Section 1702-A. Definitions.--The following words, terms and phrases when used in this article shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
"Eligible individual" means any of the following:
(1) A person who at any time within the twelve months preceding the date of hire received general assistance.
(2) A person who at any time within the twelve months preceding the date of hire received temporary assistance to needy families.
(3) A person who:
(i) has a physical or mental disability which, for such individual, constitutes or results in a substantial handicap to employment; and
(ii) is referred to the employer upon completion of or while receiving rehabilitative services pursuant to an individualized written rehabilitation plan under a State plan for vocational rehabilitation services approved under the Rehabilitation Act of 1973 (Public Law 93-112, 29 U.S.C. § 701 et seq.), or a program of vocational rehabilitation carried out under Title I of the Veterans' Rehabilitation and Education Amendments of 1980 (Public Law 96-466, 94 Stat. 2171).
"Employment incentive payment" means the employment incentive payment credit provided by this article.
"Pass-through entity" means any of the following:
(1) A partnership, limited partnership, limited liability company, business trust or other unincorporated entity that for Federal income tax purposes is taxable as a partnership.
(2) A Pennsylvania S corporation.
"Qualified first-year wages" means the qualified wages attributable to service rendered by an eligible individual during the one-year period beginning with the day the eligible individual begins work for the employer.
"Qualified second-year wages" means the qualified wages attributable to service rendered by an eligible individual during the one-year period beginning one year after the eligible individual begins work for the employer.
"Qualified tax liability" means the liability for taxes imposed under Article III, IV, VII, VIII, IX or XV of this act. The term includes the liability for taxes imposed under Article III of this act on the owner or owners of a pass-through entity. The term does not include amounts withheld or required to be withheld from employees under Article III of this act.
"Qualified third-year wages" means the qualified wages attributable to service rendered by an eligible individual during the one-year period beginning two years after the eligible individual begins work for the employer.
"Qualified wages" means wages as that term is defined in section 51A(b)(5) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 51A(b)(5)).
"Taxpayer" means a person or entity subject to tax under Article III, IV, VII, VIII, IX or XV of this act. This term includes a pass-through entity.
(1702-A added Dec. 15, 1999, P.L.926, No.63)
Compiler's Note: The short title of the act of June 13, 1967 (P.L.31, No.21), known as the Public Welfare Code, referred to in this section, was amended by the act of December 28, 2015 (P.L.500, No.92). The amended short title is now the Human Services Code.
Compiler's Note: Section 5 of Act 63 of 1999, which added section 1702-A, provided that it is the intent of the General Assembly that the addition of sections 1702-A through 1706-A shall be deemed to be a continuation and expansion of the employment incentive payments program authorized in section 491 of the act of June 13, 1967 (P.L.31, No.21), known as the Public Welfare Code. Accordingly:
(1) Nothing in Act 63 shall be construed to preclude consideration of applications for credits filed under section 1701-A of this act or section 491 of the Public Welfare Code, which applications were filed prior to or on the effective date of Act 63.
(2) Nothing in Act 63 shall be construed to preclude the utilization of credits which were approved but not applied under section 1701-A of this act or section 491 of the Public Welfare Code after the effective date of Act 63.