H0952B1310A02143 NAD:JSL 06/25/21 #90 A02143
AMENDMENTS TO HOUSE BILL NO. 952
Sponsor: SENATOR BROWNE
Printer's No. 1310
Amend Bill, page 1, lines 1 through 14, by striking out all
of said lines and inserting
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
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 sales and use tax, further providing for
exclusions from tax; in personal income tax, further
providing for classes of income, for withholding tax
requirement for nonemployer payors, for information statement
for nonemployer payors and for information statement for
payees, providing for electronic payment, further providing
for requirements concerning returns, notices, records and
statements and for additions, penalties and fees; in
corporate net income tax, further providing for definitions;
in bank and trust company shares tax, further providing for
definitions; in realty transfer tax, correcting a scrivener's
error relating to credits against tax; in tax credit
eligibility, further providing for definitions and for
eligibility and providing for application and administration,
for assessment, for administering agency training, for broker
registration, for tax credit and tax benefit reports, for
allocation of tax credits or tax benefits awarded upon appeal
and for guidelines; in research and development tax credit,
further providing for credit for research and development
expenses, for carryover, carryback, refund and assignment of
credit and for report to General Assembly; in entertainment
production tax credit, further providing for definitions, for
credit for qualified film production expenses, for reissuance
of film production tax credits, for definitions and for
limitations and providing for Pennsylvania live events
industry COVID-19 emergency assistance; in local resource
manufacturing tax credit, further providing for application
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and approval of tax credit; in keystone opportunity zones,
keystone opportunity expansion zones and keystone opportunity
improvement zones, providing for extension for keystone
opportunity expansion zone and further providing for
additional keystone opportunity expansion zones; in mixed-use
development tax credit, further providing for mixed-use
development tax credits; in keystone innovations zones,
further providing for keystone innovation zone tax credits
and for annual report; in Pennsylvania Housing Tax Credit,
further providing for Pennsylvania Housing Tax Credit and for
annual report; in table game taxes, repealing provisions
relating to expiration; in procedure and administration,
further providing for petition for reassessment, for petition
procedure and for review by board; in computer data center
equipment incentive program, further providing for
definitions and providing for applicability and for sales and
use tax exemption program; in general provisions, further
providing for bad checks, electronic funds transfers not
credited upon transmission, additions to tax; imposing duties
on the Department of Revenue; and making editorial changes.
Amend Bill, page 1, lines 17 through 22; pages 2 through 14,
lines 1 through 30; page 15, lines 1 through 27; by striking out
all of said lines on said pages and inserting
Section 1. The General Assembly finds and declares as
follows:
(1) An error appeared in the publication of section 8 of
the act of July 2, 1986 (P.L.318, No.77): The amendment of
the definition of "document" in section 1101-C of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971, used the word "devises" instead of the word "demises"
and the word "devise" instead of the word "demise."
(2) An error appeared in the publication of section 11
of Act 77 of 1986: The addition of section 1102-C.4 of the
Tax Reform Code of 1971, used the word "devise" instead of
the word "demise."
(3) An error appeared in the publication of section 12
of Act 77 of 1986: The addition of section 1103-C(c) of the
Tax Reform Code of 1971, used the word "devise" instead of
the word "demise" and the word "devised" instead of the word
"demised."
(4) The publication of the official law, without a
footnote, does not match the enrolled bill nor comport with
the interpretive regulation of the Department of Revenue at
61 Pa. Code §§ 91.111(a) (relating to imposition of tax on
documents) and 91.112(a) (relating to statement of value).
(5) The errors are corrected by the amendment of the
definition of "document" in section 1101-C and sections 1102-
C.4 and 1103-C(c) of the Tax Reform Code of 1971.
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Section 2. Section 204(67) and (68) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended and the section is amended by adding clauses to read:
Section 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
* * *
(67) The sale at retail or use of repair or replacement
parts or software or software upgrades, including the
installation of those parts, software or software upgrades,
exclusively for use in helicopters and similar rotorcraft and
flight simulators or in overhauling or rebuilding of helicopters
and similar rotorcraft and flight simulators or helicopters and
similar rotorcraft and flight simulator components. For the
purposes of this clause, the term "flight simulator" shall mean
a device used for the training or instruction of an individual
on a helicopter and similar rotorcraft.
(68) The sale at retail or use or lease of helicopters and
similar rotorcraft[.], and flight simulators, as well as
training materials, operational documents and publications
relating to the use or operation of helicopters and similar
rotorcraft and flight simulators. For the purposes of this
clause, the term "flight simulator" shall mean a device used for
the training or instruction of an individual on a helicopter and
similar rotorcraft.
* * *
(74) The sale at retail or use of a multipurpose
agricultural vehicle operated for the benefit of or pursuant to
the operation of a farm owned or operated by the owner of the
vehicle or a business whose enterprises and activities are
considered part of farming. For the purposes of this clause, the
following terms or phrases shall have the following meanings:
"Multipurpose agricultural vehicle" shall mean a motor
vehicle exempt from registration in accordance with 75 Pa.C.S. §
1302(17) (relating to vehicles exempt from registration) which
is 66 inches or less in width and 2,000 pounds or less in dry
weight and which is used exclusively for agricultural operations
and only incidentally operated or moved upon the highways.
"Use of a multipurpose agricultural vehicle in farming" shall
mean repairing and maintaining buildings, including houses,
garages, barns, stables, greenhouses, mushroom houses and
storehouses, fences and stanchions permanently affixed to real
estate, as well as transporting farming personnel, collecting,
conveying or transporting property to be used in farming and
transporting or conveying the farm product after the final
farming operation, which includes, but does not extend beyond,
the operation of packaging for the ultimate consumer and
storage.
(75) The sale at retail or use of tangible personal property
manufactured for the purpose of initiating, supporting or
sustaining breast feeding.
Section 3. Section 303 of the act is amended by adding a
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subsection to read:
Section 303. Classes of Income.--* * *
(a.10) The provisions of section 451(f) of the Internal
Revenue Code of 1986, as amended, shall be applicable.
Section 3.1. Sections 316.2(a), 317.1 and 317.2 of the act
are amended to read:
Section 316.2. Withholding Tax Requirement for Nonemployer
Payors.--(a) To the extent not already required to withhold tax
on payments under section 316.1, a person that:
(1) makes payments of income from sources within this
Commonwealth described in section 303(a)(1) or (2) to either a
nonresident individual or an entity that is disregarded under
section 307.21 that has a nonresident member; and
(2) is required under section 335(f)(1) to file a copy of
form 1099-MISC or 1099-NEC with the department regarding the
payments;
shall deduct and withhold from the payments an amount equal to
the net amount of the payments multiplied by the tax rate
specified under section 302(b).
* * *
Section 317.1. Information Statement for Nonemployer
Payors.--Every payor required to deduct and withhold tax under
section 316.2 shall furnish to a payee to whom the payor has
paid income from sources within this Commonwealth during the
calendar year a copy of form 1099-MISC or 1099-NEC required
under section 335(f)(1). The copy of form 1099-MISC or 1099-NEC
required by this section for each calendar year shall be
forwarded to the payee on or before March 1 of the year
succeeding the calendar year.
