§ 19-2604. Tax Rates, Credits, and Alternative Tax Computation. 485

   (1)   Every business shall pay an annual tax on each dollar of annual receipts at the millage rate shown in the second column of the following chart ("Receipts rate in mills"), and an annual tax on net income at the percentage rate shown in the third column ("Net income rate %"), except that a regulated industry shall only pay an annual tax on each dollar of annual receipts at the millage rate shown in the second column, and in an amount not to exceed the percentage of net income shown in the third column: 486

Tax year(s)	Receipts rate	Net income rate
1985	3.05 mills	3.70%
1986 through 1988 inclusive	3.90 mills	4.35%
1989 through 1995 inclusive	3.25 mills	6.50%
1996	3.00 mills	6.50%
1997	2.95 mills	6.50%
1998	2.875 mills	6.50%
1999	2.775 mills	6.50%
2000	2.65 mills	6.50%
2001	2.525 mills	6.50%
2002	2.40 mills	6.50%
2003	2.30 mills	6.50%
2004	2.10 mills	6.50%
2005	1.90 mills	6.50%
2006	1.665 mills	6.50%
2007	1.54 mills	6.50%
2008 through 2013	1.415 mills	6.45%
2014	1.415 mills	6.43%
2015	1.415 mills	6.41%
2016	1.415 mills	6.39%
2017	1.415 mills	6.35%
2018	1.415 mills	6.30%
2019	1.415 mills	6.25%
2020	1.415 mills	6.20%
2021	1.415 mills	6.20%
2022	1.415 mills	5.99%
2023 and thereafter	1.415 mills	5.81%

 

   (2)   The annual tax to be paid by any person registered under the Act of December 5, 1972 (P.L. 1280, No. 284), known as the Pennsylvania Securities Act of 1972, shall in no event be less than the sum of: (a) the millage rate shown in the second column of the following chart ("Rate 1 in mills"), multiplied by the person's taxable receipts without regard to the exclusion from receipts as defined in subsection (8) of the definition of "receipts" in Section 19-2601; plus (b) the lesser of (i) the millage rate shown in the third column ("Rate 2 in mills"), multiplied by the person's taxable receipts without regard to the exclusion from receipts as defined in subsection (8) of the definition of "receipts" in Section 19-2601, or (ii) the percentage shown in the fourth column ("% of net income"), multiplied by the person's net income without regard to the deduction as defined in subsection (a)(.2)(.e) of the definition of "net income" in Section 19-2601:

 

Tax year(s)	Rate 1	Rate 2	Percent of net income
1985	4.60 mills	2.30 mills	2.30%
1986 through 1988 inclusive	5.90 mills	2.90 mills	2.90%
1989 through 1997 inclusive	5.711 mills	4.302 mills	4.302%
1998 and thereafter	4.60 mills	2.30 mills	2.30%

 

   (3)   Alternative Receipts Tax Computation. A manufacturer (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on manufacturing sales at the rate shown in the following chart under the column entitled "Manufacturers", multiplied by receipts from manufacturing sales after deducting the applicable cost of goods sold as determined under the rules provided by the Federal Internal Revenue Code. A wholesaler (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on wholesale sales at the rate shown under the column entitled "Wholesalers", multiplied by receipts from wholesale sales after deducting the applicable cost of goods and the applicable cost of labor. A retailer (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on retail sales at the rate shown under the column entitled "Retailers", multiplied by receipts from retail sales after deducting the applicable cost of goods and the applicable cost of labor: 487

Tax year(s)	Manufacturer	Wholesalers	Retailers
1985	4.357%	6.10%	2.033%
1986 through 1988 inclusive	5.573%	7.80%	2.60%
1989 through 1991 inclusive	5.395%	7.55%	2.10%
1992 through 1995 inclusive	5.395%	7.55%	1.80%
1996	4.98%	6.97%	1.662%
1997	4.90%	6.85%	1.63%
1998	4.77%	6.68%	1.59%
1999	4.60%	6.45%	1.53%
2000	4.39%	6.16%	1.46%
2001	4.18%	5.87%	1.39%
2002	3.97%	5.58%	1.32%
2003	3.80%	5.35%	1.27%
2004	3.47%	4.88%	1.16%
2005	3.14%	4.42%	1.05%
2006	2.75%	3.87%	0.92%
2007	2.54%	3.58%	0.85%
2008 and thereafter	2.34%	3.29%	0.78%

 

   (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.

   (5)   The credit against net profits tax liability, provided under subsection 19-2604(4), shall be calculated without regard to any reduction in tax provided under subsection 19-2604(6), relating to Credit for Contributions to Community Development Corporations. 488

   (6)   Credit for Contributions to Community Development Corporations, Nonprofit Organizations Engaged in Developing and Implementing Healthy Food Initiatives and Nonprofit Intermediaries. 489

      (a)   Definitions. For purposes of this subsection, the following definitions shall apply:

         (.1)   Qualifying CDC. A community development corporation undertaking economic development activities within the City of Philadelphia.

         (.2)   Qualifying Nonprofit Organization Engaged in Developing and Implementing Healthy Food Initiatives. A nonprofit organization with an established record of developing and implementing healthy food initiatives within the City of Philadelphia. The Department of Public Health shall determine whether an agency meets these standards, and may establish further eligibility standards not inconsistent with this definition.

         (.3)   Qualifying Nonprofit Intermediary. A nonprofit organization with an established record of providing financial, technical, policy or related assistance to community development corporations undertaking neighborhood economic development activities within the City of Philadelphia.

         (.4)   Qualifying Organization. A Qualifying CDC, Qualifying Nonprofit Organization Engaged in Developing and Implementing Healthy Food Initiatives or Qualifying Nonprofit Intermediary.

      (b)   Subject to the provisions of subsection (6)(f), a business shall receive a tax credit of one hundred thousand dollars ($100,000) per year against business income and receipts tax liability for each year the business contributes one hundred thousand dollars ($100,000) in cash to a Qualifying Organization under the terms and conditions of this subsection (6). The contribution must be made in the year for which the credit is sought, unless the Department has agreed to an extension of not more than twelve months, which it shall do upon finding that (i) taxpayer's circumstances present good cause for delayed payment; and (ii) denial of the extension would cause hardship to the Qualifying Organization. 490

      (c)   Subject to the provisions of subsection (6)(f), the tax credit under this subsection (6) shall be available to up to forty-five (45) businesses, with respect to contributions to Qualifying CDCs or Qualifying Nonprofit Intermediaries, and up to two (2) businesses, with respect to contributions to Qualifying Nonprofit Organizations Engaged in Developing and Implementing Healthy Food Initiatives, that enter into a contribution agreement with the City under which the business agrees to contribute one hundred thousand dollars ($100,000) in cash per year for ten consecutive years to a Qualifying Organization designated by the business. No tax credit shall be given for any contributions made by a business to a Qualifying Organization other than pursuant to a contribution agreement with the City executed under the terms and conditions of this subsection (6). 491

         (.1)   At any one time, no more than four (4) Qualifying Nonprofit Intermediaries and no more than two Nonprofit Organizations Engaged in Developing and Implementing Healthy Food Initiatives may be designated as recipients of contributions for which a business seeks to claim a tax credit pursuant to this subsection (6). 492

      (d)   The Revenue Department shall provide application forms for businesses that wish to apply for tax credits under this Section, and it shall enter into contribution agreements under this Section with up to forty-five (45) applicants, with respect to contributions to Qualifying CDCs or Qualifying Nonprofit Intermediaries, and up to two (2) applicants, with respect to contributions to Qualifying Nonprofit Organizations Engaged in Developing and Implementing Healthy Food Initiatives, on a "first come - first served" basis. The Revenue Department shall when necessary randomly choose among applicants that apply on the same date. 493

      (e)   Subject to the provisions of subsection (6)(f), a business may terminate its contribution agreement with the City at any time. A business that terminates a contribution agreement will not lose any tax credits it has taken for contributions made under the contribution agreement, but the business will not be eligible to apply for any future tax credits under this subsection except as one of two businesses applying jointly for the tax credit under the provisions of subsection (6)(f). If a business terminates its contribution agreement, a new business may apply to receive tax credits under this subsection, provided that such tax credits shall be limited to the number of years that were remaining on the terminating business' contribution agreement, and further provided that the new business must enter into a contribution agreement with the City under which it agrees to make contributions of one hundred thousand dollars ($100,000) per year to the same Qualifying Organization which was the recipient under the terminating business' contribution agreement, and for the number of years that remained under that agreement. 494

