PRIOR PRINTER'S NO. 169 PRINTER'S NO. 3548
No. 121 Session of 2003
INTRODUCED BY BARD, HERSHEY, LEVDANSKY, BUNT, HERMAN, RUBLEY,
BALDWIN, CREIGHTON, CURRY, DALEY, FAIRCHILD, GEORGE, HORSEY,
LEACH, MANN, S. MILLER, MUNDY, PAYNE, ROSS, SATHER, SAYLOR,
SCHRODER, SEMMEL, STERN, TANGRETTI, THOMAS, TIGUE, WATSON,
WRIGHT, ZUG, YUDICHAK, E. Z. TAYLOR, DeWEESE, REICHLEY,
SURRA, ARMSTRONG AND SOLOBAY, FEBRUARY 10, 2003
AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND
ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 24, 2004
AN ACT
1 Authorizing tax credits for qualified alternative fuel <--
2 producers; establishing the Alternative Fuel and Energy
3 Infrastructure Improvement Fund; and making an appropriation.
1 AUTHORIZING INVESTMENT TAX CREDITS FOR QUALIFIED ALTERNATIVE <--
2 ENERGY ENTERPRISES; ESTABLISHING THE PENNSYLVANIA CLEAN
3 ENERGY FUND; AND MAKING A TRANSFER OF FUNDS.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title. <--
7 This act shall be known and may be cited as the Alternative
8 Fuel and Energy Infrastructure Investment Act.
9 Section 2. Legislative findings.
10 (1) The General Assembly finds that there is an
11 increasing need for the development of renewable and energy-
12 efficient technologies, including wind power, solar thermal
13 electric systems, biomass-based power systems, geothermal
14 energy, biofuels, hydrogen-based energy systems, electric
1 energy systems and storage, photovoltaic energy systems and
2 other new and innovative research-based technologies deemed
3 appropriate.
4 (2) It is the intent of this act to assist in the
5 creation of a balanced portfolio of renewable and energy-
6 efficient technologies while adopting a strategy to fulfill
7 the Commonwealth's long-term needs and goals for both energy
8 and the environment.
9 Section 3. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Alternative fueled hybrid vehicle." A vehicle that uses an
14 alternative fuel to produce electricity, which in turn powers an
15 electric drive motor for vehicle propulsion.
16 "Alternative fuels." A motor vehicle fuel which, when
17 compared to conventional or reformulated gasoline, will result
18 in lower emissions of oxides of nitrogen (NOx), volatile organic
19 compounds (VOC), carbon monoxide (CO), particulates or any
20 combination thereof. These include compressed natural gas (CNG),
21 liquefied natural gas (LNG), liquid petroleum or propane gas
22 (LPG), alcohols, hydrogen, hythane (H2 and CNG), electricity,
23 coal-derived liquid fuels, fuels derived from biological
24 materials, and other fuels that the Secretary of the United
25 States Department of Energy determines by rule as meeting the
26 requirements of section 301 of the Energy Policy Act of 1992
27 (Public Law 102-486, 42 U.S.C. § 13211(2)).
28 "Department." The Department of Community and Economic
29 Development of the Commonwealth.
30 "Fund." The Alternative Fuel and Energy Infrastructure
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1 Improvement Fund established under section 9.
2 "Person." An individual, partnership, association, company,
3 corporation, joint venture or other business entity,
4 municipality, municipal authority or political subdivision.
5 "Qualified alternative fuel producer." Any producer of an
6 alternative fuel whose principal place of business and facility
7 for the production of an alternative fuel is located within this
8 Commonwealth.
9 "Qualified business." A partnership, association, company,
10 corporation, joint venture or other business entity qualified
11 pursuant to section 5.
12 "Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
13 No.2), known as the Tax Reform Code of 1971.
14 Section 4. Alternative fuel or alternative energy enterprise
15 designation.
16 (a) Establishment.--There is hereby established within the
17 department a program providing for alternative fuel or
18 alternative energy enterprise designation.
19 (b) Authorization.--The department shall designate persons
20 or businesses as alternative fuel or alternative energy
21 enterprises. Persons and businesses that are qualified under
22 this act shall be entitled to all tax exemptions, deductions,
23 abatements or credits set forth in this act for a period not to
24 exceed 15 years beginning January 1, 2003, and ending on or
25 before December 31, 2017.
26 Section 5. Qualified businesses.
27 In order to qualify each year for a tax exemption, deduction,
28 abatement or credit under this act, a business shall meet any
29 one or more of the following criteria:
30 (1) The business is a qualified alternative fuel
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1 producer as defined in section 3.
