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 Community and
13Economic Development of the Commonwealth.

14"Eligible corridor." The portions of I-76, I-78, I-79, I-80,
15I-81, I-83 and, I-95 <-and I-276 within the boundaries of this
16Commonwealth.

17"Natural gas corridor tax credit." Tax credits for which the
18Department of Revenue has issued a certificate under this
19article.

20"Natural gas fueling station." A facility which dispenses
21compressed natural gas or compressed natural gas and liquefied
22natural gas to the public for vehicle refueling purposes and
23does not include time-fill stations.

24"Natural gas infrastructure plan." A company's plan to
25transition organizational structures needed for the operation of
26natural gas fueling stations, by converting existing stations or
27purchasing new or used natural gas fueling equipment.

<-28"Secretary." The Secretary of Revenue of the Commonwealth.

29"Start date." The date on which the company may begin the
30company's infrastructure plan for natural gas fueling stations.

1Section 1802-C. Eligibility.

2In order to be eligible to receive a natural gas corridor tax
3credit, a company must demonstrate to the department the
4following:

5(1) A comprehensive plan to do any of the following:

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

7(ii) Add compressed natural gas fueling capacity to
8one or more existing stations which sells gasoline.

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

10(2) The stations must be open to the public.

11(3) The stations must be located within two miles of an
12eligible corridor.

13Section 1803-C. Application process.

14(a) Application.--A company <-must complete and submit to the
15department a natural gas corridor tax credit application <-may
16apply to the department for a natural gas corridor tax credit
17under this article. The application shall be on the form
18required by the department and include all necessary
19documentation to establish eligibility as required under section
201802-C.

21(b) Committee <-approval process.--

22(1) The Natural Gas Corridor Tax Credit Committee is
23established and shall be made up of members designated by the
24following, except that none of the following may be
25designees:

26(i) The Secretary of Community and Economic
27Development of the Commonwealth.

28(ii) The Secretary of Transportation of the
29Commonwealth.

30(iii) The secretary.

1(iv) The Secretary of Environmental Protection.

2(v) The chairman of the Marcellus Shale Coalition of
3the Commonwealth.

4(vi) The Executive Director of Associated Petroleum
5Industries of Pennsylvania.

<-6(2) Once applications have been filed with the
7department, the committee shall review all applications and
8rank applications according to the total number of natural
9gas stations and gasoline stations adding natural gas fueling
10capacity proposed to be built along a single eligible
11corridor or a continuous travel route utilizing only the
12eligible corridors, with a spacing of at least 50 miles and
13no more than 100 miles from another natural gas station
14within two miles of the eligible corridor.

<-15(2) (Reserved.)

16(c) Review.--

17(1) The department shall establish application periods
18not to exceed 90 days.

19(2) An application received during the application
20period shall be reviewed by the committee and ranked based on
21the total number of natural gas stations and gasoline
22stations adding natural gas fueling capacity proposed to be
23built along a single eligible corridor or a continuous travel
24route utilizing only the eligible corridors, with a spacing
25of at least 50 miles and no more than 100 miles from another
26natural gas station within two miles of the eligible
27corridor. The spacing restrictions under this paragraph do 
28not apply in an ambient air quality region that, at the time 
29of the entity's initial application for the tax credit, is:

30(i) classified as nonattainment for a criteria

1pollutant according to the Clean Air Act (69 Stat. 1, 42
2U.S.C. § 7401 et seq.); or

3(ii) determined by the Commonwealth to be an ambient
4air quality control region the emissions from which
5adversely impact a nonattainment area.

6(3) The committee shall make recommendations to the
7department with regard to each application reviewed.

<-8(c) (d) Approval.--Once applications are ranked by the
9committee under subsection (c), the department <-shall may approve
10the companies' applications according to their discretion and
11availability of natural gas corridor tax credits. <-The department
12and the company <-Applications not approved shall be returned to
13the committee for review during the next application period.

14(e) Contract.-- The department and the company shall execute
15a <-commitment letter contract containing the following:

16(1) A description of the natural gas fueling
17infrastructure plan.

18(2) The amount of private capital investment in the
19natural gas fueling infrastructure plan.

20(3) A signed statement that the company intends to
21complete its natural gas fueling infrastructure plan within
22eighteen months.

23(4) Any other information as the department deems
24appropriate.

<-25(d) Commitment letter.--After a commitment letter has been
26signed by the Commonwealth and the company, the company shall
27receive a natural gas corridor tax credit certificate and filing
28information.

<-29(f) Certificate.--Upon execution of the contract required
30under subsection (e), the department shall award the company a 

1natural gas corridor tax credit and issue a natural gas corridor 
2tax credit certificate.

