PRINTER'S NO. 2407
No. 1848 Session of 2001
INTRODUCED BY STETLER, C. WILLIAMS, BARRAR, BELFANTI, BROWNE,
CALTAGIRONE, CAPPELLI, COY, CREIGHTON, CURRY, FRANKEL, GABIG,
GEORGE, GORDNER, GRUCELA, HALUSKA, HARHAI, HERMAN, HORSEY,
JOSEPHS, LAUGHLIN, LESCOVITZ, LEVDANSKY, MANN, McCALL,
McGILL, MELIO, R. MILLER, MUNDY, PETRONE, SAINATO, SAYLOR,
TANGRETTI, E. Z. TAYLOR, TIGUE, TRELLO, TRICH, WALKO,
WOJNAROSKI, YOUNGBLOOD, YUDICHAK, THOMAS, STEELMAN, DIVEN AND
PETRARCA, JULY 11, 2001
REFERRED TO COMMITTEE ON FINANCE, JULY 11, 2001
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," defining "biotechnology company" and "emerging
11 technology company"; further defining "Pennsylvania qualified
12 research and development"; and further providing for the time
13 period of and limitation on technology tax credits.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The definition of "Pennsylvania qualified
17 research and development" in section 1702-B of the act of March
18 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
19 added May 7, 1997 (P.L.85, No.7), is amended and the section is
20 amended by adding definitions to read:
1 Section 1702-B. Definitions.--The following words and
2 phrases, when used in this article, shall have the meanings
3 given to them in this section, except where the context clearly
4 indicates a different meaning:
5 "Biotechnology company." A person whose headquarters or base
6 of operations is located in this Commonwealth, engaged in the
7 research, development, production or provision of biotechnology
8 for the purpose of developing or providing products, processes
9 or technologies for specific commercial or public purposes,
10 including, but not limited to, medical, pharmaceutical,
11 nutritional and other health-related purposes, agricultural
12 purposes and environmental purposes, or a person whose
13 headquarters or base of operations is located in this
14 Commonwealth who is engaged in providing services or products
15 necessary for such research, development, product or provision
16 of service. The term shall include bioinformatics, biomedicine,
17 biopharmacogenomics, biopharmaceuticals, biorobotics, bioscience
18 and genome research.
19 * * *
20 "Emerging technology company." A person whose headquarters
21 or base of operations is located in this Commonwealth and who
22 employs some combination of the following: highly educated or
23 trained managers and workers who use sophisticated scientific
24 research or production equipment, processes or knowledge to
25 discover, develop, test, transfer or manufacture a product or
26 service.
27 * * *
28 "Pennsylvania qualified research and development." Qualified
29 research and development as defined in section 41(d) of the
30 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
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1 41(d)) that is conducted in this Commonwealth. The term includes
2 biotechnology companies and emerging technology companies.
3 * * *
4 Section 2. Sections 1707-B and 1709-B(a) of the act, added
5 May 7, 1997 (P.L.85, No.7), are amended to read:
6 Section 1707-B. Time Limitations.--A taxpayer is not
7 entitled to a research and development tax credit for
8 Pennsylvania qualified research and development expenses
9 incurred in taxable years ending after December 31, [2004] 2010.
10 The termination date in section 41(h) of the Internal Revenue
11 Code does not apply to a taxpayer who is eligible for the
12 research and development tax credit under this article for the
13 taxable year in which the Pennsylvania qualified research and
14 development expense is incurred.
15 Section 1709-B. Limitation on Credits.--(a) The total
16 amount of credits approved by the department shall not exceed
17 [fifteen million dollars ($15,000,000)] sixty million dollars
18 ($60,000,000) in any fiscal year. Of that amount, three million
19 dollars ($3,000,000) shall be allocated exclusively for small
20 businesses and twenty million dollars ($20,000,000) shall be
21 allocated exclusively for emerging technology and biotechnology
22 companies. However, if the total amounts allocated to either the
23 group of applicants exclusive of small businesses, emerging
24 technology companies, or biotechnology companies or the group of
25 small business, emerging technology, or biotechnology applicants
26 is not approved in any fiscal year, the unused portion will
27 become available for use by the other group of qualifying
28 taxpayers.
29 * * *
30 Section 3. This act shall apply to the tax years beginning
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1 after December 31, 2000.
2 Section 4. This act shall take effect immediately.
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