H0542B1563A03071 MSP:CMD 07/26/17 #90 A03071
AMENDMENTS TO HOUSE BILL NO. 542
Sponsor: SENATOR BROWNE
Printer's No. 1563
Amend Bill, page 1, lines 12 through 23, by striking out all
of said lines and inserting
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties,"
further providing for the title of the act;
in sales and use tax, further providing for definitions,
for imposition of tax and for exclusions from tax; providing
for marketplace providers and marketplace sellers; further
providing for remote sales reports;
in personal income tax, providing for the Pennsylvania
ABLE Savings Program Tax Exemption, repealing provisions
relating to contribution for Korea/Vietnam Memorial National
Education Center and further providing for operational
provisions;
in corporate net income tax, further providing for
definitions and providing for qualified manufacturing
innovation and reinvestment deduction;
in gross receipts tax, further providing for imposition
of tax and establishing the Natural Gas Optimization Fund and
Natural Gas Optimization Program;
in realty transfer tax, further providing for definitions
and for exempt parties;
in entertainment production tax credit, further providing
for definitions and for credit for qualified film production
expenses, providing for film production tax credit districts
and establishing the Entertainment Economic Enhancement
Program;
in city revitalization and improvement zones, further
providing for restrictions and for transfer of property;
in neighborhood improvement zones, further providing for
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definitions and providing for transfer of property;
in keystone opportunity zones, keystone opportunity
expansion zones and keystone opportunity improvement zones,
further providing for additional keystone opportunity zones;
in inheritance tax, further providing for timely mailing
treated as timely filing and payment;
providing for an electric grid virtual financial
transactions tax;
in Public Transportation Assistance Fund, further
providing for fund;
providing for fireworks, for unconventional gas wells,
for unconventional natural gas air quality protection and for
environmental permitting reform;
in procedure and administration, further providing for
petition for reassessment, for petition procedure and for
review by board;
providing for Tobacco Master Settlement Payment Fund;
in general provisions, further providing for timely
filing;
providing for severability; and
making related repeals.
Amend Bill, page 2, lines 20 through 30; page 3, lines 1
through 30; page 4, lines 1 through 4; by striking out all of
said lines on said pages and inserting
Section 1. The title of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended to read:
AN ACT
Relating to tax reform and State taxation by codifying and
enumerating certain subjects of taxation and imposing taxes
thereon; providing procedures for the payment, collection,
administration and enforcement thereof; providing for tax
credits in certain cases; providing for environmental
permitting; conferring powers and imposing duties upon the
Department of Revenue, certain employers, fiduciaries,
individuals, persons, corporations and other entities;
prescribing crimes, offenses and penalties.
Section 1.1. Section 201(m) of the act, amended July 13,
2016 (P.L.526, No.84), is amended and the section is amended by
adding clauses to read:
Section 201. Definitions.--The following words, terms and
phrases when used in this Article II shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(m) "Tangible personal property."
(1) Corporeal personal property including, but not limited
to, goods, wares, merchandise, steam and natural and
manufactured and bottled gas for non-residential use,
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electricity for non-residential use, prepaid telecommunications,
premium cable or premium video programming service, spirituous
or vinous liquor and malt or brewed beverages and soft drinks,
interstate telecommunications service originating or terminating
in the Commonwealth and charged to a service address in this
Commonwealth, intrastate telecommunications service with the
exception of (i) subscriber line charges and basic local
telephone service for residential use and (ii) charges for
telephone calls paid for by inserting money into a telephone
accepting direct deposits of money to operate, provided further,
the service address of any intrastate telecommunications service
is deemed to be within this Commonwealth or within a political
subdivision, regardless of how or where billed or paid. In the
case of any such interstate or intrastate telecommunications
service, any charge paid through a credit or payment mechanism
which does not relate to a service address, such as a bank,
travel, credit or debit card, but not including prepaid
telecommunications, is deemed attributable to the address of
origination of the telecommunications service.
(2) The term shall include the following, whether
electronically or digitally delivered, streamed or accessed and
whether purchased singly, by subscription or in any other
manner, including maintenance[,] and updates [and support]:
(i) video;
(ii) photographs;
(iii) books;
(iv) any other otherwise taxable printed matter;
(v) applications, commonly known as apps;
(vi) games;
(vii) music;
(viii) any other audio, including satellite radio service;
(ix) canned software, notwithstanding the function
performed, including support, except separately invoiced help
desk or call center support; or
(x) any other otherwise taxable tangible personal property
electronically or digitally delivered, streamed or accessed.
* * *
(eee) "Marketplace provider." A person who, either directly
or indirectly through agreements or arrangements with third
parties and pursuant to an agreement with a marketplace seller,
facilitates a sale by a marketplace seller. For purposes of this
definition, a person "facilitates a sale" if the person or an
affiliated person:
(1) collects the payment made by a customer to or for a
marketplace seller regardless of whether the marketplace
provider receives compensation or other consideration in
exchange for its services; and
(2) provides the forum in which, or by means of which, the
sale takes place, including a shop, a store, a booth, an
Internet website, a catalog or a similar forum.
(fff) "Marketplace seller." A person, whether or not the
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person is required to register to collect tax under this
article, who:
(1) has an agreement with a marketplace provider under which
the marketplace provider will facilitate sales for the person;
and
(2) makes sales at retail subject to tax under this article.
Section 2. Section 202(a) of the act is amended to read:
Section 202. Imposition of Tax.--(a) There is hereby
imposed upon each separate sale at retail of tangible personal
property or services, as defined herein, within this
Commonwealth a tax of six per cent of the purchase price, which
tax shall be collected by the vendor from the purchaser, or by
the marketplace provider for each separate sale at retail
facilitated for a marketplace seller, and shall be paid over to
the Commonwealth as herein provided.
* * *
Section 2.1. Section 204(13) of the act, amended July 13,
2016 (P.L.526, No.84), is amended to read:
Section 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
* * *
(13) The sale at retail, or use of wrapping paper, wrapping
twine, bags, cartons, tape, rope, labels, nonreturnable
containers [and], all other wrapping supplies and kegs used to
contain malt or brewed beverages, when such use is incidental to
the delivery of any personal property, except that any charge
for wrapping or packaging shall be subject to tax at the rate
imposed by section 202, unless the property wrapped or packaged
will be resold by the purchaser of the wrapping or packaging
service. As used in this paragraph, the term "cartons" includes
corrugated boxes used by a person engaged in the manufacture of
snack food products to deliver the manufactured product, whether
or not the boxes are returnable for potential reuse.
