HB 376 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, authorizing a tax credit for a member of a volunteer emergency service organization who purchases fire equipment with personal income.

PRIOR PRINTER'S NO.

367 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

2741376 THE2019 GENERALINTRODUCED ASSEMBLYBY OFOWLETT, PENNSYLVANIAPICKETT, HOUSELEWIS, BILLRYAN, SessionPETRARCA, PYLE, KULIK, McNEILL, ZIMMERMAN, MACKENZIE, STRUZZI, WARREN, HILL- EVANS, LONGIETTI, SAPPEY, OTTEN, JOZWIAK, BERNSTINE, BOBACK, GABLER, BROWN, IRVIN, OBERLANDER, GOODMAN, MURT, KAUFER, DeLUCA, JONES, KEEFER, CIRESI, HAHN, SIMMONS, FARRY AND SAINATO, FEBRUARY 6, 2019 REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 6, 2019 AN ACT Amending the act of No.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;

376providing 2019procedures INTRODUCEDfor BY OWLETT, PICKETT, LEWIS, RYAN, PETRARCA, PYLE, READSHAW, STEPHENS, SCHLOSSBERG, KAUFFMAN, ROTHMAN, SNYDER, KULIK, McNEILL, ZIMMERMAN, MACKENZIE, STRUZZI, WARREN, HILL- EVANS, LONGIETTI, SAPPEY, OTTEN, JOZWIAK, BERNSTINE, BOBACK, GABLER, BROWN, IRVIN, OBERLANDER, GOODMAN, MURT, KAUFER, GILLEN, KIM, MATZIE, ECKER, MALAGARI, DUSH, GAYDOS,, SAINATO, POLINCHOCK AND ROWE, FEBRUARY 6, 2019 AS AS AMENDED, OCTOBER 21, 2019INANCE, HOUSE OF REPRESENTATIVES, AN ACT Amending the actpayment, offor March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reformcredits andin State taxation by codifying and enumerating certain subjectscases; of taxation and imposing taxes thereon;

providingconferring procedurespowers forandviding imposing duties upon the payment,Department collection,of administrationRevenue, certain employers, fiduciaries, individuals, persons, corporations and enforcementother thereof;entities;

providingprescribing forcrimes, offenses and penalties," authorizing a tax creditscredit infor certaina cases;member of a volunteer emergency service organization who purchases fire equipment with personal income.

conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations penalties," authorizing a tax credit for a member of a volunteer emergency service organization who purchases fire equipment with personal income.

<-- (1) It is estimated that more than 90% of Pennsylvania's emergency service organizations are volunteer organizations.

"Emergency service organization." A nonprofit chartered fire <-- company, volunteer ambulance service or volunteer rescue squad 20190HB0376PN2741 - 2 - located in this Commonwealth.

20190HB0376PN0367 - 2 - "Equipment." Acceptable equipment, including helmets, jackets, protection gear, boots and fire suits.

"DEPARTMENT."20190HB0376PN0367 THE- DEPARTMENT3 OF- REVENUE OF THE COMMONWEALTH.

<-- "EQUIPMENT." PERSONAL PROPERTY PURCHASED BY A VOLUNTEER EMERGENCY RESPONDER IN ORDER TO PERFORM DUTIES AS A MEMBER OF A VOLUNTEER EMERGENCY SERVICE ORGANIZATION.

THE TERM INCLUDES, BUT IS NOT LIMITED TO, HELMETS, JACKETS, PROTECTION GEAR, BOOTS AND FIRE SUITS.

20190HB0376PN2741 - 3 - "QUALIFIED PURCHASE." EQUIPMENT PURCHASED BY A TAXPAYER DURING THE TAXABLE YEAR IN WHICH A TAX CREDIT WILL BE CLAIMED.

"QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED UNDER ARTICLE III FOR TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 2019.

"TAX CREDIT." THE VOLUNTEER EMERGENCY RESPONDER EQUIPMENT TAX CREDIT AUTHORIZED UNDER THIS ARTICLE.

"TAXPAYER." A VOLUNTEER EMERGENCY RESPONDER CLAIMING A TAX CREDIT UNDER THIS ARTICLE.

THE TERM INCLUDES AN INDIVIDUAL OR INDIVIDUALS FILING JOINTLY.

"VOLUNTEER EMERGENCY RESPONDER." A MEMBER OF A VOLUNTEER EMERGENCY SERVICE ORGANIZATION.

"VOLUNTEER EMERGENCY SERVICE ORGANIZATION." AN ORGANIZATION THAT IS A VOLUNTEER FIRE COMPANY, VOLUNTEER AMBULANCE SERVICE OR VOLUNTEER RESCUE COMPANY AS THOSE TERMS ARE DEFINED IN 35 PA.C.S.

(RELATING TO HEALTH AND SAFETY).

SECTION 1803-H.

APPLICATION.

(A) APPLICATION TO DEPARTMENT.--A TAXPAYER MAY SUBMIT AN APPLICATION FOR A TAX CREDIT IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.

THE APPLICATION SHALL CONTAIN THE FOLLOWING INFORMATION:

(1) THE NAME AND LOCATION OF THE VOLUNTEER EMERGENCY SERVICE ORGANIZATION OF WHICH THE TAXPAYER IS A VOLUNTEER EMERGENCY RESPONDER.

(2) A CERTIFICATION FOR THE APPLICANT DESCRIBED IN SECTION 1805-H.

(3) AN ITEMIZED LIST OF EQUIPMENT PURCHASED, INCLUDING PRICE AND DATE OF PURCHASE.

(4) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.

(B) PROCEDURE.--THE APPLICATION SHALL BE ATTACHED TO THE 20190HB0376PN2741 - 4 - APPLICANT'S ANNUAL TAX RETURN REQUIRED TO BE FILED UNDER ARTICLE III.

SECTION 1804-H.

TAX CREDIT.

(A) GENERAL RULE.--A TAXPAYER MAY CLAIM A TAX CREDIT AGAINST THE TAXPAYER'S QUALIFIED TAX LIABILITY INCURRED IN THE TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS APPROVED.

(B) JOINT RETURN.--A TAX CREDIT GRANTED UNDER THIS ARTICLE MAY BE APPLIED TO THE SPOUSE OF AN ELIGIBLE APPLICANT IF BOTH THE ELIGIBLE APPLICANT AND THE SPOUSE REPORT INCOME ON A JOINT INCOME TAX RETURN.

(C) MAXIMUM CREDIT.-- (1) A TAXPAYER WHO QUALIFIES UNDER SUBSECTION (A) MAY CLAIM A TAX CREDIT UP TO THE AMOUNT OF QUALIFIED PURCHASES MADE BUT THE CREDIT SHALL NOT EXCEED $500 IN A SINGLE TAXABLE YEAR.

(2) THE DEPARTMENT MAY NOT AWARD MORE THAN $10,000,000 IN TAX CREDITS IN A SINGLE TAXABLE YEAR.

(3) IF THE TOTAL AMOUNT OF ELIGIBLE TAX CREDITS CLAIMED UNDER THIS ARTICLE IN A TAXABLE YEAR EXCEEDS $10,000,000, THE DEPARTMENT SHALL EQUALLY DIVIDE THE AMOUNT OF THE TAX CREDIT PER APPLICANT.

SECTION 1805-H.

CERTIFICATION.

PRIOR TO SUBMITTING AN APPLICATION TO THE DEPARTMENT UNDER THIS ARTICLE: