PRIOR PRINTER'S NO. 282
PRINTER'S NO. 1106
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
368
Session of
2015
INTRODUCED BY WHITE, YAW, GREENLEAF, GORDNER, YUDICHAK,
HUTCHINSON, VULAKOVICH, ALLOWAY, WOZNIAK, STEFANO, VOGEL,
BROWNE AND BLAKE, JANUARY 30, 2015
SENATOR EICHELBERGER, FINANCE, AS AMENDED, JUNE 24, 2015
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for a waste coal COAL REFUSE energy and
reclamation tax credit; and imposing duties on the Department
of Revenue and the Department of Community and Economic
Development, THE DEPARTMENT OF ENVIRONMENTAL PROTECTION AND
THE DEPARTMENT OF REVENUE.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-J
WASTE COAL ENERGY AND RECLAMATION TAX CREDIT
Section 1701-J. Scope of article.
This article establishes a waste coal energy and reclamation
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tax credit.
Section 1702-J. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Company." A corporation, partnership, limited liability
company, limited liability partnership, business trust,
affiliate, unincorporated joint venture or other business entity
doing business within this Commonwealth.
"Department." The Department of Revenue of the Commonwealth,
except as otherwise specifically indicated.
"Pass-through entity." Any of the following:
(1) A partnership as defined in section 301(n.0).
(2) A Pennsylvania S corporation as defined in section
301(n.1).
(3) An unincorporated entity subject to section 307.21.
"Qualified fuel." Waste coal, which shall include the
combustion of waste coal in facilities in which the waste coal
was disposed of or abandoned prior to July 31, 1982, or disposed
of thereafter in a permitted coal refuse disposal site
regardless of when disposed of, and used to generate
electricity, or such other waste coal combustion meeting
alternate eligibility requirements established by regulation.
Facilities combusting waste coal shall use, at a minimum, a
combined fluidized bed boiler and be outfitted with a limestone
injection system and a fabric filter particulate removal system.
"Qualified tax liability." The liability for taxes imposed
under Articles III, IV, VI, VII, VIII, IX, XI and XV. The term
does not include tax withheld under section 316.
"Qualified taxpayer." A company that satisfies all of the
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following:
(1) Is an electric energy generator using qualified fuel
for the generation of electric energy.
(2) The qualified fuel is utilized for generation of
electricity at a facility in this Commonwealth which has been
placed in service before the effective date of this section.
(3) Uses or facilitates the use of ash resulting from
the combustion of qualified fuel to generate electricity at a
reclamation project approved by the Department of
Environmental Protection under the act of May 31, 1945
(P.L.1198, No.418), known as the Surface Mining Conservation
and Reclamation Act.
"Tax credit." The waste coal energy and reclamation tax
credit provided under this article.
"Ton." Two thousand pounds as defined in section 4121(d) of
the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
ยง 4121(d)).
Section 1703-J. Application and approval of tax credit.
(a) Application.--
(1) A qualified taxpayer may apply to the department for
a tax credit under this section.
(2) The application must be submitted to the department
by August 1, 2015, and by March 1 of each year thereafter for
the tax credit claimed for qualified fuel used by the
qualified taxpayer during the prior calendar year. The
application must be on the form required by the department.
(3) The department may require information necessary to
document the amount of qualified fuel used.
(b) Rate.--The tax credit shall be equal to $3.50 per ton of
qualified fuel used to generate electricity in this Commonwealth
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by a qualified taxpayer.
(c) Review and approval.--
(1) The department shall review and approve applications
meeting the requirements of this article by August 20, 2015,
and by March 20 of each year thereafter.
(2) Upon approval, the department shall issue a
certificate stating the amount of tax credit granted for
qualified fuel used in the prior calendar year.
Section 1704-J. Use of tax credits.
(a) Application.--The tax credit shall be applied against
the qualified taxpayer's liability only after all other
statutory tax credits and deductions available to the qualified
taxpayer have been used.
