1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in malt beverage tax, further providing for
11limited tax credits for small brewers.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1.  Section 2010 of the act of March 4, 1971 (P.L.6,
15No.2), known as the Tax Reform Code of 1971, amended December
1623, 2003 (P.L.250, No.46), is amended to read:

17Section 2010.  [Limited] Tax Credits.--(a)  The General
18Assembly of the Commonwealth, conscious of the financial
19pressures facing small brewers in Pennsylvania and the attendant
20risk of business failure and loss of employment opportunity,
21declares it public policy that renewal and improvement of small
22brewers be encouraged and assisted by a [limited] tax subsidy to

1be granted [during the period] as set forth in this section.

2(b)  As used in this section:

3"Amounts paid."  The phrase means (i) amounts actually paid,
4or (ii) at the taxpayer's election, amounts promised to be paid
5under firm purchase contracts actually executed during any
6calendar year [falling within the effective period of this
7section]: Provided, however, That there shall be no duplication
8of "amounts paid" under this definition.

9["Effective period."  The period from January 1, 1974, to
10December 31, 2008, inclusive.]

11"Qualifying capital expenditures."  Amounts paid by a
12taxpayer [during the effective period of this section] for the
13purchase of items of plant, machinery or equipment for use by
14the taxpayer within this Commonwealth in the manufacture and
15sale of malt or brewed beverages: Provided, however, That the
16total amount of qualifying capital expenditures made by a
17taxpayer within a single calendar year shall not exceed two
18hundred thousand dollars ($200,000).

19"Secretary."  The Secretary of Revenue of the Commonwealth of
20Pennsylvania where not otherwise qualified.

21"Taxpayer."  A manufacturer of malt or brewed beverages
22claiming a tax credit or credits under this section and having
23an annual production of malt or brewed beverages that does not
24exceed one million five hundred thousand (1,500,000) barrels.

25(c)  A tax credit or credits shall be allowed for each
26calendar year to a taxpayer, as hereinafter provided, not to
27exceed in total amount the amount of qualifying capital
28expenditures made by the taxpayer and certified by the
29secretary.

30(d)  A taxpayer desiring to claim a tax credit or credits

1under this section shall, within one year of the date of the
2original purchase of the qualifying capital expenditures, in
3accordance with regulations promulgated by the secretary, report
4annually to the secretary the nature, amounts and dates of
5qualifying capital expenditures made by him and such other
6information as the secretary shall require. If satisfied as to
7the correctness of such a report, the secretary shall issue to
8the taxpayer a certificate establishing the amount of qualifying
9capital expenditures made by the taxpayer and included within
10said report. The taxpayer shall also provide to the secretary
11the number of employes, total production of malt or brewed
12beverages and the amount of capital expenditures made by the
13taxpayer at each location operated by the taxpayer or a parent
14corporation, subsidiary, joint venture or affiliate. Also, the
15taxpayer shall notify the secretary of any contract for
16production held with another manufacturer. The secretary shall
17file a report annually with the Chief Clerk of the House of
18Representatives and with the Secretary of the Senate outlining
19the employment, production, expenditures and tax credits
20authorized under this section.

21(e)  Upon receipt from a taxpayer of a certificate from the
22secretary issued under subsection (c), the Secretary of Revenue
23shall grant a tax credit or credits in the amount certified
24against any tax due under this article in the calendar year in
25which the expenditures were incurred or against any tax becoming
26due from the taxpayer under this article in the following three
27calendar years. [No credit shall be allowed against any tax due
28for any taxable period ending after December 31, 2008.]

29Section 2.  This act shall take effect July 1, 2013, or
30immediately, whichever is later.