2 (2) The business is actively engaged in the business of
3 generating electricity from alternative energy sources. This
4 shall include the design, manufacture, distribution,
5 operation, servicing or maintenance of alternative energy
6 projects or equipment. The business shall receive
7 certification from the department that it is designated as
8 such and is actively engaged in the alternative energy
9 generation business.
10 (3) The business has invested in pollution control
11 equipment approved by the United States Environmental
12 Protection Agency.
13 (4) The business is a manufacturer of alternative fuel
14 vehicles, including, but not limited to, alternative fueled
15 hybrid vehicles as defined in section 3.
16 (5) The business is actively engaged in the production
17 of alternative fuels, the manufacturing of equipment,
18 products or techniques utilizing alternative fuels or the
19 production of energy-efficient equipment, products or
20 techniques used in the generation of electricity from
21 renewable resources, including, but not limited to, wind
22 power, solar thermal electric systems, biomass-based power
23 systems, geothermal energy, biofuels, hydrogen-based energy
24 systems, electric energy systems and storage and photovoltaic
25 energy systems.
26 Section 6. State taxes.
27 (a) General rule.--A qualified business shall receive the
28 exemptions, deductions, abatements or credits as provided in
29 sections 7 and 8 for the duration of the alternative fuel or
30 alternative energy enterprise designation. Exemptions,
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1 deductions, abatements or credits shall expire on the date of
2 expiration of the alternative fuel or alternative energy
3 enterprise designation.
4 (b) Construction.--The Department of Revenue shall
5 administer, construe and enforce the provisions of this section
6 and sections 7 and 8 in conjunction with Articles II, III, IV,
7 VI, VII, IX and XV of the Tax Reform Code of 1971.
8 Section 7. Sales and use tax exemption.
9 (a) Exemption.--Sales at retail of services or tangible
10 personal property, other than motor vehicles, to a qualified
11 business for the exclusive use, consumption and utilization of
12 the tangible personal property or service by the qualified
13 business at its business facility are exempt from the sales and
14 use tax imposed under Article II of the Tax Reform Code of 1971.
15 (b) Electric generation.--Electricity generated by a
16 qualified business at its facility installed after January 1,
17 1999, and sold at retail shall be exempt from the sales and use
18 tax imposed under Article II of the Tax Reform Code of 1971.
19 Section 8. Investment tax credit.
20 (a) Credit.--Any person investing in a qualified business as
21 described in section 5 shall receive a tax credit pursuant to
22 subsection (c) if the department annually approves the written
23 proposal of such person. The proposal shall set forth the
24 investment to be made, including the amount and the qualified
25 business invested in and what the investment is specifically
26 anticipated to be used for, including, but not limited to, the
27 purchase of land, equipment or facilities.
28 (b) Decision in writing.--The decision of the department to
29 approve or disapprove a proposal pursuant to subsection (a)
30 shall be in writing, and, if it approves the proposal, it shall
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1 state the maximum credit allowable to the business firm. A copy
2 of the decision of the department shall be transmitted to the
3 Governor and to the Department of Revenue.
4 (c) Grant of investment tax credit.--
5 (1) The Department of Revenue shall grant a tax credit
6 against any tax due under the Tax Reform Code of 1971 in an
7 amount equal to the total amount invested during the taxable
8 year by the person approved under subsection (a).
9 (2) The tax credit shall equal 1.5 cents for each
10 kilowatt hour of electricity generated and shall not be based
11 upon the amount invested. The investment tax credit provided
12 herein is intended to be in addition to and not a replacement
13 of any Federal production tax credit now existing or
14 hereafter enacted, and the department and the Department of
15 Revenue shall adopt such regulations and take such action as
16 necessary and appropriate to effectuate this intent.
17 (3) No tax credit shall be granted to any bank, bank and
18 trust company, insurance company, trust company, national
19 bank, savings association, mutual savings bank or building
20 and loan association for activities that are a part of its
21 normal course of business. Any tax credit not used in the
22 period the investment was made may be carried over for the
23 next five succeeding calendar or fiscal years until the full
24 credit has been allowed. The total amount of all tax credits
25 allowed pursuant to this act shall not exceed $30,000,000 in
26 any one fiscal year.
27 (d) Regulations.--The department is hereby authorized to
28 promulgate regulations for the approval or disapproval of such
29 proposals and provide a listing of all applications received and
30 their disposition in each fiscal year to the General Assembly by
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1 October 1 of the following fiscal year.
2 Section 9. Alternative Fuel and Energy Infrastructure
3 Improvement Fund.
4 (a) Establishment.--There is hereby established a separate
5 fund in the State Treasury to be known as the Alternative Fuel
6 and Energy Infrastructure Improvement Fund. The fund shall be
7 administered by the department. In addition to appropriations
8 approved by the General Assembly, the fund shall include those
9 cost savings realized by the Commonwealth as the result of
10 guaranteed energy savings contracts entered into by Commonwealth
11 agencies as provided for in 62 Pa.C.S. Ch. 37 Subch. E (relating
12 to guaranteed energy savings contracts).