Section 317.2. Information Statement for Payees.--Every
payee receiving a copy of form 1099-MISC or 1099-NEC from a
payor under section 317.1 shall file a duplicate of such
information return with the payee's State income tax return.
Section 3.2. The act is amended by adding a section to read:
Section 332.1. Electronic Payment.--Any payment in the
amount of fifteen thousand dollars ($15,000) or more remitted to
the department for the tax imposed under this article shall be
remitted electronically as prescribed by the department. This
section shall not apply to employer withholding payments under
Part VII of this article and section 9 of the act of April 9,
1929 (P.L.343, No.176), known as "The Fiscal Code."
Section 4. Section 335(f)(1) and (2) of the act are amended
to read:
Section 335. Requirements Concerning Returns, Notices,
Records and Statements.--* * *
(f) The following apply:
(1) Any person who:
(i) makes payments of Pennsylvania source income that fall
within any of the eight classes of income enumerated in section
303(a);
(ii) makes such payments to an individual, an entity treated
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as a partnership for tax purposes or a single member limited
liability company; and
(iii) is required to make a form 1099-MISC or 1099-NEC
return to the Secretary of the Treasury of the United States
with respect to such payments, shall file a copy of such form
1099-MISC or 1099-NEC with the department [and send a copy of
such form 1099-MISC to the payee by March 1 of each year or, if
filed electronically, by March 31 of each year] on the due date
of the form 1099-MISC or 1099-NEC. If the form 1099-MISC or
1099-NEC filed by a payor with the Secretary of the Treasury of
the United States [is not completed in such a manner that] does
not include the State income and State tax withheld
[information, currently boxes 16 through 18 on Federal form
1099-MISC, is reflected thereon] as required under section
316.2, the payor shall update the copies of form 1099-MISC or
1099-NEC to be provided pursuant to this section to reflect such
information prior to filing it with the department and sending
it to the payee.
(2) If the payor is required to perform electronic filing
for Pennsylvania employer withholding purposes, the form 1099-
MISC or 1099-NEC shall be filed electronically with the
department.
* * *
Section 5. Section 352(f)(4) and (5) of the act are amended
and the section is amended by adding a subsection to read:
Section 352. Additions, Penalties and Fees.--* * *
(f) * * *
(4) Any person required to file a copy of form 1099-MISC or
1099-NEC with the department under the provisions of section
335(f) who wilfully furnishes a false or fraudulent form or who
wilfully fails to file the form in the manner, at the time and
showing the information required under section 335(f) shall, for
each such failure, be subject to a penalty of fifty dollars
($50).
(5) Any person required under the provisions of section
335(f) to furnish a copy of form 1099-MISC or 1099-NEC to a
payee who wilfully furnishes a false or fraudulent form or who
wilfully fails to furnish a form in the manner, at the time and
showing the information required by section 335(f) shall, for
each such failure, be subject to a penalty of fifty dollars
($50).
* * *
(k) If a tax payment is made and the payment does not comply
with section 332.1 when required, the taxpayer that is liable
for the tax shall, in addition to any other penalty, interest or
addition provided by law, be liable for a penalty of three per
cent of the payment remitted not to exceed five hundred dollars
($500).
Section 6. Section 407.6(a)(5) of the act is amended to
read:
Section 407.6. Definitions.--(a) For the purposes of this
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part only, the following words, terms and phrases shall have the
meaning ascribed to them in this subsection, except where the
context clearly indicates a different meaning:
* * *
(5) "Qualified manufacturing innovation and reinvestment
deduction." An allowable deduction as determined, calculated
and executed in a commitment letter between the department and
the taxpayer. The deduction shall be applied to the taxable
income of the taxpayer to reduce a qualified tax liability of
the taxpayer following the allocation and apportionment of the
income of the taxpayer.
* * *
Section 7. The definition of "receipts" in section 701.5 of
the act is amended to read:
Section 701.5. Definitions.--The following words, terms and
phrases when used in this article shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
"Receipts." The total of all items of income reported on the
income statement of the institution's Reports of Condition at
the end of the preceding calendar year. If there is a
combination of two or more institutions into one, the total of
all items of income that would be reported on the income
statements of the Reports of Condition of the constituent
institutions shall be combined as if a single institution had
been in existence for the year. For purposes of this definition,
a combination shall include any acquisition required to be
accounted for by using the purchase method in accordance with
generally accepted accounting principles or a statutory merger
or consolidation. If the institution does not file quarterly
Reports of Condition, the term shall include all items of income
included on an income statement determined in accordance with
generally accepted accounting principles for the preceding
calendar year.
* * *
Section 8. The definition of "document" in section 1101-C of
the act is amended to read:
Section 1101-C. Definitions.--The following words when used
in this article shall have the meanings ascribed to them in this
section:
* * *
"Document." Any deed, instrument or writing which conveys,
transfers, [devises] demises, vests, confirms or evidences any
transfer or [devise] demise of title to real estate in this
Commonwealth, but does not include wills, mortgages, deeds of
trust or other instruments of like character given as security
for a debt and deeds of release thereof to the debtor, land
contracts whereby the legal title does not pass to the grantee
until the total consideration specified in the contract has been
paid or any cancellation thereof unless the consideration is
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payable over a period of time exceeding thirty years or
instruments which solely grant, vest or confirm a public utility
easement. "Document" shall also include a declaration of
acquisition required to be presented for recording under section
1102-C.5 of this article.
* * *
Section 9. Sections 1102-C.4 and 1103-C(c) of the act are
amended to read:
Section 1102-C.4. Documents Relating to Associations or
Corporations and Members, Partners, Stockholders or Shareholders
Thereof.--Except as otherwise provided in sections 1102-C.3 and
1102-C.5, documents which make, confirm or evidence any transfer
or [devise] demise of title to real estate between associations
or corporations and the members, partners, shareholders or
stockholders thereof are fully taxable. For the purposes of this
article, corporations and associations are entities separate
from their members, partners, stockholders or shareholders.
Section 1103-C. Credits Against Tax.--* * *
(c) Where there is a transfer of real estate which is
[devised] demised by the grantor, a credit for the amount of tax
paid at the time of the [devise] demise shall be given the
grantor toward the tax due upon the transfer.
* * *
Section 10. The heading of Article XVII-A.1 of the act is
amended to read:
ARTICLE XVII-A.1
TAX CREDIT [ELIGIBILITY] AND TAX BENEFIT ADMINISTRATION
Section 11. The definition of "tax credit" in section 1701-
A.1 of the act is amended and the section is amended by adding
definitions to read:
Section 1701-A.1. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Administering agency." A department, board or commission
that administers a tax credit or tax benefit as required by a
law of this Commonwealth. The term does not include a keystone
innovation zone coordinator under Article XIX-F.
"Applicant." A person applying to an administering agency
for a tax credit or a tax benefit.
"Application." An application submitted to an administering
agency by an applicant for a tax credit or tax benefit. The term
includes a transfer application and supplemental documentation
required to be provided by an applicant, including reports,
returns and statements.
