THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PETRI, GABLER, BARRAR, D. COSTA, DENLINGER, EVERETT, GEIST, GODSHALL, GROVE, KILLION, MICOZZIE, MURT, O'NEILL, RAPP AND WAGNER, FEBRUARY 8, 2011

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 8, 2011  

AN ACT

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," in malt beverage tax, further providing for

limited tax credits.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2010 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, amended December

23, 2003 (P.L.250, NO.46), is amended to read: 

Section 2010.  Limited Tax Credits.--(a)  The General

Assembly of the Commonwealth, conscious of the financial

pressures facing small brewers in Pennsylvania and the attendant

risk of business failure and loss of employment opportunity,

declares it public policy that renewal and improvement of small

brewers be encouraged and assisted by a [limited] tax subsidy to

be granted [during the period] as set forth in this section.

(b)  As used in this section:

"Amounts paid."  The phrase means (i) amounts actually paid,

or (ii) at the taxpayer's election, amounts promised to be paid

under firm purchase contracts actually executed during any

calendar year [falling within the effective period of this

section]: Provided, however, That there shall be no duplication

of "amounts paid" under this definition.

["Effective period."  The period from January 1, 1974, to

December 31, 2008, inclusive.]

"Qualifying capital expenditures."  Amounts paid by a

taxpayer [during the effective period of this section] for the

purchase of items of plant, machinery or equipment for use by

the taxpayer within this Commonwealth in the manufacture and

sale of malt or brewed beverages: Provided, however, That the

total amount of qualifying capital expenditures made by a

taxpayer within a single calendar year shall not exceed two

hundred thousand dollars ($200,000).

"Secretary."  The Secretary of Revenue of the Commonwealth of

Pennsylvania where not otherwise qualified.

"Taxpayer."  A manufacturer of malt or brewed beverages

claiming a tax credit or credits under this section and having

an annual production of malt or brewed beverages that does not

exceed one million five hundred thousand (1,500,000) barrels.

(c)  A tax credit or credits shall be allowed for each

calendar year to a taxpayer, as hereinafter provided, not to

exceed in total amount the amount of qualifying capital

expenditures made by the taxpayer and certified by the

secretary.

(d)  A taxpayer desiring to claim a tax credit or credits

under this section shall, within one year of the date of the

original purchase of the qualifying capital expenditures, in

accordance with regulations promulgated by the secretary, report

annually to the secretary the nature, amounts and dates of

qualifying capital expenditures made by him and such other

information as the secretary shall require. If satisfied as to

the correctness of such a report, the secretary shall issue to

the taxpayer a certificate establishing the amount of qualifying

capital expenditures made by the taxpayer and included within

said report. The taxpayer shall also provide to the secretary

the number of employes, total production of malt or brewed

beverages and the amount of capital expenditures made by the

taxpayer at each location operated by the taxpayer or a parent

corporation, subsidiary, joint venture or affiliate. Also, the

taxpayer shall notify the secretary of any contract for

production held with another manufacturer. The secretary shall

file a report annually with the Chief Clerk of the House of

Representatives and with the Secretary of the Senate outlining

the employment, production, expenditures and tax credits

authorized under this section.

(e)  Upon receipt from a taxpayer of a certificate from the

secretary issued under subsection (c), the Secretary of Revenue

shall grant a tax credit or credits in the amount certified

against any tax due under this article in the calendar year in

which the expenditures were incurred or against any tax becoming

due from the taxpayer under this article in the following three

calendar years. [No credit shall be allowed against any tax due

for any taxable period ending after December 31, 2008.]

Section 2.  The amendment of section 2010 of the act shall

apply to tax years beginning after December 31, 2010.

Section 3.  This act shall take effect in 60 days.