13 (b) Use.--The fund may be used to provide grants to assist a
14 qualified business or a person intending to establish a
15 qualified business with infrastructure improvements, such as
16 access roads or transmission, production facilities,
17 distribution or interconnection facilities, pollution control
18 equipment or for any other purpose approved by the department.
19 The department shall promulgate regulations for the issuance of
20 grants.
21 (c) Proposals.--Any qualified business or person intending
22 to establish a qualified business wishing to obtain a grant
23 shall submit a written proposal for such grant. The department
24 shall promulgate regulations for the submittal and contents of
25 proposals.
26 (d) Decision in writing.--The decision of the department to
27 approve or disapprove a proposal pursuant to subsection (c)
28 shall be in writing, and, if the department approves the
29 proposal, it shall state the maximum amount of the grant. A copy
30 of the decision of the department shall be transmitted to the
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1 Governor.
2 (e) Appropriation.--Appropriations to the fund shall not
3 lapse. Sufficient appropriations shall be made annually in order
4 to maintain a minimum balance of $10,000,000. Should annual
5 grant activity exceed the funds available, the General Assembly
6 may supplement the fund to restore it to the full annual
7 appropriation.
8 Section 10. Appropriation.
9 The sum of $10,000,000 is hereby appropriated to the
10 Department of Community and Economic Development for deposit
11 into the Alternative Fuel and Energy Infrastructure Improvement
12 Fund.
13 Section 11. Effective date.
14 This act shall take effect in 60 days.
15 SECTION 1. SHORT TITLE. <--
16 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE ALTERNATIVE
17 ENERGY INVESTMENT ACT.
18 SECTION 2. LEGISLATIVE FINDINGS.
19 (1) THE GENERAL ASSEMBLY FINDS THAT THERE IS AN
20 INCREASING NEED FOR THE DEVELOPMENT AND DEPLOYMENT OF
21 RENEWABLE AND ENERGY-EFFICIENT TECHNOLOGIES, INCLUDING WIND
22 POWER, SOLAR THERMAL ELECTRIC SYSTEMS, BIOMASS-BASED POWER
23 SYSTEMS, GEOTHERMAL ENERGY, BIOFUELS, HYDROGEN-BASED ENERGY
24 SYSTEMS, ELECTRIC ENERGY SYSTEMS AND STORAGE, PHOTOVOLTAIC
25 ENERGY SYSTEMS AND OTHER NEW AND INNOVATIVE TECHNOLOGIES
26 DEEMED APPROPRIATE.
27 (2) IT IS THE INTENT OF THIS ACT TO ASSIST IN THE
28 ESTABLISHMENT OF A BALANCED PORTFOLIO OF RENEWABLE AND
29 ENERGY-EFFICIENT TECHNOLOGIES WHILE ADOPTING A STRATEGY TO
30 FULFILL THE COMMONWEALTH'S LONG-TERM NEEDS AND GOALS FOR BOTH
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1 ENERGY AND THE ENVIRONMENT.
