Bill Text: PA SB773 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for a tax credit for employers of volunteer firefighters and emergency medical services workers.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-04-08 - Referred to FINANCE [SB773 Detail]

Download: Pennsylvania-2009-SB773-Introduced.html

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PRINTER'S NO. 870
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 773 Session of2009
INTRODUCED BY BAKER, WAUGH, O'PAKE, BOSCOLA, BROWNE, COSTA, EARLL, ERICKSON, FERLO, FOLMER, FONTANA, GREENLEAF, KASUNIC, KITCHEN, LOGAN, MUSTO, ORIE, PIPPY, RAFFERTY, ROBBINS, STOUT, TOMLINSON, D. WHITE, WONDERLING, WOZNIAK AND YAW, APRIL 8, 2009
REFERRED TO FINANCE, APRIL 8, 2009
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
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 tax credit for employers of
volunteer firefighters and emergency medical services
workers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XVIII-C heading of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
amended July 9, 2008 (P.L.922, No.66), is amended to read:
ARTICLE XVIII-C
[RESERVED]
VOLUNTEER FIREFIGHTER AND EMERGENCY MEDICAL
SERVICES WORKER EMPLOYER TAX CREDIT
Section 2. The act is amended by adding sections to read:
Section 1801-C. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Active volunteer." A volunteer for a volunteer ambulance
service, volunteer fire company or volunteer rescue company
certified by the commissioner and the director as meeting the
criteria of this act and employed by a taxpayer in this
Commonwealth.
"Commissioner." The State Fire Commissioner appointed
pursuant to section 3 of the act of November 13, 1995 (P.L.604,
No.61), known as the State Fire Commissioner Act.
"Department." The Department of Revenue of the Commonwealth.
"Director." The director of the Emergency Medical Services
Office in the Department of Health.
"Pass-through entity." A partnership as defined in section
301(n.0) or a Pennsylvania S corporation as defined in section
301(n.1).
"Penalty." Includes the following:
(1) termination, discharge or layoff from employment; or
(2) adverse discrimination in terms of rates of pay,
benefit levels, advancement opportunities or selection for
job training opportunities.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV or VI. The term shall not include any tax
withheld by an employer from an employee under Article III.
"Tax credit." The tax credit available to employers of
active volunteers under this article.
"Taxpayer." An individual subject to payment of taxes under
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Article III, IV or VI.
"Volunteer ambulance service." As defined in section 102 of
the act of July 31, 2003 (P.L.73, No.17), known as the Volunteer
Fire Company and Volunteer Ambulance Service Grant Act.
"Volunteer fire company." As defined in section 102 of the
act of July 31, 2003 (P.L.73, No.17), known as the Volunteer
Fire Company and Volunteer Ambulance Service Grant Act.
"Volunteer rescue company." As defined in section 102 of the
act of July 31, 2003 (P.L.73, No.17), known as the Volunteer
Fire Company and Volunteer Ambulance Service Grant Act.
Section 1802-C. Application.
(a) Application to department.--A taxpayer may submit an
application for a tax credit under this article in a manner
required by the department. The application shall contain the
following information:
(1) The names and tax identification numbers of all
active volunteers employed by the taxpayer.
(2) The name and location of the volunteer fire company,
volunteer ambulance service or volunteer rescue company of
which the employee is an active volunteer.
(3) Any other information deemed appropriate by the
department.
(b) Approval.--The department shall review and approve or
disapprove each application in the order in which it is
received. Upon a determination that the taxpayer has employed an
active volunteer, the department may approve the taxpayer for a
tax credit.
Section 1803-C. Taxpayer credit.
A taxpayer may claim a tax credit against the qualified tax
liability of the taxpayer.
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Section 1804-C. Taxpayer eligibility.
(a) Credit for employment.--A taxpayer shall be eligible for
a tax credit under subsection (b) against the tax imposed under
Article III, IV or VI if:
(1) The taxpayer employs an active volunteer within this
Commonwealth.
(2) The taxpayer implements a policy that permits an
active volunteer to be absent from work, without penalty, for
the purpose of responding to a duty call, fire protection
call, emergency call or annual emergency services training.
(3) The active volunteer losing time during normal work
time hours under paragraph (2) provides the taxpayer with a
statement from the supervisor or chief of the volunteer fire
department, volunteer ambulance service or volunteer rescue
company stating that the active volunteer responded to a duty
call, fire protection call, emergency call or annual
emergency services training.
(b) Maximum credit.--A taxpayer who qualifies under
subsection (a)(1) and (2) may claim a tax credit for each full-
time employee who qualifies under subsection (a) as follows:
(1) A full $1,000 tax credit for all active volunteers
who qualify under subsection (a). The credit may be claimed
only once for each active volunteer and may not be claimed if
the active volunteer has been claimed by a previous employer
during the same taxable year.
(2) If the active volunteer is not qualified for the
entire tax year, the amount of the tax credit shall be
prorated, and the credit amount shall equal $1,000, divided
by 12, multiplied by the number of months in the tax year the
active volunteer was employed by the taxpayer. The credit
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shall be rounded to the nearest $5. If the employee is an
active volunteer during any part of a month, the employee
shall be considered an active volunteer for the entire month.
If the taxpayer is an active volunteer during the same month,
a credit may be claimed for only one active volunteer for
that month. The credit may be claimed only once with respect
to each active volunteer and may not be claimed if the active
volunteer has been claimed by a previous employer.
