Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 8902-K. Definitions

The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Aggregate contribution.”  The aggregate contribution that a qualified taxpayer makes to all employees during the taxable year for which the qualified taxpayer seeks the employer child care contribution tax credit established under this article, provided that only the first $500 in contributions per employee shall count toward the aggregate contribution.

“Child-care provider.”  Includes:

(1) A child-care center as defined under 55 Pa. Code § 3270.4 (relating to definitions).

(2) A group child-care home as defined under 55 Pa. Code § 3280.4 (relating to definitions).

(3) A family child-care home as defined under 55 Pa. Code § 3290.4 (relating to definitions).

“Contribution.”  A payment made to a child-care provider by an employer to subsidize an employee's eligible child-care costs.

“Department.”  The Department of Revenue of the Commonwealth.

“Eligible child-care costs.”  Costs incurred by an employee for services rendered by a child-care provider that are incurred to enable the employee to be gainfully employed by a qualified taxpayer.

“Employee.”  An individual employed by a qualified taxpayer.  The term shall not include:

(1) An officer of an entity subject to tax under Article IV, VII, VIII or XV.  1

(2) An officer of an insurance company subject to tax under Article IX.

“Pass-through entity.”  Any of the following:

(1) A partnership as defined in section 301(n.0). 2

(2) A Pennsylvania S corporation as defined in section 301(n.1).

(3) An unincorporated entity subject to section 307.21.  3

“Qualified tax liability.”  Any of the taxes due under Article III, IV, VII, VIII or XV.  The term shall not include any tax withheld by an employer from an employee under Article III.

“Qualified taxpayer.”  An individual, partnership, association, corporation, governmental body or unit or agency or other entity that:

(1) is subject to a tax imposed under Article III, IV, VII, VIII, IX or XV;  4  and

(2) is required under the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) to withhold Federal income tax from wages paid to an employee.