2 (3) IT IS THE INTENT OF THIS ACT TO SUPPLEMENT ONGOING
3 EFFORTS SUPPORTING THE DEVELOPMENT OF RENEWABLE ENERGY
4 SOURCES, ESPECIALLY THOSE INITIATIVES BEING ASSISTED THROUGH
5 THE RESOURCES OF THE STATEWIDE SUSTAINABLE ENERGY AND
6 REINVESTMENT FUND PROGRAMS.
7 SECTION 3. DEFINITIONS.
8 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
9 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
10 CONTEXT CLEARLY INDICATES OTHERWISE:
11 "ALTERNATIVE ENERGY RESOURCES." EITHER RENEWABLE ENERGY
12 RESOURCES OR PENNSYLVANIA ALTERNATIVE RESOURCES.
13 "ALTERNATIVE FUELS." A MOTOR VEHICLE FUEL WHICH, WHEN
14 COMPARED TO CONVENTIONAL OR REFORMULATED GASOLINE, WILL RESULT
15 IN LOWER EMISSIONS OF OXIDES OF NITROGEN (NOX), VOLATILE ORGANIC
16 COMPOUNDS (VOC), CARBON MONOXIDE (CO), PARTICULATES OR ANY
17 COMBINATION THEREOF. THIS TERM INCLUDES, BUT IS NOT LIMITED TO:
18 COMPRESSED NATURAL GAS (CNG), LIQUEFIED NATURAL GAS (LNG),
19 LIQUID PETROLEUM OR PROPANE GAS (LPG), ETHANOL BLENDED AS E85,
20 METHANOL BLENDED AS M85, HYDROGEN, HYTHANE, ANY COMBINATION OF
21 COMPRESSED NATURAL GAS AND HYDROGEN, ELECTRICITY, COAL-DERIVED
22 LIQUID FUELS, BIOFUELS AND OTHER FUELS DETERMINED BY RULE OF THE
23 SECRETARY OF THE UNITED STATES DEPARTMENT OF ENERGY UNDER THE
24 DEFINITION OF "ALTERNATIVE FUEL" IN SECTION 301 OF THE ENERGY
25 POLICY ACT OF 1992 (PUBLIC LAW 102-486, 42 U.S.C. § 13211).
26 "BI-FUEL VEHICLE OR DUAL-FUEL VEHICLE." A MOTOR VEHICLE,
27 INCLUDING AN ORIGINAL EQUIPMENT MANUFACTURER (OEM) AND
28 RETROFITTED MOTOR VEHICLE, THAT OPERATES ON AN ALTERNATIVE FUEL
29 AND GASOLINE OR AN ALTERNATIVE FUEL AND DIESEL FUEL.
30 "BIOFUELS." FUELS DERIVED FROM ALCOHOLS, ETHER, ESTERS AND
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1 OTHER CHEMICALS MADE FROM CELLULOSIC BIOMASS, INCLUDING, BUT NOT
2 LIMITED TO, HERBACEOUS AND WOODY PLANTS, AGRICULTURAL AND
3 FORESTRY RESIDUES AND A LARGE PORTION OF MUNICIPAL SOLID AND
4 INDUSTRIAL WASTE. THIS TERM INCLUDES A FUEL DERIVED FROM
5 VEGETABLE OILS OR ANIMAL FATS DESIGNATED B100 THAT MEETS THE
6 AMERICAN SOCIETY OF TESTING AND MATERIALS SPECIFICATION DG751,
7 AND B20, WHICH IS COMPRISED OF 20% BIODIESEL WITH 80% DIESEL
8 FUEL.
9 "DEPARTMENT." THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OF
10 THE COMMONWEALTH.
11 "FUND." THE PENNSYLVANIA CLEAN ENERGY FUND ESTABLISHED UNDER
12 SECTION 9.
13 "HYBRID VEHICLE." A MOTOR VEHICLE WHICH DRAWS PROPULSION
14 ENERGY FROM ONBOARD SOURCES OF STORED ENERGY WHICH ARE BOTH:
15 (1) AN INTERNAL COMBUSTION ENGINE USING COMBUSTIBLE
16 FUEL.
17 (2) A RECHARGEABLE ENERGY STORAGE SYSTEM.
18 "PENNSYLVANIA ALTERNATIVE RESOURCES." ENERGY FROM ANY OF THE
19 FOLLOWING:
20 (1) FUEL CELLS OR ANY DEVICE THAT COMBINES HYDROGEN WITH
21 OXYGEN WITHOUT COMBUSTION IN AN ELECTROCHEMICAL REACTION TO
22 PRODUCE ELECTRICITY REGARDLESS OF THE SOURCE OF HYDROGEN.
23 (2) WASTE COAL THAT IS BURNED IN FACILITIES CONSTRUCTED
24 SINCE 1980 AND OPERATING IN COMPLIANCE WITH APPLICABLE
25 FEDERAL AND STATE EMISSION STANDARDS.
26 (3) METHANE RECOVERED FROM COAL BEDS AND COAL SEAMS.
27 "PERSON." AN INDIVIDUAL RESIDENT OF THIS COMMONWEALTH.
