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SENATE AMENDED
PRIOR PRINTER'S NO. 960
PRINTER'S NO. 4118
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
732
Session of
2019
INTRODUCED BY KAUFER, BERNSTINE, SCHLEGEL CULVER, KAUFFMAN,
BARRAR, MACKENZIE, MURT, SAINATO, SAYLOR, CIRESI, SIMMONS,
JONES, WEBSTER, FARRY, THOMAS, T. DAVIS, McNEILL, MULLINS AND
KORTZ, MARCH 18, 2019
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JULY 13, 2020
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," in realty transfer tax, further providing for
excluded transactions.; AND PROVIDING FOR LOCAL RESOURCE
MANUFACTURING TAX CREDIT AND FOR A PENALTY.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1102-C.3(23) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
to read:
Section 1102-C.3. Excluded Transactions.--The tax imposed by
section 1102-C shall not be imposed upon:
* * *
(23) A transfer of real estate[:
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(i) for no or nominal consideration from the Commonwealth or
any of its instrumentalities, agencies or political subdivisions
to a volunteer emergency medical services agency, volunteer fire
company or volunteer rescue company; or
(ii) between two or more volunteer emergency medical
services agencies, volunteer fire companies or volunteer rescue
companies.] to or by a volunteer EMS company, volunteer fire
company or volunteer rescue company as those terms are defined
in 35 Pa.C.S. § 7802 (relating to definitions).
* * *
SECTION 1.1. THE ACT IS AMENDED BY ADDING AN ARTICLE TO
READ:
ARTICLE XVII-L
LOCAL RESOURCE MANUFACTURING TAX CREDIT
SECTION 1701-L. SCOPE OF ARTICLE.
THIS ARTICLE ESTABLISHES A LOCAL RESOURCE MANUFACTURING TAX
CREDIT.
SECTION 1702-L. 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:
"COMPANY." A CORPORATION, PARTNERSHIP, LIMITED LIABILITY
COMPANY, LIMITED LIABILITY PARTNERSHIP, BUSINESS TRUST,
AFFILIATE, UNINCORPORATED JOINT VENTURE OR OTHER BUSINESS ENTITY
DOING BUSINESS IN THIS COMMONWEALTH.
"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
"DOWNSTREAM COMPANY." THE TERM INCLUDES A COMPANY THAT
PURCHASES CHEMICAL PRODUCTS OR CHEMICAL COMPOUNDS MANUFACTURED
OR PROCESSED BY A QUALIFIED TAXPAYER.
"DRY NATURAL GAS." NATURAL GAS IN WHICH THERE ARE NO
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APPRECIABLE NATURAL GAS LIQUIDS RECOVERABLE BY SEPARATION AT THE
WELLHEAD.
"FERTILIZER." A CHEMICAL PRODUCT DERIVED FROM PETROCHEMICALS
WHICH IS ADDED TO SOIL OR LAND TO INCREASE FERTILITY.
"NATURAL GAS." AS DEFINED IN 58 PA.C.S. § 2301 (RELATING TO
DEFINITIONS).
"NATURAL GAS LIQUIDS." AS DEFINED IN 58 PA.C.S. § 3203
(RELATING TO DEFINITIONS).
"NEW JOB." A FULL-TIME EQUIVALENT JOB CREATED DURING THE
CONSTRUCTION OF THE PROJECT FACILITY AND PAYING THE PREVAILING
MINIMUM WAGE AND BENEFIT RATES FOR EACH CRAFT OR CLASSIFICATION
AS DETERMINED BY THE DEPARTMENT OF LABOR AND INDUSTRY UNDER THE
PREVAILING WAGE ACT.
"PASS-THROUGH ENTITY." ANY OF THE FOLLOWING:
(1) A PARTNERSHIP AS DEFINED IN SECTION 301(N.0).
(2) A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
301(N.1).
(3) AN UNINCORPORATED ENTITY SUBJECT TO SECTION 307.21.
"PERMANENT JOB." A FULL-TIME EQUIVALENT JOB CREATED TO
SUPPORT THE ONGOING OPERATION OF THE PROJECT FACILITY.
"PETROCHEMICAL." CHEMICAL PRODUCTS OBTAINED FROM REFINING
AND PROCESSING NATURAL GAS. THE TERM DOES NOT INCLUDE
LIQUEFACTION OR OTHER PROCESSING OF NATURAL GAS FOR THE PURPOSE
OF TRANSPORT.
"PREVAILING WAGE ACT." THE ACT OF AUGUST 15, 1961 (P.L.987,
NO.442), KNOWN AS THE PENNSYLVANIA PREVAILING WAGE ACT.
