PRINTER'S NO. 191

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

225

Session of

2015

INTRODUCED BY BOSCOLA, COSTA, HUGHES, FONTANA, BROWNE, BREWSTER,

KITCHEN, SCHWANK, TARTAGLIONE AND RAFFERTY, JANUARY 23, 2015

REFERRED TO FINANCE, JANUARY 23, 2015

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 a school-to-work tax credit.

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:

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department." The Department of Revenue of the Commonwealth.

"Pass-through entity." Any of the following:

(1) A partnership, limited partnership, limited

liability company, business trust or other unincorporated

entity that for Federal income tax purposes is taxable as a

partnership.

(2) A Pennsylvania S corporation.

"Qualified intern." An individual who is:

(1) enrolled and in good standing at a four-year

(3) paid a wage of no less than $8 per hour by the

taxpayer during a term of employment that lasts at least 12

weeks and includes a minimum of 14 hours of service per week.

"Qualified tax liability." The liability for taxes imposed

under Article III, IV or VI. The term shall include the

liability for taxes imposed under Article III on an owner of a

pass-through entity.

"Secretary." The Secretary of Revenue of the Commonwealth.

"Small business." An employer who employs 50 or fewer

individuals.

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of a pass-through entity that receives a tax credit.

Section 1703-J. Employer credit for employing qualified

interns.

(a) Application.--A taxpayer who employs a qualified intern

in a taxable year may apply for a tax credit as provided under

this article. By September 15 of each year, a taxpayer must

submit an application for the tax credit to the department,

which shall include the following certifications by the

taxpayer:

(1) the qualified intern was employed and supervised in

intern for the taxable year; and

(4) the total compensation paid to the qualified intern

for the taxable year.

(b) Amount.--A taxpayer that is qualified under subsection

(a) shall receive a tax credit for the taxable year in the

amount of 50% of the value of the salaries, wages or other

remuneration for services paid to a qualified intern, or $1,000,

whichever is less.

(c) Notification.--By December 15 of the calendar year

following the close of the taxable year during which the

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credit.

(a) Carryover.--If the taxpayer cannot use the entire amount

of the tax credit for the taxable year in which the tax credit

is first approved, the excess may be carried over to succeeding

taxable years and used as a credit against the qualified tax

liability of the taxpayer for those taxable years. Each time

that the tax credit is carried over to a succeeding taxable

year, it shall be reduced by the amount that was used as a

credit during the immediately preceding taxable year. The tax

credit may be carried over and applied to succeeding taxable

liability for the current taxable year as of the date on which

the credit was approved before the tax credit is applied against

any tax liability under subsection (a).

(c) Unused credit.--A taxpayer shall not be entitled to

assign, carry back or obtain a refund of an unused tax credit.

Section 1705-J. Limitation on credits.

(a) Total amount.--The total amount of school-to-work tax

credits approved by the department shall not exceed $10,000,000

in any fiscal year, except that the sum of $2,500,000 shall be

used exclusively for school-to-work tax credits for small

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each applicant shall be prorated by the department among all

applicants who have qualified for the credit.

Section 1706-J. Shareholder, owner or member pass-through.

(a) Shareholder credit.--If a Pennsylvania S corporation

does not have an eligible tax liability against which the tax

credit may be applied, a shareholder of the Pennsylvania S

corporation is entitled to a tax credit equal to the tax credit

determined for the Pennsylvania S corporation for the taxable

year multiplied by the percentage of the Pennsylvania S

corporation's distributive income to which the shareholder is

the pass-through entity for the taxable year multiplied by the

percentage of the pass-through entity's distributive income to

which the owner or member is entitled.

(c) Credit cumulation.--The credit provided under subsection

(a) or (b) shall be in addition to any tax credit to which a

shareholder, owner or member of a pass-through entity is

otherwise entitled under this article, except that a pass-

through entity and a shareholder, owner or member of a pass-

through entity may not claim a credit under this article for the

same expense.

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which the credits were approved. The report shall include the

names of all taxpayers utilizing the credit as of the date of

the report and the amount of credits approved and utilized by

each taxpayer. Notwithstanding any law providing for the

confidentiality of tax records, the information contained in the

report shall be public information. The report may include any

recommendations for changes in the calculation or administration

of the credit.

Section 1708-J. Regulations.

The secretary shall promulgate regulations necessary for the

apply to taxable years beginning after December 31, 2015.

Section 3. This act shall take effect in 60 days.

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