28 "QUALIFIED ALTERNATIVE ENERGY ENTERPRISE." A BUSINESS THAT
29 DESIGNS, MANUFACTURES, DISTRIBUTES, OPERATES, SERVICES OR
30 MAINTAINS ALTERNATIVE OR RENEWABLE ENERGY PROJECTS OR EQUIPMENT.
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1 THIS TERM INCLUDES A GENERATOR OF ELECTRICITY, PRODUCER OF
2 USEFUL THERMAL ENERGY OR PRODUCER OF HYDROGEN WHO USES RENEWABLE
3 ENERGY OR PENNSYLVANIA ALTERNATIVE ENERGY RESOURCES AND WHOSE
4 FACILITY IS LOCATED WITHIN THIS COMMONWEALTH.
5 "QUALIFIED ALTERNATIVE FUEL ENTERPRISE." A BUSINESS THAT
6 DESIGNS, MANUFACTURES, DISTRIBUTES, OPERATES, SERVICES OR
7 MAINTAINS ALTERNATIVE FUEL PROJECTS OR EQUIPMENT. THIS TERM
8 INCLUDES A BUSINESS THAT PRODUCES AN ALTERNATIVE FUEL AND WHOSE
9 FACILITY FOR THE PRODUCTION OF THE ALTERNATIVE FUEL IS LOCATED
10 WITHIN THIS COMMONWEALTH.
11 "QUALIFIED ALTERNATIVE FUEL OR HYBRID VEHICLE MANUFACTURING
12 ENTERPRISE." A BUSINESS THAT MANUFACTURES HYBRID VEHICLES OR
13 MOTOR VEHICLES THAT OPERATE ON AN ALTERNATIVE FUEL.
14 "QUALIFIED BUSINESS." A PARTNERSHIP, ASSOCIATION, COMPANY,
15 CORPORATION, JOINT VENTURE OR OTHER BUSINESS ENTITY QUALIFIED
16 PURSUANT TO SECTION 5.
17 "QUALIFIED EXPENSE." CAPITAL EQUIPMENT DIRECTLY RELATED TO
18 THE ACTIVITIES USED BY A QUALIFIED ALTERNATIVE ENERGY
19 ENTERPRISE, QUALIFIED ALTERNATIVE FUEL ENTERPRISE OR A QUALIFIED
20 MANUFACTURER OF ALTERNATIVE FUEL OR HYBRID VEHICLES.
21 "QUALIFIED SMALL BUSINESS." A PARTNERSHIP, ASSOCIATION,
22 COMPANY, CORPORATION, JOINT VENTURE OR OTHER BUSINESS ENTITY
23 THAT EMPLOYS 100 OR FEWER PERSONS AND MEETS ALL OTHER CRITERIA
24 FOR A SMALL BUSINESS ESTABLISHED BY THE COMMONWEALTH.
25 "RENEWABLE ENERGY RESOURCES." ENERGY FROM ANY OF THE
26 FOLLOWING:
27 (1) THE SUN, INCLUDING SOLAR PHOTOVOLTAIC TECHNOLOGIES,
28 SOLAR THERMAL ELECTRIC SYSTEMS AND SOLAR THERMAL SYSTEMS.
29 (2) WIND, INCLUDING SYSTEMS THAT GENERATE ELECTRICITY
30 FROM WIND.
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1 (3) BIOMASS, INCLUDING SYSTEMS THAT GENERATE ELECTRICITY
2 FROM LANDFILL METHANE, METHANE FROM ANAEROBIC DIGESTION OF
3 ORGANIC MATERIAL, UNTREATED AND UNPAINTED WASTE WOOD AND
4 SAWDUST AND SUSTAINABLY GROWN ENERGY CROPS.
5 (4) LOW-IMPACT HYDROELECTRIC OR OTHER TECHNOLOGIES THAT:
6 (I) HARNESS THE INCREMENTAL HYDROELECTRIC POTENTIAL
7 OF WATER IMPOUNDMENTS PROVIDED SUCH INCREMENTAL
8 HYDROELECTRIC DEVELOPMENT DOES NOT ADVERSELY CHANGE
9 EXISTING IMPACTS TO AN AQUATIC SYSTEM.
10 (II) MEET THE CERTIFICATION STANDARDS ESTABLISHED BY
11 THE LOW IMPACT HYDROPOWER INSTITUTE AND AMERICAN RIVERS,
12 INC.
13 (III) PROVIDE AN ADEQUATE WATER FLOW FOR PROTECTION
14 OF AQUATIC LIFE, PROVIDE FOR SAFE AND EFFECTIVE FISH
15 PASSAGE, PROTECT AGAINST EROSION AND PROTECT CULTURAL AND
16 HISTORIC RESOURCES.
17 (5) HYDROELECTRIC POWER TECHNOLOGIES THAT USE WAVE,
18 CURRENT, TIDAL AND THERMAL SYSTEMS.
19 (6) GEOTHERMAL SYSTEMS.