      (f)   Two businesses may apply jointly for the tax credit provided under this subsection (6). In that case, both businesses shall be parties to the contribution agreement with the City, and the contribution agreement shall specify how much of the total one hundred thousand dollar ($100,000) annual contribution to the designated Qualifying Organization each business is obligated to contribute. The one hundred thousand dollar ($100,000) annual tax credit shall be divided between the two businesses in proportion to each business' contribution as specified in the contribution agreement. Either business may terminate the contribution agreement with the City at any time, in which case the other business shall be given the option of applying for tax credits under the provisions of subsection (6)(e) before any other business (or two businesses applying jointly) may apply. 495

      (g)   The Revenue Department shall by July 1 of each year submit a written report to the Mayor, with a copy to the President and Chief Clerk of Council, summarizing the City's experience during the prior year with the tax credit provided under this Section. 496

      (h)   Notwithstanding the provisions of subsections (c) and (d), above, the Department shall not enter into more than forty-two (42) contribution agreements for any tax year commencing January 1, 2019, or thereafter, provided that, by January 1 of such tax year, the Director of Commerce shall have filed a certification with the Department of Revenue and the Chief Clerk of Council certifying that the Director has in place for the fiscal year ending in such tax year a grant program that makes available to Qualifying Organizations, subject to reasonable qualifying criteria established by the Director of Commerce, an amount at least equal to five hundred thousand dollars ($500,000). 497

   (7)   Credit for New Job Creation. 498

      (a)   Definitions. For purposes of this subsection, the following definitions shall apply.

         (.1)   Base Period. The three years preceding the date on which a business may begin creating new jobs which may be eligible for job creation tax credits.

         (.2)   Job Creation Tax Credits. Tax credits for which the City of Philadelphia's Revenue Department has issued a certificate under this Chapter.

         (.3)   New Job. A full-time job, created within the City and County of Philadelphia by a company within five (5) years from the start date, the average hourly rate, excluding benefits, for which must be equal to the minimum wage rate then applicable as set forth in Section 17-1305 of this Code (entitled "Compensation Required to be Paid to Employees"). 499

Employment opportunities for Returning Citizens must be contracted for a minimum period of at least 180 days. 500

         (.4)   Start Date. The date on which a business may begin creating new jobs which may be eligible for job creation tax credits.

         (.5)   Year One. A one-year period immediately following the start date.

         (.6)   Year Two. A one-year period immediately following the end of year one.

         (.7)   Year Three. A one-year period immediately following the end of year two.

         (.8)   Year Four. A one-year period immediately following the end of year three.

         (.9)   Year Five. A one-year period immediately following the end of year four.

         (.10)   Returning Citizen. A person previously convicted of a felony, or who was incarcerated for any conviction, or who is currently on probation or parole for any conviction. 501

      (b)   Eligibility. In order to be eligible to receive Job Creation Tax Credits, a business must demonstrate the following:

         (.1)   A current Job Creation Tax Credit Certificate from the Commonwealth of Pennsylvania for jobs located in the City of Philadelphia or each of the following:

            (.a)   The ability to create the number of jobs required by the Revenue Department within five (5) years from the start date.

            (.b)   Financial stability and the project's financial viability.

            (.c)   The intent to maintain operations in the City of Philadelphia for a period of five (5) years from the date the company submits its Tax Credit Certificate to the Department of Revenue.

            (.d)   An affirmation that the decision to expand or locate in the City of Philadelphia was due in large part to the availability of a Job Creation Tax Credit.

      (c)   Application Process.

         (.1)   Application. A business must complete and submit to the Revenue Department a Job Creation Tax Credit Application.

         (.2)   Creation of Jobs. The applicant must agree to create at least 25 new jobs or to increase the applicant's number of employees by at least twenty percent (20%), within five (5) years of the start date.

         (.3)   Approval. If the Revenue Department approves the company's application, the Department and the company shall execute a commitment letter containing the following:

            (.a)   A description of the project.

            (.b)   The number of new jobs to be created.

            (.c)   The amount of private capital investment in the project.

            (.d)   The maximum job creation tax credit amount the company may claim.

            (.e)   A signed statement that the company intends to maintain its operation in the City of Philadelphia for five (5) years from the start date.

            (.f)   A commitment by the company to comply with the requirements of Chapter 18-300 (Economic Development Reporting) applicable to a covered business as if the company were a covered business under that Chapter, provided that the required information shall be filed with the Department of Revenue, which shall provide to the Department of Commerce such aggregated information as the Department of Commerce shall request as permitted by law. 502

            (.g)   Such other information as the Department deems appropriate.

         (.4)   Commitment Letter. After a commitment letter has been signed by both the City of Philadelphia and the business, and the City determines that new jobs have been created pursuant to that commitment, the business shall receive a Job Creation Tax Credit Certificate reflecting the number of jobs created and filing information.

      (d)   Tax Credits.

         (.1)   (.a)   Basic Maximum Amount. A business may claim a tax credit in an amount equal to two percent (2%) of the annual wages paid for each new job, or one thousand dollars ($1,000) per new job created (or five thousand dollars ($5,000) per new job created in the case of new employment opportunities for Returning Citizens), whichever is higher, up to the maximum job creation amount specified in the commitment letter. The Department shall establish by regulation a methodology by which the annual wages paid by each new job are to be determined. 503

            (.b)   Special Tax Credit Opportunity for Job Creation in 2010 and 2011. In connection with any application for a Job Creation Tax Credit filed after the effective date of this subsection (.b), a business may claim a tax credit in the amount of three thousand dollars ($3,000) or the amount permitted under subsection (.a), whichever is higher, for each new job created in 2010 or 2011, up to the maximum job creation amount specified in the commitment letter. 504

            (.c)   Special Tax Credit Opportunity for Job Creation in 2012 and 2013. In connection with any application for a Job Creation Tax Credit filed after the effective date of this subsection (.c), a business may claim a tax credit in the amount of three thousand dollars ($3,000) or the amount permitted under subsection (.a), whichever is higher, for each new job created in 2012 or 2013, up to the maximum job creation amount specified in the commitment letter. 505

            (.d)   Special Tax Credit Opportunity for Job Creation in 2012 and each year thereafter. In connection with any application for a Job Creation Tax Credit filed after the effective date of this subsection (.d), a business may claim a tax credit in the amount of five thousand dollars ($5,000) or the amount permitted under subsection (.a), whichever is higher, for each new job created in 2012 or thereafter, up to the maximum job creation amount specified in the commitment letter. 506

            (.e)   Special Tax Credit Opportunity for Job Creation in 2015. In connection with any application for a Job Creation Tax Credit filed after the effective date of this subsection (.e), a business may claim in each of five (5) years a tax credit in the amount of five thousand dollars ($5,000) or the amount permitted under subsection (.a), whichever is higher, for each new job created in 2015, up to the maximum job creation amount specified in the commitment letter. 507

         (.2)   Determination of new jobs created.

            (.a)   New jobs shall be deemed created in year one to the extent that the business' average employment by quarter during year one exceeds the greater of the business' average employment level during the business' base period or the business' employment level at the start date.

            (.b)   New jobs shall be deemed created in year two to the extent that the business' average employment by quarter during year two exceeds the business' average employment by quarter during year one.

            (.c)   New jobs shall be deemed created in year three to the extent that the business' average employment by quarter during year three exceeds the business' average employment by quarter during year two.

            (.d)   New jobs shall be deemed created in year four to the extent that the business' average employment by quarter during year four exceeds the business' average employment by quarter during year three.

            (.e)   New jobs shall be deemed created in year five to the extent that the business' average employment by quarter during year five exceeds the business' average employment by quarter during year four.

         (.3)   Applicable Taxes. A business may apply the tax credit against the business' total business income and receipts tax liability. 508

         (.4)   Tax Credit Term. A business may claim the Job Creation Tax Credit for each new job created, as approved by the City of Philadelphia, for a period not to exceed five (5) years from the date the business first submits a Job Creation Tax Credit Certificate to the Department of Revenue.

         (.5)   Maximum. The total amount of all tax credits available in any year for commitment under subsection (7)(c)(.3) shall not exceed two percent (2%) of all revenues collected by the City through the gross receipts and net income components of the business income and receipts tax during the previous tax year. 509

      (e)   Prohibitions.

         (.1)   Prohibitions. The following actions with regard to Job Creation Tax Credits are prohibited:

            (.a)   Approval of jobs that have been created prior to the start date.

            (.b)   The assignment, transfer or use of credits by any other company.

            (.c)   Approval for a company which is relocating operations from one location in Philadelphia to another location in Philadelphia.

         (.2)   Allocations. Twenty-five percent (25%) of all tax credits available in any year under subsection (7)(d)(.5) shall be available for commitment under subsection (7)(c)(.3) to businesses with fewer than 25 employees or to create employment opportunities for Returning Citizens. 510

      (f)   Penalties.

