§ 135.41a. Tax credits for capital construction campaigns.
(a) A capital construction campaign is the raising of funds for the construction or permanent improvement to property or the purchase of furniture or equipment to be used in the neighborhood organization’s facility.
(b) Capital construction campaign programs may be approved generally for up to a 3-year period. In addition, each year of the 3-year period shall be approved individually.
(c) Capital campaigns for the construction of buildings which are intended to provide in-patient overnight medical care may not be eligible under this program.
(d) A building not owned by a neighborhood organization to be renovated shall have a lease which would cover the useful life of the renovations.
(e) Capital campaign programs will only be approved up to $150,000 tax credits per year or up to $450,000 tax credits over an approved 3-year period, except by special approval by the Secretary.
(f) Capital campaigns may only be submitted for work to be accomplished.
(g) Campaign expenses such as fund raisers, materials, ads, rentals and the like may not be included as program costs.
(h) Costs incurred under the program shall be for construction-related costs only. Payment of interest on loans will not be considered.
(i) Capital construction projects shall provide appropriate plans and costs.
(j) In order for an organization which provides community-wide services to be eligible for tax-credited contributions for capital construction campaigns, the organization must provide specific programs for low income individuals. The programs shall be the type eligible under the act. The proposal of the organization shall include the following information in addition to other application requirements: a description of the program aimed towards low-income individuals; a statement of the number of individuals who are being served or who will be served by the program for low-income individuals; a statement as to how the capital construction will relate to the program for low-income individuals, that is how the new facility will be used in the program; and a statement of the total number of individuals who are being served or who will be served by the organization. The number of individuals served by the specific program for low-income individuals will be compared to the total number of individuals served by the organization to determine the percentage of low-income individuals aided by the organization. The tax credit for the capital construction campaign will then be determined by prorating the entire cost of the capital construction, excluding ineligible costs under this chapter, to the percentage of low-income individuals served by the organization. The amount of tax credits under this subsection will be subject to the limitations set forth in this chapter.
Source The provisions of this § 135.41a adopted May 15, 1981, effective May 16, 1981, 11 Pa.B. 1647; corrected May 15, 1981, effective May 16, 1981, 11 Pa.B. 2047.
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