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§ 8804-B. Tax credits

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: July 13, 2016

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 5. Tax Reform Code of 1971 (Refs & Annos)
Article XVIII-B. Tax Credit for New Jobs (Refs & Annos)
Effective: July 13, 2016
72 P.S. § 8804-B
§ 8804-B. Tax credits
Currentness
(a) Maximum amount.--A company may claim a tax credit of $1,000 per new job created, or $2,500 per each new job created if the newly created job is filled by a veteran or an unemployed individual, up to the maximum job creation tax credit amount specified in the commitment letter.
(b) Determination of new jobs created.--
(1) New jobs shall be deemed created in year one to the extent that the company's average employment by quarter during year one exceeds the company's average employment level during the company's base period.
(2) New jobs shall be deemed created in year two to the extent that the company's average employment by quarter during year two exceeds the company's average employment by quarter during year one.
(3) New jobs shall be deemed created in year three to the extent that the company's average employment by quarter during year three exceeds the company's average employment by quarter during year two.
(c) Applicable taxes.--A company may apply the tax credit to 100% of the company's State corporate net income tax, capital stock and franchise tax or the capital stock and franchise tax of a shareholder of the company if the company is a Pennsylvania S corporation, gross premiums tax, gross receipts tax, bank and trust company shares tax, mutual thrift institution tax, title insurance company shares tax, personal income tax or the personal income tax of shareholders of a Pennsylvania S corporation or any combination thereof.
(d) Tax credit term.--
(1) A company may claim the job creation tax credit for each new job created, as approved by the department, for a one-year, two-year or three-year period as authorized by the department, except that no tax credit may be claimed for more than five years from the date the company first submits a job creation tax credit certificate. The department may award the total amount of tax credit authorized for a multiple-year tax credit in the first year in which the new job is created and the tax credit earned.
(2) Notwithstanding the provisions of paragraph (1), nothing in this article shall be construed to prohibit the Department of Community and Economic Development from awarding the total amount of tax credit authorized for a multiple-year tax credit in the first year in which the new job is created and the tax credit earned.
(e) Availability of tax credits.--Each fiscal year, $ 10,100,000 in tax credits shall be made available to the department and may be awarded by the department in accordance with this article. In addition, in any fiscal year, the department may reissue or assign prior fiscal year tax credits which have been recaptured under section 1806-B(a) or (b)1 and may award prior fiscal year credits not previously issued. Prior fiscal year credits may be reissued, assigned or awarded by the department without limitation by section 1805-B(b).2

Credits

1971, March 4, P.L. 6, No. 2, art. XVIII-B, § 1804-B, added 2001, June 22, P.L. 353, No. 23, § 22, effective July 1, 2001. Amended 2012, July 2, P.L. 751, No. 85, § 19.2, imd. effective; 2013, July 9, P.L. 270, No. 52, § 29.1, imd. effective; 2016, July 13, P.L. 526, No. 84, § 33.2, imd. effective.

Footnotes

1
72 P.S. § 8806-B.
2
72 P.S. § 8805-B.
72 P.S. § 8804-B, PA ST 72 P.S. § 8804-B
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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