         (.1)   Failure to maintain operations. A business which receives Job Creation Tax Credits and fails to substantially maintain existing operations and the operations related to the Job Creation Tax Credits in the City of Philadelphia for a period of five (5) years from the date the business first submits a Job Creation Tax Credit Certificate to the Department of Revenue shall be required to refund to the City of Philadelphia the total amount of credit or credits granted.

         (.2)   Failure to create jobs. A business which receives job creation tax credits and fails to create the approved number of new jobs within five (5) years of the start date will be required to refund to the City of Philadelphia the total amount of credit or credits granted.

         (.3)   Waiver. The Department of Revenue may waive the penalties outlined in subsections (.1) and (.2) if it is determined that a business' operations were not maintained or the new jobs were not created because of circumstances beyond the business' control. Such circumstances include natural disasters, acts of terrorism, unforeseen industry trends or a loss of a major supplier or market.

      (g)   The Department of Revenue shall by July 1 of each year submit a written report to the Mayor, with a copy to the President and Chief Clerk of Council, summarizing the City's experience during the prior year with the tax credit provided under this Section. 511

   (8)   "Green Roofs" Tax Credit. 512

      (a)   Definitions. 513 For purposes of this subsection, the following definitions shall apply:

         (.1)   Green roof. A treatment to a roof that supports living vegetation and includes a synthetic, high quality waterproof membrane, drainage layer, root barrier, soil layer, and vegetation layer.

      (b)   Application. A business seeking a Green Roof Tax Credit must file a Green Roof Tax Credit Application, in the form and manner prescribed by the Revenue Department, that includes the following:

         (.1)   The location of the proposed green roof.

         (.2)   Proof that the applicant has received all required permits and approvals to construct the green roof, after first submitting to the Department of Licenses and Inspections the plans for the green roof and a written analysis conducted by a roof engineer that confirms the following:

            (.a)   The condition of the roof is satisfactory for green roof construction;

            (.b)   The structural capacity of the roof would support the proposed green roof;

            (.c)   There is appropriate and safe access to the roof for maintenance purposes;

            (.d)   The weight of the proposed green roof is appropriate for the roof; and

            (.e)   The plans include appropriate irrigation and drainage measures.

      (c)   Commitment Letter. The Revenue Department shall approve the application if it contains all the required information. After approval of the application, the applicant must execute a commitment letter with the Revenue Department setting forth the following:

         (.1)   The plans for the green roof, as approved by the Department of Licenses and Inspections, which plans must provide for a green roof covering at least sixty percent (60%) of the rooftop. 514

         (.2)   The maximum green roof tax credit amount the applicant may claim, as calculated under subsection (8)(d).

         (.3)   The applicant's commitment to maintain the green roof for a period of five (5) years after completion, and the applicant's acknowledgement that it is bound by the provisions of subsection (8)(e) requiring repayment of any tax credits it has received if it fails to so maintain the green roof.

         (.4)   Such other provisions as the Revenue Department deems appropriate. 515

      (d)   Granting of Credits. 516

         (.1)   After the applicant and the Revenue Department have executed the commitment letter, the applicant, after certifying to the Revenue Department that it has completed the green roof in accordance with the plans set forth in the commitment letter, may claim a tax credit of fifty percent (50%) of all costs actually incurred to construct the green roof, provided that total tax credits for a green roof may not exceed one hundred thousand dollars ($100,000). Such tax credit shall be applied against the applicant's total business income and receipts tax liability for the Tax Year during which the applicant certifies completion of the green roof, provided that any unused credits may be carried forward until fully used.

         (.2)   A business may receive only one set of green roof tax credit per building, but may receive green roof tax credits for each building it owns.

         (.3)   In the event that the aggregate amount of tax credits under this subsection (8) to which all businesses are entitled in any tax year under subsection (8)(d)(.1) would exceed one million dollars ($1,000,000), the amount of tax credit awarded to any business under subsection (8)(d)(.1) shall instead be computed as follows: (i) obtaining a reduction factor by dividing one million dollars ($1,000,000) by the aggregate amount of all tax credits sought in that year under subsection (8)(d)(.1); and (ii) multiplying the amount of the tax credit to which a business would be entitled under subsection (8)(d)(.1) by the reduction factor. 517

      (e)   Repayment of Tax Credits. A business that has received green roof tax credits must repay those tax credits to the City if it fails to maintain the green roof in accordance with the provisions of the commitment letter. The Revenue Department may waive such repayment if it determines the failure to maintain the green roof was because of a natural disaster or other act of God, an act of terrorism, or similar circumstances beyond the control of the business.

      (f)   The Revenue Department shall by December 31 of each year submit a written report to the Mayor, with a copy to the President and Chief Clerk of Council, summarizing the City's experience during the prior year with the tax credit provided under this subsection.

   (9)   Philadelphia Re-Entry Employment Program for Returning Citizens ("PREP") Tax Credit. 518

      (a)   Definitions. 519

         (.1)   Returning Citizen. A person previously convicted of a felony, or who was incarcerated for any conviction, or who is currently on probation or parole for any conviction.

         (.2)   Qualifying Employee. For any given tax year, a Returning Citizen is a "Qualifying Employee" of a business if he or she is either a Part-time or a Full-time Qualifying Employee, and meets all of the following criteria:

            (.a)   Is employed by the business during the tax year in a position where either (i) compensation is equivalent to those wages and benefits, including sick leave, holiday and vacation absences, and tuition benefits, afforded regular employees in comparable positions as part of the Employer's regular payroll process; or, if a comparable position does not exist, (ii) the average hourly rate, excluding benefits, is at least one hundred fifty percent (150%) of the federal minimum wage, and the employment package includes the same benefits as are provided to other full-time employees and tuition support for GED, Community College or other post-secondary education, or vocational/technical education or training, of at least two thousand dollars ($2,000) during each of the first two years of employment and one thousand dollars ($1,000) during the third year of employment.

            (.b)   Earns wages that are subject to the tax on wages imposed by Chapter 19-1500;

            (.c)   Was first hired by the business after it entered into a PREP Tax Credit Agreement as required by subsection (9)(c);

            (.d)   Was released from incarceration in the City no more than seven years before being hired by the business; or from incarceration elsewhere in the Commonwealth no more than three years before being hired by the business;

            (.e)   Was a Philadelphia resident for at least one year before being incarcerated, and has been a Philadelphia resident either continuously since being released from incarceration or for at least three years before being hired;

            (.f)   Before being hired by the business, executed a PREP Employee's Agreement as required by subsection (9)(e); and

            (.g)   Has been certified by R.I.S.E. as a Qualifying Employee in accordance with subsection (9)(d).

         (.3)   Qualifying Full-Time Employee. For any given tax year, a Returning Citizen is a "Qualifying Full-Time Employee" of a business if he or she is employed by the business during the tax year for at least thirty- seven and one-half hours per week.

         (.4)   Qualifying Part-Time Employee. For any given tax year, a Returning Citizen is a "Qualifying Part-time Employee" of a business if he or she is employed by the business during the tax year for at least twenty hours per week, but fewer than thirty-seven and one-half hours per week.

         (.5)   Qualifying Exempt Organization. For any given tax year, a "Qualifying Exempt Organization" is an Organization that:

            (.a)   Has been certified as an organization exempt from taxation under the Internal Revenue Code of 1986, as amended, and is exempt from taxation under this Chapter 19-2600 (Business Income and Receipts Taxes); 520

            (.b)   Employs a Qualifying Employee; and

            (.c)   Has been certified by R.I.S.E. as a Qualifying Exempt Organization in accordance with subsection (9)(f).

         (.6)   R.I.S.E. The Mayor's Office of Re-Integration Services ("R.I.S.E."), or such other agency or office as the Mayor shall designate to perform the functions assigned to R.I.S.E. by this Section.

      (b)   Calculation of Tax Credits.

         (.1)   (.a)   Beginning in tax year 2008 and for all tax years thereafter, a business shall receive a tax credit for each certified Qualifying Employee who has been employed by the business for more than six months.

            (.b)   Beginning in tax year 2010 and for all tax years thereafter, a business shall receive a tax credit for a contribution of at least ten thousand dollars ($10,000) made in a given tax year to a Qualifying Exempt Organization for each Qualifying Full-time Employee employed by the Qualifying Exempt Organization for at least six (6) months, or for a contribution of at least five thousand dollars ($5,000) made in a given tax year to a Qualifying Exempt Organization for each Qualifying Part-time Employee employed by the Qualifying Exempt Organization for at least six (6) months. A Qualifying Exempt Organization cannot receive a contribution from more than one business for each qualifying employee employed by the organization.

