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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY ROEBUCK, CARROLL, LONGIETTI, K. SMITH, WHEATLEY, BRADFORD, BRENNAN, CALTAGIRONE, COHEN, D. COSTA, DALEY, DAVIDSON, DEASY, DePASQUALE, FABRIZIO, FRANKEL, GERBER, GROVE, HALUSKA, HORNAMAN, JOSEPHS, MIRABITO, MURT, PASHINSKI, PRESTON, SCAVELLO, STABACK, STERN, THOMAS, VULAKOVICH, WATERS AND GABLER, APRIL 18, 2012 |
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| REFERRED TO COMMITTEE ON EDUCATION, APRIL 18, 2012 |
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| AN ACT |
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1 | Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An |
2 | act relating to the public school system, including certain |
3 | provisions applicable as well to private and parochial |
4 | schools; amending, revising, consolidating and changing the |
5 | laws relating thereto," providing for educational improvement |
6 | tax credit and for All Students Can Succeed programs; and |
7 | making a related repeal. |
8 | The General Assembly of the Commonwealth of Pennsylvania |
9 | hereby enacts as follows: |
10 | Section 1. The act of March 10, 1949 (P.L.30, No.14), known |
11 | as the Public School Code of 1949, is amended by adding an |
12 | article to read: |
13 | ARTICLE XXV-B |
14 | EDUCATIONAL IMPROVEMENT TAX CREDIT |
15 | (a) Preliminary Provisions. |
16 | Section 2501-B. Scope of article. |
17 | This article establishes the educational improvement tax |
18 | credit and provides for All Students Can Succeed programs. |
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1 | (b) Educational Improvement Tax Credit. |
2 | Section 2502-B. Definitions. |
3 | The following words and phrases when used in this subarticle |
4 | shall have the meanings given to them in this section unless the |
5 | context clearly indicates otherwise: |
6 | "All Students Can Succeed program." A program implemented by |
7 | a school district under section 2522-B. |
8 | "Business firm." An entity authorized to do business in this |
9 | Commonwealth and subject to taxes imposed under Article III, IV, |
10 | VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6, |
11 | No.2), known as the Tax Reform Code of 1971. The term includes a |
12 | pass-through entity. |
13 | "Contribution." A donation of cash, personal property or |
14 | services, the value of which is the net cost of the donation to |
15 | the donor or the pro rata hourly wage, including benefits, of |
16 | the individual performing the services. |
17 | "Department." The Department of Community and Economic |
18 | Development of the Commonwealth. |
19 | "Educational improvement organization." A nonprofit entity |
20 | which: |
21 | (1) is exempt from Federal taxation under section 501(c) |
22 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
23 | 26 U.S.C. § 1 et seq.); and |
24 | (2) contributes at least 80% of its annual receipts as |
25 | grants to a public school for innovative educational programs |
26 | or for an All Students Can Succeed program. |
27 | For purposes of this definition, a nonprofit entity |
28 | "contributes" its annual cash receipts when it expends or |
29 | otherwise irrevocably encumbers those funds for expenditure |
30 | during the then current fiscal year of the nonprofit entity or |
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1 | during the next succeeding fiscal year of the nonprofit entity. |
2 | "Eligible pre-kindergarten student." A student, including an |
3 | eligible student with a disability, who is enrolled in a pre- |
4 | kindergarten program and is a member of a household with a |
5 | maximum annual household income as increased by the applicable |
6 | income allowance. |
7 | "Eligible student." A school-age student, including an |
8 | eligible student with a disability, who is enrolled in a school |
9 | and is a member of a household with a maximum annual household |
10 | income as increased by the applicable income allowance. |
11 | "Eligible student with a disability." A pre-kindergarten |
12 | student or a school-age student who meets all of the following: |
13 | (1) Is either enrolled in a special education school or |
14 | has otherwise been identified, in accordance with 22 Pa. Code |
15 | Ch. 14 (relating to special education services and programs), |
16 | as a "child with a disability," as defined in 34 CFR § 300.8 |
17 | (relating to child with a disability). |
18 | (2) Needs special education and related services. |
19 | (3) Is enrolled in a pre-kindergarten program or in a |
20 | school. |
21 | (4) Is a member of a household with a household income |
22 | of not more than the maximum annual household income. |
23 | "Household." An individual living alone or with the |
24 | following: a spouse, parent and their unemancipated minor |
25 | children, other unemancipated minor children who are related by |
26 | blood or marriage or other adults or unemancipated minor |
27 | children living in the household who are dependent upon the |
28 | individual. |
29 | "Household income." All moneys or property received of |