(b) Limitation.--A qualified taxpayer that has been granted
a tax credit under this article shall be ineligible for any
other tax credit provided under this act.
Section 1705-J. Carryover and carryback.
A tax credit cannot be carried back. A tax credit can be
carried forward up to three tax years following the tax year in
which the tax credit is earned.
Section 1706-J. Limitation on tax credits.
(a) Amount.--The total amount of tax credits approved by the
department shall not exceed $40,000,000 in any fiscal year.
(b) Proration.--If the total amount of tax credits applied
for by all qualified taxpayers exceeds the amount allocated for
those tax credits, then the tax credit to be received by each
applicant shall be the product of the allocated amount
multiplied by the quotient of the tax credits approved for the
applicant divided by the total of all tax credits approved for
all applicants.
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(c) Restriction.--Notwithstanding subsection (b), the
department may not grant more than $10,000,000 in tax credits to
a single qualified taxpayer in any fiscal year.
Section 1707-J. Pass-through entity.
(a) Election.--If a pass-through entity has an unused tax
credit, it may elect in writing, according to procedures
established by the department, to transfer all or a portion of
the credit to shareholders, members or partners in proportion to
the share of the entity's distributive income to which the
shareholders, members or partners are entitled.
(b) Limitation.--The same unused tax credit under subsection
(a) may not be claimed by:
(1) the pass-through entity; and
(2) a shareholder, member or partner of the pass-through
entity.
(c) Time.--A transferee under subsection (a) must claim the
tax credit in the calendar year in which the transfer is made.
Section 1708-J. Use of credits by affiliates.
In addition to reducing or eliminating the qualified tax
liability of a qualified taxpayer, a tax credit shall be applied
to reduce or eliminate the qualified tax liability of any
"related party," as that term is defined in section 267 of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. ยง
267), to a qualified taxpayer.
Section 1709-J. Sale or assignment.
(a) Authorization.--Except as authorized in subsection (d),
if a qualified taxpayer holds a tax credit through the end of
the third calendar year following the year in which the tax
credit was granted, the qualified taxpayer may sell or assign a
tax credit, in whole or in part.
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(b) Initial use.--Except as provided in subsection (e),
prior to sale of assignment of a tax credit a qualified taxpayer
must first use a tax credit against the qualified tax liability
incurred in the taxable year for which the tax credit was
approved.
(c) Application.--
(1) Except as authorized in subsection (d), to sell or
assign a tax credit, a qualified taxpayer must file an
application for the sale or assignment of the tax credit with
the Department of Community and Economic Development. The
application must be on a form required by the Department of
Community and Economic Development.
(2) To approve an application, the Department of
Community and Economic Development must receive a finding
from the department that the applicant has:
(i) filed all required State tax reports and returns
for all applicable taxable years; and
(ii) paid any balance of State tax due as determined
by assessment or determination by the department and not
under timely appeal.
(d) Approval.--Upon approval by the Department of Community
and Economic Development, a qualified taxpayer may sell or
assign, in whole or in part, a tax credit.
(e) Expedited sale or assignment.--
(1) Notwithstanding subsections (a) and (b), a qualified
taxpayer may immediately sell or assign, in whole or in part,
a tax credit approved for a taxable year beginning in 2014.
(2) Nothing in this subsection may be construed to mean
that the tax credits sold or assigned under this subsection
are not subject to the provisions of section 1711-J.
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Section 1710-J. Purchasers and assignees.
(a) Time.--The purchaser or assignee under section 1709-J
must claim the tax credit no later than the last day of the
third calendar year following in the calendar year in which the
purchase or assignment is made.
(b) Amount.--The amount of the tax credit that a purchaser
or assignee under section 1709-J may use against any one
qualified tax liability may not exceed 75% of any of the
qualified tax liabilities for the taxable year.
(c) Resale and reassignment.--
(1) A purchaser under section 1709-J may not sell or
assign the purchased tax credit.
(2) An assignee under section 1709-J may not sell or
assign the assigned tax credit.
