Struck = removed from the bill ·
added = the amendment's new text.
PRINTER'SH0296B0269A01576 SFR:NLG 05/31/19 #90 A01576 AMENDMENTS TO HOUSE BILL NO.
269296 THESponsor: GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.
296REPRESENTATIVE 2019D. INTRODUCED BY TOOHIL, RYAN, KAUFFMAN, STEPHENS, BERNSTINE, STRUZZI, KINSEY, HERSHEY, DiGIROLAMO, MURT, NESBIT, CRUZ, WHITE, EVERETT, RABB, MIZGORSKI, BROWN, LEWIS, HICKERNELL, BURGOS, KENYATTA, WHEATLEY, JONES, A.
DAVIS,MILLER T.Printer's No.
DAVIS269 ANDAmend RAPP,Bill, JANUARYpage 30,3, 2019line REFERRED8, TOby COMMITTEEstriking ONout FINANCE,"$500" JANUARYand 30,inserting 2019$1,500 ANAmend ACTBill, Amendingpage the3, actline of12, Marchby 4,striking 1971out (P.L.6,"$1,000" No.2),and entitledinserting "An$3,000 actAmend relatingBill, topage tax4, reformline and4, Stateby taxationstriking byout codifying"$10,000,000" and enumeratinginserting certain$30,000,000 subjects2019/90SFR/HB0296A01576 of- taxation1 and- imposing taxes thereon;
providing procedures for the payment, collection, administration and enforcement thereof;
providing imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities;
prescribing crimes, offenses and penalties," providing for adoption and foster care 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:
ARTICLE XVIII-H ADOPTION AND FOSTER CARE TAX CREDIT Section 1801-H.
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:
"Adoption and foster care tax credits." Tax credits for which the department has issued a certificate under this article.
"County agency." The county children and youth social service agency exercising the powers and duties provided for under section 405 of the act of June 24, 1937 (P.L.2017, No.396), known as the County Institution District Law, or its successor, and supervised by the Department of Human Services under Article IX of the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code.
"Department." The Department of Revenue of the Commonwealth.
"Foster child." Either of the following:
(1) A child:
(i) who is the care and responsibility of the Commonwealth;
and (ii) placed in foster care, as defined in 45 CFR 1355.20 (relating to definitions), under 42 Pa.C.S.
§ 6351 (relating to disposition of dependent child) or 6352 (relating to disposition of delinquent child).
(2) A child placed under a voluntary placement agreement under 55 Pa.
Code § 3130.65 (relating to voluntary placement agreement).
"Foster family care agency." A public or private agency that recruits, approves, supervises and places children with foster families.
"Foster parent." An individual approved by a foster family care agency to provide foster family care services to a foster child.
20190HB0296PN0269 - 2 - "Taxpayer." A foster parent or adoptive parent claiming a tax credit under this article.
Section 1802-H.
Adoption and Foster Care Tax Credit Program.
(a) Establishment.--The Adoption and Foster Care Tax Credit Program is established to encourage the adoption of children and the placement of a foster child with foster parents.
(b) Maximum amount.-- (1) A taxpayer may claim a tax credit of $500 per foster child placement in the tax year that the foster child first qualifies as a dependent on the taxpayer's Federal tax return.
(2) A taxpayer may claim a tax credit of $1,000 for an adopted child in the same tax year that the taxpayer qualifies for the Federal adoption tax credit.
Section 1803-H.
Application process.
(a) Application.--A taxpayer shall complete and submit the following:
(1) An application for a tax credit authorized under this article.
(2) Any other supporting information required by the department, including approval by a foster family care agency to provide foster family care services to a foster child.
(b) Procedure.--The department shall consult with the Department of Human Services and the county agency as necessary to determine whether the taxpayer meets the requirements for the tax credit.
(c) Notification.--The department shall notify the taxpayer whether the taxpayer meets the requirements under this article for the tax credit no later than 60 days after the taxpayer has submitted the application required under this section.
20190HB0296PN0269 - 3 - Section 1804-H.
Tax credits.
(a) Applicable taxes.--A taxpayer may apply the tax credit awarded under this article to taxes imposed under Article III.
(b) Availability.--Each fiscal year, $10,000,000 in tax credits shall be made available to the department and may be awarded by the department in accordance with this article.
Section 1805-H.
Carryover, carryback and refund.
(a) General rule.--If a 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 tax liability of the taxpayer for those taxable years.
Each time the tax credit is carried over to a succeeding taxable year, the tax credit shall be reduced by the amount that was used as a credit during the immediately preceding taxable year.
The tax credit under this article may be carried over and applied to succeeding taxable years for five taxable years following the first taxable year the taxpayer was entitled to claim the credit.
(b) Application.--A tax credit certificate received by the department in a taxable year shall first be applied against the taxpayer's tax liability for the current taxable year as of the date on which the credit was issued before the tax credit can be applied against any tax liability under subsection (a).
(c) No carryback or refund.--A taxpayer may not carry back or obtain a refund of all or any portion of an unused tax credit granted to the taxpayer under this article.
Section 1806-H.
Report to General Assembly.
The Secretary of Revenue shall submit an annual report to the General Assembly indicating the effectiveness of the credits provided under this article no later than March 15 following the 20190HB0296PN0269 - 4 - year in which the credits were approved.
The report shall include the amount of credits approved.
Notwithstanding any law providing for the confidentiality of tax records, the information contained in the report shall be public information.
The report may also include recommendations for changes in the calculation or administration of the credit.
Section 2.
This act shall take effect in 60 days.
20190HB0296PN0269 - 5 -