30 | whatever nature and from whatever source derived. The term does |
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1 | not include the following: |
2 | (1) Periodic payments for sickness and disability other |
3 | than regular wages received during a period of sickness or |
4 | disability. |
5 | (2) Disability, retirement or other payments arising |
6 | under workers' compensation acts, occupational disease acts |
7 | and similar legislation by any government. |
8 | (3) Payments commonly recognized as old-age or |
9 | retirement benefits paid to persons retired from service |
10 | after reaching a specific age or after a stated period of |
11 | employment. |
12 | (4) Payments commonly known as public assistance or |
13 | unemployment compensation payments by a governmental agency. |
14 | (5) Payments to reimburse actual expenses. |
15 | (6) Payments made by employers or labor unions for |
16 | programs covering hospitalization, sickness, disability or |
17 | death, supplemental unemployment benefits, strike benefits, |
18 | Social Security and retirement. |
19 | (7) Compensation received by United States servicemen |
20 | serving in a combat zone. |
21 | "Income allowance." |
22 | (1) As follows: |
23 | (i) Before July 1, 2011, $10,000 for each eligible |
24 | student, eligible pre-kindergarten student and dependent |
25 | member of the household. |
26 | (ii) After June 30, 2011, $12,000 for each eligible |
27 | student, eligible pre-kindergarten student and dependent |
28 | member of the household. |
29 | (2) Beginning July 1, 2012, the Department of Community |
30 | and Economic Development shall annually adjust the income |
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1 | allowance amounts under paragraph (1) to reflect any upward |
2 | changes in the Consumer Price Index for All Urban Consumers |
3 | for the Pennsylvania, New Jersey, Delaware and Maryland area |
4 | in the preceding 12 months and shall immediately submit the |
5 | adjusted amounts to the Legislative Reference Bureau for |
6 | publication as a notice in the Pennsylvania Bulletin. |
7 | "Innovative educational program." An advanced academic or |
8 | similar program that is not part of the regular academic program |
9 | of a public school but that enhances the curriculum or academic |
10 | program of the public school or provides pre-kindergarten |
11 | programs to public school students. |
12 | "Maximum annual household income." |
13 | (1) Except as set forth in paragraph (2), as follows: |
14 | (i) Before July 1, 2011, not more than $50,000. |
15 | (ii) After June 30, 2011, not more than $60,000. |
16 | (2) With respect to an eligible student with a |
17 | disability, as calculated by multiplying: |
18 | (i) the sum of: |
19 | (A) the applicable amount under paragraph (1); |
20 | and |
21 | (B) the applicable income allowance; by |
22 | (ii) the applicable support level factor according to |
23 | the following table: |
24 | Support Level | Support Level Factor | 25 | 1 | 1.50 | 26 | 2 | 2.993 |
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27 | (3) Beginning July 1, 2012, the Department of Community |
28 | and Economic Development shall annually adjust the income |
29 | amounts under paragraphs (1) and (2) to reflect any upward |
30 | changes in the Consumer Price Index for All Urban Consumers |
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1 | for the Pennsylvania, New Jersey, Delaware and Maryland area |
2 | in the preceding 12 months and shall immediately submit the |
3 | adjusted amounts to the Legislative Reference Bureau for |
4 | publication as a notice in the Pennsylvania Bulletin. |
5 | "Pass-through entity." A partnership as defined in section |
6 | 301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the |
7 | Tax Reform Code of 1971, a single-member limited liability |
8 | company treated as a disregarded entity for Federal income tax |
9 | purposes or a Pennsylvania S corporation as defined in section |
10 | 301(n.1) of the Tax Reform Code of 1971. |
11 | "Pre-kindergarten program." A program of instruction for |
12 | three-year-old or four-year-old students that utilizes a |
13 | curriculum aligned with the curriculum of the school with which |
14 | it is affiliated and which provides one of the following: |
15 | (1) A minimum of two hours of instructional and |
16 | developmental activities per day at least 60 days per school |
17 | year. |
18 | (2) A minimum of two hours of instructional and |
19 | developmental activities per day at least 20 days over the |
20 | summer recess. |
21 | "Pre-kindergarten scholarship organization." A nonprofit |
22 | entity which: |
23 | (1) either is exempt from Federal taxation under section |
24 | 501(c)(3) of the Internal Revenue Code of 1986 (Public Law |
25 | 99-514, 26 U.S.C. § 1 et seq.) or is operated as a separate |
26 | segregated fund by a scholarship organization that has been |
27 | qualified under section 2503-B; and |
28 | (2) contributes at least 80% of its annual cash receipts |
29 | to a pre-kindergarten scholarship program by expending or |