"Broker." A person that engages in the business of
effectuating transactions in tax credits for the account of
others, including assisting a taxpayer to apply for, sell,
transfer, assign or purchase a tax credit. The term includes an
entity and all of the following that perform similar functions
for the entity:
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(1) A partner, officer or director of the entity.
(2) An affiliate of the entity.
(3) Any other person occupying a similar status of the
entity.
* * *
"Person." Any individual, employer, association, fiduciary,
partnership, corporation, entity, estate or trust, whether a
resident or nonresident of this Commonwealth.
"Program year." The annual period in which the tax credit or
tax benefit operates.
"Recipient." A person that is sold, assigned or transferred
a transferrable tax credit.
"Tax benefit." For purposes of this article, a tax benefit
authorized under any of the following:
(1) Article XVII-A.
(2) Article XVIII-C.
(3) Article XIX-B.
(4) Article XIX-D.
(5) Article XXIX-C.
(6) Article XXIX-D.
(7) The act of October 6, 1998 (P.L.705, No.92), known
as the Keystone Opportunity Zone, Keystone Opportunity
Expansion Zone and Keystone Opportunity Improvement Zone Act.
"Tax credit." A tax credit authorized under any of the
following:
(1) Article XVII-B.
(2) Article XVII-D.
(3) Article XVII-E.
(4) Article XVII-G.
(5) Article XVII-H.
(6) Article XVII-I.
(7) Article XVII-J.
(8) Article XVII-K.
(8.1) Article XVII-L.
(9) Article XVIII.
(10) Article XVIII-B.
(11) Article XVIII-D.
(12) Article XVIII-E.
(13) Article XVIII-F.
(14) Article XVIII-G.
(14.1) Article XVIII-H.
(15) Article XIX-A.
(15.1) Article XIX-C.
(16) Article XIX-E.
(16.1) Article XIX-F.
(17) Section 2010.
[(18) Article XXIX-D.]
(19) Article XX-B of the act of March 10, 1949 (P.L.30,
No.14), known as the Public School Code of 1949.
(20) The act of December 1, 2004 (P.L.1750, No.226),
known as the First Class Cities Economic Development District
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Act.
(21) 12 Pa.C.S. Ch. 34 (relating to Infrastructure and
Facilities Improvement Program).
(22) Any other program established by a law of this
Commonwealth in which a person applies for and receives a
credit against a tax. This paragraph shall not apply to a
credit against a tax liability as a result of an overpayment.
"Taxpayer." A person that was approved for a tax credit or
tax benefit or that received a transferrable tax credit by sale,
assignment or transfer.
"Transfer application." An application submitted to the
department or the administering agency by an applicant or a
recipient as part of the sale, assignment or transfer of a
transferrable tax credit to a recipient.
"Transferrable tax credit." A tax credit which may be sold,
assigned or transferred from an applicant to a different
taxpayer. The term includes a tax credit which may be
transferred to a shareholder, member or partner of an applicant.
Section 12. Section 1702-A.1 of the act is amended to read:
Section 1702-A.1. [Eligibility.] Determination of eligibility
and method of submission.
(a) Tax reports and returns.--Except as otherwise provided
by law, before a tax credit [can] or tax benefit may be awarded,
the department [may] or administering agency, as applicable,
shall make a finding that [the taxpayer] an applicant or a
recipient has filed all required State tax reports and returns
for all applicable taxable years and paid any balance of State
tax due as determined at settlement or assessment by the
department, unless the tax due is [currently] under appeal at
the time the finding was made by the department or administering
agency.
(b) [(Reserved).] Notification.--For a tax credit authorized
under Article XX-B of the act of March 10, 1949 (P.L.30, No.14),
known as the Public School Code of 1949, the department shall
notify the Department of Community and Economic Development of
any finding required under subsection (a) within 30 days of the
Department of Community and Economic Development receiving a
completed application.
(c) Electronic applications.--The department or
administering agency, as applicable, may require an application
for a tax credit or tax benefit to be filed electronically.
Section 13. The act is amended by adding sections to read:
Section 1703-A.1. Application and administration.
(a) Insufficient application.--If an administering agency
finds that an application is insufficient for the administering
agency to determine whether the applicant is eligible to receive
a tax credit or tax benefit, the department, in consultation
with the administering agency, may do all of the following for
applicants other than individuals who own less than 20% of the
applicant:
(1) Require the submission of additional documentation
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or verification which verifies material in the application.
Additional documentation or verification required under this
paragraph may include any of the following:
(i) A copy of the photo identification of the
applicant's or recipient's chief executive officer and
any authorized representative responsible for submitting
the application. A copy of photo identification under
this subparagraph shall include the individual's name and
address.
(ii) Bank account statements relating to the
business.
(iii) Business records, including receipts and
expenditures.
(iv) Business origination documents, including
articles of incorporation, partnership or reference to
documents under this subparagraph in records of the
Department of State or similar entity in another
jurisdiction.
(v) Any other information required by the department
or administering agency to determine that the applicant
is eligible to receive a tax credit or tax benefit with
the application.
(2) For an applicant that is not an individual, require
that the applicant or broker meet for a virtual or in-person
interview with representatives or agents of the department or
the administering agency to verify the contents of the
application.
(3) For an applicant that is not an individual, require
the applicant or broker to agree to submit to scheduled or
unscheduled site inspections by the department, the
administering agency or representatives or agents of the
department or administering agency. If the site is located in
an area where unscheduled site visits are not feasible, the
department or administering agency shall provide sufficient
notice prior to the visit. The department shall establish a
policy to ensure the confidentiality of information collected
or observed during a site inspection. The policy shall
include a prohibition on the taking of photos, video and
audio recordings which are not related to the subjects
regulated by the department.
(b) Risk criteria.--The department and an administering
agency may jointly develop risk scoring criteria to determine
when an applicant other than an individual who owns less than
20% of the applicant may be required to do any of the following:
(1) As a condition of approval of the application, one
of the following:
(i) If the amount of the tax credit or tax benefit
is equal to or exceeds $100,000, hire an independent
auditor to prepare audited financial statements. The
independent auditor under this subparagraph shall be a
certified public accountant.
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(ii) If the amount of the tax credit or tax benefit
is less than $100,000, provide an agreed-upon procedure
report or a certification-of-costs report prepared by an
independent certified public accountant.
(2) Provide information which shall be included in the
audited financial statements under paragraph (1)(i) or
agreed-upon procedure report or certification-of-costs report
under paragraph (1)(ii) to be submitted to the department.
(3) Require the audited financial statements under
paragraph (1)(i) or agreed-upon procedure report or
certification-of-costs report under paragraph (1)(ii) be
submitted to the department.
(c) Reports.--After approval and until a tax credit or tax
benefit is fully used, an applicant that is approved for a tax
credit or tax benefit shall file an annual report with the
department or administering agency detailing all of the
following, to the extent that the following is applicable to the
tax credit or tax benefit:
(1) For a transferrable tax credit, all of the
following:
(i) Whether the applicant used, sold, assigned or
transferred a portion or all of the tax credit in the
prior program year.
(ii) Whether the tax credit was sold, assigned or
transferred for consideration in the prior program year
and the name of the recipient.