(d) Notice.--The purchaser or assignee under section 1709-J
shall notify the department of the seller or assignor of the tax
credit in compliance with procedures specified by the
department.
Section 1711-J. Administration.
(a) Audits and assessments.--The department has the
following powers:
(1) To audit a qualified taxpayer claiming a tax credit
to ascertain the validity of the amount claimed.
(2) To issue an assessment against a qualified taxpayer
for an improperly issued tax credit. The procedures,
collection, enforcement and appeals of any assessment made
under this section shall be governed by Article II.
(b) Guidelines.--The department shall develop written
guidelines for the implementation of this article.
Section 1712-J. Annual report to General Assembly.
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By October 1, 2016, and October 1 of each year thereafter,
the department shall submit a report on the tax credit to the
chairman and minority chairman of the Appropriations Committee
of the Senate, the chairman and minority chairman of the Finance
Committee of the Senate, the chairman and minority chairman of
the Appropriations Committee of the House of Representatives and
the chairman and minority chairman of the Finance Committee of
the House of Representatives. The report shall include the names
of the qualified taxpayers utilizing the tax credit as of the
date of the report and the amount of tax credits approved for,
utilized by or sold or assigned by a qualified taxpayer.
Section 1713-J. Expiration.
This article shall expire December 31, 2023.
Section 1714-J. Applicability.
The tax credit shall be effective for taxable years beginning
on or after January 1, 2014.
Section 2. This act shall take effect immediately.
ARTICLE XVII-J
COAL REFUSE ENERGY AND
RECLAMATION TAX CREDIT
SECTION 1701-J. SCOPE OF ARTICLE.
THIS ARTICLE ESTABLISHES A COAL REFUSE ENERGY AND RECLAMATION
TAX CREDIT, IN RECOGNITION OF THE SIGNIFICANT AND TANGIBLE
BENEFITS TO THE ENVIRONMENT AND SAVINGS IN COMMONWEALTH FUNDS
PROVIDED BY ELIGIBLE FACILITIES IN RECLAIMING COAL REFUSE PILES
AND PREVIOUSLY MINED LANDS.
SECTION 1702-J. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
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"APPLICABLE ANNUAL PERIOD." THE 12-MONTH CALENDAR YEAR IN
WHICH THE COMBUSTION OF QUALIFIED FUEL AND THE BENEFICIAL USE OF
ASH IS MEASURED TO DETERMINE THE AMOUNT OF CREDITS REQUESTED
UNDER SECTION 1703-J(B).
"COAL REFUSE." ANY WASTE COAL, ROCK, SHALE, SLURRY, CULM,
GOB, BONEY, SLATE, CLAY AND RELATED MATERIALS ASSOCIATED WITH OR
NEAR A COAL SEAM THAT ARE EITHER BROUGHT ABOVEGROUND OR
OTHERWISE REMOVED FROM A COAL MINE IN THE PROCESS OF MINING COAL
OR THAT ARE SEPARATED FROM COAL DURING THE CLEANING OR
PREPARATION OPERATIONS. "COAL REFUSE" INCLUDES UNDERGROUND
DEVELOPMENT WASTES, COAL PROCESSING WASTES AND EXCESS SPOIL, BUT
DOES NOT MEAN OVERBURDEN FROM SURFACE MINING ACTIVITIES.
"DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
DEVELOPMENT OF THE COMMONWEALTH.
