits or on
low-income residents of this Commonwealth and their households.
Taxpayers choosing to make donations through an umbrella
charitable organization that collects donations on behalf of
member charities shall designate that the donation be directed
to a member charitable organization that would qualify under
this section on a stand-alone basis.
"Services." Cash assistance, medical care, child care, food,
clothing, shelter, job placement and job training services or
any other assistance that is reasonably necessary to meet
immediate basic needs and that is provided and used in this
Commonwealth.
Section 3. Authorization of credit.
(a) Credit.--For taxable years beginning after December 31,
2009, a credit is allowed against the taxes imposed by the
Commonwealth for voluntary cash contributions made by the
taxpayer during the taxable year to a qualifying charitable
organization as determined pursuant to, but not exceeding, the
following:
(1) Two hundred dollars in any taxable year for a single
individual or a head of household.
(2) Four hundred dollars for a married couple filing a
joint return.
(3) A husband and wife who file separate returns for a
taxable year in which they could have filed a joint return
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may each claim only one-half of the tax credit that would
have been allowed for a joint return.
(b) Carry forward.--If the allowable tax credit exceeds the
taxes otherwise due the Commonwealth on the claimant's income,
or if there are no taxes due the Commonwealth, the taxpayer may
carry forward the amount of the claim not used to offset the
taxes for not more than five consecutive taxable years' income
tax liability.
(c) Limitations.--The credit allowed under this section is
in lieu of a deduction pursuant to section 170 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 170) and
taken for State tax purposes.
(d) Requirements.--Taxpayers taking a credit authorized
under this section shall provide the name of the qualifying
charitable organization and the amount of the contribution to
the department on forms provided by the department.
(e) Additional limitations.--The credit under this section
applies only to contributions to qualifying charitable
organizations that exceed the total amount deducted pursuant to
section 170 of the Internal Revenue Code of 1986 in the
taxpayer's baseline year. The taxpayer's baseline year is:
(1) The 2008 taxable year if the taxpayer deducted
charitable contributions pursuant to section 170 of the
Internal Revenue Code of 1986 in the 2008 taxable year.
(2) If the taxpayer did not deduct charitable
contributions pursuant to section 170 of the Internal Revenue
Code of 1986 in the 2008 taxable year, the taxpayer's
baseline year is the first taxable year after 2008 that the
taxpayer deducted charitable contributions pursuant to
section 170 of the Internal Revenue Code of 1986.
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(f) Certification.--A qualifying charitable organization
shall provide the department with a written certification that
it meets all criteria to be considered a qualifying charitable
organization. The organization shall also notify the department
of any changes that may affect the organization's qualifications
under this section. The department shall compile and make
available to the public a list of the qualifying organizations.
Section 4. Effective date.
This act shall take effect in 60 days.
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