(iii) If the tax credit was sold, assigned or
transferred for consideration, the amount of the
consideration.
(iv) If the tax credit was sold, assigned or
transferred for consideration, whether the sale,
assignment or transfer was conducted with the assistance
of a broker and the name and registration number of the
broker.
(2) If applicable, an itemization of expenses and jobs
generated as a result of the receipt of the tax credit or tax
benefit.
(3) Any other information that the department or
administering agency deems necessary.
(d) Submission of data.--The department or administering
agency shall provide the information submitted under subsection
(c)(2) to the Independent Fiscal Office for use in preparing a
tax credit report under section 5 of the act of October 30, 2017
(P.L.797, No.48), known as the Performance-Based Budgeting and
Tax Credit Efficiency Act.
Section 1704-A.1. Assessment.
(a) General rule.--The department may issue an assessment
against a taxpayer if the department determines that a tax
credit or tax benefit was improperly issued or the benefits of
the tax credit or tax benefit were improperly conferred.
(b) Transferred tax credit assessment.--If a tax credit is
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sold, transferred or assigned to a bona fide purchaser for
consideration, the department may issue an assessment authorized
by subsection (a) against the applicant and the broker which
signed the certification required by section 1706-A.1(g). An
applicant and broker shall be jointly and severally liable for
an assessment under this subsection.
(c) Liability restrictions.--A broker shall not be held
jointly and severally liable for the amount due when the broker
is purchasing or selling a tax credit or tax benefit in which
the broker did not sign the certification required under section
1706-A.1(g) for the initial tax credit or tax benefit
application. A broker under this subsection shall be liable only
for the financial amount reported to the department on the
program transfer application.
(d) Amount.--An assessment authorized by subsection (a)
shall not exceed the face value of the tax credit or tax benefit
or the benefits of the tax credit or tax benefit sold,
transferred, assigned or otherwise improperly conferred and
applicable interest.
(e) Procedures.--The procedures, collection, enforcement and
appeals of an assessment made under subsection (a) or (b) shall
be subject to Part X of Article III, except that the limitations
on assessment and collection under section 348 shall not apply.
(f) Limitations.--
(1) Except as provided under paragraph (2), the
department must issue an assessment under subsections (a) or
(b) within three years of the date the tax credit or tax
benefit is awarded or within three years of the date the tax
credit is sold, transferred or assigned, whichever is later.
(2) If a taxpayer obtains a tax credit or tax benefit by
fraud, the department may issue an assessment under
subsection (a) or (b) at any time.
(3) If a broker is determined to have acted in good
faith and was not negligent in duties regarding the
information provided to the broker by the taxpayer, the
department may not make an assessment against the broker.
Section 1705-A.1. Administering agency training.
(a) Training.--An administering agency shall provide agency
employees, representatives and agents of the administering
agency that assist applicants with applications with training on
all of the following:
(1) The requirements for a tax credit or tax benefit.
(2) Advising an applicant that has been issued a tax
credit or tax benefit of the duty of the applicant to file
reports concerning use of the tax credit or tax benefit as
required by the laws of this Commonwealth.
(3) Conducting site inspections to verify compliance
with the requirements relating to application for and
issuance of a tax credit or tax benefit.
(4) Conducting scheduled and unscheduled visits to the
site of a taxpayer to ensure compliance with the requirements
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of the tax credit or tax benefit.
(b) (Reserved).
Section 1706-A.1. Broker registration.
(a) Registration required.--A person that acts as a broker
shall register with the department under this section. An agent
or other party representing a broker or assisting a broker on
behalf of an applicant, including a person that executes an
application for an applicant, or the sale, assignment or
transfer of a transferrable tax credit shall register under this
section.
(b) Guidelines.--The department, in consultation with the
Department of Community and Economic Development, shall
establish guidelines providing for the application and
registration of a broker under this section. The guidelines
shall require all of the following:
(1) The name and address of the broker.
(2) The name and address of the business with which the
broker is employed or otherwise associated that is located
and maintaining a place of business in this Commonwealth.
(3) That the broker be at least 18 years of age.
(4) The minimum educational requirements, qualifications
and experience necessary for the issuance of a registration
under this section.
(5) A criminal background check prepared by the
Pennsylvania State Police that demonstrates the broker has
not been convicted of a felony offense or an offense that
involved fraud or misrepresentation in this Commonwealth or
any other jurisdiction.
(6) A list of each professional license that has been
issued to the broker and whether the broker is in good
standing with the licensing authority.
(7) Verification that the application is submitted in
accordance with 18 Pa.C.S. §§ 4903 (relating to false
swearing) and 4904 (relating to unsworn falsification to
authorities).
(8) Payment of any required application, licensing and
registration fees.
(9) Tax clearance showing satisfaction of all State and
local taxes.
(c) Applications.--A broker shall obtain an initial or
renewed registration by filing an application with the
department, providing the renewal information and documentation
and paying all fees as required by the department.
(d) Duration of registration.--A registration under this
section shall be valid for a period of two years from the date
of issuance.
(e) Registration number.--A registration under this section
shall include a unique registration number for the broker. A
registration under this section may be suspended or revoked by
the department for good cause.
(f) Appeals.--A broker who is denied a registration under
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this section, or whose registration is suspended or revoked, may
appeal the department's determination in the same manner as
provided by Article XXVII.
(g) Attachment of certification.--A broker executing the
sale of a transferrable tax credit or assisting an applicant or
a taxpayer to apply for or purchase a tax credit shall do all of
the following:
(1) Attach a certification to the application that the
statements and representations made in the application are
true and correct and subject to the penalties as set forth in
18 Pa.C.S. § 4903 or 4904.
(2) Include the broker's unique registration number
issued by the department in the certification under this
subsection.
(h) Fees.--The department may require the payment of an
application fee to review and process a registration under this
subsection.
(i) Penalties.--A person who violates the requirements
specified under this section shall pay a civil fine of up to
$25,000 for the first offense and up to $50,000 for each
additional offense to the department.
(j) Bond required.--A broker registered under this section
shall post a bond of $50,000 with the department.
Section 1707-A.1. Tax credit and tax benefit reports.
(a) Reports.--Notwithstanding any law providing for the
confidentiality of tax credits, beginning with the first program
year which begins after the effective date of this section and
each program year thereafter, the administering agency shall
publish a report for each tax credit or tax benefit, which shall
include the following information:
(1) The name of each applicant that received a tax
credit or tax benefit in the prior program year.
(2) For a tax credit, the amount of tax credit awarded
to each applicant.
(3) For a transferrable tax credit, whether an applicant
under paragraph (1) sold, assigned or transferred a
transferrable tax credit in the prior program year.
(4) If applicable, a summary of the data submitted under
section 1703-A.1(c)(2).
(5) If available to the administering agency, all of the
following relating to a transferrable tax credit:
(i) The name of the recipient to which the
transferrable tax credit under paragraph (3) was sold,
assigned or transferred in the prior program year. The
name of an individual receiving a transferrable tax
credit without consideration from a pass-through entity
in which the individual is a shareholder, member or
partner shall not be published.
(ii) The amount of the transferrable tax credit
under paragraph (3) that was sold, assigned or
transferred.