"ELIGIBLE FACILITY." AN ELECTRIC GENERATING FACILITY PLACED
IN SERVICE BEFORE THE EFFECTIVE DATE OF THIS ARTICLE CONSISTING
OF ONE OR MORE UNITS PLACED IN SERVICE BEFORE THE EFFECTIVE DATE
OF THIS ARTICLE THAT GENERATE ELECTRICITY LOCATED ON THE SAME
PROPERTY AND THAT:
(1) COMBUSTS QUALIFIED FUEL OR FUEL COMPOSED OF AT LEAST
75% QUALIFIED FUEL BY BTU ENERGY VALUE IN THE APPLICABLE
ANNUAL PERIOD;
(2) UTILIZES AT A MINIMUM A CIRCULATING FLUIDIZED BED
COMBUSTION UNIT OR PRESSURIZED FLUIDIZED BED COMBUSTION UNIT
EQUIPPED WITH A LIMESTONE INJECTION SYSTEM FOR CONTROL OF
ACID GASSES AND A FABRIC FILTER PARTICULATE EMISSION CONTROL
SYSTEM; AND
(3) BENEFICIALLY USES ASH PRODUCED BY THE FACILITY IN
THE APPLICABLE ANNUAL PERIOD TO RECLAIM MINING-AFFECTED SITES
IN ACCORDANCE WITH 25 PA. CODE CH. 290 (RELATING TO
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BENEFICIAL USE OF COAL ASH) IN AMOUNTS EQUAL TO AT LEAST 50%
OF THE ASH PRODUCED BY THE FACILITY IN THE APPLICABLE ANNUAL
PERIOD.
"PASS-THROUGH ENTITY." ANY OF THE FOLLOWING:
(1) A PARTNERSHIP AS DEFINED IN SECTION 301(N.0).
(2) A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
301(N.1).
(3) AN UNINCORPORATED ENTITY SUBJECT TO SECTION 307.21.
"QUALIFIED FUEL." COAL REFUSE.
"QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED
UNDER ARTICLE III, IV, VI, VII, VIII, IX, XI OR XV. THE TERM
DOES NOT INCLUDE TAX WITHHELD BY AN EMPLOYER FROM AN EMPLOYEE
UNDER ARTICLE III.
"QUALIFIED TAXPAYER." A PERSON THAT OWNS AN ELIGIBLE
FACILITY IN THIS COMMONWEALTH, OR IS A TRANSFEROR, PURCHASER,
AFFILIATE OR ASSIGNEE OF A PERSON TO WHICH A TAX CREDIT
CERTIFICATE IS ISSUED UNDER THIS ARTICLE.
"TAX CREDIT." THE COAL REFUSE ENERGY AND RECLAMATION TAX
CREDIT PROVIDED UNDER THIS ARTICLE.
"TAX CREDIT RATE." FOR QUALIFIED FUEL COMBUSTED AT AN
ELIGIBLE FACILITY IN EACH CALENDAR YEAR, THE RATE OF $4 PER TON
OF QUALIFIED FUEL USED AT THE ELIGIBLE FACILITY.
"TON." TWO THOUSAND POUNDS OF QUALIFIED FUEL, INCLUDING
INHERENT MOISTURE, ASH, SULPHUR AND OTHER NONCALORIFIC
SUBSTANCES, BUT EXCLUDING EXCESS MOISTURE.
SECTION 1703-J. APPLICATION AND APPROVAL OF TAX CREDIT.
(A) RATE.--THE TAX CREDIT SHALL BE EQUAL TO THE TAX CREDIT
RATE TIMES THE TONS OF QUALIFIED FUEL USED TO GENERATE
ELECTRICITY AT AN ELIGIBLE FACILITY IN THIS COMMONWEALTH BY A
QUALIFIED TAXPAYER. BY FEBRUARY 1 OF EACH YEAR STARTING IN 2016,
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OR AS SOON AS PRACTICAL AFTER DATA NEEDED TO ADJUST THE TAX
CREDIT RATE IS AVAILABLE, THE DEPARTMENT SHALL DETERMINE AND
PUBLISH NOTICE OF THE ADJUSTED TAX CREDIT RATE FOR THE PRIOR
CALENDAR YEAR. REGARDLESS OF WHEN THE NOTICE IS PUBLISHED, THE
REVISED TAX CREDIT RATE WILL APPLY TO THE CALENDAR YEAR IN WHICH
QUALIFIED FUEL IS USED TO GENERATE ELECTRICITY AT AN ELIGIBLE
FACILITY. THE TAX CREDIT RATE, MEASURED BASED ON THE AMOUNT OF
QUALIFIED FUEL USED, SERVES AS A SURROGATE MEASURE FOR
ENVIRONMENTAL BENEFITS, INCLUDING WATER QUALITY IMPROVEMENT, AIR
POLLUTION ABATEMENT AND LAND RESTORATION, DERIVED FROM ELIGIBLE
FACILITIES THROUGH THE UTILIZATION OF COAL REFUSE AND ASSOCIATED
RECLAMATION OF COAL REFUSE PILES, AND THE BENEFICIAL USE OF COAL
ASH FOR RECLAMATION OF MINE-AFFECTED LANDS.
