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-
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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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