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(iii) The price for which a tax credit under
paragraph (2) was sold, assigned or transferred.
(b) Publication.--
(1) Except as provided under paragraph (2), an
administering agency shall publish a report on each tax
credit or tax benefit under subsection (a) on the
administering agency's publicly available Internet website no
later than 45 days after the end of a program year.
(2) If an administering agency is required by a law of
this Commonwealth to prepare an annual report on the tax
credit or tax benefit, the information under subsection (a)
shall be included in the annual report required by the law of
this Commonwealth.
Section 1708-A.1. Allocation of tax credits or tax benefits
awarded upon appeal.
(a) Appeal.--If an administering agency denies an
applicant's application for a tax credit or tax benefit program,
the applicant may appeal the administering agency's
determination in the same manner as provided by Article XXVII.
(b) Awarding of tax credit or tax benefit upon appeal.-- The
following shall apply to an allocation of tax credits awarded
upon the final resolution of an appeal:
(1) If an applicant is awarded a tax credit which is
subject to a total annual limitation, upon the final
resolution of an appeal after the full allocation of credits
available for a fiscal year is completely expended, the
administering agency shall include the awarded tax credit
within the distribution of tax credits in the next program
year after the resolution of the appeal for which an amount
for allocation is available.
(2) When awarding a tax credit to an applicant under
paragraph (1), the administering agency shall apply any
reduction in the awarded tax credit amount as was applied in
the program year for which the credit was denied if the
reduction was applied due to the total credits applied for
exceeding the amount of credits allocated for the program
year.
(3) When awarding a tax credit to an applicant under
paragraph (1), the administering agency shall reduce the
total amount of credits available for allocation in the next
program year by the amount of credits awarded.
(4) The awarded tax credits under paragraph (1) shall
apply for the program year in which the credit was denied.
(c) Appeal.--If the Department of Community and Economic
Development denies an applicant's application for a tax credit
or tax benefit program, the applicant may appeal in a manner
established by the Department of Community and Economic
Development.
(d) Definition.--As used in this section, the term
"administering agency" does not include the Department of
Community and Economic Development.
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Section 1709-A.1. Guidelines.
The department shall establish guidelines for the
implementation of this article.
Section 14. Sections 1703-B(a) and (c), 1704-B(a) and (b)
and 1711-B of the act are amended to read:
Section 1703-B. Credit for Research and Development
Expenses.--(a) A taxpayer who incurs Pennsylvania qualified
research and development expense in a taxable year may apply for
a research and development tax credit as provided in this
article. By [September 15] December 1, a taxpayer must submit an
application to the department for Pennsylvania qualified
research and development expense incurred in the taxable year
that ended in the prior calendar year.
* * *
(c) By [December 15 of the ] May 1 of the second calendar
year following the close of the taxable year during which the
Pennsylvania qualified research and development expense was
incurred, the department shall notify the taxpayer of the amount
of the taxpayer's research and development tax credit approved
by the department.
Section 1704-B. Carryover, Carryback, Refund and Assignment
of Credit.--(a) If the taxpayer cannot use the entire amount of
the research and development tax credit for the first taxable
year in which the taxpayer applied for a research and
development tax credit [is first approved], then the excess may
be carried over to succeeding taxable years and used as a credit
against the qualified tax liability of the taxpayer for those
taxable years. Each time that the research and development tax
credit is carried over to a succeeding taxable year, it is to be
reduced by the amount that was used as a credit during the
immediately preceding taxable year. The research and development
tax credit provided by this article may be carried over and
applied to succeeding taxable years for no more than fifteen
taxable years following the first taxable year for which the
taxpayer was entitled to claim the credit.
(b) A research and development tax credit approved by the
department for Pennsylvania qualified research and development
expense in a taxable year first shall be applied against the
taxpayer's qualified tax liability for the current taxable year
as of the date on which the [credit was approved] taxpayer
applied for the credit before the research and development tax
credit is applied against any tax liability under subsection
(a).
* * *
Section 1711-B. Report to General Assembly.--The secretary
shall submit an annual report to the General Assembly indicating
the effectiveness of the credit provided by this article no
later than [March 15 following the] October 1 following the
calendar year in which the credits were approved. The report
shall include the names of all taxpayers utilizing the credit as
of the date of the report and the amount of credits approved and
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utilized by each taxpayer. Notwithstanding any law providing for
the confidentiality of tax records, the information contained in
the report shall be public information. The report may also
include any recommendations for changes in the calculation or
administration of the credit.
Section 15. Section 1711-D of the act is amended by adding a
definition to read:
Section 1711-D. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Multifilm." A series of separate and distinct films
produced by the same taxpayer over a period of no less than one
year and no more than four years from the time of application.
* * *
Section 16. Sections 1712-D(b) and 1716.1-D(a) of the act
are amended by adding paragraphs to read:
Section 1712-D. Credit for qualified film production
expenses.
* * *
(b) Review and approval.--The department shall establish
application periods not to exceed 90 days each. All applications
received during the application period shall be reviewed and
evaluated by the department based on the following criteria:
* * *
(7.1) If a multifilm application is submitted, the
department shall consider the ability of the taxpayer to
produce multiple films within this Commonwealth during the
proposed period of production and the potential economic
impact, including tourism impact, of the multiple films to
this Commonwealth.
* * *
Section 1716.1-D. Reissuance of film production tax credits.
(a) Reissuance.--In any fiscal year, the department may
reissue a tax credit which meets all of the following:
* * *
(4) If an individual film that was issued a tax credit
as part of a multifilm application is canceled, the
department may reissue that tax credit only after allowing
the taxpayer 90 days to submit an application for an
alternative individual film, produced by the taxpayer for
that tax credit. The department may approve or reject the
application.
* * *
Section 17. The definitions of "concert tour equipment,"
"recipient," "taxpayer," "tour," "tour expense" and "venue" in
section 1772-D of the act are amended and the section is amended
by adding definitions to read:
Section 1772-D. Definitions.
The following words and phrases when used in this subarticle
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Concert tour equipment." Includes stage, set, scenery,
design elements, automation, rigging, trusses, spotlights,
lighting, sound equipment, video equipment, special effects,
cases, communication devices, power distribution equipment,
backline, personal protective equipment and other miscellaneous
equipment or supplies used during a concert or rehearsal.
* * *
"Pennsylvania live events industry." A qualified rehearsal
facility, vendors of concert tour equipment located and
maintaining a place of business in this Commonwealth, venues
located in this Commonwealth and any promoter of live
performances located and maintaining a place of business in this
Commonwealth.
* * *
"Personal protective equipment." Includes equipment,
services and supplies necessary to screen, test, shield or
protect performers or individuals from health pathogens during a
rehearsal, streaming performance or tour. The term includes
costs associated with cleaning and disinfecting qualified
rehearsal facilities and venues used on a tour and costs
associated with complying with safety-protocols established to
combat COVID-19 and other health pathogens.
* * *
"Recipient." A taxpayer that has been awarded a tax credit
under section 1773-D(e) or 1782-D(e).
* * *
"Streaming performance." A live performance which is
performed at a qualified rehearsal facility to be remotely
viewed by individuals. The term includes streaming and
broadcasting of a performance.