* * *
Section 2.2. Article II of the act is amended by adding a
part to read:
PART V-A
MARKETPLACE PROVIDERS AND MARKETPLACE SELLERS
Section 213. Marketplace Providers and Marketplace
Sellers.--(a) A marketplace provider shall:
(1) comply with all of the provisions of this article with
respect to the collection of tax by vendors;
(2) have all the duties, benefits and entitlements of a
person required to collect tax under this article with respect
to sales facilitated for a marketplace seller, as if the
marketplace provider were the vendor with respect to the sale,
including the right to receive the refund authorized by section
247 or section 247.1; and
(3) keep the records and information required of a vendor
under this article.
(b) A marketplace seller is not a person required to collect
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tax for purposes of this section regarding a particular sale at
retail if:
(1) the marketplace seller can show that the sale was
facilitated by a marketplace provider from whom the seller has
received a properly completed certificate of collection on a
form prescribed by the department certifying that the
marketplace provider is registered to collect tax and will
collect tax on all taxable sales by the marketplace seller and
with other information as the department may prescribe; and
(2) any failure of the marketplace provider to collect the
proper amount of tax in regard to the sale was not the result of
the marketplace seller providing the marketplace provider with
incorrect information.
(c) This section shall be administered in a manner
consistent with this article as if a certificate of collection
were a resale or exemption certificate, including with regard to
the completeness of the certificate of collection and the timing
of its acceptance by the marketplace seller, provided that, with
regard to any sales by a marketplace seller that are facilitated
by a marketplace provider who is affiliated with the marketplace
seller, the marketplace seller shall be deemed liable as a
person under a duty to act for the marketplace provider for
purposes of this article.
(d) A marketplace provider is relieved of liability under
this section for failure to collect the correct amount of tax to
the extent that the marketplace provider can show that the error
was due to incorrect information given to the marketplace
provider by the marketplace seller. This subsection shall not
apply if the marketplace seller and marketplace provider are
affiliated.
(e) For purposes of this section, two persons are affiliated
if one person has an ownership interest of more than five per
cent, whether direct or indirect, in the other, or where an
ownership interest of more than five per cent, whether direct or
indirect, is held in each of the persons by another person or by
a group of other persons which are affiliated persons with
respect to each other.
Section 2.3. Section 278 of the act is amended by adding a
subsection to read:
Section 278. Remote Sales Reports.--* * *
(c) If Federal legislation relating to remote sellers has
not been enacted by December 31, 2018, the Independent Fiscal
Office, in conjunction with the Department of Revenue, shall
conduct a study assessing the legal implications and fiscal
impact of mandating notice requirements for remote sellers. By
April 1, 2019, results of the study, if a study is produced,
shall be provided to the chairman and minority chairman of the
Appropriations Committee of the Senate, the chairman and
minority chairman of the Finance Committee of the Senate, the
chairman and minority chairman of the Appropriations Committee
of the House of Representatives and the chairman and minority
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chairman of the Finance Committee of the House of
Representatives.
Section 3. The act is amended by adding a section to read:
Section 304.2. Pennsylvania ABLE Savings Program Tax
Exemption.--(a) The following shall be exempt from all taxation
by the Commonwealth and its political subdivisions:
(1) Undistributed earnings on an account.
(2) An amount distributed from an account that is not
included in gross income under section 529A(c)(1) of the
Internal Revenue Code .
(b) The following shall apply:
(1) An amount contributed to an account shall be deductible
from the taxable income of the contributor under this article
for the tax year the contribution was made.
(2) The total contributions made by a contributor during a
taxable year to all accounts that are allowable as a deduction
under this section shall not exceed the dollar amount under
section 2503(b) of the Internal Revenue Code .
(3) The deduction shall not result in the contributor's
taxable income being less than zero.
(4) The department and the Treasury Department shall
cooperate in verifying account information relating to
contributions to an account itemized by a contributor and the
contributor's specific contributions.
(c) An amount that is distributed from an account and not
otherwise exempt from taxation under this section shall be
taxable income to the designated beneficiary under this article.
(d) A change in designated beneficiaries under section
529A(c) of the Internal Revenue Code shall not constitute a
taxable event.
(e) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Account." An ABLE savings account as defined in section 102
of the Pennsylvania ABLE Act.
"Contributor." An individual who makes a contribution to an
account as defined in section 102 of the Pennsylvania ABLE Act.
"Designated beneficiary." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act.
"Internal Revenue Code." The Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. § 1 et seq.), as amended.
"Pennsylvania ABLE Act." The act of April 18, 2016 (P.L.128,
No.17), known as the Pennsylvania ABLE Act.
"Pennsylvania ABLE Savings Program." The program established
under the Pennsylvania ABLE Act.
"Qualified disability expense." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act.
"Rollover distribution." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act
* * *
Section 4. Section 315.6 of the act is repealed:
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[Section 315.6. Contribution for Korea/Vietnam Memorial
National Education Center.--(a) For tax years 1997, 1998, 1999,
2000, 2001, 2002, 2003 and 2004, the department shall provide a
space on the face of the Pennsylvania individual income tax
return form whereby an individual may voluntarily designate a
contribution of any amount from the individual's tax refund to
the Korea/Vietnam Memorial National Education Center.
(b) The amount designated by an individual on the
Pennsylvania individual income tax return form shall be deducted
from the tax refund to which the individual is entitled and
shall not constitute a charge against the income tax revenues
due the Commonwealth.
(c) The department shall determine annually the total amount
designated by individual taxpayers under this section and shall
report the amount to the State Treasurer, who shall prepare the
appropriate documentation and transfer the designated amount
from the General Fund to the Korea/Vietnam Memorial National
Education Center.
(d) The department shall provide adequate information
regarding the center and its purposes in its instructions for
tax years 1997, 1998, 1999, 2000, 2001, 2002, 2003 and 2004
which accompany Pennsylvania individual income tax return forms
to include the address of the Korea/Vietnam Memorial National
Education Center to which contributions may be sent by taxpayers
who wish to make additional contributions to the center.
(e) On or before March 31 of each year, the Korea/Vietnam
Memorial National Education Center shall submit a report
detailing contributions received and activities undertaken
during the prior calendar year to the Military and Veterans'
Affairs Committee of the Senate and the Veterans Affairs and
Emergency Preparedness Committee of the House of
Representatives.
(f) This section shall expire December 31, 2005.]
Section 4.1. Section 315.9(b.1) and (c) of the act are
amended to read:
Section 315.9. Operational Provisions.--
* * *
(b.1) Notwithstanding subsection (b), the checkoffs
established in sections 315.2 [and], 315.3, 315.4, 315.7, 315.8,
315.10 and 315.11 shall not expire.