(3) The taxpayer's total tax credit under this article
may not exceed more than $5,000 in a given tax year.
Section 1805-C. Carry over and carryback.
(a) General rule.--If the taxpayer cannot use the entire
amount of the tax credit for the first taxable year in which the
taxpayer is eligible for the credit, 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 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 proceeding taxable year. The tax
credit provided by this article may be carried over and applied
to succeeding taxable years for no more than three taxable years
following the first taxable year for which the taxpayer was
entitled to claim the credit.
(b) Application.--A tax credit approved by the department in
a taxable year shall first be applied against the taxpayer's
qualified liability for the current taxable years as of the date
on which the credit was approved before the tax credit can be
applied against any tax liability under subsection (a).
(c) Limitations.--A taxpayer is not entitled to carry back,
obtain a refund of, sell or assign an unused tax credit.
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Section 1806-C. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
tax credit, it may elect in writing, according to procedures
established by the department, to transfer all or a portion of
the credit to shareholders, members or partners in proportion to
the share of the entity's distributive income to which the
shareholder, member or partner is entitled.
(b) Limitation.--A pass-through entity and a shareholder,
member or partner of a pass-through entity shall not claim the
credit under subsection (a) for the same active volunteer.
(c) Application.--A shareholder, member or partner of a
pass-through entity to whom a credit is transferred under
subsection (a) shall immediately claim the credit in the taxable
year in which the transfer is made. The shareholder, member or
partner may not carry forward, carry back, obtain a refund of or
sell or assign the credit.
Section 1807-C. Total amount of credits.
(a) General rule.--The total amount of tax credits
authorized by this article shall not exceed $5,000,000 in each
fiscal year. If the credits exceed the $5,000,000 cap in a given
year, the credits shall be allocated on a pro rata basis.
(b) Allocation.--If the total amount of the tax credits
applied for by all taxpayers under this article exceeds the
amount allocated, the tax credit to be received by each
applicant shall be the product of the allocated amount
multiplied by the quotient of the tax credit applied for by the
applicant divided by the total of all tax credits applied for by
all applicants, the algebraic equivalent of which is:
Taxpayer's tax credit = amount allocated for those credits x
(tax credit applied for by the applicant/total of all credits
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applied for by all applicants).
Section 1808-C. Point system.
(a) General rule.--The commissioner and the director shall
jointly develop and implement a point system establishing the
annual requirements for certification of active volunteers.
(b) Factors.--To determine whether to certify an individual
as an active volunteer, the point system shall consider the
following factors:
(1) The number of emergency calls responded to.
(2) The volunteer's level of training and participation
in formal training and drills.
(3) Time spent on administration and support activities,
including fundraising and maintenance of facilities and
equipment.
(4) Involvement in other projects that directly benefit
the organization's financial viability, emergency response or
operational readiness.
Section 1809-C. Application process.
An active volunteer may apply to the department for
certification by filing an application on the form required by
the department. The application shall contain the following
information:
(1) The name of the active volunteer.
(2) The name and address of the volunteer fire company,
volunteer ambulance service or volunteer rescue company where
the active volunteer is a member.
(3) Any other information deemed to be appropriate by
the department.
Section 1810-C. Certification.
(a) Self-certification.--The active volunteer shall sign and
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submit the application for certification under section 1809-C to
the chief of the volunteer fire company or the supervisor or
chief of the volunteer ambulance service or volunteer rescue
company where the volunteer serves.
(b) Local sign-off.--The chief of the volunteer fire company
or the supervisor or chief of the volunteer ambulance service or
volunteer rescue company and the president of the volunteer fire
and/or ambulance company shall sign the application attesting to
the individual's status as an active volunteer. The application
shall then be forwarded to the department for final review and
processing.
(c) Departmental review.--The department shall review and
approve or disapprove the applications in the order in which
they are received.
Section 1811-C. Regulations.
The department shall adopt regulations, including forms,
necessary to administer this article. The department may require
proof of the claim for tax credit.
Section 1812-C. Report to General Assembly.
No later than June 1, 2010, and September 1 of each year
thereafter, the department shall submit a report on the tax
credits granted under this article and the applicability of the
tax credit to the retention of active volunteers of a volunteer
ambulance service, volunteer fire company or volunteer rescue
company. The report shall include the names of taxpayers who
utilized the credit as of the date of the report and the amount
of credits approved. The report may include recommendations for
changes in the calculation or administration of the tax credit.
The report shall be submitted to the chairman and minority
chairman of the Appropriations Committee of the Senate, the
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chairman and minority chairman of the Appropriations Committee
of the House of Representatives, the chairman and minority
chairman of the Finance Committee of the Senate and the chairman
and minority chairman of the Finance Committee of the House of
Representatives. The report may include other information that
the department deems appropriate.
Section 1813-C. Penalty.
(a) Repayment.--A taxpayer who claims a credit under this
article but fails to meet the standards under section 1804-C
shall repay the full amount of the tax credit to the
Commonwealth.
(b) Reinstatement.--A taxpayer who willfully and knowingly
violates section 1804-C and takes adverse employment action
against an active volunteer for responding to emergency calls
shall be required to reinstate the active volunteer to his
former position. The taxpayer shall also pay the active
volunteer all lost wages and benefits, including seniority, for
the period between termination and reinstatement.
Section 3. This act shall apply to taxable years beginning
after December 31, 2008.
Section 4. This act shall take effect immediately.
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