* * *
"Taxpayer." A musical performer or performers or a concert
tour management company of a musical performer or performers
subject to tax under Article III, IV or VI. The term does not
include contractors or subcontractors of a musical performer or
performers or of a concert tour management company of a musical
performer or performers. For fiscal years beginning July 1,
2021, and ending June 30, 2023, the term also includes a
management company of a professional sports league, a news
broadcasting station, a production company, a creative agency or
a broadcaster, subject to tax under Article III or IV.
"Tour." A series of concerts performed or to be performed by
a musical performer in more than one location. The term includes
at least one rehearsal. For fiscal years beginning July 1, 2021,
and ending June 30, 2023, the term also includes a streaming
performance.
"Tour expense." As follows:
(1) Costs incurred or which will be incurred during a
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tour for venues located in this Commonwealth. The term
includes all of the following:
(i) A payment which is made or will be made by a
recipient to a person upon which withholding will be made
on the payment by the recipient as required under Part
VII of Article III or a payment which is made or will be
made to a person who is required to make estimated
payments under Part VIII of Article III.
(ii) The cost of transportation of people which is
incurred or will be incurred while transporting to or
from a train station, bus depot, airport or other
transportation facility or while transporting directly
from a residence or business entity located in this
Commonwealth, or which is incurred or will be incurred
for transportation provided by a company which is subject
to the tax imposed under Article III or IV.
(iii) The cost of leasing vehicles upon which the
tax imposed by Article II will be paid or accrued.
(v) The cost of purchasing or renting facilities and
equipment from or through a resident of this Commonwealth
or an entity subject to taxation in this Commonwealth.
(vi) The cost of food and lodging which is incurred
or will be incurred from a facility located in this
Commonwealth.
(vii) Expenses which are incurred or will be
incurred in marketing or advertising a tour at venues
located within this Commonwealth.
(viii) The cost of merchandise which is purchased or
will be purchased from a company located within this
Commonwealth and used on the tour.
(ix) A payment which is made or will be made to a
personal service corporation representing individual
talent if the tax imposed by Article IV will be paid or
accrued on the net income of the corporation for the
taxable year.
(x) A payment which is made or will be made to a
pass-through entity representing individual talent for
which withholding will be made by the pass-through entity
on the payment as required under Part VII or VII-A of
Article III.
(1.1) The cost of concert tour equipment not used during
rehearsal but used for an entire tour if the concert tour
equipment is purchased or will be purchased from a company
maintaining a place of business in this Commonwealth and
subject to the tax imposed under Article III or IV. The term
includes the cost of personal protective equipment which is
purchased or will be purchased from a company located within
this Commonwealth and used on the tour.
(2) The term does not include development cost,
including the writing of music or lyrics.
"Venue." A class 1, class 2 or class 3 venue. For fiscal
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years beginning July 1, 2021, and ending June 30, 2023, the term
also includes a qualified rehearsal facility when used for a
streaming performance.
Section 18. Section 1777-D(a) and (b) of the act are amended
to read:
Section 1777-D. Limitations.
(a) Cap.--
(1) The aggregate amount of tax credits awarded in a
fiscal year under this subarticle may not exceed $8,000,000.
(2) In a fiscal year, the department may, in the
department's discretion, advance the award of tax credits for
qualified rehearsal and tour expenses incurred or to be
incurred equal to $2,000,000 of the tax credits available to
be awarded in the succeeding fiscal year.
(3) If, in a fiscal year, the maximum amount of credits
authorized by this subsection are not awarded by the
department, the department may increase the total amount of
tax credits that the department may award for qualified
rehearsal and tour expenses incurred or to be incurred
related to a tour in the immediately succeeding fiscal year
by the amount that was not awarded in the preceding fiscal
year.
(b) Advance award of credits.--The advance award of tax
credits under subsection [(a)] (a)(2) shall:
(1) count against the total amount of tax credits that
the department may award for qualified rehearsal and tour
expenses incurred or to be incurred related to a tour in that
next succeeding fiscal year; and
(2) reduce the total amount of tax credits that the
department may award for qualified rehearsal and tour
expenses incurred or to be incurred related to a tour in that
next succeeding fiscal year.
* * *
Section 19. The act is amended by adding a section to read:
Section 1782-D. Pennsylvania live events industry COVID-19
emergency assistance.
(a) Intent.--It is the intent of the General Assembly to
assist the Pennsylvania live events industry which has been
severely impacted by the COVID-19 virus by providing a temporary
procedure to further encourage live event performers to purchase
Pennsylvania products and services while safely entertaining
residents of this Commonwealth.
(b) Application.--For fiscal years beginning July 1, 2021,
and ending June 30, 2023, and notwithstanding section 1773-D, a
taxpayer may apply to the department for a tax credit related
to a streaming performance under this section. The application
shall be on the form required by the department.
(c) Review and approval.--
(1) The department shall establish application periods
not to exceed 10 days on a bimonthly basis. All applications
received during an application period shall be reviewed and
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evaluated by the department based on the following criteria:
(i) The anticipated number of rehearsal days in a
qualified rehearsal facility.
(ii) The anticipated number of streaming
performances.
(iii) The anticipated amount of Pennsylvania
rehearsal and tour expenses.
(iv) The anticipated amount of the concert tour
equipment expenses which are or will be purchased or
rented from companies located and maintaining a place of
business in this Commonwealth and which will be used for
the rehearsal and streaming performances.
(v) The anticipated amount of the concert tour
equipment expenses which are not or will not be purchased
or rented from companies located and maintaining a place
of business in this Commonwealth and which will be used
for the rehearsal and streaming performances.
(vi) The anticipated number of days spent in
Commonwealth hotels.
(vii) Other criteria that the department deems
appropriate to ensure maximum employment opportunities
and entertainment benefits for the residents of this
Commonwealth.
(2) The department may approve the taxpayer for a tax
credit upon determining all of the following:
(i) That the taxpayer has paid the applicable
application fee, not to exceed $300.
(ii) That the taxpayer has met or will meet all of
the following:
(A) Has or will rehearse at a qualified
rehearsal facility for a minimum of seven days.
(B) Has or will perform at least one streaming
performance at a qualified rehearsal facility.
(C) Has incurred or will incur Pennsylvania
rehearsal and tour expenses in an amount of at least
$300,000 from companies located and maintaining a
place of business in this Commonwealth.
(D) Has or will purchase or rent concert tour
equipment to be delivered to a qualified rehearsal
facility in an amount of at least $225,000 from
companies located and maintaining a place of business
in this Commonwealth.
(E) Has or will purchase or rent at least 70% of
the concert tour equipment to be used for the
rehearsal and any streaming performances from
companies located and maintaining a place of business
in this Commonwealth.
(F) Maintains a place of business in this
Commonwealth or employs a representative for the
period beginning with the start date and ending with
the award of tax certificates under this section.
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(d) Contract.--If the department approves the taxpayer's
application under subsection (c)(2), the department and the
taxpayer shall enter into a contract containing the following:
(1) The start date or the expected start date.