30 | otherwise irrevocably encumbering those funds for |
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1 | distribution during the then current fiscal year of the |
2 | organization or during the next succeeding fiscal year of the |
3 | organization. |
4 | "Pre-kindergarten scholarship program." A program to provide |
5 | tuition to eligible pre-kindergarten students to attend a pre- |
6 | kindergarten program operated by or in conjunction with a school |
7 | located in this Commonwealth and that includes an application |
8 | and review process for the purpose of making awards to eligible |
9 | pre-kindergarten students and awards scholarships to eligible |
10 | pre-kindergarten students without limiting availability to only |
11 | students of one school. |
12 | "Public school." A public pre-kindergarten where compulsory |
13 | attendance requirements do not apply or a public kindergarten, |
14 | elementary school or secondary school at which the compulsory |
15 | attendance requirements of this Commonwealth may be met and |
16 | which meets the applicable requirements of Title VI of the Civil |
17 | Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). |
18 | "Scholarship organization." A nonprofit entity which: |
19 | (1) is exempt from Federal taxation under section 501(c) |
20 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
21 | 26 U.S.C. § 1 et seq.); and |
22 | (2) contributes at least 80% of its annual cash receipts |
23 | to a scholarship program. |
24 | For purposes of this definition, a nonprofit entity |
25 | "contributes" its annual cash receipts to a scholarship program |
26 | when it expends or otherwise irrevocably encumbers those funds |
27 | for distribution during the then current fiscal year of the |
28 | nonprofit entity or during the next succeeding fiscal year of |
29 | the nonprofit entity. |
30 | "Scholarship program." A program to provide tuition to |
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1 | eligible students to attend a school located in this |
2 | Commonwealth. A scholarship program must include an application |
3 | and review process for the purpose of making awards to eligible |
4 | students. The award of scholarships to eligible students shall |
5 | be made without limiting availability to only students of one |
6 | school. |
7 | "School." A public or nonpublic pre-kindergarten, |
8 | kindergarten, elementary school or secondary school at which the |
9 | compulsory attendance requirements of the Commonwealth may be |
10 | met and which meets the applicable requirements of Title VI of |
11 | the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). |
12 | "School age." Children from the earliest admission age to a |
13 | school's pre-kindergarten or kindergarten program or, when no |
14 | pre-kindergarten or kindergarten program is provided, the |
15 | school's earliest admission age for beginners, until the end of |
16 | the school year the student attains 21 years of age or |
17 | graduation from high school, whichever occurs first. |
18 | "Special education school." A school or program within a |
19 | school that is designated specifically and exclusively for |
20 | students with any of the disabilities listed in 34 CFR § 300.8 |
21 | (relating to child with a disability) and meets one of the |
22 | following: |
23 | (1) Is licensed under the act of January 28, 1988 |
24 | (P.L.24, No.11), known as the Private Academic Schools Act. |
25 | (2) Is accredited by an accrediting association approved |
26 | by the State Board of Education. |
27 | (3) Is a school for the blind or deaf receiving |
28 | Commonwealth appropriations. |
29 | (4) Is operated by or under the authority of a bona fide |
30 | religious institution or by the Commonwealth or any political |
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1 | subdivision thereof. |
2 | "Support level." The level of support needed by an eligible |
3 | student with a disability, as set forth in the following matrix: |
4 | Support Level 1 - The student is not enrolled in a |
5 | special education school. |
6 | Support Level 2 - The student is enrolled as a student in |
7 | a special education school. |
8 | Section 2503-B. Qualification and application. |
9 | (a) Establishment.--In accordance with section 14 of Article |
10 | III of the Constitution of Pennsylvania, an educational |
11 | improvement tax credit program is hereby established to enhance |
12 | the educational opportunities available to all students in this |
13 | Commonwealth. |
14 | (b) Information.--In order to qualify under this subarticle, |
15 | a scholarship organization, a pre-kindergarten scholarship |
16 | organization or an educational improvement organization must |
17 | submit information to the department that enables the department |
18 | to confirm that the organization is exempt from taxation under |
19 | section 501(c)(3) of the Internal Revenue Code of 1986 (Public |
20 | Law 99-514, 26 U.S.C. § 1 et seq.). |
21 | (c) Scholarship organizations and pre-kindergarten |
