PRINTER'S NO. 2854
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1999
Session of
2018
INTRODUCED BY ORTITAY, COX, DeLUCA, DIAMOND, GREINER, GROVE,
KAUFFMAN, KEEFER, STEPHENS AND ZIMMERMAN, JANUARY 2, 2018
REFERRED TO COMMITTEE ON FINANCE, JANUARY 2, 2018
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," in research and development tax credit, further
providing for carryover, carryback, refund and assignment of
credit; in entertainment production tax credit, further
providing for carryover, carryback and assignment of credit
and for carryover, carryback and assignment of tax credit; in
resource enhancement and protection tax credit, further
providing for Resource Enhancement and Protection Tax Credit
Program; in historic preservation incentive tax credit,
further providing for carryover, carryback and assignment of
credit; in coal refuse energy and reclamation tax credit,
further providing for sale or assignment; in waterfront
development tax credit, further providing for tax credit; in
Innovate in PA tax credit, further providing for sale,
carryover and carryback; in manufacturing and investment tax
credit, further providing for sale or assignment; in
neighborhood assistance tax credit, further providing for tax
credit; in keystone special development zone program, further
providing for Keystone Special Development Zone Tax Credit;
and, in keystone innovation zones, further providing for
keystone innovation zone tax credits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Section 1. Section 1704-B(d) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
to read:
Section 1704-B. Carryover, Carryback, Refund and Assignment
of Credit.--* * *
[(d) A taxpayer, upon application to and approval by the
Department of Community and Economic Development, may sell or
assign, in whole or in part, a research and development tax
credit granted to the taxpayer under this article. The
Department of Community and Economic Development shall establish
guidelines for the approval of applications under this
subsection.]
* * *
Section 2. Sections 1714-D(e) and 1755-D(e) of the act,
amended or added July 13, 2016 (P.L.526, No.84), are amended to
read:
Section 1714-D. Carryover, carryback and assignment of credit.
* * *
[(e) Sale or assignment.--The following shall apply:
(1) A taxpayer, upon application to and approval by the
department, may sell or assign, in whole or in part, a tax
credit granted to the taxpayer under this subarticle.
(2) The department and the Department of Revenue shall
jointly promulgate regulations for the approval of
applications under this subsection.
(3) Before an application is approved, the Department of
Revenue must make a finding that the applicant has filed all
required State tax reports and returns for all applicable
taxable years and paid any balance of State tax due as
determined at settlement, assessment or determination by the
20180HB1999PN2854 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Department of Revenue.
(4) Notwithstanding any other provision of law, the
Department of Revenue shall settle, assess or determine the
tax of an applicant under this subsection within 90 days of
the filing of all required final returns or reports in
accordance with section 806.1(a)(5) of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code.]
* * *
Section 1755-D. Carryover, carryback and assignment of credit.
* * *
[(e) Sale or assignment.--The following shall apply:
(1) A taxpayer, upon application to and approval by the
department, may sell or assign, in whole or in part, a tax
credit granted to the taxpayer under this subarticle.
(2) The department and the Department of Revenue shall
jointly promulgate regulations for the approval of
applications under this subsection.
(3) Before an application is approved, the Department of
Revenue must make a finding that the applicant has filed all
required State tax reports and returns for all applicable
taxable years and paid any balance of State tax due as
determined at settlement, assessment or determination by the
Department of Revenue.
(4) Notwithstanding any other provision of law, the
Department of Revenue shall settle, assess or determine the
tax of an applicant under this subsection within 90 days of
the filing of all required final returns or reports in
accordance with section 806.1(a)(5) of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code.]
* * *
20180HB1999PN2854 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 3. Section 1775-D(d) of the act, added October 30,
2017 (P.L. , No.43), is amended to read:
Section 1775-D. Carryover, carryback and assignment of tax
credit.