"PROJECT FACILITY." A FACILITY LOCATED IN THIS COMMONWEALTH
WHICH MANUFACTURES PETROCHEMICALS OR FERTILIZERS USING DRY
NATURAL GAS AND WHICH REQUIRED A CAPITAL INVESTMENT OF AT LEAST
$400,000,000 TO CONSTRUCT AND PLACE INTO SERVICE.
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"QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED
UNDER ARTICLES III, IV, VII, VIII, IX, XI AND XV. THE TERM DOES
NOT INCLUDE TAX WITHHELD UNDER SECTION 316.1.
"QUALIFIED TAXPAYER." A COMPANY THAT SATISFIES ALL OF THE
FOLLOWING:
(1) PURCHASES AND USES DRY NATURAL GAS PRODUCED IN THIS
COMMONWEALTH IN THE MANUFACTURE OF PETROCHEMICALS OR
FERTILIZERS AT A PROJECT FACILITY IN THIS COMMONWEALTH THAT
HAS BEEN PLACED IN SERVICE ON OR AFTER THE EFFECTIVE DATE OF
THIS SECTION.
(2) HAS MADE A CAPITAL INVESTMENT OF AT LEAST
$400,000,000 IN ORDER TO CONSTRUCT THE PROJECT FACILITY AND
PLACE THE PROJECT FACILITY INTO SERVICE IN THIS COMMONWEALTH.
(3) HAS CREATED A MINIMUM AGGREGATE TOTAL OF 800 NEW
JOBS AND PERMANENT JOBS.
(4) HAS MADE GOOD FAITH EFFORTS TO RECRUIT AND EMPLOY,
AND TO ENCOURAGE ANY CONTRACTORS OR SUBCONTRACTORS TO RECRUIT
AND EMPLOY, WORKERS FROM THE LOCAL LABOR MARKET FOR
EMPLOYMENT DURING THE CONSTRUCTION OF THE PROJECT FACILITY.
(5) HAS DEMONSTRATED THAT THE NEW JOBS CREATED AT THE
PROJECT FACILITY OR FOR WORK COVERED BY SECTION 1713-L ARE
PAID AT LEAST THE PREVAILING MINIMUM WAGE AND BENEFIT RATES
FOR EACH CRAFT OR CLASSIFICATION AS DETERMINED BY THE
DEPARTMENT OF LABOR AND INDUSTRY.
"TAX CREDIT." THE LOCAL RESOURCE MANUFACTURING TAX CREDIT
PROVIDED UNDER THIS ARTICLE.
"UNIT." ONE THOUSAND CUBIC FEET OF NATURAL GAS AT A
TEMPERATURE OF 60 DEGREES FAHRENHEIT AND AN ABSOLUTE PRESSURE OF
14.73 POUNDS PER SQUARE INCH, IN ACCORDANCE WITH AMERICAN GAS
ASSOCIATION STANDARDS AND ACCORDING TO BOYLE'S LAW FOR THE
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MEASUREMENT OF GAS UNDER VARYING PRESSURES WITH DEVIATIONS
THEREFROM AS FOLLOWS:
(1) THE AVERAGE ABSOLUTE ATMOSPHERIC PRESSURE SHALL BE
ASSUMED TO BE 14.4 POUNDS TO THE SQUARE INCH, NOTWITHSTANDING
THE ACTUAL ELEVATION OR LOCATION OF POINT OF DELIVERY ABOVE
SEA LEVEL OR VARIATIONS IN THE ATMOSPHERIC PRESSURE.
(2) THE TEMPERATURE OF THE GAS PASSING THE METERS SHALL
BE DETERMINED BY THE CONTINUOUS USE OF A RECORDING
THERMOMETER INSTALLED SO THAT THE THERMOMETER MAY PROPERLY
RECORD THE TEMPERATURE OF THE GAS FLOWING THROUGH THE METERS.
THE ARITHMETIC AVERAGE OF THE TEMPERATURE RECORDED EACH 24-
HOUR DAY SHALL BE USED IN COMPUTING GAS VOLUMES. IF A
RECORDING THERMOMETER IS NOT INSTALLED, OR IF INSTALLED AND
NOT OPERATING PROPERLY, AN AVERAGE FLOWING TEMPERATURE OF 60
DEGREES FAHRENHEIT SHALL BE USED IN COMPUTING GAS VOLUME.
(3) THE SPECIFIC GRAVITY OF THE GAS SHALL BE DETERMINED
BY TESTS MADE BY THE USE OF AN EDWARDS OR ACME GRAVITY
BALANCE ANNUALLY OR AT INTERVALS AS ARE FOUND NECESSARY IN
PRACTICE. SPECIFIC GRAVITY SHALL BE USED IN COMPUTING GAS
VOLUMES.