22 | scholarship organizations.--A scholarship organization or pre- |
23 | kindergarten scholarship organization must certify to the |
24 | department that the organization is eligible to participate in |
25 | the program established under this subarticle and must agree to |
26 | annually report the following information to the department by |
27 | September 1 of each year: |
28 | (1) (i) The number of scholarships awarded during the |
29 | immediately preceding school year to eligible pre- |
30 | kindergarten students. |
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1 | (ii) The total and average amounts of the |
2 | scholarships awarded during the immediately preceding |
3 | school year to eligible pre-kindergarten students. |
4 | (iii) The number of scholarships awarded during the |
5 | immediately preceding school year to eligible students in |
6 | grades kindergarten through eight. |
7 | (iv) The total and average amounts of the |
8 | scholarships awarded during the immediately preceding |
9 | school year to eligible students in grades kindergarten |
10 | through eight. |
11 | (v) The number of scholarships awarded during the |
12 | immediately preceding school year to eligible students in |
13 | grades nine through 12. |
14 | (vi) The total and average amounts of the |
15 | scholarships awarded during the immediately preceding |
16 | school year to eligible students in grades nine through |
17 | 12. |
18 | (vii) Where the scholarship organization or pre- |
19 | kindergarten scholarship organization collects |
20 | information on a county-by-county basis, the total number |
21 | and the total amount of scholarships awarded during the |
22 | immediately preceding school year to residents of each |
23 | county in which the scholarship organization or pre- |
24 | kindergarten scholarship organization awarded |
25 | scholarships. |
26 | (2) The information required under paragraph (1) shall |
27 | be submitted on a form provided by the department. No later |
28 | than May 1 of each year, the department shall annually |
29 | distribute such sample forms, together with the forms on |
30 | which the reports are required to be made, to each listed |
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1 | scholarship organization and pre-kindergarten scholarship |
2 | organization. |
3 | (3) The department may not require any other information |
4 | to be provided by scholarship organizations or pre- |
5 | kindergarten scholarship organizations, except as expressly |
6 | authorized in this subarticle. |
7 | (d) Educational improvement organization.-- |
8 | (1) An application submitted by an educational |
9 | improvement organization must describe its proposed |
10 | innovative educational program or programs in a form |
11 | prescribed by the department. The department shall consult |
12 | with the Department of Education as necessary. The department |
13 | shall review and approve or disapprove the application. In |
14 | order to be eligible to participate in the program |
15 | established under this subarticle, an educational improvement |
16 | organization must agree to annually report the following |
17 | information to the department by September 1 of each year: |
18 | (i) The name of the innovative educational program |
19 | or programs and the total amount of the grant or grants |
20 | made to those programs during the immediately preceding |
21 | school year. |
22 | (ii) A description of how each grant was utilized |
23 | during the immediately preceding school year and a |
24 | description of any demonstrated or expected innovative |
25 | educational improvements. |
26 | (iii) The names of the public schools and school |
27 | districts where innovative educational programs that |
28 | received grants during the immediately preceding school |
29 | year were implemented. |
30 | (iv) Where the educational improvement organization |
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1 | collects information on a county-by-county basis, the |
2 | total number and the total amount of grants made during |
3 | the immediately preceding school year for programs at |
4 | public schools in each county in which the educational |
5 | improvement organization made grants. |
6 | (2) The information required under paragraph (1) shall |
7 | be submitted on a form provided by the department. No later |
8 | than May 1 of each year, the department shall annually |
9 | distribute such sample forms, together with the forms on |
10 | which the reports are required to be made, to each listed |
11 | educational improvement organization. |
12 | (3) The department may not require any other information |
13 | to be provided by educational improvement organizations, |
14 | except as expressly authorized in this subarticle. |
15 | (e) Notification.--The department shall notify the |
16 | scholarship organization, pre-kindergarten scholarship |
17 | organization or educational improvement organization that the |
18 | organization meets the requirements of this subarticle for that |
19 | fiscal year no later than 60 days after the organization has |