(B) APPLICATION.--
(1) A QUALIFIED TAXPAYER MAY APPLY TO THE DEPARTMENT FOR
A TAX CREDIT UNDER THIS SECTION. THE APPLICATION SHALL BE ON
THE FORM REQUIRED BY THE DEPARTMENT.
(2) THE APPLICATION MUST BE SUBMITTED TO THE DEPARTMENT
BY FEBRUARY 1 OF EACH YEAR FOR THE TAX CREDIT CLAIMED FOR
QUALIFIED FUEL USED AT AN ELIGIBLE FACILITY DURING THE PRIOR
CALENDAR YEAR.
(3) THE DEPARTMENT MAY REQUIRE INFORMATION NECESSARY TO
DOCUMENT THAT A FACILITY QUALIFIES AS AN ELIGIBLE FACILITY
AND THE AMOUNT OF QUALIFIED FUEL USED TO GENERATE ELECTRICITY
AT THE ELIGIBLE FACILITY.
(4) IN THE REVIEW OF APPLICATIONS FOR TAX CREDITS, THE
DEPARTMENT SHALL CONSULT WITH THE DEPARTMENT OF ENVIRONMENTAL
PROTECTION WITH RESPECT TO WHETHER A FACILITY QUALIFIES AS AN
ELIGIBLE FACILITY AND TO REVIEW THE ELIGIBLE FACILITY'S
CALCULATION OF THE AMOUNT OF QUALIFIED FUEL USED TO GENERATE
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ELECTRICITY.
(C) REVIEW AND APPROVAL.--
(1) THE DEPARTMENT SHALL REVIEW AND APPROVE APPLICATIONS
MEETING THE REQUIREMENTS OF THIS ARTICLE BY MARCH 20 OF EACH
YEAR.
(2) UPON APPROVAL, THE DEPARTMENT SHALL ISSUE A
CERTIFICATE STATING THE AMOUNT OF TAX CREDIT GRANTED FOR
QUALIFIED FUEL USED IN THE PRIOR CALENDAR YEAR. THE CALENDAR
YEAR IN WHICH THE QUALIFIED FUEL WAS USED AS SET FORTH IN THE
APPLICATION SHALL BE DESIGNATED AS THE INITIAL YEAR IN WHICH
THE TAX CREDITS MAY BE USED. THE TAX CREDITS MAY BE USED IN
ANY TAX YEAR BEGINNING IN THE DESIGNATED CALENDAR YEAR AND
THEREAFTER AS PROVIDED IN SECTION 1704-J.
SECTION 1704-J. CARRYOVER AND CARRYBACK.
A TAX CREDIT CANNOT BE CARRIED BACK OR USED TO CLAIM REFUNDS.
A TAX CREDIT CAN BE CARRIED FORWARD UP TO 15 TAX YEARS FOLLOWING
THE TAX YEAR IN WHICH THE TAX CERTIFICATE MAY INITIALLY BE USED
BY A QUALIFIED TAXPAYER.
SECTION 1705-J. LIMITATION ON TAX CREDITS.
(A) AMOUNT.--THE TOTAL AMOUNT OF TAX CREDITS ISSUED BY THE
DEPARTMENT SHALL NOT EXCEED $45,000,000 IN ANY FISCAL YEAR.