         (.2)   The tax credit provided for in subsection (9)(b)(.1)(.a) shall be in the amount of ten thousand dollars ($10,000) multiplied by the percentage of the tax year that the Qualifying Full-time Employee was employed by the business or shall be in the amount of five thousand dollars ($5,000) multiplied by the percentage of the tax year that the Qualifying Part-time Employee was employed by the business, subject to the limits in subsection (9)(b)(.3). The tax credit provided for in subsection (9)(b)(.1)(.b) shall be in the amount of seven thousand dollars ($7,000) multiplied by the percentage of the tax year that the Qualifying Full-time Employee was employed by the Qualifying Exempt Organization, or shall be in the amount of three thousand five hundred dollars ($3,500) multiplied by the percentage of the tax year that the Qualifying Part-time Employee was employed by the Qualifying Exempt Organization, subject to the limits in subsection (9)(b)(.3). The percentage of a tax year shall be calculated by dividing the total number of full calendar weeks during the tax year that the Qualifying Employee was employed by the business or Qualifying Exempt Organization by fifty-two (52).

         (.3)   (.a)   The tax credit provided for in subsections (9)(b)(.1)(.a) and (9)(b)(.1)(.b) is available for a total of thirty-six months of employment of a Qualifying Full-time Employee or Qualifying Part-time Employee.

            (.b)   The maximum amount of tax credits a business may receive for any one Qualifying Full- time Employee under subsection (9)(b)(.1)(.a) over all tax years is thirty thousand dollars ($30,000). The maximum amount of tax credits a business may receive for any one Qualifying Part-time Employee under subsection (9)(b)(.1)(.a) over all tax years is fifteen thousand dollars ($15,000).

            (.c)   The maximum amount of tax credits any business may receive for making a contribution to a Qualified Exempt Organization under subsection (9)(b)(.1)(.b) shall not exceed twenty-one thousand dollars ($21,000) for any one Qualifying Full-time Employee. The maximum amount of tax credits any business may receive for making a contribution to a Qualified Exempt Organization under subsection (9)(b)(.1)(.b) shall not exceed ten thousand five hundred dollars ($10,500) for any one Qualifying Part-time Employee.

         (.4)   Tax credits shall be taken against total business income and receipts tax liability, and a business may claim the PREP Credit for each Qualifying Full-time or Part-time Employee or contribution to a Qualifying Exempt Organization, as approved by the City of Philadelphia, for a period not to exceed five (5) years from the date the business executes a PREP Tax Credit Agreement. Any unused credit may be carried forward for three years from the date of hire of the qualifying employee, or the date of the contribution to the exempt organization. 521

         (.5)   A business receiving tax credits under subsection 19-2604(7) for a given tax year shall not be eligible to receive tax credits under this subsection (9) for that same tax year for the same employee.

      (c)   Eligibility; PREP Tax Credit Agreement.

         (.1)   To be eligible to receive tax credits, a business must first execute a PREP Tax Credit Agreement with the Revenue Department that:

            (.a)   Details all the terms and conditions of the PREP Tax Credit as set forth in this subsection;

            (.b)   Sets forth the business' agreement to notify the Revenue Department within one week after any Qualifying Employee is no longer employed by the business or by the Qualifying Exempt Organization, which notification shall include an explanation as to why the Qualifying Employee's employment terminated;

            (.c)   Sets forth the business' commitment, as required under subsection (9)(g), (i) to maintain its operations in the City of Philadelphia for five (5) years from the date of the agreement, and the business' agreement to repay any tax credits it receives if it violates such commitment, and (ii) to repay those tax credits earned for a contribution to a Qualifying Exempt Organization if that Qualifying Exempt Organization fails to maintain its operations in the City of Philadelphia for five (5) years from the date of the agreement.

      (d)   Certification of Qualifying Employees; Maximum Number Permitted.

         (.1)   After a business has executed a PREP Tax Credit Agreement, it shall make application to R.I.S.E. on a form required by R.I.S.E. for each employee it wishes to have certified as a Qualifying Employee.

         (.2)   R.I.S.E. shall certify all persons who meet the definition of Qualifying Employee, except: 522

            (.a)   The number of certified Qualifying Employees at any one time shall not exceed 1,000, provided that if the City administers a program that provides employers based upon their employment of Returning Citizens under terms and conditions which the Revenue Commissioner finds are substantially equivalent to the terms and conditions of the PREP Tax Credit provided under this Section, then the total number of certified Qualifying Employees plus the total number of employees under such grant program shall not exceed 1,000 at any one time; and

            (.b)   R.I.S.E. shall not certify a Returning Citizen as a Qualifying Employee if it finds any of the following:

               (i)   the hiring of the Returning Citizen is displacing another employee of the business, and that the primary reason for such displacement is to obtain PREP tax credits;

               (ii)   the Qualified Exempt Organization to which a contribution has been made under subsection 19-2604(9)(b)(.1)(.b) would hire the Returning Citizen notwithstanding receipt of the contribution.

            (.c)   The Revenue Department shall by regulation develop standards to insure that other employees are not unfairly displaced or impacted by the tax credits provided by this subsection, and shall develop standards for the enforcement of subsections 19-2604(9)(d)(.2)(.b)(i) and (ii).

         (.3)   The certification of a Qualifying Employee shall expire after such employee has been employed as a Qualifying Employee by any employer for a total of thirty-six months, or when the Qualifying Employee is no longer employed by the business, and a Qualifying Employee whose certification has expired shall no longer count against the maximum number of certified Qualifying Employees.

      (e)   PREP Employee's Agreement. 523 To be a Qualifying Employee, a Returning Citizen must have executed an agreement with the City that sets forth:

         (.1)   A package of basic education and job training and retention and support services that the City has designed for the Returning Citizen;

         (.2)   The Returning Citizen's agreement to participate in life skills and basic financial management training, as well as meet all of his or her outstanding child support and other legal obligations;

      (f)   Certification of Qualifying Exempt Organization.

         (.1)   An organization shall make an application to R.I.S.E. on a form required by R.I.S.E., stating that it wishes to be certified as a Qualifying Exempt Organization.

         (.2)   An organization shall commit to notifying the Department of Revenue and the business within one week after any Qualifying Employee is no longer employed by the Qualifying Exempt Organization, which notification shall include an explanation as to why the Qualifying Employee's employment terminated.

      (g)   Penalties.

         (.1)   Business failure to maintain operations. A business which receives tax credits and fails to substantially maintain existing operations and the operations related to the tax credits in the City of Philadelphia for a period of five (5) years from the date the business executes a PREP Tax Credit Agreement shall be required to refund to the City of Philadelphia the total amount of tax credits granted, unless the Department of Revenue determines that a business' operations were not substantially maintained because of circumstances beyond the business' control, including natural disasters, acts of terrorism, unforeseen industry trends or a loss of a major supplier or market.

         (.2)   Qualifying Exempt Organization failure to maintain operations. A business which receives tax credits for a contribution to a Qualifying Exempt Organization under subsection (9)(b)(.1)(.b) shall be required to refund to the City of Philadelphia the total amount of tax credits granted based on that contribution if the Qualifying Exempt Organization fails to substantially maintain existing operations and the operations related to the tax credits in the City of Philadelphia for a period of five (5) years from the date the business executes a PREP Tax Credit Agreement, unless the Department of Revenue determines that the Qualifying Exempt Organization's operations were not substantially maintained because of circumstances beyond the Qualifying Exempt Organization's control, including natural disasters, acts of terrorism, or unforeseen social or economic trends.

   (10)   Sustainable Business Tax Credit. 524

      (a)   Definitions.

         (.1)   B Lab. B Lab Company, a Pennsylvania non-profit corporation.

         (.2)   Sustainable Business. A business that meets the standards of a B Lab certified "B corporation" as are in effect on November 15, 2009, or as may be in effect on a later date if the Office of Sustainability determines, by regulation, that such later effective standards appropriately provide for a determination that a business is sustainable and a responsible member of the community.

         (.3)   Office of Sustainability. The Mayor's Office of Sustainability, or such other Office as the Mayor may designate to perform the functions assigned by this Section.

      (b)   Eligibility. 525

         (.1)   To be eligible to receive Sustainable Business Tax Credits, a business must be certified as a Sustainable Business by the Office of Sustainability. The Office of Sustainability shall by regulation detail how a business must demonstrate the fact that it is a Sustainable Business. Such regulations shall provide that certification as a "B corporation" shall be prima facie evidence that the business is a Sustainable Business, and may include a list of certifications provided by other rating organizations that will be accepted in lieu of a "B corporation" certification as prima facie evidence that a business is a Sustainable Business.

         (.2)   Up to the following number of businesses shall be certified as Sustainable Businesses with respect to any one tax year:

            (.a)   Tax Years 2017 and 2018: 50 businesses.

