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§ 20-2006-B. Limitations

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 24 P.S. EducationEffective: December 13, 2023

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 24 P.S. Education
Chapter 1. Public School Code of 1949 (Refs & Annos)
Article XX-B. Educational Tax Credits (Refs & Annos)
Effective: December 13, 2023
24 P.S. § 20-2006-B
Formerly cited as PA ST 72 P.S. § 8706-F
§ 20-2006-B. Limitations
Currentness
(a) Amount.--
(1) The total aggregate amount of all tax credits approved for contributions from business firms to scholarship organizations, educational improvement organizations and pre-kindergarten scholarship organizations shall not exceed $470,000,000 in a fiscal year. The following shall apply:
(i) No less than $325,000,000 of the total aggregate amount shall be used to provide tax credits for contributions from business firms to scholarship organizations.
(ii) No less than $54,500,000 of the total aggregate amount shall be used to provide tax credits for contributions from business firms to educational improvement organizations.
(iii) The total aggregate amount of all tax credits approved for contributions from business firms to pre-kindergarten scholarship organizations shall not exceed $30,500,000 in a fiscal year.
(iv) No less than $60,000,000 of the total aggregate amount shall be used to provide tax credits for contributions from business firms to increase the scholarship or pre-kindergarten scholarship by up to $2,000 or, in the case of a scholarship for a student attending a secondary school, by up to $4,000, for a student attending an economically disadvantaged school, to the extent that the total amount of scholarships, pre-kindergarten scholarships and opportunity scholarships will not exceed the lesser of $8,500 or the school's tuition.
(2) The total aggregate amount of all tax credits approved for contributions from business firms to opportunity scholarship organizations shall not exceed $85,000,000 in a fiscal year.
(b) Activities.--No tax credit shall be approved for activities that are a part of a business firm's normal course of business.
(c) Tax liability.--
(1) Except as provided in paragraph (2), a tax credit granted for any one taxable year may not exceed the tax liability of a business firm.
(2) In the case of a credit granted to a pass-through entity which elects to distribute the credit according to section 2005-B(e),1 a tax credit granted for any one taxable year and distributed to a shareholder, member or partner may not exceed the tax liability of the shareholder, member or partner.
(d) Use.--Subject to subsection (d.1), a tax credit not used by the applicant in the taxable year the contribution was made or in the year designated by the shareholder, member or partner to whom the credit was transferred under section 2005-B(e) may not be carried forward or carried back and is not refundable or transferable.
(d.1) Pandemic relief.--
(1) A tax credit awarded to a business firm during the 2020-2021 or 2021-2022 fiscal year that cannot be used by the business firm during the fiscal year in which awarded may be carried forward and used during the two taxable years following the taxable year in which the tax credit was awarded.
(2) Tax credits that are carried forward under this subsection shall not diminish the total amount of tax credits that may otherwise be awarded to a business firm under section 2005-B or that may be awarded to all business firms in the aggregate under subsection (a).
(e) Nontaxable income.--A scholarship from any category of organization received by an eligible student or eligible pre-kindergarten student shall not be considered to be taxable income for the purposes of Article III of the Tax Reform Code of 1971.2
(f) Financial assistance.--A scholarship from any category of organization received by an eligible student or eligible pre-kindergarten student shall not constitute an appropriation or financial assistance to the school attended by the recipient.

Credits

1949, March 10, P.L. 30, No. 14, art. XX-B, § 2006-B, added 2016, July 13, P.L. 716, No. 86, § 13, imd. effective. Amended 2017, Nov. 6, P.L. 1142, No. 55, § 12, retroactive effective July 1, 2017; 2018, June 22, P.L. 241, No. 39, § 15.1, effective July 1, 2018; 2019, June 28, P.L. 117, No. 16, § 14, effective July 1, 2019; 2020, Nov. 25, P.L. 1294, No. 136, § 6, imd. effective; 2021, June 30, P.L. 158, No. 26, § 6, imd. effective; 2022, July 8, P.L. 620, No. 55, § 40, imd. effective; 2023, Dec. 13, P.L. 187, No. 33, § 27, imd. effective.

Footnotes

1
24 P.S. § 20-2005-B.
2
72 P.S. § 7301 et seq.
24 P.S. § 20-2006-B, PA ST 24 P.S. § 20-2006-B
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document