H0377B2849A05326 RZ:DM 01/15/08 #90 A05326
AMENDMENTS TO HOUSE BILL NO. 377
Sponsor: REPRESENTATIVE LEVDANSKY
Printer's No. 2849
1 Amend Title, page 1, line 11, by removing the period after
2 "poverty" and inserting
3 ; further providing for the carryover of the research
4 and development tax credit; and increasing the annual
5 limitation on credits.
6 Amend Bill, page 2, line 27, by striking out all of said line
7 and inserting
8 Section 2. Section 1704-B of the act, amended December 23,
9 2003 (P.L.250, No.46), is amended to read:
10 Section 1704-B. Carryover, Carryback, Refund and Assignment
11 of Credit.--(a) If the taxpayer, purchaser or assignee cannot
12 use the entire amount of the research and development tax credit
13 for the taxable year in which the research and development tax
14 credit is first approved, purchased or assigned, then the excess
15 may be carried over to succeeding taxable years and used as a
16 credit against the qualified tax liability of the taxpayer for
17 those taxable years. Each time that the research and development
18 tax credit is carried over to a succeeding taxable year, it is
19 to be reduced by the amount that was used as a credit during the
20 immediately preceding taxable year. The research and development
21 tax credit provided by this article may be carried over and
22 applied to succeeding taxable years for no more than fifteen
23 taxable years following the first taxable year for which the
24 taxpayer was entitled to claim the credit.
25 (b) A research and development tax credit approved by the
26 department for Pennsylvania qualified research and development
27 expense in a taxable year first shall be applied against the
28 taxpayer's qualified tax liability for the current taxable year
29 as of the date on which the credit was approved before the
30 research and development tax credit is applied against any tax
31 liability under subsection (a).
32 (c) A taxpayer, purchaser or assignee is not entitled to
33 carry back or obtain a refund of an unused research and
34 development tax credit.
35 (d) A taxpayer, upon application to and approval by the
36 Department of Community and Economic Development, may sell or
37 assign, in whole or in part, a research and development tax
38 credit granted to the taxpayer under this article if no claim
39 for allowance of the credit is filed [within one year] from the
1 date the credit is approved by the department under section
2 1703-B. The Department of Community and Economic Development
3 shall establish guidelines for the approval of applications
4 under this subsection.
5 (e) The purchaser or assignee of a portion of a research and
6 development tax credit under subsection (d) shall immediately
7 claim the credit in the taxable year in which the purchase or
8 assignment is made. The amount of the research and development
9 credit that a purchaser or assignee may use against any one
10 qualified tax liability may not exceed seventy-five per cent of
11 such qualified tax liability for the taxable year. The purchaser
12 or assignee may not [carry over,] carry back, obtain a refund of
13 or assign the research and development tax credit. The purchaser
14 or assignee shall notify the department of the seller or
15 assignor of the research and development tax credit in
16 compliance with procedures specified by the department.
17 Section 3. Section 1709-B(a) of the act, amended July 12,
18 2006 (P.L.1137, No.116), is amended to read:
19 Section 1709-B. Limitation on Credits.--(a) The total
20 amount of credits approved by the department shall not exceed
21 [forty million dollars ($40,000,000)] seventy-five million
22 dollars ($75,000,000) in any fiscal year. Of that amount, [eight
23 million dollars ($8,000,000)] fifteen million dollars
24 ($15,000,000) shall be allocated exclusively for small
25 businesses. However, if the total amounts allocated to either
26 the group of applicants exclusive of small businesses or the
27 group of small business applicants is not approved in any fiscal
28 year, the unused portion will become available for use by the
29 other group of qualifying taxpayers.
30 * * *
31 Section 4. The amendment of sections 1704-B and 1709-B(a) of
32 the act shall apply to taxable years beginning after December
33 31, 2007.
34 Section 5. This act shall take effect immediately.
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