S1412B2285A08498       BIL:CMM 07/01/08    #90             A08498
                       AMENDMENTS TO SENATE BILL NO. 1412
                                    Sponsor:  REPRESENTATIVE QUIGLEY
                                           Printer's No. 2285

     1       Amend Title, page 1, line 15, by removing the comma after
     2    "zones" and inserting
     3               and
     4       Amend Title, page 1, line 16, by striking out "and" and
     5    inserting
     6               ; further providing for qualified businesses;
     7               providing

     8       Amend Bill, page 9, by inserting between lines 24 and 25
     9       Section 2.1.  Section 307 of the act, amended December 9,
    10    2002 (P.L.1727, No.217) and December 23, 2003 (P.L.360, No.51),
    11    is amended to read:
    12    Section 307.  Qualified businesses.
    13       (a)  Qualifications.--In order to qualify each year for a tax
    14    exemption, deduction, abatement or credit under this act, a
    15    business shall do all of the following:
    16           (1)  [own] Own or lease real property in a subzone,
    17       improvement subzone or expansion subzone from which the
    18       business actively conducts a trade, profession or business.
    19       [The qualified]
    20           (2)  Be current in its contractually defined payment
    21       obligations with any of its contractors or subcontractors.
    22       The requirement of this paragraph may be satisfied if the
    23       business meets the requirements of the act of February 17,
    24       1994 (P.L.73, No.7), known as the Contractor and
    25       Subcontractor Payment Act.
    26       (a.1)  Certification.--If a business satisfies the
    27    requirements of subsection (a) for that year, the business shall
    28    receive certification from the department that the business is
    29    [located and is in the active conduct of a trade, profession or
    30    business, within the subzone, improvement subzone or expansion
    31    subzone. The] a qualified business for that year. Each year a
    32    business shall obtain [annual] renewal of the certification from
    33    the department to continue to qualify for the exemptions,
    34    deductions, abatements or credits under this [section] act.
    35       (b)  Relocation.--Any business that relocates from outside a
    36    subzone, improvement subzone or expansion subzone into a
    37    subzone, improvement subzone or expansion subzone shall not

     1    receive any of the exemptions, deductions, abatements or credits
     2    set forth in this act unless that business does one of the
     3    following:
     4           (1)  increases full-time employment by at least 20% in
     5       the first full year of operation within the subzone,
     6       improvement subzone or expansion subzone;
     7           (2)  makes a capital investment in the property located
     8       within the subzone, improvement subzone or expansion subzone
     9       at least equivalent to 10% of the gross revenues of that
    10       business in the immediately preceding calendar or fiscal
    11       year; or
    12           (3)  enters into a lease agreement for property located
    13       within the subzone, improvement subzone or expansion subzone:
    14               (i)  for a term at least equivalent to the duration
    15           of the subzone, improvement subzone or expansion subzone;
    16           and
    17               (ii)  with aggregate payment under the lease
    18           agreement at least equivalent to 5% of the gross revenues
    19           of that business in the immediately preceding calendar or
    20           fiscal year.
    21    The department, in consultation with the Department of Revenue,
    22    may waive or modify the requirements of this subsection, as
    23    appropriate.
    24       Section 2.2.  The act is amended by adding sections to read:












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