PRINTER'S NO. 818
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
752
Session of
2017
INTRODUCED BY MURT, D. COSTA, DEASY, DRISCOLL, IRVIN, LONGIETTI,
MILLARD, NEILSON, O'BRIEN, READSHAW AND ROZZI, MARCH 7, 2017
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
MARCH 7, 2017
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-G
TOURISM MARKETING AND
PROMOTION TAX CREDIT
Section 1901-G. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Commission." The Pennsylvania Tourism Commission
established by law or a nonprofit entity designated by the
Governor 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.).
"Contribution." A donation of cash, personal property, in-
kind contributions or tourism marketing and promotion services,
the value of which is determined by the commission.
"Department." The Department of Revenue of the Commonwealth.
"Pass-through entity." A partnership as defined under
section 301(n.0) or a Pennsylvania S corporation or small
business as defined under section 301(n.1) 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. The term does not include tax
withheld by an employer from an employee under Article III.
"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 includes the shareholder of a Pennsylvania S
corporation that receives a tourism marketing and promotion tax
credit.
Section 1902-G. Tax credit.
(a) Eligibility.-- The commission may award a tax credit for
contributions made to and accepted by the commission. The
commission shall, by November 1 of the program year, notify the
following:
(1) The department of the amount of the award up to the
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capped amount, including:
(i) the name of each donor;
(ii) the Federal entity identification number of
each donor; and
(iii) the value of each contribution.
(2) The taxpayer of the award.
(b) Amount of tax credits.--The amount of the tax credit for
the taxable year shall be 55% of the value of contributions made
to the commission under subsection (a).
(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) Tax liability.--Credits awarded by the commission under
this section may be utilized against tax liabilities incurred in
the tax year in which the contribution is made.
Section 1903-G. Tourism marketing and promotion tax credits.
A taxpayer may claim a tax credit against the qualified tax
liability of the taxpayer.
Section 1904-G. 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, the credit shall be reduced by the amount that was used as
a credit during the immediately preceding taxable year. The tax
credit under this article may be carried over and applied to
succeeding taxable years for not more than three taxable years
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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 back, obtain a refund of or sell or
assign the credit.
Section 1905-G. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
tax credit under section 1902-G, the pass-through entity 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 pass-through 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 may 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-G. Annual cap on tax credits.
The total amount of tax credits approved under this article
may not be more than $15,000,000 in a fiscal year.
Section 1907-G. Report to General Assembly.
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The commission 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 awarded the tax credit as of the date of the report
and the amount of tax credits approved 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-G. Regulations.
The department may promulgate regulations or guidelines
necessary for the implementation and administration of this
article.
Section 1909-G. Expiration.
This article shall expire July 1, 2022.
Section 2. This act shall take effect in 60 days.
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