[(c) Sections 315.3, 315.4 and 315.8 shall expire January 1,
2018.]
Section 4.2. Section 401(3)4(c) of the act is amended and
the subsection is amended by adding a clause to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(3) "Taxable income." * * *
4. * * *
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(c) (1) The net loss deduction shall be the lesser of:
(A) (I) For taxable years beginning before January 1, 2007,
two million dollars ($2,000,000);
(II) For taxable years beginning after December 31, 2006,
the greater of twelve and one-half per cent of taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
three million dollars ($3,000,000);
(III) For taxable years beginning after December 31, 2008,
the greater of fifteen per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or three
million dollars ($3,000,000);
(IV) For taxable years beginning after December 31, 2009,
the greater of twenty per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or three
million dollars ($3,000,000);
(V) For taxable years beginning after December 31, 2013, the
greater of twenty-five per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or four million
dollars ($4,000,000);
(VI) For taxable years beginning after December 31, 2014,
the greater of thirty per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or five million
dollars ($5,000,000); [or]
(VII) For taxable years beginning after December 31, 2017,
thirty-five per cent of taxable income as determined under
subclause 1 or, if applicable, subclause 2;
(VIII) For taxable years beginning after December 31, 2018,
forty per cent of taxable income as determined under subclause 1
or, if applicable, subclause 2;
(B) The amount of the net loss or losses which may be
carried over to the taxable year or taxable income as determined
under subclause 1 or, if applicable, subclause 2.
(1.1) In no event shall the net loss deduction include more
than five hundred thousand dollars ($500,000), in the aggregate,
of net losses from taxable years 1988 through 1994.
(2) (A) A net loss for a taxable year may only be carried
over pursuant to the following schedule:
Taxable Year Carryover
1981 1 taxable year
1982 2 taxable years
1983-1987 3 taxable years
1988 2 taxable years plus
1 taxable year
starting with the
1995 taxable year
1989 1 taxable year plus
2 taxable years
starting with the
1995 taxable year
1990-1993 3 taxable years
starting with the
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1995 taxable year
1994 1 taxable year
1995-1997 10 taxable years
1998 and thereafter 20 taxable years
(B) The earliest net loss shall be carried over to the
earliest taxable year to which it may be carried under this
schedule. The total net loss deduction allowed in any taxable
year shall not exceed:
(I) Two million dollars ($2,000,000) for taxable years
beginning before January 1, 2007.
(II) The greater of twelve and one-half per cent of the
taxable income as determined under subclause 1 or, if
applicable, subclause 2 or three million dollars ($3,000,000)
for taxable years beginning after December 31, 2006.
(III) The greater of fifteen per cent of the taxable income
as determined under subclause 1 or, if applicable, subclause 2
or three million dollars ($3,000,000) for taxable years
beginning after December 31, 2008.
(IV) The greater of twenty per cent of the taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
three million dollars ($3,000,000) for taxable years beginning
after December 31, 2009.
(V) The greater of twenty-five per cent of taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
four million dollars ($4,000,000) for taxable years beginning
after December 31, 2013.
(VI) The greater of thirty per cent of taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
five million dollars ($5,000,000) for taxable years beginning
after December 31, 2014.
(VII) Thirty-five per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 for taxable
years beginning after December 31, 2017.
(VIII) Forty per cent of taxable income as determined under
subclause 1 or, if applicable, subclause 2 for taxable years
beginning after December 31, 2018.
(c.1) A deduction under part IV.1 shall be allowed from
taxable income as proscribed in a satisfaction commitment letter
executed between the Department of Community and Economic
Development and a taxpayer under section 407.7(c).
* * *
Section 4.3. Article IV of the act is amended by adding a
part to read:
PART IV-A
QUALIFIED MANUFACTURING INNOVATION
AND REINVESTMENT DEDUCTION
Section 407.6. Definitions.--(a) For the purposes of this
part only, the following words, terms and phrases shall have the
meaning ascribed to them in this subsection, except where the
context clearly indicates a different meaning:
(1) "Annual taxable payroll." The total amount of wages
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paid in this Commonwealth by a taxpayer for the base year or
year one, as applicable, from which personal income tax under
Article III is withheld.
(2) "Base year." The four calendar quarters preceding the
start date.
(3) "Department." The Department of Community and Economic
Development of the Commonwealth.
(4) "Manufacture." The mechanical, physical, biological or
chemical transformation of materials, substances or components
into new products that are creations of new items of tangible
personal property for sale.
(5) "Qualified manufacturing innovation and reinvestment
deduction." An allowable deduction as determined, calculated
and executed in a commitment letter between the department and
the taxpayer.
(6) "Qualified tax liability." A taxpayer's tax liability
under this article.
(7) "Start date." The first day of the calendar quarter in
which a taxpayer advises the department of the taxpayer's intent
to initiate an eligible project unless the applicant requests
and the department agrees to a later start date.
(8) "Taxpayer." An employer subject to the tax under this
article.
(9) "Year one." The four calendar quarters immediately
following the start date.
Section 407.7. Manufacturing Innovation and Reinvestment
Deduction.--(a) In order to be eligible to receive a
manufacturing innovation and reinvestment deduction, a taxpayer
must demonstrate to the department a capital investment in
excess of one hundred million dollars ($100,000,000) for the
creation of new or refurbished manufacturing capacity within
three years of a designated start date.
(b) (1) A taxpayer must advise the department in advance of
the start date of any project for which the taxpayer may seek a
qualified manufacturing innovation and reinvestment deduction. A
taxpayer must attest the taxpayer's intent to meet the
eligibility criteria and provide relevant information pertinent
to the project's size and scope in a manner as determined by the
department.
(2) Within five years of a project's start date, a taxpayer
must complete to the department's satisfaction an application on
a form and in a manner as determined by the department to attest
that the project has been completed and the eligibility criteria
has been satisfied.
(c) Upon the receipt of the taxpayer's application, the
Department of Revenue must make a finding that the applicant has
filed all required State tax reports and returns for all
applicable tax years and paid any balance of State tax due as
determined at settlement, assessment or determination and the
department, then in conjunction with the Department of Revenue,
shall make an eligibility or satisfaction determination within
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ninety days of submission. If the department makes a
satisfaction determination, the department and the taxpayer
shall execute a satisfaction commitment letter containing the
following:
(1) The number of new jobs created and their corresponding
description.
(2) The number of new jobs created during construction of
the project.
(3) The amount of private capital investment in the creation
of new jobs.