20 "TAX REFORM CODE OF 1971." THE ACT OF MARCH 4, 1971 (P.L.6,
21 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
22 SECTION 4. ALTERNATIVE FUEL OR ALTERNATIVE ENERGY ENTERPRISE
23 DESIGNATION.
24 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED WITHIN THE
25 DEPARTMENT A PROGRAM PROVIDING FOR THE DESIGNATION OF QUALIFIED
26 ALTERNATIVE FUEL ENTERPRISES, QUALIFIED ALTERNATIVE ENERGY
27 ENTERPRISES AND QUALIFIED ALTERNATIVE FUEL OR HYBRID VEHICLE
28 MANUFACTURING ENTERPRISE.
29 (B) ELIGIBILITY.--THE DEPARTMENT SHALL DEVELOP CRITERIA TO
30 ESTABLISH ELIGIBILITY AS A QUALIFIED ALTERNATIVE ENERGY
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1 ENTERPRISE, A QUALIFIED ALTERNATIVE FUEL ENTERPRISE AND A
2 QUALIFIED ALTERNATIVE FUEL OR HYBRID VEHICLE MANUFACTURING
3 ENTERPRISE. BUSINESSES THAT ARE QUALIFIED UNDER THIS SECTION
4 SHALL BE ENTITLED TO THE TAX CREDITS SET FORTH IN THIS ACT FOR A
5 PERIOD NOT TO EXCEED 15 YEARS BEGINNING WITH THE EFFECTIVE DATE
6 OF THIS ACT.
7 SECTION 5. QUALIFIED BUSINESSES.
8 IN ORDER TO QUALIFY EACH YEAR FOR A TAX EXEMPTION, DEDUCTION,
9 ABATEMENT OR CREDIT UNDER THIS ACT, A BUSINESS MUST BE:
10 (1) A QUALIFIED ALTERNATIVE ENERGY ENTERPRISE.
11 (2) A QUALIFIED ALTERNATIVE FUEL ENTERPRISE.
12 (3) A MANUFACTURER OF ALTERNATIVE FUEL VEHICLES,
13 INCLUDING, BUT NOT LIMITED TO, DEDICATED ALTERNATIVE FUEL-
14 POWERED VEHICLES OR HYBRID VEHICLES.
15 SECTION 6. STATE TAXES.
16 (A) GENERAL RULE.--A QUALIFIED BUSINESS SHALL RECEIVE THE
17 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS AS PROVIDED IN
18 SECTIONS 7 AND 8 FOR THE DURATION OF THE ALTERNATIVE FUEL OR
19 ALTERNATIVE ENERGY ENTERPRISE DESIGNATION. EXEMPTIONS,
20 DEDUCTIONS, ABATEMENTS OR CREDITS SHALL EXPIRE ON THE DATE OF
21 EXPIRATION REQUIRED BY THIS ACT.
22 (B) ADMINISTRATION AND REGULATIONS.--
23 (1) THE DEPARTMENT SHALL COOPERATE WITH THE DEPARTMENT
24 OF REVENUE TO ADMINISTER THE PROVISIONS OF THIS ACT,
25 PROMULGATE APPROPRIATE RULES, REGULATIONS AND FORMS FOR THAT
26 PURPOSE AND MAKE SUCH DETERMINATIONS AS MAY BE REQUIRED.
27 (2) THE DEPARTMENT SHALL BE RESPONSIBLE FOR ENSURING
28 THAT AN ELIGIBLE BUSINESS MEETS THE ESTABLISHED CRITERIA AS A
29 QUALIFIED BUSINESS UNDER SECTION 5 AND TO ENSURE THAT THE
30 COSTS FOR WHICH A TAX CREDIT ARE BEING SOUGHT MEET THE
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1 ESTABLISHED ELIGIBILITY CRITERIA.
2 (3) THE DEPARTMENT OF REVENUE SHALL ADMINISTER, CONSTRUE
3 AND ENFORCE THE PROVISIONS OF THIS SECTION AND SECTIONS 7 AND
4 8 IN CONJUNCTION WITH ARTICLES II, III, IV AND VI OF THE TAX
5 REFORM CODE OF 1971.
6 SECTION 7. SALES AND USE TAX EXEMPTION.
7 ELECTRICITY GENERATED BY A QUALIFIED BUSINESS AT ITS FACILITY
8 INSTALLED AFTER THE EFFECTIVE DATE OF THIS ACT AND EITHER SOLD
9 AT WHOLESALE OR AT RETAIL OR CONSUMED BY THE QUALIFIED BUSINESS
10 SHALL BE EXEMPT FROM THE SALES AND USE TAX IMPOSED UNDER ARTICLE
11 II OF THE TAX REFORM CODE OF 1971 FOR A PERIOD NOT TO EXCEED
12 FIVE YEARS FROM THE EFFECTIVE DATE OF THIS ACT.
13 SECTION 8. RENEWABLE ENERGY INVESTMENT TAX CREDIT.
14 (A) GENERAL RULE.--A QUALIFIED BUSINESS AS DESCRIBED IN
15 SECTION 5 SHALL BE ELIGIBLE UNDER ARTICLES III, IV AND VI OF THE
16 TAX REFORM CODE OF 1971 FOR A RENEWABLE ENERGY INVESTMENT TAX
17 CREDIT EQUAL TO 30% OF THE COST OF CAPITAL EQUIPMENT DIRECTLY
18 RELATED TO THE ACTIVITIES USED IN A QUALIFIED ALTERNATIVE ENERGY
19 ENTERPRISE, QUALIFIED ALTERNATIVE FUEL ENTERPRISE OR QUALIFIED
20 MANUFACTURER OF ALTERNATIVE FUEL OR HYBRID VEHICLES.
21 (B) APPLICABLE TAXES.--THE RENEWABLE ENERGY INVESTMENT TAX
22 CREDIT AUTHORIZED BY THIS SECTION MAY BE APPLIED AGAINST ANY TAX
23 DUE UNDER ARTICLES III, IV AND VI OF THE TAX REFORM CODE OF
24 1971.