            (.b)   Tax Years 2019 through 2022: 75 businesses.

         (.3)   The Office of Sustainability shall provide application forms for businesses seeking certification, and it shall certify eligible applicants as Sustainable Businesses on a "first come - first served" basis, randomly choosing, when necessary, among applicants that apply on the same date.

         (.4)   Once certified, a business shall remain eligible to receive Sustainable Business Tax Credits each year that such tax credits are available, provided that the Office of Sustainability may by regulation require an eligible business to submit documentation each year that it continues to be a Sustainable Business.

      (c)   Tax Credits.

         (.1)   For tax years 2012 through 2022, an eligible business shall receive a tax credit of four thousand dollars ($4,000) which shall be used against the applicant's total business income and receipts tax liability. Any unused tax credits may not be carried forward. 526

         (.2)   The Department of Revenue may by regulation detail the documentation that a business must submit with its tax return to support the tax credits provided by this subsection.

      (d)   Reporting.

         (.1)   The Office of Sustainability shall by December 31 of each year submit a written report to the Mayor, with a copy to the President and Chief Clerk of Council, summarizing the City's experience during the prior tax year with the Sustainable Business Tax Credit. The first such report shall be submitted by December 31, 2013. 527

   (11)   Philadelphia Internship Tax Credit. 528

      (a)   Definitions. For purposes of this Section, the following definitions shall apply:

         (.1)   Department. The Department of Revenue.

         (.2)   Educational institution. A secondary school or a post-secondary school.

         (.3)   Intern. A person who is provided an internship.

         (.4)   Internship. A supervised work experience provided to a student enrolled in an educational institution.

         (.5)   Post-secondary school. A vocational or technical institution, or an institution of higher learning (including community college).

      (b)   Philadelphia Internship Tax Credit. For tax years 2012 and 2013, a business may claim a credit against business income and receipts tax liability in an amount equal to the lesser of six hundred dollars ($600) or forty percent (40%) of the compensation paid to an intern employed by the business, as follows: 529

         (.1)   No more than 750 internships and 100 businesses per calendar year shall be eligible for the tax credit, to be determined on a "first come - first served" basis;

         (.2)   The intern must be paid a minimum of eight dollars ($8.00) per hour.

      (c)   Limitation on availability of the tax credit. To ensure that regular employees are not displaced by interns:

         (.1)   A business shall not be entitled to the tax credit if, at the end of the tax year with respect to which the business claims this tax credit, the business has fewer paid employees (other than interns) in the office or plant where the intern worked than it had three months prior to the start of that tax year;

         (.2)   With respect to any particular intern, a business may claim the tax credit for no more than two internships in any year;

         (.3)   The intern shall not have been employed by the business, either directly or through an intermediary organization, immediately prior to the beginning of his or her first internship with that business for which the business intends to claim the tax credit authorized herein; and

         (.4)   The business must submit to the Department, along with the application pursuant to subsection (f), a certification, in form prescribed by the Department, that (i) the decision to employ the intern(s) was due in large part to the availability of the tax credit provided by this Section; and (ii) the business expects a net increase in intern employment hours in the Tax Year for which the credit is applicable relative to the Tax Year immediately preceding the receipt of any credits under this Section.

      (d)   Incentive to provide multiple internships. In addition to the credit authorized in subsection (b), a business that provides three or more internships in a calendar year, as determined by the date on which each internship ends, shall be entitled to an additional credit of seventy-five dollars ($75) per internship, up to a maximum of three hundred seventy-five dollars ($375). For the purposes of this subsection, two internships completed by the same person in a calendar year shall be counted as a single internship.

      (e)   The Department shall develop the methodology for implementing the "first come - first served" process authorized in subsection (b)(.1).

      (f)   To be eligible for the tax credit, a business must submit an application to the Department, which the Department shall design.

      (g)   Upon receipt of an application, the Department shall promptly advise the business in writing whether the application is approved. The internship may begin before the Department issues its decision, so long as it begins on or after the date of the application.

      (h)   The tax credit shall apply to taxes paid with respect to the year in which an internship concludes, regardless of when an internship begins. To receive the tax credit, the business must include with its tax return the following:

         (.1)   Certification by the business that the intern received at least the minimum compensation specified in subsection (b)(.2);

         (.2)   The hours that the intern actually worked and the total compensation paid; and

         (.3)   The number of non-intern employees in the office or plant where the intern worked at the end of the year with respect to which the business claims the tax credit, and the number of non-intern employees in the same office or plant three months prior to the start of the year.

      (i)   Payments made to an intern on behalf of a business by a non-profit intermediary organization such as the Philadelphia Youth Network shall entitle the business to the tax credit authorized herein to the extent the business would be entitled to such credit if it paid the intern directly.

      (j)   The Department is hereby authorized to promulgate regulations implementing the provisions of this Section.

      (k)   Upon the request of the President of City Council, the Department shall submit a written report to the Mayor, with a copy to the Council President and Chief Clerk of Council, summarizing its experience during the prior year with the tax credit provided under this Section, and containing any recommendations as to continuation or modification of the program established by this Section.

   (12)   Single Sales Factor Apportionment Tax Credit. 530

      (a)   Definitions. 531

         (.1)   Single Sales Factor Apportionment Liability. A business' liability for the net income portion of the business income and receipts tax if the business' taxable income was apportioned based solely on the ratio of taxable receipts of the business from within the City of Philadelphia to the total receipts of the business. For purposes of determining the taxable receipts of the business from within the City of Philadelphia for purposes of this subsection (.1), the source of receipts from the sale by a software company of products or services shall be deemed to be the location where the recipient receives the benefit of the products and services, also known as market based sourcing. The Department may promulgate regulations to implement this definition.

         (.2)   Current Business Income and Receipts Tax Liability. A business' liability for the net income portion of the business income and receipts tax if, pursuant to Revenue Department regulations, taxable income is apportioned, in whole or in part, based on factors other than the ratio of taxable receipts of the business from within the City of Philadelphia to the total receipts of the business, and furthermore, for software companies, if market based sourcing is not used for determining the taxable receipts from within the City.

      (b)   Tax Credit. 532

         (.1)   Starting in tax year 2013, businesses shall be eligible to receive a non-refundable single sales factor apportionment tax credit against their business income and receipts tax liability as set forth below. Any unused tax credits may not be carried forward.

         (.2)   The single sales factor apportionment tax credit shall be calculated as follows: For the given tax year, the applicant business shall determine its current business income and receipts tax liability minus its single sales factor apportionment liability, which resulting number shall be the "single sales factor apportionment tax credit base". The amount of the single sales factor apportionment tax credit shall be as follows: for tax years 2013 and 2014, the single sales factor apportionment tax credit amount shall be whatever percentage of the single sales factor apportionment tax credit base as is determined by the Revenue Department by regulation to be fiscally prudent in light of the City's budget needs; and for tax year 2015 and thereafter, the single sales factor apportionment tax credit amount shall be one hundred percent (100%) of the single sales factor apportionment tax credit base; provided that there shall be no credit in any year in which, pursuant to Revenue Department regulations, taxable income is apportioned exclusively based on the formula set forth in the definition of Single Sales Factor Apportionment Liability.

         (.3)   The Department of Revenue may, by regulation, detail the documentation that a business must submit with its tax return to support the tax credits provided by this subsection.

      (c)   Reporting.

         (.1)   The Department of Revenue shall by December 31 of each year submit a written report to the Mayor, with a copy to the President and Chief Clerk of Council, summarizing the City's experience during the prior tax year with the single sales factor apportionment tax credit. The first such report shall be submitted by December 31, 2015.

   (13)   Credit for Employment of Returning Veterans of the Armed Forces. 533

      (a)   Definitions. In this subsection, the following definitions shall apply:

         (.1)   Qualifying Employee. A Veteran who:

            (.a)   Is employed by a business in a position where he or she earns wages that are subject to the tax on wages imposed by Chapter 19-1500;

            (.b)   Receives compensation that is either (i) equivalent to those wages and benefits, including sick leave, holiday and vacation absences, and tuition benefits, afforded regular employees in comparable positions as part of the Employer's regular payroll process; or, if a comparable position does not exist, (ii) at an average hourly rate, excluding benefits, of at least one hundred fifty percent (150%) of the federal minimum wage, and the employment package includes the same benefits as are provided to other full-time employees; and

            (.c)   Is hired between July 1, 2012, and June 30, 2020, inclusive. 534

         (.2)   Qualifying Full-Time Employee. A Qualifying Employee who is employed by a business for at least thirty-seven and one-half hours per week.

         (.3)   Qualifying Part-Time Employee. A Qualifying Employee who is employed by a business for at least twenty hours per week, but fewer than thirty-seven and one-half hours per week.