(4) The increase in the annual taxable payroll attributable
to new manufacturing jobs.
(5) A determination of the maximum allowable deduction
against a taxpayer's qualified tax liability under this article.
(6) Any other information as the department deems
appropriate.
(d) (1) Upon determining a taxpayer's satisfaction of the
eligibility criteria, the department shall calculate the maximum
allowable deduction that a taxpayer may claim against the
taxpayer's taxable income under this article. The deduction
shall be equal to five per cent of the private capital
investment utilized in the creation of new or refurbished
manufacturing capacity per tax year for a period of five years.
(2) A taxpayer may utilize the amount of the deduction in
each year of the succeeding five tax years immediately following
the department's satisfaction determination and the execution of
a satisfaction commitment letter.
(3) A taxpayer cannot use the deduction to reduce its tax
liability by more than fifty per cent of the tax liability under
this article for the taxable year. The deduction is
nontransferable and any unused portion in a tax year shall
expire at the end of the corresponding tax year.
Section 4.4. Section 1101(a) introductory paragraph, (b)
heading and introductory paragraph, (c), (c.1), (e) and (f) of
the act, amended July 13, 2016 (P.L.526, No.84), are amended and
the section is amended by adding subsections to read:
Section 1101. Imposition of Tax.--(a) General Rule.--Every
pipeline company, conduit company, steamboat company, canal
company, slack water navigation company, transportation company,
and every other company, association, joint-stock association,
or limited partnership, now or hereafter incorporated or
organized by or under any law of this Commonwealth, or now or
hereafter organized or incorporated by any other state or by the
United States or any foreign government, and doing business in
this Commonwealth, and every copartnership, person or persons
owing, operating or leasing to or from another corporation,
company, association, joint-stock association, limited
partnership, copartnership, person or persons, any pipeline,
conduit, steamboat, canal, slack water navigation, or other
device for the transportation of freight, passengers, baggage,
or oil, except motor vehicles and railroads, and every limited
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partnership, association, joint-stock association, corporation
or company engaged in, or hereinafter engaged in, the
transportation of freight or oil within this State, and every
telephone company, telegraph company or provider of mobile
telecommunications services now or hereafter incorporated or
organized by or under any law of this Commonwealth, or now or
hereafter organized or incorporated by any other state or by the
United States or any foreign government and doing business in
this Commonwealth, and every limited partnership, association,
joint-stock association, copartnership, person or persons,
engaged in telephone or telegraph business or providing mobile
telecommunications services in this Commonwealth, shall pay to
the State Treasurer, through the Department of Revenue, a tax
[of forty-five mills with a surtax equal to five mills] at the
rate set forth in subsection (j.1) upon each dollar of the gross
receipts of the corporation, company or association, limited
partnership, joint-stock association, copartnership, person or
persons received from:
* * *
(b) Electric Light, Waterpower and Hydro-electric
[Utilities] Companies.--Every electric light company, waterpower
company and hydro-electric company now or hereafter incorporated
or organized by or under any law of this Commonwealth, or now or
hereafter organized or incorporated by any other state or by the
United States or any foreign government and doing business in
this Commonwealth, and every limited partnership, association,
joint-stock association, copartnership, person or persons,
engaged in electric light and power business, waterpower
business and hydro-electric business in this Commonwealth, shall
pay to the State Treasurer, through the Department of Revenue, a
tax [of forty-four mills] at the rate set forth in subsection
(j.1) upon each dollar of the gross receipts of the corporation,
company or association, limited partnership, joint-stock
association, copartnership, person or persons, received from:
* * *
(b.2) Natural Gas Supply and Natural Gas Distribution
Companies.--
(1) Every natural gas supply company and natural gas
distribution company, incorporated or organized under the laws
of the United States, this Commonwealth, a state or a foreign
government, on or after the effective date of this subsection
and doing business in this Commonwealth, and every limited
partnership, association, joint-stock association,
copartnership, or person, engaged in natural gas supply or
natural gas distribution business in this Commonwealth, shall
pay to the State Treasurer, through the Department of Revenue, a
tax at the rate set forth in subsection (j.1) upon each dollar
of the gross receipts of the corporation, company or
association, limited partnership, joint-stock association,
copartnership or person, received from the sales and delivery of
natural gas to retail gas customers within this Commonwealth,
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except gross receipts derived from:
(i) sales of liquefied petroleum gas;
(ii) (Reserved);
(iii) (Reserved);
(iv) sales to an electric generation company that are
consumed for the purpose of generating electricity; and
(v) gross receipts derived from the sales for resale to
persons, partnerships, associations or corporations subject to
the tax imposed by this act upon gross receipts derived from the
resale.
(2) For purposes of this subsection, sales of natural gas to
retail gas customers shall include all receipts from natural gas
supply services and natural gas distribution services.
(3) For the purposes of this subsection, the terms "natural
gas distribution services," "natural gas supply services" and
"retail gas customers" shall have the same meanings as the terms
have in 66 Pa.C.S. § 2202 (relating to definitions).
(c) Payment of Tax; Reports.--The said taxes imposed under
subsections (a) [and (b)], (b) and (b.2) shall be paid within
the time prescribed by law, and for the purpose of ascertaining
the amount of the same, it shall be the duty of the treasurer or
other proper officer of the said company, copartnership, limited
partnership, association, joint-stock association or
corporation, or person or persons, to transmit to the Department
of Revenue on or before March 15 of each year an annual report,
and under oath or affirmation, of the amount of gross receipts
of the said companies, copartnerships, corporations,
associations, joint-stock associations, limited partnerships,
person or persons, derived from all sources, and of gross
receipts from business done wholly within this State and in the
case of electric energy producers that transmit energy to other
states referred to in clause (2) of subsection (b), a
compilation of the relevant information regarding operating and
maintenance expenses and depreciation, during the period of
twelve months immediately preceding January 1 of each year.
(c.1) Safe Harbor Base year.--For purposes of the estimated
tax requirements under sections 3003.2 and 3003.3, the "safe
harbor base year" tax amount for providers of mobile
telecommunications services and for a natural gas supply company
and a natural gas distribution company subject to the provisions
of subsection (b.2) shall be the amount that would have been
required to be paid by the taxpayer if the taxpayer had been
subject to this article.