25 (C) AUTHORIZATION.--
26 (1) A QUALIFIED BUSINESS ENTITY MAY APPLY FOR A
27 RENEWABLE ENERGY INVESTMENT TAX CREDIT AS PROVIDED IN THIS
28 SECTION. BY SEPTEMBER 15, A QUALIFIED BUSINESS ENTITY MUST
29 SUBMIT AN APPLICATION TO THE DEPARTMENT FOR QUALIFIED EXPENSE
30 INCURRED IN THE TAXABLE YEAR THAT ENDED IN THE PRIOR CALENDAR
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1 YEAR.
2 (2) A QUALIFIED BUSINESS ENTITY THAT IS QUALIFIED UNDER
3 SUBSECTION (A) SHALL RECEIVE A RENEWABLE ENERGY INVESTMENT
4 TAX CREDIT FOR THE TAXABLE YEAR IN THE AMOUNT OF 30% OF THE
5 COST OF CAPITAL EQUIPMENT PURCHASED FOR USE BY THE QUALIFIED
6 BUSINESS ENTITY DEEMED ELIGIBLE UNDER THE REGULATIONS
7 ESTABLISHED BY THE DEPARTMENT UNDER SECTION 6.
8 (3) BY DECEMBER 15 OF THE CALENDAR YEAR FOLLOWING THE
9 CLOSE OF THE TAXABLE YEAR DURING WHICH THE QUALIFIED EXPENSE
10 WAS INCURRED, THE DEPARTMENT SHALL NOTIFY THE QUALIFIED
11 BUSINESS ENTITY OF THE AMOUNT OF THE QUALIFIED BUSINESS
12 ENTITY'S RENEWABLE ENERGY INVESTMENT TAX CREDIT APPROVED BY
13 THE DEPARTMENT.
14 (D) CARRYOVER.--
15 (1) THE AMOUNT OF THE RENEWABLE ENERGY INVESTMENT TAX
16 CREDIT THAT A QUALIFIED BUSINESS ENTITY MAY USE AGAINST ANY
17 TAX UNDER ARTICLE III, IV OR VI OF THE TAX REFORM CODE OF
18 1971 DURING ANY YEAR MAY NOT EXCEED 30% OF THE QUALIFIED TAX
19 LIABILITY FOR THAT TAXABLE YEAR. IF THE QUALIFIED BUSINESS
20 ENTITY CANNOT USE THE ENTIRE AMOUNT OF THE RENEWABLE ENERGY
21 INVESTMENT TAX CREDIT FOR THE TAXABLE YEAR IN WHICH THE
22 INVESTMENT TAX CREDIT IS FIRST APPROVED, THE EXCESS MAY BE
23 CARRIED OVER TO SUCCEEDING TAXABLE YEARS AND USED AS A CREDIT
24 AGAINST ANY TAX UNDER ARTICLE III, IV OR VI OF THE TAX REFORM
25 CODE OF 1971 OF THE QUALIFIED BUSINESS ENTITY FOR THOSE
26 TAXABLE YEARS.
27 (2) EACH TIME THAT THE RENEWABLE ENERGY INVESTMENT TAX
28 CREDIT IS CARRIED OVER TO A SUCCEEDING TAXABLE YEAR, IT SHALL
29 BE REDUCED BY THE AMOUNT THAT WAS USED AS A CREDIT DURING THE
30 IMMEDIATELY PRECEDING TAXABLE YEAR. THE RENEWABLE ENERGY
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1 INVESTMENT TAX CREDIT MAY BE CARRIED OVER AND APPLIED TO
2 SUCCEEDING TAXABLE YEARS FOR NO MORE THAN 15 TAXABLE YEARS
3 FOLLOWING THE FIRST TAXABLE YEAR FOR WHICH THE QUALIFIED
4 BUSINESS ENTITY WAS ENTITLED TO CLAIM THE CREDIT.
5 (3) A RENEWABLE ENERGY INVESTMENT TAX CREDIT APPROVED BY
6 THE DEPARTMENT FOR A QUALIFIED EXPENSE IN A TAXABLE YEAR
7 FIRST SHALL BE APPLIED AGAINST THE QUALIFIED BUSINESS
8 ENTITY'S TAX LIABILITY FOR THE CURRENT TAXABLE YEAR AS OF THE
9 DATE ON WHICH THE CREDIT WAS APPROVED BEFORE THE RENEWABLE
10 ENERGY INVESTMENT TAX CREDIT IS APPLIED AGAINST ANY TAX
11 LIABILITY UNDER SUBSECTION (A).
12 (4) A QUALIFIED BUSINESS ENTITY MAY NOT CARRY BACK,
13 OBTAIN A REFUND OF OR ASSIGN ANY UNUSED RENEWABLE ENERGY