(4) THE DEVIATION OF THE NATURAL GAS FROM BOYLE'S LAW
SHALL BE DETERMINED BY TESTS ANNUALLY OR AT OTHER SHORTER
INTERVALS AS ARE FOUND NECESSARY IN PRACTICE. THE APPARATUS
AND THE METHOD TO BE USED IN MAKING THE TESTS SHALL BE IN
ACCORDANCE WITH RECOMMENDATIONS OF THE NATIONAL BUREAU OF
STANDARDS OF THE DEPARTMENT OF COMMERCE OR REPORT NO. 3 OF
THE GAS MEASUREMENT COMMITTEE OF THE AMERICAN GAS ASSOCIATION
ON THE EFFECTIVE DATE OF THIS SECTION. THE RESULTS OF THE
TESTS SHALL BE USED IN COMPUTING THE VOLUME OF GAS DELIVERED.
"UPSTREAM COMPANY." THE TERM INCLUDES A COMPANY THAT IS
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ENGAGED IN THE EXPLORATION, DEVELOPMENT, PRODUCTION, PROCESSING,
REFINING OR TRANSPORTATION OF DRY NATURAL GAS IN THIS
COMMONWEALTH.
SECTION 1703-L. ELIGIBILITY.
IN ORDER TO BE ELIGIBLE TO RECEIVE A TAX CREDIT, A COMPANY
SHALL DEMONSTRATE THE FOLLOWING:
(1) THE COMPANY MEETS THE REQUIREMENTS OF A QUALIFIED
TAXPAYER.
(2) THE USE OF CARBON CAPTURE AND SEQUESTRATION
TECHNOLOGY, OR SIMILAR TECHNOLOGIES, AT THE PROJECT FACILITY
TO THE EXTENT IT IS COST EFFECTIVE AND FEASIBLE AT THE
DISCRETION OF THE QUALIFIED TAXPAYER.
(3) CONFIRMATION THAT THE COMPANY HAS FILED ALL REQUIRED
STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAXABLE
YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED BY
ASSESSMENT OR DETERMINATION BY THE DEPARTMENT AND NOT UNDER
TIMELY APPEAL.
SECTION 1704-L. APPLICATION AND APPROVAL OF TAX CREDIT.
(A) RATE.--THE TAX CREDIT SHALL BE EQUAL TO $0.47 PER UNIT
OF DRY NATURAL GAS THAT IS PURCHASED AND USED IN THE
MANUFACTURING OF PETROCHEMICALS OR FERTILIZERS AT THE PROJECT
FACILITY BY A QUALIFIED TAXPAYER.
(B) APPLICATION.--
(1) A QUALIFIED TAXPAYER MAY APPLY TO THE DEPARTMENT FOR
A TAX CREDIT UNDER THIS SECTION.
(2) THE APPLICATION MUST BE SUBMITTED TO THE DEPARTMENT
BY MARCH 1 FOR THE TAX CREDIT CLAIMED FOR DRY NATURAL GAS
PURCHASED AND USED IN MANUFACTURING OF PETROCHEMICALS OR
FERTILIZERS BY THE QUALIFIED TAXPAYER AT THE PROJECT FACILITY
DURING THE PRIOR CALENDAR YEAR.
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(3) THE APPLICATION MUST BE ON THE FORM REQUIRED BY THE
DEPARTMENT WHICH SHALL INCLUDE THE FOLLOWING:
(I) INFORMATION REQUIRED BY THE DEPARTMENT TO
DOCUMENT THE AMOUNT OF DRY NATURAL GAS PURCHASED AND USED
IN THE MANUFACTURE OF PETROCHEMICALS OR FERTILIZERS AT
THE PROJECT FACILITY;
(II) INFORMATION REQUIRED BY THE DEPARTMENT TO
VERIFY THAT THE APPLICANT IS A QUALIFIED TAXPAYER; AND
(III) ANY OTHER INFORMATION AS THE DEPARTMENT DEEMS
APPROPRIATE.
(C) REVIEW AND APPROVAL.--
(1) THE DEPARTMENT SHALL REVIEW THE APPLICATIONS AND
SHALL ISSUE AN APPROVAL OR DISAPPROVAL BY MAY 1.
(2) UPON APPROVAL, THE DEPARTMENT SHALL ISSUE A
CERTIFICATE STATING THE AMOUNT OF TAX CREDIT GRANTED FOR DRY
NATURAL GAS PURCHASED AND USED IN THE MANUFACTURE OF
PETROCHEMICALS OR FERTILIZERS AT THE PROJECT FACILITY IN THE
PRIOR CALENDAR YEAR.
