1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," providing for a natural gas corridor tax credit;
11and imposing penalties.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Article XVIII-C Heading of the act of March 4,
151971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added
16July 9, 2008 (P.L.922, No.66), is amended to read:

17ARTICLE XVIII-C

18[(RESERVED)]

19NATURAL GAS CORRIDOR TAX CREDIT

20Section 2. The act is amended by adding sections to read:

1Section 1801-C. Definitions.

2The following words and phrases when used in this article
3shall have the meanings given to them in this section unless the
4context clearly indicates otherwise:

5"Applicant." A company which meets the eligibility
6requirements for the tax credit under this article.

7"Committee." The Natural Gas Corridor Tax Credit Committee.

8"Company." An entity doing business in this Commonwealth
9which is subject to tax under Article III, IV or VI. The term
10shall include the shareholder of a Pennsylvania S corporation
11that is eligible for the tax credit under this article.

12"Department." The Department of Revenue of the Commonwealth.

13"Eligible corridor." The portions of I-76, I-78, I-79, I-80,
14I-81, I-83 and I-95 within the boundaries of this Commonwealth.

15"Natural gas corridor tax credit." Tax credits for which the
16Department of Revenue has issued a certificate under this
17article.

18"Natural gas fueling station." A facility which dispenses
19compressed natural gas or compressed natural gas and liquefied
20natural gas to the public for vehicle refueling purposes and
21does not include time-fill stations.

22"Natural gas infrastructure plan." A company's plan to
23transition organizational structures needed for the operation of
24natural gas fueling stations, by converting existing stations or
25purchasing new or used natural gas fueling equipment.

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

27"Start date." The date on which the company may begin the
28company's infrastructure plan for natural gas fueling stations.

29Section 1802-C. Eligibility.

30In order to be eligible to receive a natural gas corridor tax

1credit, a company must demonstrate to the department the
2following:

3(1) A comprehensive plan to do any of the following:

4(i) Build one or more natural gas fueling stations.

5(ii) Add compressed natural gas fueling capacity to
6one or more existing stations which sells gasoline.

7(iii) A combination of paragraph (1) and (2).

8(2) The stations must be open to the public.

9(3) The stations must be located within two miles of an
10eligible corridor.

11Section 1803-C. Application process.

12(a) Application.--A company must complete and submit to the
13department a natural gas corridor tax credit application.

14(b) Committee approval process.--

15(1) The Natural Gas Corridor Tax Credit Committee is
16established and shall be made up of members designated by the
17following, except that none of the following may be
18designees:

19(i) The Secretary of Community and Economic
20Development of the Commonwealth.

21(ii) The Secretary of Transportation of the
22Commonwealth.

23(iii) The secretary.

24(iv) The Secretary of Environmental Protection.

25(v) The chairman of the Marcellus Shale Coalition of
26the Commonwealth.

27(vi) The Executive Director of Associated Petroleum
28Industries of Pennsylvania.

29(2) Once applications have been filed with the
30department, the committee shall review all applications and

1rank applications according to the total number of natural
2gas stations and gasoline stations adding natural gas fueling
3capacity proposed to be built along a single eligible
4corridor or a continuous travel route utilizing only the
5eligible corridors, with a spacing of at least 50 miles and
6no more than 100 miles from another natural gas station
7within two miles of the eligible corridor.

8(c) Approval.--Once applications are ranked by the
9committee, the department shall approve the companies'
10applications according to their discretion and availability of
11natural gas corridor tax credits. The department and the company
12shall execute a commitment letter containing the following:

13(1) A description of the natural gas fueling
14infrastructure plan.

15(2) The amount of private capital investment in the
16natural gas fueling infrastructure plan.

17(3) A signed statement that the company intends to
18complete its natural gas fueling infrastructure plan within
19eighteen months.

20(4) Any other information as the department deems
21appropriate.

22(d) Commitment letter.--After a commitment letter has been
23signed by the Commonwealth and the company, the company shall
24receive a natural gas corridor tax credit certificate and filing
25information.

26Section 1804-C. Natural gas corridor tax credits.

