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 an Energy Star-rated product 
11manufacturing tax credit.

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)]

19ENERGY STAR-RATED PRODUCT

20MANUFACTURING TAX CREDIT

21Section 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"Department." The Department of Revenue of the Commonwealth.

6"Energy Star-rated product." A product that has been 
7certified as in compliance with and qualifies as an Energy Star 
8product pursuant to the Environmental Protection Agency and the 
9Department of Energy, Energy Star Program and bears the Energy 
10Star label.

11"Energy Star-rated product manufacturing tax credit" or "tax 
12credit." The credit provided under this article.

13"Qualified tax liability." The liability for taxes imposed 
14under Article III, IV, V or VI. The term does not include any 
15tax withheld by an employer from an employee under Article III.

16"Taxpayer." An entity subject to tax under Article III, IV, 
17V or VI.

18Section 1802-C. Eligible applicants.

19A taxpayer that manufactures Energy Star-rated products may
20apply for the Energy Star-rated product manufacturing tax credit
21as provided under this article. By February 1 of each year, a
22taxpayer must submit an application to the department for the
23amount of costs identified under section 1803-C that were paid
24in the taxable year that ended the prior calendar year.

25Section 1803-C. Award of tax credits.

26A taxpayer that is qualified under section 1802-C may receive
27an Energy Star-rated product manufacturing tax credit for the
28taxable year in an amount equal to 20% of the total amount of
29all capital, operation and maintenance costs paid for
30manufacturing Energy Star-related products in the taxable year

1to be applied against the taxpayer's qualified tax liability.

2Section 1804-C. Carryover and carryback of credit.

3(a) Carryover.--If the taxpayer cannot use the entire amount
4of the Energy Star-rated product manufacturing tax credit for
5the taxable year in which the tax credit is first approved, the
6excess may be carried over to succeeding taxable years and used
7as a credit against the qualified tax liability of the taxpayer
8for those taxable years. Each time that the tax credit is
9carried over to a succeeding taxable year, it is to be reduced
10by the amount that was used as a credit during the immediately
11preceding taxable year. The tax credit provided under this
12article may be carried over and applied to succeeding taxable
13years for no more than five taxable years following the first
14taxable year for which the taxpayer was entitled to claim the
15tax credit.

16(b) Application.--An Energy Star-rated product manufacturing
17tax credit approved by the department in a taxable year first
18shall be applied against the taxpayer's qualified tax liability
19for the current taxable year as of the date on which the tax
20credit was approved before the tax credit is applied against any
21tax liability under subsection (a).

22(c) Carryback.--A taxpayer is not entitled to carry back or
23obtain a refund of an unused Energy Star-rated product
24manufacturing tax credit.

25Section 1805-C. Availability of tax credit.

26Each fiscal year, $10,000,000 in tax credits shall be made
27available to the department and may be awarded by the department
28in accordance with this article.

29Section 1806-C. Regulations.

30The department shall promulgate regulations necessary for the

1implementation and administration of this article.

2Section 3. The addition of sections 1801-C, 1802-C, 1803-C,
31804-C, 1805-C and 1806-C of the act shall apply to tax years
4beginning after December 31, 2013.

5Section 4. This act shall take effect immediately.