Current through Register Vol. 54, No. 45, November 9, 2024
Section 135.42 - Computation(a)Contribution of property. Where the contribution consists of real or personal property, the value thereof will be determined by the Secretary by considering the amount normally allowed by the Internal Revenue Service as a charitable deduction for Federal income tax purposes by considering any other accepted business or accounting standards. However, where a greater value than that normally allowed as a contribution by the Internal Revenue Service is claimed by the applicant as a contribution to a qualifying neighborhood assistance project, the applicant shall support such value by documentation, which in the case of real property, shall include two separate and independent appraisals by qualified appraisers selected by the contributing business firm. The Department will review these appraisals as part of the project review for which the contribution of real property is intended. If the project is approved for tax credit, the actual costs of the appraisals may be included in the project costs for which tax credit is allowable with respect to the contributing business firm. Where there is a conveyance of real property for tax credits, the transfer tax may be included in the project cost. Where the business firm does not transfer full title to the real or personal property but merely grants the use thereof to the approved program, the tax credit shall be computed on the basis of the annual rental value as set forth in the written lease between the neighborhood organization and the contributor.(b)Contributions in kind. When business firms make an in-kind contribution to neighborhood projects in the nature of operating supplies or maintenance, tax credits will be granted on the net cost of the items to the donor. Invoices or other documents showing proof of cost to the donor shall be submitted with the application for tax credits.(c)Contributions of personnel. The cost of a business firm loaning personnel to a neighborhood organization in order to provide expertise and technical assistance will be considered contributions and will be eligible for a tax credit. Personnel time shall be prorated on an hourly wage and other benefits from the firm. The exact amount of time spent on the project shall be indicated and noted by the employe and signed by the neighborhood organization.The provisions of this §135.42 amended May 15, 1981, effective 5/16/1981, 11 Pa.B. 1647; corrected June 12, 1981, effective 5/16/1981, 11 Pa.B. 2047.