PRINTER'S NO. 514

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

224

Session of

2015

INTRODUCED BY FARNESE, WILEY, FONTANA, BLAKE, COSTA, HUGHES AND

BROWNE, FEBRUARY 25, 2015

REFERRED TO FINANCE, FEBRUARY 25, 2015

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 Pennsylvania port volume

increase 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

Section 1702-J. 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:

"Base year." The calendar year prior to the taxable year.

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Pass-through entity." A partnership as defined in section

301(n.0) or a Pennsylvania S corporation as defined in section

301(n.1).

"Port cargo volume." The total amount of net tons of break-

of a waterborne ship to or from international destinations

outside this Commonwealth.

"Qualified tax liability." The liability for taxes imposed

under Articles III, IV or VI. The term shall not include any tax

withheld by an employer from an employee under Article III.

"Taxpayer." A person that is 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.

"Tax credit." The port volume tax credit authorized under

this article.

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(a) Authorized.--A taxpayer that moves cargo through a port

facility may apply for a credit against its qualified tax

liability in accordance with this article.

(b) Requirements.--The following shall apply to an

application submitted by a taxpayer for a tax credit:

(1) The tax credit may be claimed by the taxpayer only

for cargo owned by the taxpayer at the time the port facility

is used.

(2) The amount of cargo moved by the taxpayer through a

port facility for the taxable year for which the tax credit

(ii) In reviewing the application for waiver, the

department may take into account the circumstances that

lead to the decrease in cargo; the future projection of

cargo; the length of time the taxpayer has moved cargo

through the port facility; and the history of the type of

cargo moving through the port facility.

(c) Amount of credit.--

(1) A taxpayer that meets the requirements of this

section and is awarded a tax credit shall receive a credit in

the following amounts:

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(iii) for roll-on, roll-off cargo:

(A) $25 per each unit of equipment that weighs

less than 10,000 pounds; or

(B) $50 per each unit of equipment that weighs

10,000 pounds or more.

(2) In addition to the credit authorized in paragraph

(1), if a taxpayer increases the amount of cargo it moves

through a port facility by more than 5% over the base year,

the taxpayer shall be eligible for an additional credit based

on the increased cargo above the amount of cargo moved in the

(iii) for roll-on, roll-off cargo:

(A) $2.50 per unit of equipment that weighs less

than 10,000 pounds; or

(B) $5 per unit of equipment that weighs 10,000

pounds or more.

(3) A qualifying taxpayer may not receive more than

$250,000 in tax credits in a taxable year.

Section 1704-J. Application.

(a) Filing.--A taxpayer must submit an application to the

department in a form and manner determined by the department.

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of units broken out by pieces below 10,000 pounds and 10,000

pounds and above of roll-on, roll-off cargo, or TEUs of

containerized cargo.

(2) The amount of port cargo volume for the base year

stated both in net tons of break-bulk cargo, the number of

units broken out by pieces below 10,000 pounds and 10,000

pounds and above of roll on roll off cargo, or TEUs of

containerized cargo.

(3) The amount of any tax credit utilized by the

taxpayer in prior years.

the calendar year after the calendar year in which the port

cargo volume occurs.

(2) The department shall authorize tax credits on a

first-come, first-served basis.

(c) Notification of Department of Revenue.--Upon approval of

the application by the department, the department shall notify

the Department of Revenue, which shall issue to an applicant a

tax certificate that sets forth the amount of the tax credit

approved for the eligible applicant.

Section 1705-J. Carryover, carryback and assignment of credit.

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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 may be carried over and applied to succeeding

taxable years for no 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

(d) Sale or assignment.--

(1) A taxpayer, upon application to and approval by the

department, may sell or assign, in whole or in part, a tax

credit granted to the taxpayer.

(2) The department and the Department of Revenue shall

jointly promulgate regulations for the approval of

applications under this subsection.

(3) Before an application is approved, the Department of

Revenue must make a finding that the applicant has filed all

required State tax reports and returns for all applicable

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Department of Revenue shall settle, assess or determine the

tax of an applicant under this subsection within 90 days of

the filing of all required final returns or reports in

accordance with section 806.1(a)(5) of the act of April 9,

1929 (P.L.343, No.176), known as The Fiscal Code.

(e) Purchasers and assignees.--Except as set forth in

subsection (g), the following apply:

(1) The purchaser or assignee of all or a portion of a

tax credit under subsection (d) shall immediately claim the

credit in the taxable year in which the purchase or

carry back or obtain a refund of or sell or assign the tax

credit.

(4) The purchaser or assignee shall notify the

Department of Revenue of the seller or assignor of the tax

credit in compliance with procedures specified by the

Department of Revenue.

(f) Limited carryforward of tax credits by a purchaser or

assignee.--A purchaser or assignee may carry forward all or any

unused portion of a tax credit purchased or assigned for no more

than three taxable years following the first taxable year for

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shall be in effect until such time as the department promulgates

regulations for the implementation of the provisions of this

article. The department shall promulgate regulations for the

implementation of this article within two years of the effective

date of this section.

Section 1707-J. Reports to General Assembly.

(a) Annual report.--By October 1, 2016, and October 1 of

each year thereafter, the department shall submit a report on

the tax credit to the chairman and minority chairman of the

Appropriations Committee of the Senate, the chairman and

(1) The names of the qualified taxpayers utilizing the

tax credit as of the date of the report.

(2) The amount of tax credits approved for, utilized by

or sold or assigned by a qualified taxpayer.

(3) The total increase in port cargo volume in this

Commonwealth over the preceding year.

(4) Any recommendations for changes in the calculation

of the credit or administration of this article.

(c) Publication.--Notwithstanding any law providing for the

confidentiality of tax records, the information contained in the

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under this article shall not exceed $5,000,000 in any calendar

year.

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