20 | submitted the information required under this section. |
21 | (f) Publication.--The department shall annually publish a |
22 | list of each scholarship organization, pre-kindergarten |
23 | scholarship organization or educational improvement organization |
24 | qualified under this section in the Pennsylvania Bulletin. The |
25 | list shall also be posted and updated as necessary on the |
26 | publicly accessible Internet website of the department. |
27 | Section 2504-B. Application. |
28 | (a) Scholarship organization or pre-kindergarten scholarship |
29 | organization.--A business firm shall apply to the department for |
30 | a tax credit under section 2505-B. A business firm shall receive |
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1 | a tax credit under this subarticle if the scholarship |
2 | organization or pre-kindergarten scholarship organization that |
3 | receives the contribution appears on the list established under |
4 | section 2503-B(f). |
5 | (b) Educational improvement organization.--A business firm |
6 | must apply to the department for a credit under section 2505-B. |
7 | A business firm shall receive a tax credit under this subarticle |
8 | if the department has approved the program provided by the |
9 | educational improvement organization that receives the |
10 | contribution. |
11 | (c) Availability of tax credits.--Tax credits under this |
12 | subarticle shall be made available by the department on a first- |
13 | come, first-served basis within the limitation established under |
14 | section 2506-B(a). |
15 | (d) Contributions.--A contribution by a business firm to a |
16 | scholarship organization, pre-kindergarten scholarship |
17 | organization or educational improvement organization shall be |
18 | made no later than 60 days following the approval of an |
19 | application under subsection (a) or (b). |
20 | Section 2505-B. Tax credit. |
21 | (a) Scholarship or educational improvement organizations.-- |
22 | In accordance with section 2506-B(a), the Department of Revenue |
23 | shall grant a tax credit against any tax due under Article III, |
24 | IV, VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6, |
25 | No.2), known as the Tax Reform Code of 1971, to a business firm |
26 | providing proof of a contribution to a scholarship organization |
27 | or educational improvement organization in the taxable year in |
28 | which the contribution is made which shall not exceed 75% of the |
29 | total amount contributed during the taxable year by the business |
30 | firm. Such credit shall not exceed $300,000 annually per |
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1 | business firm for contributions made to scholarship |
2 | organizations or educational improvement organizations. |
3 | (b) Additional amount.--The Department of Revenue shall |
4 | grant a tax credit of up to 90% of the total amount contributed |
5 | during the taxable year if the business firm provides a written |
6 | commitment to provide the scholarship organization or |
7 | educational improvement organization with the same amount of |
8 | contribution for two consecutive tax years. The business firm |
9 | must provide the written commitment under this subsection to the |
10 | department at the time of application. |
11 | (c) Pre-kindergarten scholarship organizations.--In |
12 | accordance with section 2506-B(a), the Department of Revenue |
13 | shall grant a tax credit against any tax due under Article III, |
14 | IV, VI, VII, VIII, IX or XV of the Tax Reform Code of 1971 to a |
15 | business firm providing proof of a contribution to a pre- |
16 | kindergarten scholarship organization in the taxable year in |
17 | which the contribution is made which shall be equal to 100% of |
18 | the first $10,000 contributed during the taxable year by the |
19 | business firm, and which shall not exceed 90% of the remaining |
20 | amount contributed during the taxable year by the business firm. |
21 | Such credit shall not exceed $150,000 annually per business firm |
22 | for contributions made to pre-kindergarten scholarship |
23 | organizations. |
24 | (c.1) Contributions to All Students Can Succeed program.-- |
25 | Notwithstanding the provisions of subsections (a) and (b), |
26 | business firms may receive tax credits in any tax year up to an |
27 | additional $100,000 for contributions to educational improvement |
28 | organizations that contribute to an All Students Can Succeed |
29 | program. |
30 | (d) Combination of tax credits.--A business firm may receive |
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1 | tax credits from the Department of Revenue in any tax year for |
2 | any combination of contributions under subsection (a) or (b) or |
3 | (c). In no case may a business firm receive tax credits in any |
4 | tax year in excess of $300,000 for contributions under |
5 | subsections (a) and (b). In no case shall a business firm |
6 | receive tax credits in any tax year in excess of $150,000 for |
7 | contributions under subsection (c). In no case shall a business |
8 | firm receive tax credits in any tax year in excess of $100,000 |