(e) Time to File Reports.--The time for filing annual
reports may be extended, estimated assessments may be made by
the Department of Revenue if reports are not filed, and the
penalties for failing to file reports and pay the taxes imposed
under subsection (a) [and (b)], (b) and (b.2) shall be as
prescribed by the laws defining the powers and duties of the
Department of Revenue. In any case where the works of any
corporation, company, copartnership, association, joint-stock
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association, limited partnership, person or persons are operated
by another corporation, company, copartnership, association,
joint-stock association, limited partnership, person or persons,
the taxes imposed under subsections (a) [and (b)], (b) and (b.2)
shall be apportioned between the corporations, companies,
copartnerships, associations, joint-stock associations, limited
partnerships, person or persons in accordance with the terms of
their respective leases or agreements, but for the payment of
the said taxes the Commonwealth shall first look to the
corporation, company, copartnership, association, joint-stock
association, limited partnership, person or persons operating
the works, and upon payment by the said company, corporation,
copartnership, association, joint-stock association, limited
partnership, person or persons of a tax upon the receipts, as
herein provided, derived from the operation thereof, no other
corporation, company, copartnership, association, joint-stock
association, limited partnership, person or persons shall be
held liable for any tax imposed under subsections (a) [and (b)],
(b) and (b.2) upon the proportion of said receipts received by
said corporation, company, copartnership, association, joint-
stock association, limited partnership, person or persons for
the use of said works.
(f) Application to Municipalities.--This article shall be
construed to apply to municipalities, and to impose a tax upon
the gross receipts derived from any municipality owned or
operated public utility or from any public utility service,
natural gas distribution service or natural gas supply service
furnished by any municipality, except that, except as provided
under subsection (f.1), gross receipts shall be exempt from the
tax, to the extent that such gross receipts are derived from
business done inside the limits of the municipality, owning or
operating the public utility or furnishing the public utility
service.
(f.1) Certain Gross Receipts Taxed.--The exemption from tax
under subsection (f) shall not apply to gross receipts received
from the sales and delivery of natural gas to retail gas
customers under subsection (b.2).
* * *
(j.1) The tax imposed under this section shall be imposed at
the following rates:
(1) Sixty mills for receipts subject to tax under subsection
(a).
(2) Fifty mills for receipts subject to tax under subsection
(b).
(3) Fifty-seven mills for receipts subject to tax under
subsection (b.2).
(j.2) Schedule for Certain Payments.--
(1) For calendar year 2017, the tax applicable to the
payment of the tax under subsection (b.2) shall be due on March
15, 2018.
(2) For calendar year 2018, the following schedule applies
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to the payment of the tax under subsection (b.2):
(i) Fifty per cent of the estimated tax shall be due on
March 15, 2018.
(ii) Fifty per cent of the estimated tax shall be due on
June 15, 2018.
(3) For calendar years after 2018, the payment of the
estimated tax under subsection (b.2) shall be due in accordance
with section 3003.2.
* * *
Section 5. Article XI of the act is amended by adding parts
to read:
PART V
NATURAL GAS OPTIMIZATION FUND
Section 1111. Natural Gas Optimization Fund.
The Natural Gas Optimization Fund is established in the State
Treasury.
Section 1112. Transfer of funds.
(a) Natural Gas Optimization Fund.--Money from the tax
imposed under section 1101(b.2) shall be deposited into the
General Fund. Twenty million dollars of the money deposited into
the General Fund under this section shall be transferred
annually to the Natural Gas Optimization Fund established in
section 1111.
(b) Low-Income Home Energy Assistance Program.--Twenty
million dollars of the money deposited into the General Fund in
accordance with this section shall be transferred annually to
the Department of Human Services of the Commonwealth to augment
activities related to the Low-Income Home Energy Assistance
Program as authorized under sections 201 and 206 of Article II
of the act of June 13, 1967 (P.L.31, No.21), known as the Human
Services Code.
PART VI
NATURAL GAS OPTIMIZATION PROGRAM
Section 1113. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commission." The Pennsylvania Public Utility Commission.
"Eligible applicant." A natural gas distribution company
subject to the tax imposed under section 1101(b.2).
"Fund." The Natural Gas Optimization Fund established under
section 1111.
"Program." The Natural Gas Optimization Program established
under section 1114.
Section 1114. Natural Gas Optimization Program.
(a) Establishment and purpose.--The Natural Gas Optimization
Program is established and the program's purpose shall be to
fund projects as permitted under this part.
(b) Funding.--Grants made under this section shall be made
from the fund.
(c) Grants.--
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(1) Except as provided in paragraph (2), for fiscal
years beginning 2017-2018, and each fiscal year thereafter,
the total amount of grants approved under this section may
not exceed $20,000,000.
(2) If the total amount of grants approved in a fiscal
year is less than $20,000,000, the unused portion may be
carried over and approved in future fiscal years.
(d) Powers of commission.--The commission shall have the
authority to administer the program.
(e) Guidelines.--Funds under this part shall be used in
accordance with guidelines adopted by the commission.
(f) Eligible projects.--Money deposited into the fund under
section 1112(a) may be utilized by the commission for
competitive grants to eligible applicants for eligible projects
as provided in this part. In order to be eligible to receive a
grant, an eligible applicant must provide or demonstrate to the
commission one or more of the following:
(1) A plan to expand access to natural gas
infrastructure.
(2) A plan to expand access to natural gas in
residential areas.
(3) A plan to accelerate the rate of infrastructure
placement and replacement necessary to advance the purposes
of this part.
(4) A plan to promote the use of natural gas in
residential areas.
(5) A plan to provide rebates or buy down expenditures
in order to reduce upfront costs associated with connecting
to a natural gas line, in-house piping and natural gas
equipment owned by new or existing customers, including high
efficiency natural gas furnaces.
(g) Application.--An eligible applicant shall submit an
application, including supporting information as required by the
commission.
(h) Project review.--The commission shall review and prepare
an assessment of each application and determine which projects
will best utilize and promote the use of domestically produced
natural gas in this Commonwealth. The commission's review and
assessment shall consider the following:
(1) The economic impact of the project included in the
application.
(2) The number of new end users that will gain access to
natural gas as a result of the project.
(3) The extent to which the project extends access to
natural gas to serve an unserved or underserved area.
(4) The extent to which the project will make the use of
natural gas more efficient and affordable to customers.
(5) The projected cost of the project.
(6) The source and amount of any funds to be contributed
by the eligible applicant.
(7) Any other relevant factors as determined by the
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commission.
(i) Notice of application deadlines.--The commission shall
establish and publish application deadlines in the Pennsylvania
Bulletin and on its publicly accessible Internet website.
(j) Approval schedule.--The commission shall develop a
schedule for the approval of applications under this section.
(k) Reapplication.--If an application is not approved under
this section, the eligible applicant may revise and resubmit the
application and plan for approval.
(l) Administrative costs.--No more than two percent of the
money deposited into the fund annually may be used by the
commission for administrative costs.
