Title
Amending Section 19-2604, relating to tax rates, credits and alternative tax computation for the business privilege tax, by providing that a portion of the tax based upon gross receipts may be taken as a credit against the tax based upon net income, and making technical amendments to Section 19-1506 of The Philadelphia Code, relating to credits against the wage and net profits tax, all under certain terms and conditions.
Body
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.
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§19-2604. Tax Rates, Credits, and Alternative Tax Computation.
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(4) Any person liable for the payment of taxes pursuant to this Chapter shall be given a credit in the amount of sixty percent (60%) of the tax liability based upon net income under this Chapter against net profits taxes owed pursuant to the provisions of Chapter 19-1500 of this Title. Such credit shall be calculated without regard to any reduction in tax provided under §19-2604(5), relating to the Credit for Gross Receipts Tax Against Net Income Tax, or §19-2604(6), relating to Credit for Contributions to Community Development Corporations.
[(5) The credit against net profits tax liability, provided under § 19-2604(4), shall be calculated without regard to any reduction in tax provided under § 19-2604(6), relating to Credit for Contributions to Community Development Corporations.]
(5) Credit for Gross Receipt Tax Against Net Income Tax.
(a) Any person liable for the payment of the tax on gross receipts under this Chapter shall be given a credit of a specified percentage of such tax against any tax the person is liable to pay on net income under this Chapter, as follows:
Tax Year(s)
Percentage Credit
2008 and before
0.0%
2009
8.1%
2010
18.7%
2011
29.3%
2012
47.0%
2013
64.7%
2014
82.3%
2015 and thereafter
100%
(b) The tax credit provided by thi...
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