(B) PRORATION.--IF THE TOTAL AMOUNT OF TAX CREDITS APPLIED
FOR BY ALL QUALIFIED TAXPAYERS EXCEEDS THE AMOUNT ALLOCATED FOR
THOSE TAX CREDITS, THEN THE TAX CREDIT TO BE RECEIVED BY EACH
APPLICANT SHALL BE THE PRODUCT OF THE ALLOCATED AMOUNT
MULTIPLIED BY THE QUOTIENT OF THE TAX CREDITS APPROVED FOR THE
APPLICANT DIVIDED BY THE TOTAL OF ALL TAX CREDITS APPROVED FOR
ALL APPLICANTS.
(C) RESTRICTION.--NOTWITHSTANDING SUBSECTION (B), THE
DEPARTMENT SHALL NOT GRANT MORE THAN $10,000,000 IN TAX CREDITS
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TO A SINGLE ELIGIBLE FACILITY IN ANY FISCAL YEAR.
SECTION 1706-J. PASS-THROUGH ENTITY.
(A) ELECTION.--IF A TAX CREDIT CERTIFICATE IS ISSUED TO A
PASS-THROUGH ENTITY, IT MAY ELECT IN WRITING, ACCORDING TO
PROCEDURES ESTABLISHED BY THE DEPARTMENT, TO TRANSFER ALL OR A
PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS OR PARTNERS IN
PROPORTION TO THE SHARE OF THE ENTITY'S DISTRIBUTIVE INCOME TO
WHICH THE SHAREHOLDERS, MEMBERS OR PARTNERS ARE ENTITLED, OR IN
ANY OTHER MANNER DESIGNATED BY THE PASS-THROUGH ENTITY.
(B) LIMITATION.--THE SAME UNUSED TAX CREDIT UNDER SUBSECTION
(A) MAY NOT BE CLAIMED BY:
(1) THE PASS-THROUGH ENTITY; AND
(2) A SHAREHOLDER, MEMBER OR PATRON OF THE PASS-THROUGH
ENTITY.
(C) TIME.--A TRANSFEREE UNDER SUBSECTION (A) MAY ONLY USE A
TAX CREDIT DURING A TAX YEAR FROM WHICH USE OF THE CREDIT IS
AUTHORIZED UNDER SECTIONS 1703-J(C)(2) AND 1705-J.
SECTION 1707-J. USE OF CREDITS BY AFFILIATES.
IN ADDITION TO REDUCING OR ELIMINATING THE QUALIFIED TAX
LIABILITY OF A QUALIFIED TAXPAYER, A TAX CREDIT UNDER THIS
ARTICLE SHALL BE APPLIED TO REDUCE OR ELIMINATE THE QUALIFIED
TAX LIABILITY OF ANY RELATED PARTY, AS THAT TERM IS DEFINED IN
SECTION 267 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-
514, 26 U.S.C. ยง 1 ET SEQ.), TO A QUALIFIED TAXPAYER. AN
AFFILIATE MAY ONLY USE A TAX CREDIT DURING A TAX YEAR FOR WHICH
USE OF THE CREDIT IS AUTHORIZED UNDER SECTIONS 1703-J(C)(2) AND
1704-J.
SECTION 1708-J. SALE OR ASSIGNMENT.
(A) AUTHORIZATION.--UPON APPROVAL BY THE DEPARTMENT OF
REVENUE, A QUALIFIED TAXPAYER MAY SELL OR ASSIGN A TAX CREDIT,
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IN WHOLE OR IN PART.
(B) APPLICATION.--
(1) TO SELL OR ASSIGN A TAX CREDIT, A QUALIFIED TAXPAYER
MUST FILE AN APPLICATION FOR THE SALE OR ASSIGNMENT OF THE
TAX CREDIT WITH THE DEPARTMENT OF REVENUE. THE APPLICATION
MUST BE ON A FORM REQUIRED BY THE DEPARTMENT OF REVENUE.
