H0377B2849A04951       JKL:DHB 12/07/07    #90             A04951
                        AMENDMENTS TO HOUSE BILL NO. 377
                                    Sponsor:  REPRESENTATIVE BEYER
                                           Printer's No. 2849

     1       Amend Title, page 1, line 11, by removing the period after
     2    "poverty" and inserting
     3               and for a tax credit for new diesel technology.
     4       Amend Bill, page 2, by inserting between lines 26 and 27
     5       Section 1.1.  The act is amended by adding an article to
     6    read:
     7                             ARTICLE XVII-F
     8                    NEW DIESEL TECHNOLOGY TAX CREDIT
     9    Section 1701-F.  Scope of article.
    10       This article relates to new diesel technology tax credits.
    11    Section 1702-F.  Definitions.
    12       The following words and phrases when used in this article
    13    shall have the meanings given to them in this section unless the
    14    context clearly indicates otherwise:
    15       "Department."  The Department of Revenue of the Commonwealth.
    16       "Pass-through entity."  Any of the following:
    17           (1)  A partnership, limited partnership, limited
    18       liability company, business trust or other unincorporated
    19       entity that for Federal income tax purposes is taxable as a
    20       partnership.
    21           (2)  A Pennsylvania S corporation.
    22       "Qualified new diesel technology expenses."  The cost
    23    incurred for the purchase of a Class 8 highway vehicle with a
    24    registered gross or combination weight as provided under 75
    25    Pa.C.S. § 1916 (relating to trucks and truck tractors) and with
    26    a diesel engine if the vehicle purchased has been certified as
    27    compliant with the emissions limits contained in 40 CFR 86.007-
    28    11 (relating to emission standards and supplemental requirements
    29    for 2007 and later model year diesel heavy-duty engines and
    30    vehicles), except that 40 CFR 86.007-15 (relating to NOX and
    31    particulate averaging, trading, and banking for heavy-duty
    32    engines), shall not apply to exhaust emissions attainment levels
    33    for particulates.
    34       "Qualified tax liability."  The liability for taxes imposed
    35    under Article III, IV or VI. The term shall include the
    36    liability for taxes imposed under Article III on an owner of a
    37    pass-through entity.
    38       "Secretary."  The Secretary of Revenue of the Commonwealth.
    39       "Tax credit."  The new diesel technology tax credit
    40    authorized under this article.

     1       "Taxpayer."  An entity subject to tax under Article III, IV
     2    or VI. The term shall include the shareholder, owner or member
     3    of a pass-through entity that receives a tax credit.
     4    Section 1703-F.  Credit for new diesel technology.
     5       (a)  Application.--A taxpayer who incurs a qualified new
     6    diesel technology expense in a taxable year may apply for a tax
     7    credit as provided in this article. By September 15, a taxpayer
     8    must submit an application to the department for qualified new
     9    diesel technology expenses incurred in the taxable year that
    10    ended in the prior calendar year.
    11       (b)  Amount.--A taxpayer that is qualified under subsection
    12    (a) shall receive a tax credit for the taxable year in the
    13    amount of $5,000 per qualified new diesel technology expense.
    14       (c)  Notification.--By December 15 of the calendar year
    15    following the close of the taxable year during which qualified
    16    new diesel technology expense was incurred, the department shall
    17    notify the taxpayer of the amount of the taxpayer's tax credit
    18    approved by the department.
    19    Section 1704-F.  Carryover, carryback, refund and assignment of
    20                       credit.
    21       (a)  Carryover.--If the taxpayer cannot use the entire amount
    22    of the tax credit for the taxable year in which the tax credit
    23    is first approved, the excess may be carried over to succeeding
    24    taxable years and used as a credit against the qualified tax
    25    liability of the taxpayer for those taxable years. Each time
    26    that the tax credit is carried over to a succeeding taxable
    27    year, it shall be reduced by the amount that was used as a
    28    credit during the immediately preceding taxable year. The tax
    29    credit may be carried over and applied to succeeding taxable
    30    years for no more than 15 taxable years following the first
    31    taxable year for which the taxpayer was entitled to claim the
    32    credit.
    33       (b)  Application.--A tax credit approved by the department
    34    for qualified new diesel technology expenses in a taxable year
    35    first shall be applied against the taxpayer's qualified tax
    36    liability for the current taxable year as of the date on which
    37    the credit was approved before the tax credit is applied against
    38    any tax liability under subsection (a).
    39       (c)  Unused credit.--A taxpayer is not entitled to assign,
    40    carry back or obtain a refund of an unused tax credit.
    41    Section 1705-F.  Time limitations.
    42       A taxpayer is not entitled to a tax credit for qualified new
    43    diesel technology expenses incurred in taxable years ending
    44    after December 31, 2009.
    45    Section 1706-F.  Shareholder, owner or member pass-through.
    46       (a)  Pennsylvania S corporations.--If a Pennsylvania S
    47    corporation does not have an eligible tax liability against
    48    which the tax credit may be applied, a shareholder of the
    49    Pennsylvania S corporation is entitled to a tax credit equal to
    50    the tax credit determined for the Pennsylvania S corporation for
    51    the taxable year multiplied by the percentage of the
    52    Pennsylvania S corporation's distributive income to which the
    53    shareholder is entitled under this article.
    54       (b)  Pass-through entities.--If a pass-through entity other
    55    than a Pennsylvania S corporation does not have an eligible tax
    56    liability against which the tax credit may be applied, an owner
    57    or member of the pass-through entity is entitled to a tax credit
    58    equal to the tax credit determined for the pass-through entity
    59    for the taxable year multiplied by the percentage of the pass-

    HB0377A04951                     - 2 -     

     1    through entity's distributive income to which the owner or
     2    member is entitled under this article.
     3       (c)  Additional credits.--The credit provided under
     4    subsection (a) or (b) shall be in addition to any tax credit to
     5    which a shareholder, owner or member of a pass-through entity is
     6    otherwise entitled under this article. However, a pass-through
     7    entity and a shareholder, owner or member of a pass-through
     8    entity may not claim a credit under this article for the same
     9    qualified new diesel technology expense.
    10    Section 1707-F.  Report to General Assembly.
    11       The secretary shall submit an annual report to the General
    12    Assembly indicating the effectiveness of the credit provided by
    13    this article no later than March 15 following the year in which
    14    the credits were approved. The report shall include the names of
    15    all taxpayers utilizing the credit as of the date of the report
    16    and the amount of credits approved and utilized by each
    17    taxpayer. Notwithstanding any law providing for the
    18    confidentiality of tax records, the information contained in the
    19    report shall be public information. The report may also include
    20    any recommendations for changes in the calculation or
    21    administration of the credit.
    22    Section 1708-F.  Termination.
    23       The department shall not approve a tax credit under this
    24    article for taxable years ending after December 31, 2009.
    25    Section 1709-F.  Regulations.
    26       The secretary shall promulgate regulations necessary for the
    27    implementation and administration of this article.

    28       Amend Sec. 2, page 2, line 27, by striking out "immediately"
    29    and inserting
    30               July 1, 2008

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