* * *
[(d) Sale or assignment.--The following shall apply:
(1) A recipient, upon application to and approval by the
department, may sell or assign, in whole or in part, a tax
credit granted to the recipient under this subarticle.
(2) The department and the Department of Revenue shall
jointly promulgate regulations for the approval of
applications under this subsection.
(3) Before an application is approved, the Department of
Revenue must make a finding that the recipient has filed all
required State tax reports and returns for all applicable
taxable years and paid any balance of State tax due as
determined at settlement, assessment or determination by the
Department of Revenue.
(4) Notwithstanding any other provision of law, the
Department of Revenue shall settle, assess or determine the
tax of a taxpayer under this subsection within 60 days of the
filing of all required final returns or reports in accordance
with section 806.1(a)(5) of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code.]
Section 4. Sections 1703-E(d) and 1705-H(d) of the act are
amended to read:
Section 1703-E. Resource Enhancement and Protection Tax Credit
Program.
* * *
[(d) Sale or assignment of credit.--
20180HB1999PN2854 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) An eligible applicant, upon application to and
approval by the commission, may sell or assign, in whole or
in part, a tax credit granted to the eligible applicant under
this article if no claim for allowance of the credit is filed
within one year from the date the credit is granted by the
department under section 1708-E. The commission, in
consultation with the department, shall establish guidelines
for the approval of applications under this subsection.
(2) The purchaser or assignee of a portion of a tax
credit under this subsection shall immediately claim the
credit in the taxable year in which the purchase or
assignment is made. The amount of the credit that a purchaser
or assignee may use against a qualified tax liability may not
exceed 75% of the qualified tax liability for the taxable
year. The purchaser or assignee may not carry over, carry
back, obtain a refund of or sell or assign the tax credit.
The purchaser or assignee shall notify the department of the
seller or assignor of the tax credit in compliance with
procedures specified by the department.
(3) Before an application is approved, the department
must make a finding that the applicant has filed all required
State tax reports and returns for all applicable taxable
years and paid any balance of State tax due as determined at
settlement, assessment or determination by the department.
(4) Notwithstanding any other provision of law, the
department shall settle, assess or determine the tax of an
applicant under this subsection within 90 days of the filing
of all required final returns or reports in accordance with
section 806.1(a)(5) of the act of April 9, 1929 (P.L.343,
No.176), known as The Fiscal Code.]
20180HB1999PN2854 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
* * *
Section 1705-H. Carryover, carryback and assignment of credit.
* * *
[(d) Sale or assignment.--The following shall apply:
(1) A qualified taxpayer, upon application to and
approval by the Department of Community and Economic
Development, may sell or assign, in whole or in part, a tax
credit granted to the qualified taxpayer under this article.
(2) Before an application is approved, the department
must find that the applicant has filed all required State tax
reports and returns for all applicable taxable years and paid
any balance of State tax due as determined at settlement,
assessment or determination by the department.]
* * *
Section 5. Sections 1710-J and 1706-K(d)(1) of the act,
added July 13, 2016 (P.L.526, No.84), are amended to read:
[Section 1710-J. Sale or assignment.
(a) Authorization.--Upon approval by the Department of
Revenue, a qualified taxpayer may sell or assign, in whole or in
part, a tax credit granted to the taxpayer under this article.
(b) Application.--The following shall apply:
(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 purchaser or assignee 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
20180HB1999PN2854 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
by assessment or determination by the Department of
Revenue and not under timely appeal.]
Section 1706-K. Tax credit.
* * *
(d) Sale or assignment of tax credits.--
[(1) A taxpayer, upon application to and approval by the
department, may sell or assign, in whole or in part, a
waterfront development tax credit granted to the business
firm under this article if no claim for allowance of the
credit is filed within one year from the date the credit is
granted by the Department of Revenue under section 1707-K.
The department and the Department of Revenue shall jointly
promulgate guidelines for the approval of applications under
this subsection.]