(2) THE DEPARTMENT OF REVENUE SHALL APPROVE A SALE OR
ASSIGNMENT IF THE TRANSFEREE OR PURCHASER HAS:
(I) FILED ALL REQUIRED STATE TAX REPORTS AND RETURNS
FOR ALL APPLICABLE TAXABLE YEARS; AND
(II) PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED
BY ASSESSMENT OR DETERMINATION BY THE DEPARTMENT OF
REVENUE AND NOT UNDER TIMELY APPEAL.
SECTION 1709-J. PURCHASERS AND ASSIGNEES.
(A) TIME.--THE PURCHASER OR ASSIGNEE UNDER SECTION 1708-J
MAY ONLY USE A TAX CREDIT DURING A TAX YEAR FOR WHICH USE OF THE
CREDIT IS AUTHORIZED UNDER SECTIONS 1703-J(C)(2) AND 1704-J.
(B) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A PURCHASER
OR ASSIGNEE UNDER SECTION 1708-J MAY USE AGAINST ANY ONE
QUALIFIED TAX LIABILITY MAY NOT EXCEED 75% OF ANY OF THE
QUALIFIED TAX LIABILITIES OF THE PURCHASER OR ASSIGNEE FOR THE
TAXABLE YEAR FOR WHICH THE TAX CREDIT PERTAINS.
SECTION 1710-J. ADMINISTRATION.
(A) AUDITS AND ASSESSMENTS.--THE DEPARTMENT HAS THE
FOLLOWING POWERS:
(1) TO AUDIT A QUALIFIED TAXPAYER CLAIMING A TAX CREDIT
TO ASCERTAIN THE VALIDITY OF THE AMOUNT CLAIMED.
(2) TO ISSUE AN ASSESSMENT AGAINST A QUALIFIED TAXPAYER
FOR AN IMPROPERLY ISSUED TAX CREDIT. THE PROCEDURES,
COLLECTION, ENFORCEMENT AND APPEALS OF ANY ASSESSMENT MADE
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UNDER THIS SECTION SHALL BE GOVERNED BY ARTICLE IV.
(B) GUIDELINES.--THE DEPARTMENT SHALL DEVELOP WRITTEN
GUIDELINES FOR THE IMPLEMENTATION OF THIS ARTICLE.
SECTION 1711-J. ANNUAL REPORT TO GENERAL ASSEMBLY.
BY OCTOBER 1, 2016, AND OCTOBER 1 OF EACH YEAR THEREAFTER,
THE DEPARTMENT SHALL SUBMIT A REPORT ON THE TAX CREDIT PROVIDED
BY THIS ARTICLE TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
APPROPRIATIONS COMMITTEE OF THE SENATE, THE CHAIRMAN AND
MINORITY CHAIRMAN OF THE FINANCE COMMITTEE OF THE SENATE, THE
CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE
OF THE HOUSE OF REPRESENTATIVES AND THE CHAIRMAN AND MINORITY
CHAIRMAN OF THE FINANCE COMMITTEE OF THE HOUSE OF
REPRESENTATIVES. THE REPORT MUST INCLUDE:
(1) THE NAMES OF THE QUALIFIED TAXPAYERS UTILIZING THE
TAX CREDIT AS OF THE DATE OF THE REPORT AND THE AMOUNT OF TAX
CREDITS APPROVED FOR, UTILIZED BY OR SOLD OR ASSIGNED BY A
QUALIFIED TAXPAYER; AND
(2) DATA CONCERNING THE BENEFITS PROVIDED TO THE
COMMONWEALTH IN TERMS OF THE QUANTITY OF COAL REFUSE UTILIZED
BY QUALIFYING FACILITIES AND VOLUME OF COAL ASH GENERATED BY
QUALIFYING FACILITIES WHICH IS BENEFICIALLY USED TO RECLAIM
MINE-AFFECTED LANDS.
SECTION 1712-J. EXPIRATION.
THIS ARTICLE SHALL EXPIRE DECEMBER 31, 2026.
SECTION 1713-J. APPLICABILITY.
THE TAX CREDIT ESTABLISHED UNDER THIS ARTICLE SHALL BE
EFFECTIVE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1,
2016.
SECTION 2. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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