27(a) Maximum amount.--A company may claim a natural gas
28corridor tax credit for up to 50% of the total cost of the
29compressed natural gas station or the total cost of adding
30compressed natural gas fueling capacity to an existing station

1which sells gasoline. For the purposes of this subsection, the
2total cost may not exceed $500,000.

3(b) Applicable taxes.--A company may apply the natural gas
4corridor tax credit to 100% of all or a combination of any of
5the following taxes of the company:

6(1) State corporate net income tax.

7(2) Capital stock and franchise tax or the capital stock
8and franchise tax of a shareholder of the company if the
9company is a Pennsylvania S corporation.

10(3) Gross premiums tax.

11(4) Gross receipts tax.

12(5) Bank and trust company shares tax.

13(6) Mutual thrift institution tax.

14(7) Title insurance company shares tax.

15(8) Personal income tax or the personal income tax of
16shareholders of a Pennsylvania S corporation.

17(c) Term.--A company may claim the natural gas corridor tax
18credit in one year or spread the credit over a period determined
19by the department but not to exceed five years from the date the
20company first submits a certificate.

21(d) Sale or assignment.--

22(1) A natural gas corridor tax credit recipient, upon
23application to and approval by the department, may sell or
24assign, in whole or in part, a natural gas corridor tax
25credit granted to the recipient if no claim for allowance of
26the credit is filed within one year from the date the credit
27is granted by the department.

28(2) The purchaser or assignee of a natural gas corridor
29tax credit shall immediately claim the credit in the taxable
30year in which the purchase or assignment is made. The

1purchaser or assignee may not carry back, obtain a refund of
2or sell or assign the natural gas corridor tax credit. The
3purchaser or assignee shall notify the department of the
4seller or assignor of the natural gas corridor tax credit in
5compliance with procedures specified by the department.

6(3) The department shall promulgate guidelines for the
7approval of applications under this subsection.

8(e) Availability.--Each fiscal year, $5,000,000 in natural
9gas corridor tax credits shall be made available to the
10department and may be awarded by the department in accordance
11with this article.

12Section 1805-C. Penalties.

13(a) Failure to maintain operations.--A company which
14receives natural gas corridor tax credits and fails to operate
15the natural gas fueling station for which it received the tax
16credits for a period of five years from the start date shall
17refund to the Commonwealth the total amount of credits granted.

18(b) Failure to complete the natural gas infrastructure
19plan.--A company which receives natural gas corridor tax credits
20and fails to complete the natural gas infrastructure plan within
2118 months shall refund to the Commonwealth the total amount of
22credits granted.

23(c) Waiver.--The department may waive the penalties under
24subsections (a) and (b) if it is determined that a company's
25natural gas fueling infrastructure plan was not completed
26because of circumstances beyond the company's control.
27Circumstances shall include natural disasters, unforeseen
28industry trends or a loss of a major supplier or market. The
29company must promptly notify the department of circumstances
30beyond the company's control which would delay completion of the

1project.

2Section 1806-C. Report to General Assembly.

3No later than June 1, 2014, and each June 1 thereafter, the
4department shall submit a report on the natural gas corridor tax
5credits granted under this article. The report shall include the
6names of taxpayers who utilized the credit as of the date of the
7report and the amount of credits approved. The report may
8include recommendations for changes in the calculation or
9administration of the natural gas corridor tax credit and other
10information as the department deems appropriate. The report
11shall be submitted to all of the following:

12(1) The chairman and minority chairman of the
13Appropriations Committee of the Senate.

14(2) The chairman and minority chairman of the
15Appropriations Committee of the House of Representatives.

16(3) The chairman and minority chairman of the Finance
17Committee of the Senate.

18(4) The chairman and the minority chairman of the
19Finance Committee of the House of Representatives.

20Section 1807-C. Time limitations.

21A company shall not be entitled to a natural gas corridor tax
22credit for taxable years ending after December 31, 2018.

23Section 1808-C. Regulations.

24The secretary shall promulgate regulations necessary for the
25implementation and administration of this article.

26Section 3. This act shall take effect in 60 days.