9 | for contributions under subsection (c.1). |
10 | (e) Pass-through entity.-- |
11 | (1) If a pass-through entity does not intend to use all |
12 | approved tax credits under this section, it may elect in |
13 | writing to transfer all or a portion of the credit to |
14 | shareholders, members or partners in proportion to the share |
15 | of the entity's distributive income to which the shareholder, |
16 | member or partner is entitled for use in the taxable year in |
17 | which the contribution is made or in the taxable year |
18 | immediately following the year in which the contribution is |
19 | made. The election shall designate the year in which the |
20 | transferred credits are to be used and shall be made |
21 | according to procedures established by the Department of |
22 | Revenue. |
23 | (2) A pass-through entity and a shareholder, member or |
24 | partner of a pass-through entity shall not claim the credit |
25 | under this section for the same contribution. |
26 | (3) The shareholder, member or partner may not carry |
27 | forward, carry back, obtain a refund of or sell or assign the |
28 | credit. |
29 | (f) Restriction on applicability of credits.--No credits |
30 | granted under this section shall be applied against any tax |
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1 | withheld by an employer from an employee under Article III of |
2 | the Tax Reform Code of 1971. |
3 | (g) Time of application for credits.-- |
4 | (1) Except as provided in paragraphs (2) and (3), the |
5 | department may accept applications for tax credits available |
6 | during a fiscal year no earlier than July 1 of each fiscal |
7 | year. |
8 | (2) The application of any business firm for tax credits |
9 | available during a fiscal year as part of the second year of |
10 | a two-year commitment may be accepted no earlier than May 15 |
11 | preceding the fiscal year. |
12 | (3) The application under subsection (a) of any pass- |
13 | through entity for approval of single-year tax credits |
14 | available during a fiscal year against the taxes imposed |
15 | under Article III of the Tax Reform Code of 1971 or under |
16 | subsection (b) for approval of credits against such taxes for |
17 | the first year of a two-year commitment may be accepted by |
18 | the department no earlier than the first business day |
19 | following July 7 of the fiscal year. |
20 | Section 2506-B. Limitations. |
21 | (a) Amount.-- |
22 | (1) The total aggregate amount of all tax credits |
23 | approved shall not exceed $67,000,000 in a fiscal year. No |
24 | less than $44,666,667 of the total aggregate amount shall be |
25 | used to provide tax credits for contributions from business |
26 | firms to scholarship organizations. No less than $22,333,333 |
27 | of the total aggregate amount shall be used to provide tax |
28 | credits for contributions from business firms to educational |
29 | improvement organizations. |
30 | (2) The total aggregate amount of all tax credits |
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1 | approved for contributions from business firms to pre- |
2 | kindergarten scholarship programs shall not exceed $8,000,000 |
3 | in a fiscal year. |
4 | (3) For the fiscal year 2012-2013 and each fiscal year |
5 | thereafter, the total aggregate amount of tax credits |
6 | approved for educational improvement organizations that |
7 | contribute to All Students Can Succeed programs shall be |
8 | $10,000,000. |
9 | (b) Activities.--No tax credit shall be approved for |
10 | activities that are a part of a business firm's normal course of |
11 | business. |
12 | (c) Tax liability.-- |
13 | (1) Except as provided in paragraph (2), a tax credit |
14 | granted for any one taxable year may not exceed the tax |
15 | liability of a business firm. |
16 | (2) In the case of a credit granted to a pass-through |
17 | entity which elects to transfer the credit according to |
18 | section 2505-B(e), a tax credit granted for any one taxable |
19 | year and transferred to a shareholder, member or partner may |
20 | not exceed the tax liability of the shareholder, member or |
21 | partner. |
22 | (d) Use.--A tax credit not used by the applicant in the |
23 | taxable year the contribution was made or in the year designated |
24 | by the shareholder, member or partner to whom the credit was |
25 | transferred under section 2505-B(e) may not be carried forward |
26 | or carried back and is not refundable or transferable. |
27 | (e) Nontaxable income.--A scholarship received by an |
28 | eligible student or eligible pre-kindergarten student shall not |
29 | be considered to be taxable income for the purposes of Article |
30 | III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax |
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1 | Reform Code of 1971. |
2 | Section 2507-B. Lists. |
3 | The Department of Revenue shall provide a list of all |
4 | scholarship organizations, pre-kindergarten scholarship |
5 | organizations and educational improvement organizations |