(2) With respect to a contract entered into prior to
completion of a streaming performance, a commitment by the
taxpayer to hold at least one streaming performance at a
qualified rehearsal facility.
(3) With respect to a contract entered into prior to
completion of a streaming performance, a commitment by the
taxpayer to incur the Pennsylvania rehearsal and tour
expenses as itemized.
(4) Any other information the department deems
appropriate.
(e) Certificate.--Upon execution of the contract required by
subsection (d), the department shall award the taxpayer a tax
credit and issue the recipient a tax credit certificate.
(f) Limitations.--
(1) A taxpayer may not be awarded more than 25% of
Pennsylvania rehearsal and tour expenses the taxpayer
incurred or will incur for a tour.
(2) A taxpayer may not be awarded more than $250,000 of
tax credits for a tour.
(g) Cap.--Any award of tax credits made under this section
shall count against and reduce the total amount of tax credits
that the department may award under section 1777-D(a) for
qualified rehearsal and tour expenses incurred or to be incurred
related to a tour in that fiscal year.
Section 19.1. Section 1704-L(d) of the act, added July 23,
2020 (P.L.654, No.66), is amended to read:
Section 1704-L. Application and approval of tax credit.
* * *
(d) Availability of tax credits.--
(1) Each fiscal year, $26,666,668 in tax credits shall
be made available to the department in accordance with this
article.
(2) No more than [four] two qualified taxpayers shall
receive a tax credit annually, for a maximum credit of
$6,666,667 each.
(3) The department[, at its discretion, may] shall issue
unallocated credits to [a] no more than one qualified
taxpayer, notwithstanding the maximum credit limit under
paragraph (2)[.], if the qualified taxpayer:
(i) has made a total capital investment of at least
$1,000,000,000 in order to construct the project facility
and place the project facility into service in this
Commonwealth;
(ii) has created a minimum aggregate total of 1,800
new jobs and permanent jobs; and
(iii) has satisfied all other eligibility
requirements for a qualified taxpayer under this article.
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(4) For purposes of paragraph (3), the term "unallocated
credits" means the difference between tax credits authorized
under paragraph (1) and approved under paragraph (2).
Section 20. The act is amended by adding a section to read:
Section 1913-D. Extension for keystone opportunity expansion
zone.
(a) General rule.--The department may approve an application
to grant an extension for a parcel located within a keystone
opportunity zone, keystone opportunity expansion zone or
keystone opportunity improvement zone upon application by a
political subdivision.
(b) Application.--This section shall apply to a parcel
located within a keystone opportunity zone, keystone opportunity
expansion zone or keystone opportunity improvement zone that
expires in 2022, if the parcel is located within a county of the
third class with a population of at least 350,000 but less than
410,000 based on the 2010 Federal decennial census.
(c) Extension period.--An extension granted under this
section shall be for a period of five years.
Section 21. Sections 1921-D(d), 1907-E(a), 1906-F(b) and (d)
and 1908-F of the act are amended to read:
Section 1921-D. Additional keystone opportunity expansion
zones.
* * *
(d) Application.--
(1) In order to receive a designation under this
section, the department must receive an application from a
political subdivision or its designee no later than October
1, [2021] 2022. The application must contain the information
required under section 302(a)(1), (2)(i) and (ix), (5) and
(6) of the KOZ Act.
(2) The department, in consultation with the Department
of Revenue, shall review the application and, if approved,
issue a certification of all tax exemptions, deductions,
abatements or credits under this act for the zone within
three months of receipt of the application.
(3) The department shall act on an application for a
designation under section 302(a)(1) of the KOZ Act by
December 31, [2021] 2022.
(4) The department may make designations under this
section on a rolling basis during the application period.
* * *
Section 1907-E. Mixed-use development tax credits.
(a) Tax credit authority.--For purposes, and in accordance
with the provisions of this article, the agency may allocate an
amount not to exceed [$3,000,000] $4,500,000 in each fiscal year
in mixed-use development tax credits and is directed to deposit
proceeds and earnings derived from the sale into the fund.
* * *
Section 1906-F. Keystone innovation zone tax credits.
* * *
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(b) Application for tax credit.--A KIZ company may file an
application for a tax credit with the department. An application
under this subsection must be filed by [September 15 of each
year for the prior taxable year, beginning September 15, 2006]
December 1 for the prior tax year. The application must be
submitted on a form required by the department and must be
accompanied by a certification from the KIZ coordinator that the
KIZ company falls within a targeted industry segment identified
in the strategic plan adopted by the KIZ partnership, and meet
any other requirements specified by the department. The
department shall review the application and, upon being
satisfied that all requirements have been met, the department
shall issue a tax credit certificate to the KIZ company. All
certificates shall be awarded by [December 15 of each year] May
1 of each year following the calendar year of application.
* * *
(d) Application of tax credit and election.--A tax credit
approved under this section must be first applied against the
KIZ company's tax liability under Article III, IV or VI, for the
taxable year [during] in which the taxpayer applied for the tax
credit [is approved]. If the amount of tax liability owed by the
KIZ company is less than the amount of the tax credit, the KIZ
company may elect to carry forward the amount of the remaining
tax credit for a period not to exceed four additional taxable
years and to apply the credit against tax liability incurred
during those tax years; or the KIZ company may elect to sell or
assign a portion of the tax credit in accordance with the
provisions of subsection (f). A KIZ company may not carry back
or obtain a refund of an unused keystone innovation zone tax
credit.
* * *
Section 1908-F. Annual report.
The department shall submit an annual report to the Secretary
of the Senate and the Chief Clerk of the House of
Representatives indicating the effectiveness of the keystone
innovation zone tax credit provided by this article by [December
31 of each year, beginning December 31, 2007] October 1 of each
year following the calendar year of application. Notwithstanding
any law providing for the confidentiality of tax records, the
report shall include the names of all taxpayers awarded the
credits, all taxpayers utilizing the credits, the amount of
credits approved and utilized by each taxpayer and the locations
of the KIZ companies awarded the credits. The report shall be a
public document.
Section 21.1. Sections 1903-G(b), (c) and (d) and 1910-G(a)
of the act, added November 3, 2020 (P.L.1704, No.107), are
amended to read:
Section 1903-G. Pennsylvania Housing Tax Credit.
* * *
(b) Availability.--[Tax credits may not be awarded under
this article until the notice under subsection (c.1) is
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published.]
(1) Beginning in fiscal year 2021-2022 and each fiscal
year thereafter, the agency may award a total of $10,000,000
in tax credits per fiscal year in accordance with this
article.
(2) In addition to the amount allocated under paragraph
(1), the agency may award any unallocated tax credits from
the preceding fiscal year.
(c) Maximum amount.--[(Reserved).] No taxpayer may be
awarded a tax credit for an amount that exceeds $1,500,000 for a
qualified low-income housing project.
[(c.1) Notice.--Upon an enactment after the effective date
of this subsection to make an amount of tax credits available
under this article, the Secretary of the Budget shall submit a
notice to the Legislative Reference Bureau for publication in
the Pennsylvania Bulletin.]
(d) Application.--
[(1) The agency may not accept applications for a tax
credit under this section until the notice under subsection
(c.1) is published.]