(m) Program report.--The commission shall provide a report
to the chairperson and minority chairperson of the Consumer
Protection and Professional Licensure Committee of the Senate
and the chairperson and minority chairperson of the Consumer
Affairs Committee of the House of Representatives by October 1,
2018, and each October 1 thereafter. The report shall be
maintained on the commission's publicly accessible Internet
website and shall include:
(1) A list of all grants approved during the previous
fiscal year, including the amount of the grant and a
description of each approved project.
(2) The estimated natural gas optimization benefits to
date for all projects receiving funding during the fiscal
year and the methods used to determine estimated benefits.
Section 6. The definition of "veterans' organization" in
section 1101-C of the act, added July 13, 2016 (P.L.526, No.84),
is amended to read:
Section 1101-C. Definitions.--The following words when used
in this article shall have the meanings ascribed to them in this
section:
* * *
"Veterans' service organization." A not-for-profit
organization that [is recognized by the Internal Revenue Service
as a tax exempt organization described under section 501(c)(19)
of the Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 501(c)(19)). For the purposes of this article, the term
shall only include a not-for-profit organization for the period
in which the organization has a valid tax exemption under
section 501(c)(19) of the Internal Revenue Code of 1986, as
determined by the Internal Revenue Service.] has been chartered
by the Congress of the United States to service veterans or is a
member of the Pennsylvania State Veterans' Commission under 51
Pa.C.S. Ch. 17 (relating to State Veterans' Commission and
Deputy Adjutant General for Veterans' Affairs).
* * *
Section 7. Section 1102-C.2 of the act, amended July 13,
2016 (P.L.526, No.84), is amended to read:
Section 1102-C.2. Exempt Parties.--The United States, the
Commonwealth or any of their instrumentalities, agencies or
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political subdivisions, or veterans' service organizations shall
be exempt from payment of the tax imposed by this article. The
exemption under this section shall not, however, relieve any
other party to a transaction from liability for the tax.
Section 7.1. Section 1711-D of the act is amended by adding
definitions to read:
Section 1711-D. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Deteriorated property." Any blighted, impoverished area
containing industrial, commercial or other real property that is
abandoned, unsafe, vacant, undervalued, underutilized,
overgrown, defective, condemned, demolished or which contains
economically undesirable land use.
* * *
"Film production tax credit district." A district authorized
under section 1716.2-D.
* * *
Section 7.2. Section 1712-D of the act is amended by adding
a subsection to read:
Section 1712-D. Credit for qualified film production expenses.
* * *
(b.1) Review and approval of applications for film
production tax credit district activity.--For applications
involving film production expenses incurred within a designated
film production tax credit district authorized under section
1716.2-D, the department shall accept applications at any time.
Applications shall be reviewed by the department utilizing the
criteria required under subsection (b). Upon determining the
taxpayer has incurred or will incur qualified film production
expenses, the department shall approve the taxpayer for a tax
credit utilizing the tax credits authorized under 1716.2-D, not
to exceed the amount authorized for the fiscal year.
* * *
Section 7.3. The act is amended by adding a section to read:
Section 1716.2-D. Film production tax credit districts.
(a) Establishment.--The department may designate not more
than two film production tax credit districts for the purpose of
enhancing, promoting and expanding film production opportunities
and establishing a film production industry within this
Commonwealth.
(b) Criteria.--A film production tax credit district shall:
(1) Be at least 55 acres in size.
(2) Be located on deteriorated property.
(3) Be comprised of a parcel that is or will be occupied
by two or more qualified businesses that:
(i) in the aggregate, make a capital investment of
at least $400,000,000 within the district within five
years after the effective date of the designation of the
district; and
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(ii) are dedicated to film production activity,
postproduction activity or other activities that directly
or indirectly support film production activity occurring
within the district or within this Commonwealth.
(4) Contain at least one qualified production facility
and six soundstages.
(c) Application.--The following apply:
(1) An application to designate a film production tax
credit district may be made by the county or municipality in
which all or part of the district will be located. The
department shall review the application and, if approved,
issue a designation for the film production tax credit
district. The application period shall be set by the
department.
(2) The application shall contain the following
information:
(i) The geographic area of the proposed film
production tax credit district.
(ii) A detailed map of the proposed district,
including geographic boundaries, total area and present
use and conditions of the land and structures.
(iii) A description of the current social, economic
and demographic characteristics of the proposed district
and anticipated improvements in education, health, human
services, public safety and employment that will result
from designation of the district.
(iv) A description of anticipated film production
activity and ancillary activities in the proposed
district.
(v) Evidence of potential private and public
investment in the proposed district.
(vi) The role of the proposed district in regional
economic and community development.
(d) Designation period.--A district designated under
subsection (c) shall expire 15 years after the effective date of
the designation.
(e) Construction.--The tax credits authorized under this
section are in addition to the tax credits under section 1716-
D(a) and are available exclusively for activities occurring
within the designated district.
(f) Annual tax credits.--The department may authorize a tax
credit for a film production tax credit district in fiscal year
2019-2020 and in each fiscal year thereafter.
Section 8. Article XVII-D of the act is amended by adding a
subarticle to read:
SUBARTICLE E
ENTERTAINMENT ECONOMIC ENHANCEMENT PROGRAM
Section 1771-D. Scope of subarticle.
This subarticle relates to the Entertainment Economic
Enhancement Program.
Section 1772-D. Definitions.
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The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Class 1 venue." A stadium, arena, other structure or
property owned by a municipality or an authority formed under
Article XXV-A of the act of July 28, 1953 (P.L.723, No.230),
known as the Second Class County Code, at which concerts are
performed and which is all of the following:
(1) Located in a city of the first class or a county of
the second class.
(2) Constructed in a manner in which the venue has a
seating capacity of at least 14,000.
"Class 2 venue." A stadium, arena or other structure at
which concerts are performed and which is all of the following:
(1) Located outside the geographic boundaries of a city
of the first class or a county of the second class.
(2) Constructed in a manner in which the venue has a
seating capacity of at least 6,000.
"Class 3 venue." A stadium, arena or other structure which
is any of the following:
(1) Located within a neighborhood improvement zone, as
defined in section 1902-B.
(2) Owned by or affiliated with a State-related
institution as defined in 62 Pa.C.S. § 103 (relating to
definitions).
(3) Owned by the Commonwealth and affiliated with the
State System of Higher Education.
"Concert." A live performance of music in the presence of
individuals who view the performance.