6 | receiving contributions from business firms granted a tax credit |
7 | under this subarticle to the General Assembly by June 30th of |
8 | each year. |
9 | Section 2508-B. Guidelines. |
10 | The department in consultation with the Department of |
11 | Education shall develop guidelines to determine the eligibility |
12 | of an innovative educational program. |
13 | (c) All Students Can Succeed Programs. |
14 | Section 2521-B. List of low-achieving schools. |
15 | The Department of Education shall compile annually a list of |
16 | low-achieving public elementary or secondary schools within this |
17 | Commonwealth. To identify low-achieving schools, the Department |
18 | of Education shall: |
19 | (1) Exclude the following: |
20 | (i) Charter schools. |
21 | (ii) Cyber charter schools. |
22 | (iii) Area vocational-technical schools. |
23 | (iv) Schools that do not draw its student body from |
24 | a particular attendance boundary. |
25 | (v) Schools with a specialized academic program that |
26 | have specific admissions criteria. |
27 | (vi) Schools that have made adequate yearly progress |
28 | for at least one of the two most recent school years or |
29 | that have not been measured for adequate yearly progress |
30 | in one of the two most recent school years. |
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1 | (2) For all remaining schools: |
2 | (i) Calculate the percentage of students attending |
3 | the school who scored either proficient or advanced in |
4 | the subject areas of mathematics and reading on the three |
5 | most recent academic performance indicators for which |
6 | data is posted on the Department of Education's publicly |
7 | accessible Internet website for the subjects of |
8 | mathematics and reading. |
9 | (ii) Add the percentages of students attending the |
10 | school who scored either proficient or advanced in the |
11 | subject areas of mathematics and reading under |
12 | subparagraph (i) to obtain a total academic performance |
13 | score of students attending the school. |
14 | (3) Include on the list of low-achieving schools any |
15 | school that has an academic performance score less than 300 |
16 | points. |
17 | Section 2522-B. All Students Can Succeed programs. |
18 | A school district with a school on a list of low-achieving |
19 | schools under section 2521-B may implement an All Students Can |
20 | Succeed program to improve the academic performance of students |
21 | in the low-achieving school through the following initiatives: |
22 | (1) Evidence-based, data-driven safe school programs |
23 | designed to improve and promote a safe school climate, such |
24 | as school-wide positive behavior support. |
25 | (2) Alternative education programs, meeting specific |
26 | standards, that remove disruptive students from regular |
27 | school programs in order to provide the students with a sound |
28 | educational course of study and counseling designed to modify |
29 | disruptive behavior and return the students to a regular |
30 | school curriculum. |
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1 | (3) Targeted interventions, both after-school and summer |
2 | school programs, that include tutoring by Department of |
3 | Education-approved providers, mentoring and family support |
4 | for at-risk students addressing truancy, parenting skills and |
5 | intensive social services. |
6 | (4) Targeted tutoring in reading and mathematics |
7 | provided during the normal school day to increase student |
8 | academic achievement on the Pennsylvania System of School |
9 | Assessment (PSSA) test. |
10 | (5) Other programs or activities, as approved by the |
11 | Department of Education, which the board of school directors |
12 | of a school district determines are essential to improving |
13 | academic performance of students in a low-achieving school. |
14 | Section 2. Repeals are as follows: |
15 | (1) The General Assembly declares that the repeal under |
16 | paragraph (2) is necessary to effectuate the addition of |
17 | Article XXV-B of the act. |
18 | (2) Article XVII-F of the act of March 4, 1971 (P.L.6, |
19 | No.2), known as the Tax Reform Code of 1971, is repealed. |
20 | Section 3. The addition of Article XXV-B of the act is a |
21 | continuation of Article XVII-F of the act of March 4, 1971 |
22 | (P.L.6, No.2), known as the Tax Reform Code of 1971. Except as |
23 | otherwise provided in Article XXV-B of the act, all activities |
24 | initiated under Article XVII-F of the Tax Reform Code of 1971 |
25 | shall continue and remain in full force and effect and may be |
26 | completed under Article XXV-B of the act. Orders, regulations, |
27 | rules and decisions which were made under Article XVII-F of the |
28 | Tax Reform Code of 1971 and which are in effect on the effective |
29 | date of section 2(2) of this act shall remain in full force and |
30 | effect until revoked, vacated or modified under Article XXV-B of |
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1 | the act. |
2 | Section 4. This act shall take effect in 60 days. |
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