* * *
Section 6. Section 1807-F(b) of the act is amended to read:
Section 1807-F. Sale, carryover and carryback.
* * *
[(b) Sale.--No sooner than 30 days after providing the
Insurance Department and the department written notice of the
intent to transfer tax credits, a qualified taxpayer may
transfer tax credits held without restriction to any entity that
is a qualified taxpayer in good standing with the Insurance
Department and that agrees to assume all of the transferor's
obligations with respect to the tax credit.]
* * *
Section 7. Sections 1806-G(a) and 1904-A(d) of the act,
amended or added July 13, 2016 (P.L.526, No.84), are amended to
read:
Section 1806-G. Sale or assignment.
20180HB1999PN2854 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
[(a) Application.--A taxpayer, upon application to and
approval by the department, may sell or assign, in whole or in
part, a manufacturing tax credit granted to the taxpayer. The
following shall apply:
(1) The department and the Department of Revenue shall
jointly issue guidelines for the approval of applications
under this paragraph.
(2) Before an application is approved, the Department of
Revenue must make a finding that the applicant has filed all
required State tax reports and returns for all applicable
taxable years and paid any balance of State tax due as
determined at settlement, assessment or determination by the
Department of Revenue.
(3) Notwithstanding any other provision of law, the
Department of Revenue must settle, assess or determine the
tax of an applicant under this paragraph within 90 days of
the filing of each required final return or report in
accordance with section 806.1(a)(5) of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code.]
* * *
Section 1904-A. Tax Credit.--* * *
[(d) A taxpayer, upon application to and approval by the
Department of Community and Economic Development, may sell or
assign, in whole or in part, a neighborhood assistance tax
credit granted to the business firm under this article if no
claim for allowance of the credit is filed within one year from
the date the credit is granted by the Department of Revenue
under section 1905-A. The Department of Community and Economic
Development and the Department of Revenue shall jointly
promulgate guidelines for the approval of applications under
20180HB1999PN2854 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
this subsection.]
* * *
Section 8. Section 1903-C(d.1)(1) and (2) of the act are
amended to read:
Section 1903-C. Keystone Special Development Zone tax credit.
* * *
(d.1) Sale or assignment of tax credit.--
[(1) If the Keystone Special Development Zone employer
is entitled to a credit in any year that exceeds its
qualified tax liability for that year, upon application to
and approval by the department, a Keystone Special
Development Zone employer which has been awarded a tax credit
may sell or assign, in whole or in part, the tax credit
granted to the Keystone Special Development Zone employer.
The application must be on the form required by the
department and must include or demonstrate all of the
following:
(i) The applicant's name and address.
(ii) A copy of the tax credit certificate previously
issued by the department.
(iii) A statement as to whether any part of the tax
credit has been applied to tax liability of the applicant
and the amount so applied.
(iv) Any other information required by the
department.
(2) The department shall review the application and,
upon being satisfied that all requirements have been met,
shall approve the application and shall notify the Department
of Revenue.]
* * *
20180HB1999PN2854 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 9. Section 1906-F(f) of the act, added July 13, 2016
(P.L.526, No.84), is amended to read:
Section 1906-F. Keystone innovation zone tax credits.
* * *
[(f) Sale or assignment of tax credit.--
(1) Upon application to and approval by the department,
a KIZ company which has been awarded a tax credit may sell or
assign, in whole or in part, the tax credit granted to the
KIZ company. The application must be on the form required by
the department and must include or demonstrate all of the
following:
(i) The applicant's name and address.
(ii) A copy of the tax credit certificate previously
issued by the department.
(iii) A statement as to whether any part of the tax
credit has been applied to tax liability of the applicant
and the amount so applied.
(iv) Any other information required by the
department.
(2) The department shall review the application and,
upon being satisfied that all requirements have been met, the
department may approve the application and shall notify the
Department of Revenue.]
* * *
Section 10. This act shall take effect immediately.
20180HB1999PN2854 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25