PRINTER'S NO. 1806
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1547
Session of
2023
INTRODUCED BY WAXMAN, JUNE 29, 2023
REFERRED TO COMMITTEE ON FINANCE, JUNE 29, 2023
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 entertainment production tax credit, further
providing for carryover, carryback and assignment of credit,
for limitations and for pass-through entity.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1714-D(e)(1) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
and the subsection is amended by adding a paragraph to read:
Section 1714-D. Carryover, carryback and assignment of credit.
* * *
(e) Sale or assignment.--The following shall apply:
(1) [A] Except as provided under paragraph (5), a
taxpayer, upon application to and approval by the department,
may sell or assign, in whole or in part, a tax credit granted
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to the taxpayer under this subarticle.
* * *
(5) A taxpayer may not sell or assign, in whole or in
part, a tax credit granted to the taxpayer under this
subarticle for a multifilm production.
* * *
Section 2. Section 1716-D(a) of the act, amended July 8,
2022 (P.L.513, No.53), is amended and the section is amended by
adding a subsection to read:
Section 1716-D. Limitations.
(a) Cap.--Except for tax credits reissued under section
1716.1-D or tax credits issued for multifilm productions, in no
case shall the aggregate amount of tax credits awarded in any
fiscal year under this subarticle exceed $100,000,000. The
department may, in its discretion, award in one fiscal year up
to:
(1) Thirty percent of the dollar amount of film
production tax credits available to be awarded in the next
succeeding fiscal year.
(2) Twenty percent of the dollar amount of film
production tax credits available to be awarded in the second
successive fiscal year.
(3) Ten percent of the dollar amount of film production
tax credits available to be awarded in the third successive
fiscal year.
* * *
(g) Multifilm productions.--The cap on the aggregate amount
of tax credits awarded in any fiscal year under subsection (a)
shall not apply to the award of tax credits to taxpayers for
multifilm productions.
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Section 3. Section 1718-D(c) of the act is amended and the
section is amended by adding a subsection to read:
Section 1718-D. Pass-through entity.
* * *
(c) Application.--[A] Except as provided under subsection
(d), a shareholder, member or partner of a pass-through entity
to whom a credit is transferred under subsection (a) shall
immediately claim the credit in the taxable year in which the
transfer is made. The shareholder, member or partner may not
carry forward, carry back, obtain a refund of or sell or assign
the credit.
(d) Multifilm productions.--A shareholder, member or partner
of a pass-through entity to whom a tax credit for a multifilm
production is transferred under subsection (a) may carry forward
the tax credit for no more than three taxable years following
the first taxable year for which the taxpayer was entitled to
claim the tax credit for the multifilm production.
Section 4. This act shall take effect in 60 days.
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