3Section 1804-C. Natural gas corridor tax credits.

4(a) Maximum amount.--A company may claim a natural gas
5corridor tax credit for up to 50% of the total cost of the
6compressed natural gas station or the total cost of adding
7compressed natural gas fueling capacity to an existing station
8which sells gasoline. For the purposes of this subsection, the
9total cost may not exceed $500,000.

10(b) Applicable taxes.--A company may apply the natural gas
11corridor tax credit to 100% of all or a combination of any of
12the following taxes of the company:

13(1) State corporate net income tax.

14(2) Capital stock and franchise tax or the capital stock
15and franchise tax of a shareholder of the company if the
16company is a Pennsylvania S corporation.

17(3) Gross premiums tax.

18(4) Gross receipts tax.

19(5) Bank and trust company shares tax.

20(6) Mutual thrift institution tax.

21(7) Title insurance company shares tax.

22(8) Personal income tax or the personal income tax of
23shareholders of a Pennsylvania S corporation.

24(c) Term.--A company may claim the natural gas corridor tax
25credit in one year or spread the credit over a period determined
26by the department but not to exceed five years from the date the
27company first submits a certificate. <-A company may not carry 
28back or obtain a refund of the natural gas corridor tax credit.

29(d) Sale or assignment.--

30(1) A natural gas corridor tax credit recipient, upon

1application to and approval by the department, may sell or
2assign, in whole or in part, a natural gas corridor tax
3credit granted to the recipient if no claim for allowance of
4the credit is filed within one year from the date the credit
5is granted by the department.

6(2) The purchaser or assignee of a natural gas corridor
7tax credit shall immediately claim the credit in the taxable
8year in which the purchase or assignment is made. The
9purchaser or assignee may not carry back, obtain a refund of
10or sell or assign the natural gas corridor tax credit. The
11purchaser or assignee shall notify the department of the
12seller or assignor of the natural gas corridor tax credit in
13compliance with procedures specified by the department.

14(3) The department shall promulgate guidelines for the
15approval of applications under this subsection.

<-16(e) Availability.--Each fiscal year, $5,000,000 in natural
17gas corridor tax credits shall be made available to the
18department and may be awarded by the department in accordance
19with this article.

<-20(e) Limitation.--In granting natural gas corridor tax credit
21certificates, the department:

22(1) May not grant more than $5,000,000 natural gas
23corridor tax credit certificates in any fiscal year.

24(2) May not grant more than $500,000 natural gas
25corridor tax credit certificates to any single company in any
26fiscal year.

27Section 1805-C. Penalties.

28(a) Failure to maintain operations.--A company which
29receives natural gas corridor tax credits and fails to operate
30the natural gas fueling station for which it received the tax

1credits for a period of five years from the start date shall
2refund to the Commonwealth the total amount of credits granted.

3(b) Failure to complete the natural gas infrastructure
4plan.--A company which receives natural gas corridor tax credits
5and fails to complete the natural gas infrastructure plan within
618 months shall refund to the Commonwealth the total amount of
7credits granted.

8(c) Waiver.--The department may waive the penalties under
9subsections (a) and (b) if it is determined that a company's
10natural gas fueling infrastructure plan was not completed
11because of circumstances beyond the company's control.
12Circumstances shall include natural disasters, unforeseen
13industry trends or a loss of a major supplier or market. The
14company must promptly notify the department of circumstances
15beyond the company's control which would delay completion of the
16project.

17Section 1806-C. Report to General Assembly.

18No later than June 1, 2014, and each June 1 thereafter, the
19department shall submit a report on the natural gas corridor tax
20credits granted under this article. The report shall include the
21names of taxpayers who utilized the credit as of the date of the
22report and the amount of credits approved. The report may
23include recommendations for changes in the calculation or
24administration of the natural gas corridor tax credit and other
25information as the department deems appropriate. The report
26shall be submitted to all of the following:

27(1) The chairman and minority chairman of the
28Appropriations Committee of the Senate.

29(2) The chairman and minority chairman of the
30Appropriations Committee of the House of Representatives.

1(3) The chairman and minority chairman of the Finance
2Committee of the Senate.

3(4) The chairman and the minority chairman of the
4Finance Committee of the House of Representatives.

5Section 1807-C. Time limitations.

6A company shall not be entitled to a natural gas corridor tax
7credit for taxable years ending after December 31, 2018.

8Section 1808-C. <-Regulations Guidelines.

9The <-secretary shall promulgate regulations department, in
10conjunction with the Department of Revenue, shall promulgate
11guidelines necessary for the implementation and administration
12of this article.

13Section 3. This act shall take effect in 60 days.