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 Community and Economic
13Development of the Commonwealth.

14"Eligible corridor." <-The portions of I-76, I-78, I-79, I-80,
15I-81, I-83, I-95 and I-276 <-All Interstate highways, United
16States highways and State routes within the boundaries of this
17Commonwealth.

18"Natural gas corridor tax credit." Tax credits for which the
19Department of <-Revenue Community and Economic Development has
20issued a certificate under this article.

21"Natural gas fueling station." A facility which dispenses
22compressed natural gas or compressed natural gas and liquefied
23natural gas to the public for vehicle refueling purposes and
24does not include time-fill stations.

25"Natural gas infrastructure plan." A company's plan to
26transition organizational structures needed for the operation of
27natural gas fueling stations, by converting existing stations or
28purchasing new or used natural gas fueling equipment.

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

1fueling stations.

2Section 1802-C. Eligibility.

3In order to be eligible to receive a natural gas corridor tax
4credit, a company must demonstrate to the department the
5following:

6(1) A <-comprehensive natural gas infrastructure plan to
7do any of the following:

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

9(ii) Add compressed natural gas fueling capacity to
10one or more existing stations which sells gasoline.

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

12(2) The stations must be open to the public.

13(3) The stations must be located within two miles of an
14eligible corridor.

15Section 1803-C. Application process.

16(a) Application.--A company may apply to the department for
17a natural gas corridor tax credit under this article. The
18application shall be on the form required by the department and
19include all necessary documentation to establish eligibility as
20required under section 1802-C.

21(b) Committee.--

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 Secretary of Revenue.

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) (Reserved.)

7(c) Review.--

8(1) The department shall establish application periods
9not to exceed 90 days.

10(2) An application received during the application
11period shall be reviewed by the committee and ranked based on
12the total number of natural gas stations and gasoline
13stations adding natural gas fueling capacity proposed to be
14built along a single eligible corridor or a continuous travel
15route utilizing only the eligible corridors, with a spacing
16of at least 50 miles and no more than 100 miles from another
17natural gas station within two miles of the eligible
18corridor. The spacing restrictions under this paragraph do 
19not apply in an ambient air quality region that, at the time 
20of the entity's initial application for the tax credit, is:

21(i) classified as nonattainment for a criteria
22pollutant according to the Clean Air Act (69 Stat. 1, 42
23U.S.C. § 7401 et seq.); or

24(ii) determined by the Commonwealth to be an ambient
25air quality control region the emissions from which
26adversely impact a nonattainment area.

27(3) The committee shall make recommendations to the
28department with regard to each application reviewed.

29(d) Approval.--Once applications are ranked by the committee
30under subsection (c), the department may approve the companies'

1applications according to their discretion and availability of
2natural gas corridor tax credits. Applications not approved
3shall be returned to the committee for review during the next
4application period.

<-5(d.1) Limitation of application roll-over.--An application
6that is not approved by June 30 may not be returned to the
7committee for review. The department shall notify an applicant
8whose application has not been approved by June 30 that a new
9application for the natural gas corridor tax credit must be
10filed with the department in order for the applicant to continue
11to be considered for a natural gas corridor tax credit.

12(e) Contract.--The department and the company shall execute
13a contract containing the following:

14(1) A description of the natural gas fueling
15infrastructure plan.

16(2) The amount of private capital investment in the
17natural gas fueling infrastructure plan.

18(3) A signed statement that the company intends to
19complete its natural gas fueling infrastructure plan within
20eighteen months.

<-21(4) The start date.

<-22(4) (5) Any other information as the department<-, in
23conjunction with the Department of Revenue, deems
24appropriate.

25(f) Certificate.--Upon execution of the contract required
26under subsection (e), the department shall <-verify with the 
27Department of Revenue that the company filed the required State 
28tax reports and returns for the applicable tax years and paid a 
29balance of State tax due as determined at settlement, assessment 
30or determination by the Department of Revenue and award the 

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

<-3(g) Notice of completion.--Upon completion of the natural
4gas infrastructure plan, the company shall notify the department
5on a form required by the department.

6Section 1804-C. Natural gas corridor tax credits.

7(a) Maximum amount.--A company may claim a natural gas
8corridor tax credit for up to 50% of the total cost of the
9compressed natural gas station or the total cost of adding
10compressed natural gas fueling capacity to an existing station
11which sells gasoline. For the purposes of this subsection, the
12total cost may not exceed $500,000.

13(b) Applicable taxes.--A company may apply the natural gas
14corridor tax credit to 100% of all or a combination of any of
15the following taxes of the company:

16(1) State corporate net income tax.

17(2) Capital stock and franchise tax or the capital stock
18and franchise tax of a shareholder of the company if the
19company is a Pennsylvania S corporation.

20(3) Gross premiums tax.

21(4) Gross receipts tax.

22(5) Bank and trust company shares tax.

23(6) Mutual thrift institution tax.