         (.4)   Veteran. A person who has received an honorable discharge from any branch of the United States Armed Forces or the United States Army National Guard, United States Army Reserve, United States Marine Corps Forces Reserve, United States Navy Reserve, United States Air National Guard, United States Air Force Reserve, or United States Coast Guard Reserve; who has served a minimum of six months in active full-time duty within ten years prior to their hiring; and who has met the qualifications under the Vow to Hire Heroes Act of 2011 as part of the federal Work Opportunity Tax Credit (WOTC). 535

      (b)   Application. In order to receive a credit under this subsection (13), a business must file an application in the form and manner prescribed by the Department that includes the location of employment and proof that the individual to be hired is a Veteran as defined under this Section.

      (c)   Calculation of Tax Credits.

         (.1)   A business shall receive a tax credit for each Qualifying Employee who has been employed by the business for more than six months.

         (.2)   The tax credit provided for in subsection (.1), above, shall be in the amount of five thousand dollars ($5,000) multiplied by the percentage of the tax year that the Qualifying Full-time Employee was employed by the business; or two thousand five hundred dollars ($2,500) multiplied by the percentage of the tax year that the Qualifying Part-time Employee was employed by the business; subject to the limits in subsection (.3), below. 536

         (.3)   Conditions.

            (.a)   The tax credit provided for in subsection (.1), above, is available for a total of thirty-six months of employment of a Qualifying Full-time Employee or Qualifying Part-time Employee. 537

            (.b)   The maximum amount of tax credits a business may receive for any one Qualifying Full- time Employee under subsection (.1) over all tax years is fifteen thousand dollars ($15,000). The maximum amount of tax credits a business may receive for any one Qualifying Part-time Employee under subsection (.1) over all tax years is seven thousand five hundred dollars ($7,500). 538

         (.4)   Tax credits shall be taken against total business income and receipts tax liability. Any unused credit may be carried forward for three years from the date of hire of the qualifying employee.

         (.5)   A business receiving tax credits under subsection 19-2604(7) (Credit for New Job Creation) or (9) (Philadelphia Re-Entry Employment Program for Ex-offenders ("PREP") Tax Credit) for a given tax year shall not be eligible to receive tax credits under this subsection (13) for that same tax year for the same employee.

      (d)   Certification of Qualifying Employees; Maximum Number Permitted.

         (.1)   The number of certified Qualifying Employees at any one time shall not exceed 500.

         (.2)   The certification of a Qualifying Employee shall expire after such employee has been employed as a Qualifying Employee by any employer for a total of thirty-six months, or when the Qualifying Employee is no longer employed by the business, and a Qualifying Employee whose certification has expired shall no longer count against the maximum number of certified Qualifying Employees. 539

         (.3)   A business shall notify the Department within one week after any Qualifying Employee is no longer employed, which notification shall include an explanation as to why the Qualifying Employee's employment terminated.

         (.4)   The Department may promulgate regulations to implement this subsection, including certification requirements for Qualifying Full-Time and Part-Time Employees, and allocation methods in the event that applications are filed for credits for more than 500 Qualifying Employees.

   (14)   Life Partner and Transgender Care Health Benefits Tax Credits. 540

      (a)   This subsection (14) authorizes two tax credits. A business may apply for either credit or for both credits. Eligibility for each credit shall be determined independently.

      (b)   Eligibility for Life Partner Health Benefits Tax Credit. The Life Partner Health Benefits Tax Credit provided by this subsection (14) shall only be awarded to businesses that meet all of the following criteria:

         (.1)   The business makes health insurance coverage available for the Life Partners of its employees, and children of such Life Partners, on the same basis and to the same extent as such business makes health insurance coverage available for spouses of employees, and children of such spouses.

         (.2)   During the three tax years immediately prior to the tax year for which the business first claims a credit pursuant to this subsection (14), the business did not make health insurance coverage available for the Life Partners of its employees, and children of such Life Partners, on the same basis and to the same extent as such business made health insurance coverage available for spouses of employees, and children of such spouses.

      (c)   Eligibility for Transgender Care Health Benefits Tax Credit. The Transgender Care Health Benefits Tax Credit provided by this subsection (14) shall only be awarded to businesses that meet all of the following criteria:

         (.1)   The business makes health insurance coverage available for transgender care on the same basis and to the same extent as the business makes health insurance coverage available for other medically-necessary treatment. For purposes of this Section, the term "transgender care" means medically necessary treatment for gender dysphoria and gender identity disorder, including office visits, laboratory tests, prescription drugs, hormone treatments, counseling, and transitional surgeries necessary for the treatment of either.

         (.2)   During the three tax years immediately prior to the tax year for which the business first claims a credit pursuant to this subsection (14), the business did not make health insurance coverage available for transgender care on the same basis and to the same extent as such business made health insurance coverage available for other medically necessary treatments.

      (d)   Application. Application for the Life Partner or Transgender Care Health Benefits Tax Credit shall be on such form or forms as the Department specifies, and shall include documentation that the business meets the eligibility criteria under subsections (14)(b) or (14)(c). Such documentation shall include such evidence of eligibility as the Department may require.

      (e)   Tax Credit.

         (.1)   For any full tax year in which a business continuously meets the eligibility criteria set forth in subsection (14)(b) or subsection (14)(c), the business shall be eligible to claim a non-refundable tax credit against its business income and receipts tax liability for such tax year as follows:

            (.a)   Life Partner Health Benefits Tax Credit. The lesser of four thousand dollars ($4,000) or twenty-five percent (25%) of the amount expended by the business during the tax year to purchase health benefits for the Life Partners of its employees and the children of such Life Partners.

            (.b)   Transgender Care Health Benefits Tax Credit. The lesser of four thousand dollars ($4,000) or twenty-five percent (25%) of the amount expended by the business during the tax year to include transgender care coverage in the health insurance coverage provided to employees.

         (.2)   No business may claim a tax credit under this subsection (14) in any year other than as provided in subsection (14)(e)(.1)(.a) with respect to the Life Partner Health Benefits Tax Credit, or subsection (14)(e)(.1)(.b) with respect to the Transgender Care Health Benefits Tax Credit. No business may claim either of the tax credits under this subsection (14) in more than two years, and, with respect to each credit, such years shall be consecutive.

         (.3)   In the event that the aggregate amount of tax credits under this subsection (14) to which all businesses are entitled in any tax year under subsection (14)(e)(.1) would exceed two million dollars ($2,000,000), the amount of tax credit awarded to any business under subsection (14)(e)(.1) shall instead be computed as follows: (i) obtaining a reduction factor by dividing two million dollars ($2,000,000) by the aggregate amount of all tax credits sought in that year under subsection (14)(e)(.1); and (ii) multiplying the amount of the tax credit to which a business would be entitled under subsection (14)(e)(.1) by the reduction factor.

         (.4)   Unused tax credits provided under this subsection (14) may not be carried forward.

      (f)   Repayment of Credits. A business shall repay any Life Partner Health Benefits tax credits claimed for a tax year pursuant to this subsection (14) if, at any time within three years from the end of such tax year, the business ceases to make health benefits available for the Life Partners of its employees, and children of such Life Partners, on the same basis and to the same extent as the business makes such benefits available for spouses of employees, and children of such spouses. A business shall repay any Transgender Care Health Benefits tax credits claimed for a tax year pursuant to this subsection (14) if, at any time within three years from the end of such tax year, the business ceases to make transgender care benefits available on the same basis and to the same extent as the business makes health insurance coverage available for other medical needs.

      (g)   Regulations. The Department may issue regulations governing the implementation of this subsection (14), including, but not limited to, the manner in which eligibility under subsections (14)(b) and (14)(c) is determined, and the manner in which subsection (14)(f) is enforced.

      (h)   Reporting. The Revenue Department shall, by December 31 of each year, submit a written report to the Mayor, the Council President, and the Chief Clerk of Council, summarizing the City's experience during the prior year with the tax credits provided under this subsection (14).

   (15)   Distressed Business Tax Credit. 541

      (a)   Definitions.

         (.1)   Distressed Business. A business that meets the eligibility criteria set forth under subsection (15)(b).

         (.2)   Lost Net Income and Sales/ Receipts. The reduction between the net income and sales/receipts of a distressed business at the location where and in the tax year in which the business obstruction occurred, and the average net income and sales/receipts of the distressed business in the two preceding tax years.

         (.3)   Public Works Project. A publicly-funded construction project undertaken by the United States, the Commonwealth of Pennsylvania, the City, or other governmental or quasi-governmental agency, for the benefit or use of the general public. For purposes of this definition, "other governmental or quasi-governmental agency" shall include the Delaware River Port Authority and the Southeastern Pennsylvania Transportation Authority.

