PRINTER'S NO. 2029
No. 1325 Session of 2006
INTRODUCED BY ERICKSON, C. WILLIAMS, RAFFERTY, GORDNER, WENGER, CONTI, FONTANA, COSTA, GREENLEAF, O'PAKE, MUSTO, LEMMOND, PILEGGI, PIPPY, BROWNE, FERLO, REGOLA, WAUGH, DINNIMAN AND D. WHITE, SEPTEMBER 19, 2006
REFERRED TO FINANCE, SEPTEMBER 19, 2006
AN ACT 1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An 2 act relating to tax reform and State taxation by codifying 3 and enumerating certain subjects of taxation and imposing 4 taxes thereon; providing procedures for the payment, 5 collection, administration and enforcement thereof; providing 6 for tax credits in certain cases; conferring powers and 7 imposing duties upon the Department of Revenue, certain 8 employers, fiduciaries, individuals, persons, corporations 9 and other entities; prescribing crimes, offenses and 10 penalties," authorizing a solar energy tax credit. 11 The General Assembly of the Commonwealth of Pennsylvania 12 hereby enacts as follows: 13 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as 14 the Tax Reform Code of 1971, is amended by adding an article to 15 read: 16 ARTICLE XVII-D 17 SOLAR ENERGY TAX CREDIT 18 Section 1701-D. Scope. 19 This article provides for a solar energy tax credit. 20 Section 1702-D. Definitions. 21 The following words and phrases when used in this article
1 shall have the meanings given to them in this section unless the 2 context clearly indicates otherwise: 3 "Credit." A tax credit authorized under this article. 4 "Department." The Department of Revenue of the Commonwealth. 5 "Installation costs." Costs related to solar installation, 6 including accessories and labor. The term does not include costs 7 related to any equipment not directly integrated into a solar 8 installation. 9 "Solar installation." An arrangement or combination of 10 components utilizing solar radiation, which, when installed in a 11 residence or business or other facility, produces energy 12 designed to provide heating, cooling, hot water or electricity. 13 "Taxpayer." An entity or person subject to a tax under 14 Article IV, VI, VII, VIII, IX or XV. 15 Section 1703-D. Amount of credit. 16 A taxpayer shall receive a credit for the applicable taxable 17 year equal to 25% of the installation costs for the taxpayer's 18 solar installation. 19 Section 1704-D. Carryover, carryback, refund and assignment of 20 credit. 21 (a) General rule.--If a taxpayer cannot use the entire 22 amount of the credit for the taxable year in which the credit is 23 first claimed, then 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 credit is carried over to a succeeding year, it shall 27 be reduced by the amount that was used as a credit during the 28 immediately preceding taxable year. The credit may be carried 29 over and applied to succeeding taxable years for no more than 15 30 taxable years following the first taxable year for which the 20060S1325B2029 - 2 -
1 taxpayer was entitled to claim the credit. 2 (b) Application of credit.--Any credit shall first be 3 applied against the taxpayer's qualified tax liability for the 4 taxable year on which the credit was approved before the credit 5 is applied against any succeeding tax liability under subsection 6 (a). 7 (c) Limitations.--A taxpayer is not entitled to carry back 8 or obtain a refund of an unused credit. 9 Section 1705-D. Regulations. 10 The department shall promulgate regulations necessary for the 11 implementation and administration of this article. 12 Section 1706-D. Expiration. 13 This article shall expire December 31, 2020, or on the 14 repeal, if any, of the act of November 30, 2004 (P.L.1672, 15 No.213), known as the Alternative Energy Portfolio Standards 16 Act, whichever occurs first. 17 Section 2. This act shall take effect in 60 days. H2L72DMS/20060S1325B2029 - 3 -