(1.1) A taxpayer may apply to the agency for a tax
credit under this section by submitting an application on a
form required by the agency.
(2) The agency may require such information on the
application as necessary to verify compliance with this act.
(3) Except as otherwise provided by law, before the tax
credit may be awarded, the department must find that the
taxpayer has filed all required State tax reports and returns
for all applicable tax years and paid any balance of State
tax due as determined at settlement or assessment by the
department, unless the tax due is currently under appeal.
* * *
Section 1910-G. Annual report.
(a) Duty of agency.--[By the first September 30 of the
calendar year after the notice under 1903-G(c.1) is published
and each September 30 thereafter,] On or before October 1, 2022,
and each October 1 thereafter, the agency shall submit a report
on the tax credit to the chairperson and minority chairperson of
the Appropriations Committee of the Senate, the chairperson and
minority chairperson of the Appropriations Committee of the
House of Representatives, the chairperson and minority
chairperson of the Urban Affairs and Housing Committee of the
Senate and the chairperson and minority chairperson of the Urban
Affairs Committee of the House of Representatives. The report
shall include the following information for the prior fiscal
year:
(1) The number and amount of tax credits awarded [in the
prior fiscal year].
(2) The taxpayers that were awarded tax credits [in the
prior fiscal year].
(3) The amount of tax credits issued to each taxpayer
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[in the prior fiscal year].
* * *
Section 21.2. Section 2503 of the act is repealed:
[Section 2503. Expiration.
(a) Expiration.--This article shall expire August 1, 2021.]
Section 22. Section 2702 of the act is amended by adding a
subsection to read:
Section 2702. Petition for reassessment.
* * *
(a.2) Petition for review of denial of tax credit or tax
benefit.--The following apply:
(1) A petition for reassessment under subsection (a) may
include a request for review of a denial of an application
for a tax credit or tax benefit made by an administering
agency.
(2) The administering agency shall have the right to be
represented in all proceedings before the department. An
applicant filing a petition under paragraph (1) shall provide
a copy of the petition to the administering agency within 30
days of the applicant filing the petition with the
department.
(3) The department's review of a petition filed under
paragraph (1) shall be limited to the administering agency's
denial of a tax credit or tax benefit and shall not include a
review of any underlying tax determinations.
(4) For the purposes of this subsection:
(i) The terms "applicant," "tax benefit" and "tax
credit" shall have the same meaning as in section 1701-
A.1.
(ii) The term administering agency shall have the
same meaning as in section 1701-A.1 but shall not include
the Department of Community and Economic Development.
* * *
Section 23. Section 2703(a) is amended by adding paragraphs
and the section is amended by adding a subsection to read:
Section 2703. Petition procedure.
(a) Content of petition.--
* * *
(2.2) A petition for review of tax adjustment not
resulting in an increase in liability shall state:
(i) The tax type and tax periods included within the
petition.
(ii) The amount of the tax that the taxpayer claims
to have been erroneously adjusted.
(iii) The basis upon which the taxpayer claims that
the adjustment is erroneous.
(2.3) A petition for review of denial of tax credit or
tax benefit shall state:
(i) The tax credit or tax benefit program for which
the applicant was denied.
(ii) The amount of the tax credit or tax benefit
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that the taxpayer claims to have been erroneously denied.
(iii) The basis upon which the taxpayer claims that
the denial is erroneous.
* * *
(b.1) Participation of administering agency.--An
administering agency of a tax credit or tax benefit shall be
permitted to participate in a hearing before the department.
The department shall notify the administering agency of the
date, time and place where the hearing will be held. The
administering agency shall be provided the opportunity to
comment upon any submitted evidence and provide written and oral
argument to support its denial.
* * *
Section 24. Section 2704(d.1) of the act is amended by
adding a paragraph to read:
Section 2704. Review by board.
* * *
(d.1) Representation.--
* * *
(3) An administering agency of a tax credit or tax
benefit shall be permitted to participate in all proceedings
before the board. The board shall notify the administering
agency of the date, time and place where the hearing will be
held. The administering agency shall be provided the
opportunity to comment upon any submitted evidence and
provide written and oral argument to support its denial.
* * *
Section 25. Article XXIX-D of the act is amended by adding a
subarticle heading to read:
SUBARTICLE A
PRELIMINARY PROVISIONS
Section 26. The definition of "tax refund" in section 2901-D
of the act is amended and the section is amended by adding
definitions to read:
Section 2901-D. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Tax exemption." The tax exemption provided under Subarticle
C.
"Tax refund." The tax refund provided for under [this
article] Subarticle B.
"Telecommunications provider." A provider of
telecommunications services as defined in 61 Pa. Code § 60.20
(relating to telecommunications service).
* * *
Section 27. Article XXIX-D of the act is amended by adding a
subarticle heading to read:
SUBARTICLE B
SALES AND USE TAX REFUND PROGRAM
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Section 28. Section 2902-D of the act is renumbered to read:
Section [2902-D] 2911-D. Sales and use tax refund.
(a) Application.--Beginning July 1, 2017, an owner or
operator or qualified tenant of a computer data center certified
under this article may apply for a tax refund of taxes paid
under Article II upon the sale at retail or use of computer data
center equipment for installation in a computer data center,
purchased by:
(1) An owner or operator of a computer data center
certified under this article.
(2) A qualified tenant certified under this article.
(b) Applicability.--Taxes paid under Article II during the
qualification period shall be eligible for a refund under this
article.
(c) Exclusions.--The following do not qualify for a tax
refund:
(1) Computer data center equipment used by the computer
data center to:
(i) generate electricity for resale purposes to a
power utility, except for sales incidental to the primary
sale to computer data centers and which qualify under
subparagraph (ii); or
(ii) generate, provide or sell more than 5% of its
electricity outside of the computer data center.
(2) (Reserved).
Section 29. Sections 2903-D, 2904-D and 2905-D of the act
are renumbered and amended to read:
Section [2903-D] 2912-D. Application for certification.
To be considered for a certification, an owner or operator of
a computer data center shall submit to the department an
application on a form prescribed by the department that includes
the following:
(1) The owner's or operator's name, address and
telephone number.
(2) The address of the site where the facility is or
will be located, including, if applicable, information
sufficient to identify the specific portion or portions of
the facility comprising the computer data center.
(3) If the computer data center is to qualify under
section [2906-D(1)] 2915-D(1), the following information:
(i) The anticipated investment associated with the
computer data center for which the certification is being
sought.
(ii) An affirmation, signed by an authorized
executive representing the owner or operator, that the
computer data center is expected to satisfy the
certification requirements prescribed in section [2906-
D(1)] 2915-D(1).
(4) If the computer data center is to qualify under
section [2906-D(2)] 2915-D(2), an affirmation, signed by an
authorized executive representing the owner or operator, that
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the computer data center has satisfied, or will satisfy, the
certification requirements prescribed in section [2906-D(2)]
2915-D(2).
(5) The department shall begin accepting applications no
later than 90 days after the effective date of this section.
Section [2904-D] 2913-D. Review of application.
(a) General rule.--Within 60 days after receiving a complete
and correct application, the department shall review the