Bill Text: PA HB386 | 2011-2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Providing for a tax credit program to support community-based mental retardation services in this Commonwealth.

Spectrum: Slight Partisan Bill (Republican 24-11)

Status: (Introduced - Dead) 2012-09-24 - Laid on the table [HB386 Detail]

Download: Pennsylvania-2011-HB386-Introduced.html

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PRINTER'S NO. 350
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 386 Session of2011
INTRODUCED BY BOYD, O'NEILL, AUMENT, CALTAGIRONE, CUTLER, GEIST, GOODMAN, HARHAI, HARKINS, HICKERNELL, KAUFFMAN, KAVULICH, LONGIETTI, MARSHALL, MIRABITO, MURT, PEIFER, PETRARCA, QUINN, RAPP, REICHLEY, ROAE, SCAVELLO, J. TAYLOR, VULAKOVICH, WATSON, GRELL AND HESS, FEBRUARY 1, 2011
REFERRED TO COMMITTEE ON HUMAN SERVICES, FEBRUARY 1, 2011
AN ACT
Providing for a tax credit program to support community-based
mental retardation services in this Commonwealth.
The General Assembly finds and declares as follows:
(1) In July 1999, the Supreme Court issued the Olmstead
v. L.C. decision that clearly challenges Federal, state and
local governments to develop more opportunities for
individuals with disabilities through more accessible systems
of cost-effective community-based services.
(2) The Olmstead decision interpreted Title II of the
Americans with Disabilities Act of 1990 (Public Law 101-336,
104 Stat. 327) and its implementing regulation, requiring
states to administer their services, programs and activities
in the most integrated setting appropriate to the needs of
qualified individuals with disabilities.
(3) In Pennsylvania, services for individuals with
mental retardation are evolving from a system comprised of
large public and private residential facilities to a system
of community supports and services so that individuals may
remain in their homes and communities.
(4) Community services include a variety of residential
and day support services which are either administered or
operated by county mental health and mental retardation
offices, contracted private residential intermediate care
facilities for persons with mental retardation (ICF/MR) and
contracted private providers of community-based services.
(5) In 1999, the Office of Mental Retardation of the
Department of Public Welfare released a report with a long-
term plan to address the waiting list for mental retardation
services in Pennsylvania.
(6) The waiting list is comprised of three categories:
the emergency category, for individuals who need services
immediately; the critical list, for individuals who will need
services within one year; and the planning category, for
individuals who will need services in five years.
(7) In 1999, a total of 14,083 persons were on the
waiting list for services. As of December 2004, the Office of
Mental Retardation reported that there are 20,652 individuals
on the waiting list for mental retardation services. Of that
group, 2,180 individuals are in the emergency category, 8,000
individuals are in the critical category and 10,000
individuals are in the planning category.
(8) Since 2001, decreasing revenues and rising Medicaid
costs have impacted state budgets across the United States
with the results that Federal and State funding has been
insufficient to meet the needs of the growing number of
individuals with mental retardation waiting for community-
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based services.
(9) It is critical to access other sources of revenue to
address the waiting list for services.
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 Mental
Retardation Services 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:
"Business firm." An entity authorized to do business in this
Commonwealth and subject to taxes imposed under Article III, IV,
VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
"Contribution." A donation of cash, personal property or
services, the value of which is the net cost of the donation to
the donor or the pro rata hourly wage, including benefits, of
the individual performing the service.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Individual." An individual who is eligible for community-
based services funded through the Office of Mental Retardation
of the Department of Public Welfare.
"Provider." A nonprofit entity that:
(1) Provides community-based services to individuals
with mental retardation, including, but not limited to,
community residential options and nonresidential services,
such as supported employment, training and recreation,
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mobility training, employment training and opportunities and
adult day care.
(2) Is exempt from Federal taxation under section 501(c)
(3) of the Internal Revenue Code of 1986 (Public Law 99-514,
26 U.S.C. § 1 et seq.).
Section 3. Mental retardation services tax credit program.
(a) Establishment.--A mental retardation services tax credit
program is hereby established to supplement, not supplant,
existing Federal and State funding for community-based services
for individuals with mental retardation in this Commonwealth.
(b) Information.--In order to qualify under this act, a
provider must submit information to the department that enables
the department to confirm that the provider is exempt from
taxation under section 501(c)(3) of the Internal Revenue Code of
1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
(c) Provider application.--
(1) An application submitted to the department by the
provider must describe the community-based services it
provides to individuals with mental retardation on a form
provided by the department.
(2) The department shall consult with the Department of
Public Welfare as necessary to determine that the provider
provides community-based services for individuals with mental
retardation. The department shall review and approve or
disapprove the application.
(d) Notification.--The department shall notify the provider
that the provider meets the requirements under this act for that
fiscal year no later than 60 days after the provider has
submitted the application required under this section.
(e) Publication.--The department shall annually publish a
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list of each provider qualified under this section in the
Pennsylvania Bulletin. The list shall also be posted and updated
as necessary on the publicly accessible Internet website of the
department.
Section 4. Availability of tax credits.
(a) Application.--A business firm may apply to the
department for a tax credit under section 5. A business firm
shall receive a tax credit under this act if the provider that
receives the contribution from the business firm appears on the
list under section 3(e).
(b) Availability of tax credits.--Tax credits under this
section shall be made available by the department on a first-
come-first-served basis within the limitation established under
section 6(a).
(c) Contributions.--A contribution by a business firm to a
provider shall be made no later than 60 days following the
approval of an application under subsection (a).
Section 5. Grant of tax credits.
(a) General rule.--In accordance with section (6)(a), the
Department of Revenue shall grant a tax credit against a tax
liability owed to the Department of Revenue by a business firm
that provides proof of a contribution to a provider in the
taxable year in which the contribution is made. The business
firm may apply the credit against any tax due under Article III,
IV, VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
(b) Limitation.--The tax credit shall not exceed 50% of the
total amount contributed by a business firm to a provider during
the taxable year of the business firm. The tax credit shall not
exceed $100,000 annually per business firm.
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(c) Additional amount.--
(1) A business firm that contributes to a provider in
two or more consecutive years shall qualify for a 75% tax
credit for the contributions made in the second year and
every consecutive year of making a contribution to a
provider.
(2) Nothing in this section shall be construed to
require a business firm to contribute to the same provider
every year in order for the business firm to qualify for a
tax credit under this subsection.
Section 6. Amount of tax credits.
(a) General rule.--The total aggregate amount of all tax
credits approved shall not exceed $30,000,000 in a fiscal year.
(b) Activities.--No tax credit shall be approved for
activities that are part of a business firm's normal course of
business.
(c) Tax liability.--A tax credit granted for any one taxable
year may not exceed the tax liability of a business firm.
(d) Use.--A tax credit not used in the taxable year the
contribution was made may not be carried forward or carried back
and is not refundable or transferable.
Section 7. Report to General Assembly.
The Department of Revenue shall provide a list of all
providers receiving contributions from business firms granted a
tax credit under this act to the General Assembly by June 30 of
each year.
Section 8. Effective date.
This act shall take effect in 60 days.
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