PRINTER'S NO. 6
No. 5 Special Session No. 1 of 2007-2008
INTRODUCED BY BROWNE, RAFFERTY, ERICKSON, ORIE, ARMSTRONG,
PIPPY, WONDERLING, BAKER, WAUGH, O'PAKE AND WASHINGTON,
OCTOBER 4, 2007
REFERRED TO ENERGY POLICIES, OCTOBER 4, 2007
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," providing for alternative energy investment
11 rebate.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding an article to
16 read:
17 ARTICLE XXIX-D
18 ALTERNATIVE ENERGY INVESTMENT REBATE
19 Section 2901-D. Definitions.
20 The following words and phrases when used in this article
21 shall have the meanings given to them in this section unless the
22 context clearly indicates otherwise:
1 "Alternative energy." Electrical, mechanical or thermal
2 energy produced from a method that uses one or more of the
3 following fuels or energy sources:
4 (1) Hydrogen.
5 (2) Biomass.
6 (3) Solar energy.
7 (4) Geothermal energy.
8 (5) Wind energy.
9 (6) Waste heat.
10 (7) Waste coal.
11 (8) Hydroelectric power.
12 "Alternative energy investment." An investment in an
13 alternative energy system installed at a taxpayer's primary
14 residence located in this Commonwealth.
15 "Alternative energy system." A system that generates energy
16 from alternative energy sources as defined under the act of
17 November 30, 2004 (P.L.1672, No.213), known as the Alternative
18 Energy Portfolio Standards Act. The term shall not include a
19 system that is defined as a demand-side management system
20 consisting of the management of customer consumption of
21 electricity or the demand for electricity.
22 "Department." The Department of Revenue of the Commonwealth.
23 "Taxpayer." A person or entity subject to tax under Article
24 III.
25 Section 2902-D. Rebate qualifications.
26 Subject to section 2903-D, a rebate shall be issued to a
27 taxpayer in the amount of 15% of the total amount of the
28 alternative energy investment made by a taxpayer in a taxable
29 year. The maximum rebate awarded under this section may not
30 exceed $250 and shall be in addition to any Federal tax rebate
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1 or credit received by the taxpayer for alternative energy. By
2 February 1 of each year, a taxpayer must submit an application
3 to the department for a rebate of the alternative energy
4 investment that was incurred in the taxable year that ended in
5 the prior calendar year. If the amount of credits exceeds the
6 limit established under section 2907-D, a taxpayer may reapply
7 for an alternative energy investment rebate in the following tax
8 year and shall be given priority for the rebate by the
9 department.
10 Section 2903-D. Rebate administration.
11 (a) Procedures.--The department shall establish any
12 administrative and application procedures and deadlines
13 necessary to implement and administer this article. The
14 department may enter into any contracts which are necessary to
15 administer this article.
16 (b) Determination.--The department shall determine the
17 number of rebates allowed each year under section 2907-D and
18 shall submit to the Legislative Reference Bureau for publication
19 in the Pennsylvania Bulletin the number of rebates.
20 Section 2904-D. Petitions for review.
21 A taxpayer whose rebate is either denied, corrected or
22 otherwise adversely affected by the department may petition for
23 administrative review in the manner prescribed by the
24 department.
25 Section 2905-D. Penalties.
26 (a) Penalty.--Any taxpayer who receives a rebate through
27 false or misleading information or who otherwise improperly
28 receives a rebate may be required to do one or all of the
29 following:
30 (1) Refund to the department the amount of rebate
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1 received.
2 (2) Pay a civil penalty of $1,000 to the department.
3 (b) Offset.--The department may offset any rebate due to a
4 taxpayer against collectible liabilities owed to the
5 Commonwealth by the taxpayer for taxes imposed under Article
6 III.
7 Section 2906-D. Erroneous rebates.
8 If the department determines or finds a rebate to have been
9 incorrectly or erroneously paid, it shall redetermine the
10 correct amount of the rebate, if any, and notify the taxpayer of
11 the reason for the correction and the amount of the rebate.
12 Section 2907-D. Limitation on tax credits.
13 The total amount of credits approved by the department shall
14 not exceed $20,000,000 in any fiscal year.
15 Section 2908-D. Construction.
16 Notwithstanding any other provision of law to the contrary,
17 any rebate received under this article shall not be considered
18 income under Article III or for purposes of determining
19 eligibility for any State government program, including those
20 programs authorized under Chapter 13 of the act of June 27, 2006
21 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
22 Act, or Chapter 5 of the act of August 26, 1971 (P.L.351,
23 No.91), known as the State Lottery Law.
24 Section 2909-D. Regulations.
25 The department shall promulgate regulations necessary for the
26 implementation and administration of this article.
27 Section 2. The addition of Article XXIX-D of the act shall
28 apply to tax years beginning after December 31, 2007.
29 Section 3. This act shall take effect immediately.
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