72 Pa. Stat. § 9938-C

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 9938-C - Strategic development area job tax credit

(a) Credits.-- For tax years that begin on or after January 1, 2008, an insurance company that is a qualified business under this article may apply to the Department of Revenue for a job tax credit against the tax imposed by Article IX for all full-time jobs within a strategic development area in the taxable year. The job must be held directly with an insurance company in the strategic development area in order for the insurance company to apply for the tax credit. The Department of Revenue will prescribe the form and manner to obtain the credit.

(b) Section not applicable to certain insurance companies.--

(1) An insurance company that relocates from a location in a political subdivision in this Commonwealth that is not in a strategic development area to a location in a strategic development area may not apply for a credit for an existing job that is transferred, discontinued or lost in this Commonwealth which is attributable to the relocation.

(2) An insurance company that has relocated pursuant to paragraph (1) may apply for a strategic development area job tax credit for a new full-time job that is created in the strategic development area. A new full-time job is created with an insurance company if the average monthly employment for that insurance company has increased from the prior 12-month calendar year in the strategic development area.

(c) Application of credit.--An insurance company shall apply for a credit by January 15 for the previous calendar year.

(d) Apportionment.--The Department of Revenue shall apportion a strategic development area tax credit for an insurance company that is a qualified business that has not operated in a strategic development area for a full fiscal year.

(e) Credit determinations.--The strategic development area job tax credit shall be determined by multiplying the monthly average of all full-time jobs by the allowance. The allowance for purposes of the strategic development area job tax credit for taxable years beginning within the dates set forth shall be as follows:

January 1, 2001, to December 31, 2001	$500 per job
January 1, 2002, to December 31, 2002	$750 per job
January 1, 2003, to December 31, 2003	$1,000 per job
January 1, 2004, to December 31, 2004	$1,250 per job
January 1, 2005, to December 31, 2005	$1,250 per job
January 1, 2006, to December 31, 2006	$1,250 per job
January 1, 2007, to December 31, 2007	$1,250 per job
January 1, 2008, to December 31, 2008	$1,250 per job
January 1, 2009, to December 31, 2009	$1,250 per job
January 1, 2010, to December 31, 2010	$1,250 per job
January 1, 2011, to December 31, 2011	$1,250 per job
January 1, 2012, to December 31, 2012	$1,250 per job
January 1, 2013, to December 31, 2013	$1,250 per job
January 1, 2014, to December 31, 2014	$1,250 per job
January 1, 2015, to December 31, 2015	$1,250 per job
January 1, 2016, to December 31, 2016	$1,250 per job
January 1, 2017, to December 31, 2017	$1,250 per job
January 1, 2018, to December 31, 2018	$1,250 per job
January 1, 2019, to December 31, 2019	$1,250 per job
January 1, 2020, to December 31, 2020	$1,250 per job
January 1, 2021, to December 31, 2021	$1,250 per job
January 1, 2022, to December 31, 2022	$1,250 per job

(f) Notification of credit.--By March 15, the Department of Revenue shall notify an insurance company of the amount of the insurance company's tax credit approved.

(g) Limitation on amount of credit.--The tax credit allowed under this section shall not exceed 50% of the tax liability of the insurance company under Article IX for the tax year. An insurance company may not carry back or forward any credit received under this section.

(h) Allocation.--The total amount of credits approved by the Department of Revenue under this section shall not exceed $1,000,000 annually. If the credits exceed the $1,000,000 cap in a given year, the credits will be allocated on a pro rata basis.

(i) Calculation of allocation.--If the total amount of strategic development area job tax credits applied for by all insurance companies under this section exceeds $1,000,000, then the credit to be received by each insurance company shall be the product of $1,000,000 multiplied by the quotient of the credit applied for by the insurance company divided by the total of all credits applied for by all insurance companies, the algebraic equivalent of which is:

Insurance company's strategic development area job tax credit = $1,000,000 X (the amount of strategic development area job tax credit applied for by the insurance company/the sum of all strategic development area job tax credits applied for by all insurance companies).

(j) Partnership arrangements.--The jobs tax credit provided for under this section may be allocated to an insurance company that is a partner in such partnership that is also a qualified business in proportion to the full-time jobs within a strategic development area that are provided to such insurance company by the partnership. However, a partnership and a partner of that partnership may not claim any other tax benefit, expense or credit for the same strategic development area job tax credit.

(k) Relief from additional retaliatory tax.--The tax credit taken by an insurance company under this section shall not be included in determining liability for retaliatory taxes imposed under section 212 of the act of May 17, 1921 (P.L. 789, No. 285), known as The Insurance Department Act of 1921.

(l) Hold-harmless clause.--The tax credits allowed by this section shall not reduce the amounts which would otherwise be payable for firemen's relief pension or retirement purposes or for police pension retirement or disability purposes. The Department of Revenue shall transfer by June 30 of each fiscal year an amount equal to the tax credits taken under this section by foreign fire and casualty insurance companies from the General Fund to the Municipal Pension Aid Fund and the Fire Insurance Tax Fund, as appropriate.

72 P.S. § 9938-C

1971, March 4, P.L. 6, No. 2, art. XXIX-C, §2938-C, added 2006, Nov. 20, P.L. 1385, No. 151, § 2, imd. effective.