PRINTER'S NO. 1792
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1298
Session of
2015
INTRODUCED BY SANTARSIERO, MURT AND COHEN, JUNE 12, 2015
REFERRED TO COMMITTEE ON FINANCE, JUNE 12, 2015
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 a commuter and commerce toll 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 XVII-J
COMMUTER AND COMMERCE TOLL TAX CREDIT
Section 1701-J. Scope of article.
This article relates to the commuter and commerce toll tax
credits.
Section 1702-J. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Pass-through entity." Any of the following:
(1) A partnership, limited partnership, limited
liability company, business trust or other unincorporated
entity that for Federal income tax purposes is taxable as a
partnership.
(2) A Pennsylvania S corporation.
"Qualified tax liability." For a taxpayer who is an
individual, taxes imposed under Article III and for all other
taxpayers, taxes imposed under Articles III, IV and VI. The term
shall include the liability for taxes imposed under Article III
on a shareholder of a pass-through entity.
"Qualified toll expense." Any remuneration paid through the
use of an E-ZPass transponder for access and use of the
Pennsylvania Turnpike and all toll bridges operated under the
Delaware River Joint Toll Bridge Commission and the Delaware
River Port Authority of Pennsylvania and New Jersey.
"Tax credit." The Commuter and Commerce Toll Tax Credit
authorized under this article.
"Taxpayer." A Pennsylvania-based entity or individual
Pennsylvania resident subject to tax under Article III, IV or
VI. The term shall include the shareholder, owner or member of a
pass-through entity that receives a tax credit.
Section 1703-J. Credit for qualified toll expense.
(a) Application.--A taxpayer that incurs a qualified toll
expense in a taxable year may apply for a tax credit as provided
under this article. By September 15 of each year, a taxpayer
must submit an application to the department for a qualified
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toll expense incurred in the taxable year that ended in the
prior calendar year.
(b) Receipt.--A taxpayer that is qualified under subsection
(a) shall receive a tax credit for the taxable year in the
amount of 50%, not to exceed $500, of the taxpayer's total
qualified toll expense for the taxable year.
(c) Notification.--By December 15 of the calendar year
following the close of the taxable year during which the
qualified toll expense was incurred, the department shall notify
the taxpayer of the amount of the taxpayer's tax credit approved
by the department.
Section 1704-J. Carryover, carryback, refund and assignment of
credit.
(a) Carryover.--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 succeeding
taxable years and used as a credit against the qualified tax
liability of the taxpayer for those taxable years. Each time
that the tax credit is carried over to a succeeding taxable
year, it is to 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 no more than 15 taxable years
following the first taxable year for which the taxpayer was
entitled to claim the credit.
(b) Application of tax credit.--A tax credit approved by the
department for a qualified toll expense 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 is applied against any tax
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liability under subsection (a).
(c) Carryback or refund.--A taxpayer shall not be entitled
to carry back or obtain a refund of an unused tax credit.
Section 1705-J. Limitation on credits.
(a) Total amount.--The total amount of tax credits approved
by the department may not be limited in any fiscal year.
(b) Allocation.--Tax credits to each taxpayer under this
article may not exceed $500 annually.
Section 1706-J. Shareholder, owner or member pass-through.
(a) Application to Pennsylvania S corporations.--If a
Pennsylvania S corporation does not have an eligible tax
liability against which the tax credit may be applied, a
shareholder of the Pennsylvania S corporation shall be entitled
to a tax credit equal to the tax credit determined for the
Pennsylvania S corporation for the taxable year multiplied by
the percentage of the Pennsylvania S corporation's distributive
income to which the shareholder is entitled.
(b) Other applications.--If a pass-through entity other than
a Pennsylvania S corporation does not have an eligible tax
liability against which the tax credit may be applied, an owner
or member of the pass-through entity shall be entitled to a tax
credit equal to the tax credit determined for the pass-through
entity for the taxable year multiplied by the percentage of the
pass-through entity's distributive income to which the owner or
member is entitled.
(c) Additional credit.--The credit provided under subsection
(a) or (b) shall be in addition to any tax credit to which a
shareholder, owner or member of a pass-through entity is
otherwise entitled under this article, except that a pass-
through entity and a shareholder, owner or member of a pass-
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through entity may not claim a credit under this article for the
same qualified toll expense.
Section 1707-J. Regulations.
The department shall promulgate regulations necessary for the
implementation and administration of this article.
Section 2. The addition of Article XVII-J of the act shall
apply to taxable years beginning after December 31, 2015.
Section 3. This act shall take effect in 60 days.
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