"Concert tour equipment." Includes stage, set, scenery,
design elements, automation, rigging, trusses, spotlights,
lighting, sound equipment, video equipment, special effects,
cases, communication devices, power distribution equipment,
backline and other miscellaneous equipment or supplies used
during a concert or rehearsal.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Maintained a place of business" or "maintaining a place of
business." All of the following:
(1) Having, maintaining or using within this
Commonwealth an office, warehouse or other place of business.
(2) Regularly engaging in an activity as a business
within this Commonwealth in connection with the lease, sale
or delivery of tangible personal property or the performance
of a service for residents of this Commonwealth.
"Minimum rehearsal and tour requirements." During a tour,
all of the following must occur:
(1) The purchase or rental of concert tour equipment
delivered to a location in this Commonwealth, in an amount of
at least $3,000,000, from companies located and maintaining a
place of business in this Commonwealth for use on the tour.
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(2) A rehearsal at a qualified rehearsal facility for a
minimum of 10 days.
(3) At least one concert performed at a class 1 venue.
(4) At least one concert performed at a venue which is
located in a municipality other than the municipality in
which the class 1 venue under paragraph (3) is located.
"Pass-through entity." Any of the following:
(1) A partnership as defined in section 301(n.0).
(2) A Pennsylvania S corporation as defined in section
301(n.1).
(3) An unincorporated entity subject to section 307.21.
"Pennsylvania rehearsal and tour expenses." The sum of
Pennsylvania rehearsal expenses and tour expenses. The term
includes Pennsylvania rehearsal expenses and tour expenses paid
prior to or during a rehearsal or tour.
"Pennsylvania rehearsal expense." A rehearsal expense which
is incurred or will be incurred within this Commonwealth. The
term includes:
(1) A payment which is made or will be made by a
recipient to a person upon which withholding will be made on
the payment by the recipient as required under Part VII of
Article III or a payment which is made or will be made to a
person who is required to make estimated payments under Part
VIII of Article III.
(2) A payment which is made or will be made to a
personal service corporation representing individual talent
if the tax imposed by Article IV will be paid or accrued on
the net income of the corporation for the taxable year.
(3) A payment which is made or will be made to a pass-
through entity representing individual talent for which
withholding will be made by the pass-through entity on the
payment as required under Part VII or VII-A of Article III.
"Qualified rehearsal and tour expense." All Pennsylvania
rehearsal and tour expenses if Pennsylvania rehearsal expenses
comprise or will comprise at least 60% of the total rehearsal
expenses. The term shall not include more than $2,000,000 in the
aggregate of compensation paid or to be paid to individuals or
payment made or to be made to entities representing an
individual for services provided in the tour.
"Qualified rehearsal facility." A rehearsal facility which
meets at least six of the following criteria:
(1) Has had a minimum of $8,000,000 invested in the
rehearsal facility in land or structure, or a combination of
land and structure.
(2) Has a permanent grid system with a capacity of
1,000,000 pounds.
(3) Has a built-in power supply system available at a
minimum of 3,200 amps without the need for supplemental
generators.
(4) Has a height from floor to permanent grid of a
minimum of 80 feet.
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(5) Has at least two sliding or roll-up access doors
with a minimum height of 14 feet.
(6) Has a perimeter security system which includes 24-
hour, seven-days-a-week security cameras and the use of
access control identification badges.
(7) Has a service area with production offices, catering
and dressing rooms with a minimum of 5,000 square feet.
(8) Is located within one mile of a minimum of two
companies which provide concert tour equipment for use on a
tour.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV, VI, VII or IX. The term does not include
tax withheld by an employer from an employee under Article III.
"Recipient." A taxpayer that has been awarded a tax credit
under section 1773-D(e).
"Rehearsal." An event or series of events which occur in
preparation for a tour prior to the start of the tour or during
a tour when additional preparation may be needed.
"Rehearsal expense." All of the following when incurred or
will be incurred during a rehearsal:
(1) Compensation paid or to be paid to an individual
employed in the rehearsal of the performance.
(2) Payment to a personal service corporation
representing individual talent.
(3) Payment to a pass-through entity representing
individual talent.
(4) The costs of construction, operations, editing,
photography, staging, lighting, wardrobe and accessories.
(5) The cost of leasing vehicles.
(6) The cost of transportation of people or concert tour
equipment to or from a train station, bus depot, airport or
other transportation facility or directly from a residence or
business entity.
(7) The cost of insurance coverage.
(8) The cost of food and lodging.
(9) The cost of purchase or rental of concert tour
equipment.
(10) The cost of renting a rehearsal facility.
(11) The cost of emergency or medical support services
required to conduct a rehearsal.
"Rehearsal facility." As follows:
(1) A facility primarily used for rehearsals which is
all of the following:
(i) Located within this Commonwealth.
(ii) Has a minimum of 25,000 square feet of column-
free, unobstructed floor space.
(2) The term does not include a facility at which
concerts are capable of being held.
"Start date." The date the first set of concert tour
equipment arrives or is expected to arrive at a qualified
rehearsal facility.
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"Tax credit." The concert rehearsal and tour tax credit as
provided under this subarticle.
"Taxpayer." A concert tour promotion company, concert tour
management company or other concert management company subject
to tax under Article III, IV or VI. The term does not include
contractors or subcontractors of a concert tour promotion
company, concert tour management company or other concert
management company.
"Tour." A series of concerts performed or to be performed by
a musical performer in more than one location. The term includes
at least one rehearsal.
"Tour expense." As follows:
(1) Costs incurred or which will be incurred during a
tour for venues located in this Commonwealth. The term
includes all of the following:
(i) A payment which is made or will be made by a
recipient to a person upon which withholding will be made
on the payment by the recipient as required under Part
VII of Article III or a payment which is made or will be
made to a person who is required to make estimated
payments under Part VIII of Article III.
(ii) The cost of transportation of people or concert
touring equipment which is incurred or will be incurred
while transporting to or from a train station, bus depot,
airport or other transportation facility or while
transporting directly from a residence or business entity
located in this Commonwealth, or which is incurred or
will be incurred for transportation provided by a company
which is subject to the tax imposed under Article III or
IV.
(iii) The cost of leasing vehicles upon which the
tax imposed by Article II will be paid or accrued.
(iv) The cost of insurance coverage which is
purchased or will be purchased through an insurance agent
based in this Commonwealth.
(v) The cost of purchasing or renting facilities and
equipment from or through a resident of this Commonwealth
or an entity subject to taxation in this Commonwealth.
(vi) The cost of food and lodging which is incurred
or will be incurred from a facility located in this
Commonwealth.
(vii) Expenses which are incurred or will be
incurred in marketing or advertising a tour at venues
located within this Commonwealth.
