PRINTER'S NO. 1005

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

794

Session of

2017

INTRODUCED BY MENSCH, WARD, DINNIMAN, FONTANA, MARTIN, YUDICHAK,

LEACH, GORDNER, RESCHENTHALER, BAKER, HUTCHINSON, GREENLEAF,

RAFFERTY, VULAKOVICH, BREWSTER, BROWNE AND ALLOWAY,

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 corporate net income tax, further providing

for definitions and providing for deductions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

clearly indicates a different meaning:

* * *

(3) "Taxable income." * * *

(c.1) A deduction under part IV.1 shall be allowed from

taxable income as proscribed in a satisfaction commitment letter

executed between the Department of Community and Economic

Development and a taxpayer under section 407.7(c).

* * *

Section 2. Article IV of the act is amended by adding a part

to read:

(1) "Annual taxable payroll." The total amount of wages

paid by an employer in this Commonwealth for the base year or

year one, as applicable, from which personal income tax under

Article III is withheld.

(2) "Base year." The four calendar quarters preceding the

start date.

(3) "Department." The Department of Community and Economic

Development of the Commonwealth.

(4) "Manufacture." The mechanical, physical, biological or

chemical transformation of materials, substances or components

under this article.

(7) "Start date." The first day of the calendar quarter in

which a taxpayer advises the department of the taxpayer's intent

to initiate an eligible project unless the applicant requests

and the department agrees to a later start date.

(8) "Year one." The four calendar quarters immediately

following the start date.

Section 407.7. Manufacturing Innovation and Reinvestment

Deduction.--(a) In order to be eligible to receive a

the start date of any project for which the taxpayer may seek a

qualified manufacturing reinvestment deduction. A taxpayer must

attest the taxpayer's intent to meet the eligibility criteria

and provide relevant information pertinent to the project's size

and scope in a manner as determined by the department.

(2) Within five years of a project's start date, a taxpayer

must complete to the department's satisfaction an application on

a form and in a manner as determined by the department to attest

that the project has been completed and the eligibility criteria

has been satisfied.

containing the following:

(1) The number of new jobs created and their corresponding

description.

(2) The number of new jobs created during construction of

the project.

(3) The amount of private capital investment in the creation

of new jobs.

(4) The increase in the annual taxable payroll attributable

to new manufacturing jobs.

allowable deduction that a taxpayer may claim against the

taxpayer's taxable income under this article. The deduction

shall be equal to five per cent of the private capital

investment utilized in the creation of new or refurbished

manufacturing capacity per tax year for a period of five years.

(2) A taxpayer may utilize the amount of the deduction in

each year of the succeeding five tax years immediately following

the department's satisfaction determination and the execution of

a satisfaction commitment letter.

(3) A taxpayer cannot use the deduction to reduce its tax