24(7) Title insurance company shares tax.

25(8) Personal income tax or the personal income tax of
26shareholders of a Pennsylvania S corporation.

27(c) <-Term.--A company may claim the natural gas corridor tax
28credit in one year or spread the credit over a period determined
29by the department but not to exceed five years from the date the
30company first submits a certificate. <-Carryforward, carryback and

1refund.--A company may carry forward all or any unused portion
2of the tax credit for a period of five years from the start
3date. A company may not carry back or obtain a refund of the
4natural gas corridor tax credit.

5(d) Sale or assignment.--

6(1) A natural gas corridor tax credit recipient, upon
7application to and approval by the department, may sell or
8assign, in whole or in part, a natural gas corridor tax
9credit granted to the recipient if no claim for allowance of
10the credit is filed within one year from the date the credit
11is granted by the department.

12(2) The purchaser or assignee of a natural gas corridor
13tax credit shall immediately claim the credit in the taxable
14year in which the purchase or assignment is made. <-The amount 
15of the tax credit a purchaser or assignee may use against a 
16qualified tax liability may not exceed 75% of the qualified 
17tax liability for the taxable year. The purchaser or assignee
18may not carry back, obtain a refund of or sell or assign the
19natural gas corridor tax credit. The purchaser or assignee
20shall notify the department of the seller or assignor of the
21natural gas corridor tax credit in compliance with procedures
22specified by the department.

23(3) The department shall promulgate guidelines for the
24approval of applications under this subsection.

<-25(4) Before an application is approved, the Department of
26Revenue must make a finding that the applicant filed the
27required State tax reports and returns for the applicable tax
28years and paid any balance of State tax due as determined at
29settlement or assessment or by the Department of Revenue.

30(e) Limitation.--In granting natural gas corridor tax credit

1certificates, the department:

2(1) May not grant more than $5,000,000 natural gas
3corridor tax credit certificates in any fiscal year.

4(2) May not grant more than $500,000 natural gas 
5corridor tax credit certificates to any single company in any 
6fiscal year.

<-7Section 1804-C.1. Verification of continued eligibility.

8(a) Compliance documentation.--Each fiscal year, a company
9awarded a tax credit under this article shall, on a form
10required by the department, provide the department with
11documentation that the company is in compliance with the
12provisions of this article and the contract executed under
13section 1803-C(e).

14(b) Continuation of documentation.--A company that provided
15notice of completion as required by section 1803-C(g) shall
16continue to provide documentation that the company is in
17compliance with the relevant provisions of this article for a
18period of five years from the date the notice of completion is
19given to the department.

20Section 1805-C. <-Penalties Recapture.

21(a) Failure to maintain operations.--A company which
22receives natural gas corridor tax credits and fails to operate
23the natural gas fueling station for which it received the tax
24credits for a period of five years from the <-start date date
25notice of completion is given to the department shall refund to
26the Commonwealth the total amount of credits granted.

27(b) Failure to complete the natural gas infrastructure
28plan.--A company which receives natural gas corridor tax credits
29and fails to complete the natural gas infrastructure plan within
3018 months shall refund to the Commonwealth the total amount of

1credits granted.

2(c) Waiver.--The department may waive the penalties under
3subsections (a) and (b) if it is determined that <-a company
4failed to operate the natural gas fueling station or a company's
5natural gas fueling infrastructure plan was not completed
6because of circumstances beyond the company's control.
7Circumstances shall include natural disasters, unforeseen
8industry trends or a loss of a major supplier or market. The
9company must promptly notify the department of circumstances
10beyond the company's control which would delay completion of the
11project.

12Section 1806-C. Report to General Assembly.

13No later than June 1, 2014, and each June 1 thereafter, the
14department shall submit a report on the natural gas corridor tax
15credits granted under this article. The report shall include the
16names of taxpayers who utilized the credit as of the date of the
17report and, the amount of credits approved<-, the names of
18taxpayers who receive a waiver under section 1805-C(c), the
19amount of penalties waived under section 1805-C(c) and the
20reason for the waiver. The report may include recommendations
21for changes in the calculation or administration of the natural
22gas corridor tax credit and other information as the department
23deems appropriate. The report shall be submitted to all of the
24following:

25(1) The chairman and minority chairman of the
26Appropriations Committee of the Senate.

27(2) The chairman and minority chairman of the
28Appropriations Committee of the House of Representatives.

29(3) The chairman and minority chairman of the Finance
30Committee of the Senate.

1(4) The chairman and the minority chairman of the
2Finance Committee of the House of Representatives.

3Section 1807-C. Time limitations.

<-4A company shall not be entitled to The department may not
5award a natural gas corridor tax credit for taxable years ending
6after December 31, 2018.

7Section 1808-C. Guidelines.

8The department, in conjunction with the Department of
9Revenue, shall promulgate guidelines necessary for the
10implementation and administration of this article.

11Section 3. This act shall take effect in 60 days.