14 INVESTMENT TAX CREDIT.
15 (E) LIMITATION.--THE TOTAL AMOUNT OF ALL TAX CREDITS ALLOWED
16 UNDER THIS ACT SHALL NOT EXCEED $30,000,000 IN ANY ONE FISCAL
17 YEAR.
18 (F) PRORATION OF TAX CREDITS.--IF THE TOTAL AMOUNT OF
19 RENEWABLE ENERGY INVESTMENT TAX CREDITS APPLIED FOR BY ALL
20 QUALIFIED BUSINESS ENTITIES EXCEEDS THE AMOUNT ALLOCATED FOR
21 THOSE CREDITS, THEN THE RENEWABLE ENERGY TAX CREDIT TO BE
22 RECEIVED BY EACH APPLICANT SHALL BE PRORATED AMONG ALL QUALIFIED
23 BUSINESS ENTITIES.
24 SECTION 9. PENNSYLVANIA CLEAN ENERGY FUND.
25 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED A SEPARATE
26 FUND IN THE STATE TREASURY TO BE KNOWN AS THE PENNSYLVANIA CLEAN
27 ENERGY FUND. THE MONEYS OF THE FUND ARE APPROPRIATED ON A
28 CONTINUING BASIS TO CARRY OUT THE PROVISIONS OF THIS ACT.
29 (B) USE.--THE FUND MAY BE USED BY THE DEPARTMENT TO PROVIDE
30 LOANS AT OR BELOW PREVAILING INTEREST RATES AND EQUITY-LIKE
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1 INVESTMENTS TO FINANCE OR SUPPORT:
2 (1) THE DEVELOPMENT OR OPERATION OF A QUALIFIED
3 ALTERNATIVE ENERGY ENTERPRISE, QUALIFIED ALTERNATIVE FUEL
4 ENTERPRISE OR QUALIFIED MANUFACTURER OF ALTERNATIVE FUEL OR
5 HYBRID VEHICLES.
6 (2) THE PURCHASE AND INSTALLATION OF RENEWABLE ENERGY
7 RESOURCE TECHNOLOGIES BY SCHOOL DISTRICTS, MUNICIPAL
8 AUTHORITIES, POLITICAL SUBDIVISIONS, NONPROFIT ENTITIES,
9 CORPORATIONS, LIMITED LIABILITY COMPANIES, PARTNERSHIPS
10 INCORPORATED OR REGISTERED IN AND INDIVIDUAL RESIDENTS OF
11 THIS COMMONWEALTH.
12 (C) PROGRAM GUIDELINES.--THE DEPARTMENT SHALL ISSUE
13 GUIDELINES FOR ALL ELIGIBLE USES OF THE FUND.
14 SECTION 10. TRANSFER OF FUNDS.
15 NOTWITHSTANDING THE PROVISIONS OF 75 PA.C.S. § 7202 (RELATING
16 TO ALTERNATIVE FUELS INCENTIVE GRANT FUND), THE SUM OF
17 $5,000,000 SHALL BE TRANSFERRED FROM THE ALTERNATIVE FUELS
18 INCENTIVE GRANT FUND ESTABLISHED IN 75 PA.C.S. § 7202 TO THE
19 PENNSYLVANIA CLEAN ENERGY FUND. THE TRANSFER SHALL OCCUR WITHIN
20 60 DAYS OF THE EFFECTIVE DATE OF THIS ACT.
21 SECTION 11. ANNUAL REPORT.
22 THE DEPARTMENT SHALL ANNUALLY MAKE A REPORT TO THE
23 ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE SENATE AND
24 THE ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE HOUSE OF
25 REPRESENTATIVES ON THE ACTIVITIES UNDERTAKEN PURSUANT TO THIS
26 ACT. THE REPORT SHALL, AT A MINIMUM, INCLUDE INFORMATION ON:
27 (1) THE NUMBER AND AMOUNT OF TAX CREDITS PROVIDED.
28 (2) THE TYPES OF BUSINESSES RECEIVING THE CREDITS.
29 (3) A BREAKDOWN OF THE TAX CREDITS PROVIDED BY BUSINESS
30 TYPE.
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1 (4) THE NUMBER, AMOUNT AND PURPOSE OF THE LOANS PROVIDED
2 TO ELIGIBLE ENTITIES.
3 SECTION 12. EFFECTIVE DATE.
4 THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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