PRINTER'S NO. 2515

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1980

Session of

2024

INTRODUCED BY CONKLIN, BOROWSKI, BURGOS, CERRATO, HILL-EVANS,

KINSEY, MADDEN, SANCHEZ AND FLEMING, JANUARY 31, 2024

REFERRED TO COMMITTEE ON FINANCE, JANUARY 31, 2024

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," providing for a disaster hotel stay tax credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding an article to

read:

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Beneficiary." A resident of this Commonwealth whose primary

residence was affected by a disaster to whom a qualified hotel

provides a discount. The term shall not include a resident of

this Commonwealth for whom housing was made available, as a

result of a disaster, through a Federal or State disaster relief

program.

"Disaster." A man-made disaster or natural disaster that

represents a direct and immediate threat to the primary

power failure, natural resource shortage or other condition,

except enemy action, resulting from man-made causes, including

oil spills and other environmental contamination, which

threatens or causes substantial damage to property or

individuals, loss of life or other hardships.

"Natural disaster." A hurricane, tornado, storm, flood, high

water, wind-driven water, tidal wave, earthquake, landslide,

mudslide, snowstorm, drought, fire, sinkhole, explosion or other

catastrophe not resulting from a man-made cause which threatens

or causes substantial damage to property or individuals,

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under section 209.

"Rent." As defined in section 209.

"Tax credit." A tax credit under this article.

Section 1903-J. Tax credit.

(a) Eligibility.--A qualified hotel that provides a discount

shall be eligible for a tax credit equal to 100% of the discount

provided.

(b) Limitation.--A qualified hotel may receive a tax credit

for a discount for not more than 90 nights per room rented by a

beneficiary.

provided to a beneficiary during the prior calendar year.

(3) The application must be on a form and in the manner

determined by the department and must include the following:

(i) certification under subsection (b);

(ii) information required by the department to

verify that the applicant is a qualified hotel; and

(iii) any other information as the department deems

appropriate.

(b) Certification.--A beneficiary must certify, on a form

and in the manner determined by the department, that the

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shall issue an approval or disapproval by December 31 of each

year.

(2) Upon approval, the department shall issue a

certificate stating the amount of tax credit granted for

discounts provided in the prior calendar year.

Section 1905-J. Carryover, carry back, refund and assignment of

tax credit.

(a) Use.--A tax credit shall first be applied against the

qualifying tax liability of the hotel during the tax year in

which the qualified hotel provided a discount.

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 five

taxable years following the first taxable year for which the

qualified hotel was entitled to claim the tax credit.

(c) Carryback and refund.--A qualified hotel may not carry

back nor obtain a refund of an unused tax credit.

(d) Sale or assignment.--A qualified hotel may not sell nor

assign a tax credit granted to the qualified hotel.

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(b) Guidelines.--The department shall develop written

guidelines for the implementation of this article. The

guidelines shall be in effect until the department promulgates

regulations for the implementation of this article.

Section 1907-J. Report.

The department shall, by March 31 of the succeeding year,

issue a report on the costs of the tax credit to the Governor,

the President pro tempore of the Senate, the Majority Leader and

Minority Leader of the Senate, the Speaker of the House of

Representatives and the Majority Leader and Minority Leader of

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