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Amending Chapter 19-2600 of The Philadelphia Code, entitled Business Privilege Taxes, by providing tax relief for taxpayers whose businesses have been affected by public works projects, under certain terms and conditions.
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THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Chapter 19-2600 of The Philadelphia Code is hereby amended to read as follows:
CHAPTER 19-2600. BUSINESS PRIVILEGE TAXES.
§ 19-2601. Definitions.
In addition to the definitions provided in the Act of May 30, 1984, P.L. 345, No. 69, known as the First Class City Business Tax Reform Act, and Chapter 19-500 of this Title, the following definitions shall apply:
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Distressed Business. A person who is eligible for the Business Interruption Tax Credit provided by §19-2604(9).
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Receipts. * * * Receipts of any business shall exclude:
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(13) Beginning with tax year 2009 and thereafter, receipts of a Distressed Business.
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§ 19-2604. Tax Rates, Credits, and Alternative Tax Computation.
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(9) Business Interruption Tax Credit.
(a) Definitions.
(i) Public Works Project. A public works project undertaken by or on behalf of the City, the Commonwealth of Pennsylvania, the federal government, or any agency or instrumentality of any of those governments.
(b) Upon application, and beginning with tax year 2009 and thereafter, a tax credit shall be given to any person whose net income during the tax year is at least ten percent (10%) less than it would otherwise have been as the direct result of a Public Works Project. The tax credit shall be equal to the net income loss directly attributable to the Public Works Project, provided that the tax credit shall not exceed the amount of tax that would otherwise be due on net income.
(c) The Revenue Commissioner shall promulgate regulations to implement this subsection (9), including provisions as to the documentation that must be submitted with an application for the tax credit, and a process to determine the amount of net income loss directly attributable to a Public Works Project.
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Explanation:
Italics indicate new matter added.
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