(viii) The cost of merchandise which is purchased or
will be purchased from a company located within this
Commonwealth and used on the tour.
(ix) A payment which is made or will be made to a
personal service corporation representing individual
talent if the tax imposed by Article IV will be paid or
accrued on the net income of the corporation for the
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taxable year.
(x) A payment which is made or will be made to a
pass-through entity representing individual talent for
which withholding will be made by the pass-through entity
on the payment as required under Part VII or VII-A of
Article III.
(2) The term does not include development cost,
including the writing of music or lyrics.
"Venue." A class 1, class 2 or class 3 venue.
Section 1773-D. Procedure.
(a) Application.--A taxpayer may apply to the department for
a tax credit under this section. The application shall be on the
form required by the department.
(b) Review and approval.--
(1) The department shall establish application periods
not to exceed 30 days. All applications received during an
application period shall be reviewed and evaluated by the
department based on the following criteria:
(i) The anticipated number of rehearsal days in a
qualified rehearsal facility.
(ii) The anticipated number of concerts at class 1
venues.
(iii) The anticipated number of concerts at class 2
venues.
(iv) The anticipated number of concerts at class 3
venues.
(v) The anticipated amount of Pennsylvania rehearsal
expenses in comparison to the anticipated aggregate
amount of rehearsal expenses.
(vi) The anticipated amount of the tour expenses.
(vii) The anticipated amount of the concert tour
equipment expenses which are or will be purchased or
rented from a company located and maintaining a place of
business in this Commonwealth and which will be used on
the tour.
(viii) The anticipated number of days spent in
Commonwealth hotels.
(ix) Other criteria that the department deems
appropriate to ensure maximum employment opportunities
and entertainment benefits for the residents of this
Commonwealth.
(2) Except as provided in subsection (c) and upon
determining that the taxpayer has paid the applicable
application fee not to exceed $300, has met or will meet the
minimum rehearsal and tour requirements and has incurred or
will incur qualified rehearsal and tour expenses, the
department may approve the taxpayer for a tax credit.
Applications not approved may be reviewed and considered in
subsequent application periods. The department may approve a
taxpayer for a tax credit based on its evaluation of the
criteria under this subsection.
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(c) Restriction.--The department may only consider
rehearsals held or to be held, and qualified rehearsal and tour
expenses incurred or to be incurred, after January 1, 2017, in
determining whether a taxpayer has met or will meet the minimum
rehearsal and tour requirements.
(d) Contract.--If the department approves the taxpayer 's
application under subsection (b), the department and the
taxpayer shall enter into a contract containing the following:
(1) An itemized list of rehearsal expenses incurred or
to be incurred for the tour.
(2) An itemized list of Pennsylvania rehearsal expenses
incurred or to be incurred for the tour.
(3) With respect to a contract entered into prior to
completion of a tour, a commitment by the taxpayer to incur
the Pennsylvania rehearsal expenses as itemized.
(4) An itemized list of the qualified rehearsal and tour
expenses incurred or to be incurred for the tour.
(5) With respect to a contract entered into prior to
completion of a tour, a commitment by the taxpayer to incur
the qualified rehearsal and tour expenses as itemized.
(6) With respect to a contract entered into prior to
completion of a tour, a commitment by the taxpayer to hold at
least one concert at a class 1 venue.
(7) With respect to a contract entered into prior to
completion of a tour, a commitment by the taxpayer to hold at
least one concert at a venue located in a municipality other
than the municipality in which the class 1 venue under
paragraph (6) is located.
(8) The start date or the expected start date.
(9) Any other information the department deems
appropriate.
(e) Certificate.--Upon execution of the contract required by
subsection (d), the department shall award the taxpayer a
concert rehearsal and tour tax credit and issue the recipient a
tax credit certificate.
Section 17 7 4-D. Claim.
Beginning July 1, 2017, a recipient may claim a concert
rehearsal and tour tax credit against the qualified tax
liability of the recipient.
Section 17 7 5-D. Carryover, carryback and assignment of tax
credit.
(a) General rule.--If a recipient cannot use the entire
amount of a tax credit for the taxable year in which the tax
credit is first approved, the excess may be carried over to
succeeding taxable years and used as a tax credit against the
qualified tax liability of the recipient for those taxable
years. Each time the tax credit is carried over to a succeeding
taxable year, the tax credit shall be reduced by the amount that
was used as a credit during the immediately preceding taxable
year. The tax credit may be carried over and applied to
succeeding taxable years for no more than three taxable years
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following the first taxable year for which the recipient was
entitled to claim the tax credit.
(b) Application.--A tax credit approved by the department in
a taxable year first shall be applied against the recipient's
qualified tax liability for the current taxable year as of the
date on which the tax credit was approved before the tax credit
can be applied against tax liability under subsection (a).
(c) No carryback or refund.--A recipient shall not be
entitled to carry back or obtain a refund of any portion of an
unused tax credit granted to the recipient under this
subarticle.
(d) Sale or assignment.--The following shall apply:
(1) A recipient, upon application to and approval by the
department, may sell or assign, in whole or in part, a tax
credit granted to the recipient under this subarticle.
(2) The department and the Department of Revenue shall
jointly promulgate regulations for the approval of
applications under this subsection.
(3) Before an application is approved, the Department of
Revenue must make a finding that the recipient has filed all
required State tax reports and returns for all applicable
taxable years and paid any balance of State tax due as
determined at settlement, assessment or determination by the
Department of Revenue.
(4) Notwithstanding any other provision of law, the
Department of Revenue shall settle, assess or determine the
tax of a taxpayer under this subsection within 60 days of the
filing of all required final returns or reports in accordance
with section 806.1(a)(5) of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code.
(e) Purchasers and assignees.--The following apply:
(1) The purchaser or assignee of all or a portion of a
tax credit under subsection (d) shall immediately claim the
tax credit in the taxable year in which the purchase or
assignment is made.
(2) The amount of the tax credit that a purchaser or
assignee may use against one qualified tax liability may not
exceed 50% of the qualified tax liability for the taxable
year.
(3) The purchaser or assignee may not carry forward,
carry back or obtain a refund of or sell or assign the tax
credit.
(4) The purchaser or assignee shall notify the
Department of Revenue of the seller or assignor of the tax
credit in compliance with procedures specified by the
Department of Revenue.
Section 17 7 6-D. Determination of Pennsylvania rehearsal and
tour expenses.
When prescribing standards for determining which rehearsal or
tour expenses are considered Pennsylvania rehearsal and tour
expenses for purposes of computing the tax credit provided by
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