      (b)   Eligibility. This subsection (15) shall only apply to businesses that meet all of the following criteria:

         (.1)   Proximity. The business must be within 100 feet of the site of a public works project.

         (.2)   Business obstruction. For at least thirty (30) days, the public works project must substantially obstruct customer access to the place of business, or substantially obscure the place of business such that the existence of the place of business or the fact that the business is open may not be ascertained from the street.

         (.3)   Lost net income and sales/receipts. A business must suffer loss of net income in an amount that is at least ten percent (10%) of the business's total net income and loss of sales/receipts in the amount that is at least ten percent (10%) of the business's total sales/receipts in the tax year in which the business obstruction occurred.

      (c)   Application. Application for the distressed business tax credit shall be on such form as the Department of Revenue specifies, and shall include documentation that the business meets all of the eligibility criteria under subsection (b). Such documentation shall include photographs clearly depicting the business obstruction under subsection (b)(.2); evidence documenting the proximity of the business to a public works project under subsection (b)(.1); lost income pursuant to subsection (b)(.3); the duration of the public works project; and such other proof as the Department may require.

      (d)   Tax Credit.

         (.1)   Starting in tax year 2015, for any tax year in which a distressed business experiences a business obstruction caused by a public works project, such business shall be eligible for a credit against its business income and receipts tax liability, in the amount of twenty percent (20%) of the business's lost sales/receipts amount, up to twenty thousand dollars ($20,000) but no more than the after tax loss in net income.

         (.2)   In the event that the aggregate amount of distressed business tax credits to which distressed businesses are entitled in any tax year under subsection (d)(.1) would exceed one million dollars ($1,000,000), the amount of tax credit awarded to any single distressed business under subsection (d)(.1) shall instead be computed as follows: (i) obtaining a reduction factor by dividing one million dollars ($1,000,000) by the aggregate amount of all distressed business tax credits provisionally approved in that year under subsection (d)(.1); and (ii) multiplying the amount of the tax credit to which a distressed business would be entitled under subsection (d)(.1) by the reduction factor.

         (.3)   Unused distressed business tax credits may not be carried forward.

      (e)   Regulations. The Department may issue regulations governing the implementation of this subsection (15), including the manner in which eligibility under subsection (15)(b) is determined.

   (16)   Healthy Beverages Tax Credit. 542

      (a)   Definitions.

         (.1)   Qualifying Merchant. A Qualifying Merchant shall meet the following requirements for classification under the North American Industry Classification System ("NAICS") Codes Sections: Convenience Food Stores (NAICS 44512); Other Specialty Food Stores (NAICS 44529); Miscellaneous Food Retailers (NAICS 44599); Gasoline Stations with Convenience Stores (NAICS 44711); and Limited-Service Restaurants (NAICS 722513).

         (.2)   Healthy Beverage. A non-alcoholic beverage that does not list as an ingredient the following:

            (.a)   any form of caloric sugar-based sweetener, including, but not limited to, sucrose, glucose or high fructose corn syrup; or

            (.b)   any form of artificial sugar substitute, including stevia, aspartame, sucralose, neotame, acesulfame potassium (Ace-K), saccharin, and advantame.

         (.3)   Merchant Cost. The amount paid by the Qualifying Merchant to purchase Healthy Beverages for sale in the merchant's store.

      (b)   Application. Application for the Healthy Beverage tax credit shall be on such form as the Department of Revenue specifies, and shall include documentation that the business meets the eligibility criteria under subsection (a).

      (c)   Tax Credit.

         (.1)   Starting in tax year 2017, for any tax year in which a Qualifying Merchant provides Healthy Beverages for sale in its store, the Qualifying Merchant shall be eligible for a credit against its business income and receipts tax liability, in the amount by which the Merchant Cost for that tax year exceeds the Merchant Cost for the immediately preceding tax year, up to a maximum tax credit of two thousand dollars ($2,000).

         (.2)   The Revenue Department shall provide application forms for businesses that wish to apply for tax credits under this Section, and it shall accept such applications on a "first come - first served" basis until the total amount of credits for a particular year reaches one million dollars ($1,000,000). The Revenue Department shall when necessary randomly choose among applicants that apply on the same date.

         (.3)   Unused Healthy Beverage tax credits may not be carried forward.

      (d)   Regulations. The Department may issue regulations governing the implementation of this subsection (16), including the manner in which eligibility for this tax credit is determined.

      (e)   The Revenue Department shall by July 1 of each year submit a written report to the Mayor, with a copy to the President and Chief Clerk of Council, summarizing the City's experience during the prior year with the tax credit provided under this Section along with the feasibility of converting this tax credit into a grant program in future fiscal years.

 

