THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY STERN, KIRKLAND, HALUSKA, BAKER, BOYD, CALTAGIRONE, D. COSTA, DENLINGER, FLECK, GEIST, GIBBONS, GINGRICH, GODSHALL, GROVE, HELM, HESS, KILLION, KOTIK, MILLARD, MILLER, MURT, SCHMOTZER, SONNEY, STABACK, STURLA AND YOUNGBLOOD, SEPTEMBER 25, 2012

REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT, SEPTEMBER 25, 2012  

AN ACT

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," providing for the tourism marketing and promotion

tax credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding an article to

read:

ARTICLE XIX-B

TOURISM MARKETING AND

PROMOTION TAX CREDIT

Section 1901-B.  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:

"Commission."  The Pennsylvania Tourism Commission

established by law.

"Contribution."  A donation of cash, personal property, in-

kind contributions or tourism marketing and promotion services,

the value of which is determined by the Department of Revenue in

cooperation with the Pennsylvania Tourism Commission.

"Department."  The Department of Revenue of the Commonwealth.

"Pass-through entity."  A partnership or Pennsylvania S

corporation as defined under section 301(n.0) and (s.2).

"Qualified tax liability."  The liability for taxes imposed

under Article III, IV or VI. The term includes the liability for

taxes imposed under Article III on a shareholder of a

Pennsylvania S corporation.

"Tax credit."  The tourism marketing and promotion tax credit

established under this article.

"Taxpayer."  An entity subject to tax under Article III, IV

or VI. The term shall include the shareholder of a Pennsylvania

S corporation that receives a tourism marketing and promotion

tax credit.

Section 1902-B.  Tax credit.

(a)  Eligibility.--A taxpayer shall be eligible for a tax

credit for contributions made to and accepted by the commission

or a nonprofit entity established by the commission that is

exempt from Federal taxation under section 501(c)(3) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1

et seq.). The commission shall notify the department in writing

of the acceptance of a contribution, including the name of the

donor, the amount or value of the contribution and the type of

the contribution.

(b)  Amount of tax credits.--The amount of the tax credit for

the taxable year shall be 100% of the value of contributions

made to the commission or the nonprofit entity under subsection

(a). The amount of the tax credit shall not exceed the total

qualified tax liability of the taxpayer for the taxable year.

(c)  Limitation on single taxpayer tax credits.--No single

taxpayer shall receive more than 20% of the total amount of tax

credits authorized under this article in a fiscal year.

(d)  Availability of tax credits.--Tax credits shall be made

available by the department on a first-come-first-served basis.

(e)  Application for credits.--A taxpayer must apply to the

department for a tax credit.

Section 1903-B.  Tourism marketing and promotion tax credits.

A taxpayer may claim a tax credit against the qualified tax

liability of the taxpayer.

Section 1904-B.  Carryover, carryback, refund and assignment of

tax credit.

(a)  General rule.--If the taxpayer cannot use the entire

amount of the tax credit for the taxable year in which the tax

credit is first approved, 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 the tax credit is carried over to a succeeding taxable

year, it shall be reduced by the amount that was used as a

credit during the immediately preceding taxable year. The tax

credit provided by this article may be carried over and applied

to succeeding taxable years for not more than three taxable

years following the first taxable year for which the taxpayer

was entitled to claim the credit.

(b)  Application.--A tax credit approved by the department 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 before the tax credit can

be applied against any tax liability under subsection (a). A

taxpayer may not carry forward, carry back, obtain a refund of

or sell or assign the credit.

Section 1905-B.  Pass-through entity.

(a)  General rule.--If a pass-through entity has any unused

tax credit under section 1902-B, it may elect in writing,

according to procedures established by the department, to

transfer all or a portion of the tax credit to shareholders,

members or partners in proportion to the share of the entity's

distributive income to which the shareholder, member or partner

is entitled.

(b)  Limitation.--A pass-through entity and a shareholder,

member or partner of a pass-through entity shall not claim the

tax credit under subsection (a) for the same contributions.

(c)  Application.--A shareholder, member or partner of a

pass-through entity to whom a tax credit is transferred under

subsection (a) shall immediately claim the tax credit in the

taxable year in which the transfer is made. The shareholder,

member or partner may not carry forward, carry back, obtain a

refund of or sell or assign the tax credit.

Section 1906-B.  Annual cap on tax credits.

The total amount of tax credits approved under this article

shall not be more than $15,000,000 in a fiscal year.

Section 1907-B.  Report to General Assembly.

The secretary shall submit an annual report to the General

Assembly indicating the effectiveness of the tax credit not

later than June 30 following the year in which the tax credits

were approved. The report shall include the names of all

taxpayers utilizing the tax credit as of the date of the report

and the amount of tax credits approved and used by each

taxpayer. Notwithstanding any law providing for the

confidentiality of tax records, the information contained in the

report shall be public information.

Section 1908-B.  Regulations.

The department shall promulgate regulations necessary for the

implementation and administration of this article.

Section 2.  This act shall take effect in 60 days.