Notes

485	Former Section 19-2604 repealed and this Section added, Bill No. 020030 (approved April 23, 2002). Section 2 of the Ordinance provides: "The repeal and reenactment of Section 19-2604 of The Philadelphia Code effected by this Ordinance is not intended to change any rates of taxation or any other matter with respect to any tax year prior to tax year 2003, but is intended only to restate those rates and other matters in a more easily readable form."
486	Amended, Bill No. 030008 (approved June 5, 2003); amended, Bill No. 060006 (approved June 8, 2006); amended, Bill No. 080022 (approved May 22, 2008); amended, Bill No. 080854 (approved December 8, 2008); amended, Bill No. 110554 (approved November 14, 2011); amended, Bill No. 200290 (approved June 26, 2020); amended, Bill No. 210284 (approved June 27, 2022); amended, Bill No. 220660 (approved November 9, 2022); amended, Bill No. 230149 (approved June 23, 2023).
487	Amended, Bill No. 030008 (approved June 5, 2003); amended, Bill No. 060006 (approved June 8, 2006); amended, Bill No. 080022 (approved May 22, 2008); amended, Bill No. 080854 (approved December 8, 2008); amended, Bill No. 130487 (approved June 25, 2013).
488	Added, Bill No. 041072 (approved March 3, 2005).
489	Added, Bill No. 020648 (approved December 3, 2002); amended, Bill No. 030561 (approved October 30, 2003). Section 2 of the Ordinance provides: "The provisions of Section 1 increasing the number of contribution agreements authorized under Section 19-2604(6) of the Code from fifteen to twenty-five shall take effect beginning with Tax Year 2004." Amended, Bill No. 100547 (approved November 10, 2010). Section 2 of Bill No. 100547 provides: "This Ordinance shall take effect beginning with Tax Year 2011." Amended, Bill No. 110561 (approved October 26, 2011). Section 2 of Bill No. 110561 provides: "Effective Date; Applicability to Existing Agreements. The provisions of this Ordinance shall take effect immediately. The reduction in the amount of the annual tax credit provided by § 19-2604(6) of The Philadelphia Code ("Code") from $100,000 to $85,000 shall not apply to any business that has executed a contribution agreement under § 19-2604(6) of the Code before the date this Ordinance became law, but if any such contribution agreement is terminated before the end of its term and after the date this Ordinance became law, then the reduction in the amount of the tax credit from $100,000 to $85,000 shall apply to any business that executes a new agreement for the number of years remaining in such terminated agreement under the provisions of § 19-2604(6)(e) of the Code." Amended, Bill No. 120796 (approved April 17, 2013). Section 2 of Bill No. 120796 provides: "This Ordinance shall take effect beginning with Tax Year 2013. Nothing in this Ordinance shall affect the amount of estimated business income and receipts tax payments required to be paid in April 2013 for estimated Tax Year 2013 tax liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2013."
490	Amended, Bill No. 090353 (approved June 24, 2009); amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012; amended, Bill No. 140411 (approved August 5, 2014). Section 2 of Bill No. 140411 provides that the Ordinance shall take effect with respect to credits for tax year 2013 and thereafter. Amended, Bill No. 141028 (approved February 18, 2015). Section 2 of Bill No. 141028 provides: "Effective Date. This Ordinance shall take effect beginning with Tax Year 2015. Nothing in this Ordinance shall affect the amount of estimated business income and receipts tax payments required to be paid in April 2015 for estimated Tax Year 2015 tax liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2015." Section 3 of Bill No. 141028 provides: "Applicability to Existing Agreements. The increase in the amount of the annual tax credit provided by § 19-2604(6) of The Philadelphia Code ("Code") from $85,000 to $100,000 shall not apply to any business that has executed a contribution agreement under § 19-2604(6) of the Code before the date this Ordinance takes effect, but if any such contribution agreement is terminated before the end of its term and after the date this Ordinance takes effect, then the increase in the amount of the tax credit from $85,000 to $100,000 shall apply to any business that executes a new agreement for the number of years remaining in such terminated agreement under the provisions of § 19-2604(6)(e) of the Code."
491	Amended, Bill No. 080573 (approved November 19, 2008). Section 2 of Bill No. 080573 provides: "The provisions of Section 1 increasing the number of contribution agreements authorized under Section 19-2604(6) of the Code from twenty-five to thirty shall take effect beginning with Tax Year 2009." Amended, Bill No. 090353 (approved June 24, 2009); amended, Bill No. 130012 (approved March 12, 2013). Section 2 of Bill No. 130012 provides: "This Ordinance shall take effect beginning with Tax Year 2013. Nothing in this Ordinance shall affect the amount of estimated business income and receipts tax payments required to be paid in April 2013 for estimated Tax Year 2013 tax liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2013." Amended, Bill No. 141028 (approved February 18, 2015). See note 490 for effective date and applicability provisions for Bill No. 141028. Amended, Bill No. 180261-A (approved August 22, 2018). Section 2 of Bill No. 180261-A provides: "This Ordinance shall take effect beginning with Tax Year 2019."
492	Amended, Bill No. 130853 (approved February 19, 2014).
493	Amended, Bill No. 080573 (approved November 19, 2008). Section 2 of Bill No. 080573 provides: "The provisions of Section 1 increasing the number of contribution agreements authorized under Section 19-2604(6) of the Code from twenty-five to thirty shall take effect beginning with Tax Year 2009." Amended, Bill No. 130012 (approved March 12, 2013). Section 2 of Bill No. 130012 provides: "This Ordinance shall take effect beginning with Tax Year 2013. Nothing in this Ordinance shall affect the amount of estimated business income and receipts tax payments required to be paid in April 2013 for estimated Tax Year 2013 tax liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2013." Amended, Bill No. 180261-A (approved August 22, 2018). See note 491 for effective date provision.
494	Amended, Bill No. 090353 (approved June 24, 2009); amended, Bill No. 100009 (approved March 17, 2010). Amended, Bill No. 141028 (approved February 18, 2015). See note 490 for effective date and applicability provisions for Bill No. 141028.
495	Added, Bill No. 090353 (approved June 24, 2009). Amended, Bill No. 141028 (approved February 18, 2015). See note 490 for effective date and applicability provisions for Bill No. 141028.
496	Renumbered and amended, Bill No. 090353 (approved June 24, 2009).
497	Added, Bill No. 180261-A (approved August 22, 2018). See note 491 for effective date provision. Amended, Bill No. 210864 (approved January 18, 2022).
498	Added, Bill No. 020116 (approved May 2, 2002); amended, Bill No. 040313 (approved June 10, 2004).
499	Amended, Bill No. 180846 (approved December 20, 2018), effective April 19, 2019.
500	Amended, Bill No. 040313 (approved June 10, 2004); amended, Bill No. 130769 (approved December 4, 2013); amended, Bill No. 140641 (approved October 29, 2014).
501	Added, Bill No. 040313 (approved June 10, 2004); amended, Bill No. 130769 (approved December 4, 2013).
502	Added, Bill No. 160015-A (approved September 27, 2016).
503	Amended, Bill No. 040640-AA (approved November 9, 2004); amended, Bill No. 060630 (approved November 16, 2006); amended, Bill No. 090012 (approved June 24, 2009); amended, Bill No. 130769 (approved December 4, 2013).
504	Added, Bill No. 090012 (approved June 24, 2009).
505	Added, Bill No. 100787 (approved January 5, 2011).
506	Added, Bill No. 120012 (approved March 14, 2012). Section 2 of Bill No. 120012 provides: "Nothing in this Ordinance shall affect the amount of estimated business privilege tax payments required to be paid in April 2012 for estimated Tax Year 2012 tax liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2012." Amended, Bill No. 121039 (approved February 12, 2013).
507	Added, Bill No. 140641 (approved October 29, 2014).
508	Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012.
509	Amended, Bill No. 040313 (approved June 10, 2004); amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012; amended, Bill No. 120855 (approved December 11, 2012). Section 2 of Bill No. 120855 provides: "This Ordinance shall take effect beginning with Tax Year 2013."
510	Amended, Bill No. 040313 (approved June 10, 2004); amended, Bill No. 130769 (approved December 4, 2013).
511	Amended, Bill No. 040313 (approved June 10, 2004); amended, Bill No. 090012 (approved June 24, 2009).
512	Added, Bill No. 070072 (approved April 12, 2007). Section 2 of Bill No. 070072 provides: "This ordinance shall take effect with respect to Tax Year 2007 and thereafter."
513	Amended, Bill No. 160004 (approved March 29, 2016), effective June 27, 2016.
514	Amended, Bill No. 160004 (approved March 29, 2016), effective June 27, 2016.
515	Enrolled Bill No. 070072 numbered this as subsection (5); renumbered by Code editor.
516	Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012; amended, Bill No. 150078 (approved April 7, 2015). Section 2 of Bill No. 150078 provides that the amendments shall take effect for Tax Year 2016.
517	Enrolled bill incorrectly cited subsection (8)(d)(i) throughout this subsection; revised to (8)(d)(.1) by Code editor.
518	Added, Bill No. 070693 (approved November 15, 2007). Enrolled bill numbered this as subsection (8); subsection and internal references renumbered by Code editor. Section 4 of Bill No. 070693 provides: "This Ordinance shall take effect immediately, except that the tax credit provided by [subsection 19-2604(9)] of The Philadelphia Code, as added by Section 3 of this Ordinance, shall be effective beginning with the tax year 2008." Amended, Bill No. 100369 (approved June 30, 2010); amended, Bill No. 130769 (approved December 4, 2013).
519	Amended, Bill No. 130769 (approved December 4, 2013).
520	Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012.
521	Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012.
522	Amended, Bill No. 130769 (approved December 4, 2013).
523	Amended, Bill No. 130769 (approved December 4, 2013).
524	Added, Bill No. 090119-A (approved December 16, 2009). Enrolled bill numbered this as subsection (13); renumbered by Code editor.
525	Amended, Bill No. 160133 (approved June 28, 2016).
526	Amended, Bill No. 160133 (approved June 28, 2016).
527	Amended, Bill No. 110442 (approved November 14, 2011).
528	Added, Bill No. 100223 (approved June 30, 2010). Enrolled bill numbered this as subsection (10); renumbered by Code editor. Section 2 of Bill No. 100223 provides: "This Ordinance shall take effect immediately, except that the tax credit provided by § 19-2604(10)(b) of The Philadelphia Code, as added by Section 1 of this Ordinance, shall be effective beginning with Tax Year 2012, unless the Director of Finance certifies to the Chief Clerk of Council and the Revenue Commissioner, on or before November 15, 2011, that the City has in place a grant or other financial assistance program that will provide incentives of comparable scope and magnitude to encourage growth in the number and availability of internships, as defined in Section 1, in which case the tax credit shall not be effective until the tax year immediately following a subsequent certification by the Director of Finance to the Chief Clerk of Council and the Revenue Commissioner that the grant or financial assistance program is less effective than the tax credit program provided for in Section 1." No such certification was made by the deadline.
529	Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012.
530	Added, Bill No. 110554 (approved November 14, 2011).
531	Amended, Bill No. 121037-A (approved June 17, 2013).
532	Amended, Bill No. 121037-A (approved June 17, 2013).
533	Added, Bill No. 120491 (approved June 27, 2012).
534	Amended, Bill No. 140653 (approved December 3, 2014). Section 2 of Bill No. 140653 provides: "This Ordinance shall take effect beginning with Tax Year 2015. Nothing in this Ordinance shall affect the amount of estimated business income and receipts tax payments required to be paid in April 2015 for estimated Tax Year 2015 liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2015."
535	Amended, Bill No. 140653 (approved December 3, 2014). See note 534 for effective date provisions.
536	Amended, Bill No. 140653 (approved December 3, 2014). See note 534 for effective date provisions.
537	Amended, Bill No. 140653 (approved December 3, 2014). See note 534 for effective date provisions.
538	Amended, Bill No. 140653 (approved December 3, 2014). See note 534 for effective date provisions.
539	Amended, Bill No. 140653 (approved December 3, 2014). See note 534 for effective date provisions.
540	Added, Bill No. 130224 (approved May 8, 2013). Section 15 of Bill No. 130224 provides that the "provisions establishing the Life Partner and Transgender Care Health Benefits Tax Credits (to be incorporated as Section 19-2604(14) of the Code) shall take effect beginning with Tax Year 2013."
541	Added, Bill No. 140209 (approved January 15, 2015). Section 2 of Bill No. 140209 provides: "This Ordinance shall take effect beginning with Tax Year 2015. Nothing in this Ordinance shall affect the amount of estimated business privilege tax payments required to be paid in April 2015 for estimated Tax Year 2015 tax liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2015."
542	Added, Bill No. 160552 (approved June 20, 2016).