(D) AVAILABILITY OF TAX CREDITS.--
(1) EACH FISCAL YEAR, $26,666,668 IN TAX CREDITS SHALL
BE MADE AVAILABLE TO THE DEPARTMENT IN ACCORDANCE WITH THIS
ARTICLE.
(2) NO MORE THAN FOUR QUALIFIED TAXPAYERS SHALL RECEIVE
A TAX CREDIT ANNUALLY, FOR A MAXIMUM CREDIT OF $6,666,667
EACH.
(3) THE DEPARTMENT, AT ITS DISCRETION, MAY ISSUE
UNALLOCATED CREDITS TO A QUALIFIED TAXPAYER, NOTWITHSTANDING
THE MAXIMUM CREDIT LIMIT UNDER PARAGRAPH (2).
SECTION 1705-L. USE OF TAX CREDITS.
(A) INITIAL USE.--PRIOR TO SALE OR ASSIGNMENT OF A TAX
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CREDIT UNDER SECTION 1707-L, A QUALIFIED TAXPAYER MUST FIRST USE
A TAX CREDIT AGAINST THE QUALIFIED TAX LIABILITY INCURRED IN THE
TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS APPROVED.
(B) ELIGIBILITY.--THE TAX CREDIT MAY BE APPLIED AGAINST UP
TO 20% OF THE QUALIFIED TAXPAYER'S QUALIFIED TAX LIABILITIES
INCURRED IN THE TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS
APPROVED.
(C) LIMIT.--A QUALIFIED TAXPAYER THAT HAS BEEN GRANTED A TAX
CREDIT UNDER THIS ARTICLE SHALL BE INELIGIBLE FOR ANY OTHER TAX
CREDIT PROVIDED UNDER THIS ACT.
SECTION 1706-L. CARRYOVER, CARRYBACK AND REFUND.
A TAX CREDIT CANNOT BE CARRIED BACK, CARRIED FORWARD OR BE
USED TO OBTAIN A REFUND.
SECTION 1707-L. SALE OR ASSIGNMENT.
(A) AUTHORIZATION.--IF THE QUALIFIED TAXPAYER HOLDS A TAX
CREDIT THROUGH THE END OF THE CALENDAR YEAR IN WHICH THE TAX
CREDIT WAS GRANTED, THE QUALIFIED TAXPAYER MAY SELL OR ASSIGN A
TAX CREDIT, IN WHOLE OR IN PART, PROVIDED THE SALE IS EFFECTIVE
BY THE CLOSE OF THE FOLLOWING CALENDAR YEAR.
(B) APPLICATION.--
(1) TO SELL OR ASSIGN A TAX CREDIT, A QUALIFIED TAXPAYER
MUST FILE AN APPLICATION FOR THE SALE OR ASSIGNMENT OF THE
TAX CREDIT WITH THE DEPARTMENT. THE APPLICATION MUST BE ON A
FORM REQUIRED BY THE DEPARTMENT.
(2) TO APPROVE AN APPLICATION, THE DEPARTMENT MUST
RECEIVE:
(I) A FINDING FROM THE DEPARTMENT THAT THE APPLICANT
HAS:
(A) FILED ALL REQUIRED STATE TAX REPORTS AND
RETURNS FOR ALL APPLICABLE TAXABLE YEARS; AND
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(B) PAID ANY BALANCE OF STATE TAX DUE AS
DETERMINED BY ASSESSMENT OR DETERMINATION BY THE
DEPARTMENT AND NOT UNDER TIMELY APPEAL; AND
(II) FOR A SALE OR ASSIGNMENT TO A COMPANY THAT IS
NOT AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY, A
CERTIFICATION FROM THE QUALIFIED TAXPAYER THAT THE
QUALIFIED TAXPAYER HAS OFFERED TO SELL OR ASSIGN THE TAX
CREDIT:
(A) EXCLUSIVELY TO A DOWNSTREAM COMPANY FOR A
PERIOD OF 30 DAYS FOLLOWING APPROVAL OF THE TAX
CREDIT UNDER SECTION 1704-L(C); AND
(B) TO AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY
FOR A PERIOD OF 30 DAYS FOLLOWING EXPIRATION OF THE
PERIOD UNDER CLAUSE (A).
(C) APPROVAL.--UPON APPROVAL BY THE DEPARTMENT, A QUALIFIED
TAXPAYER MAY SELL OR ASSIGN, IN WHOLE OR IN PART, A TAX CREDIT.
SECTION 1708-L. PURCHASERS AND ASSIGNEES.
(A) TIME.--THE PURCHASER OR ASSIGNEE UNDER SECTION 1707-L
MUST CLAIM THE TAX CREDIT IN THE CALENDAR YEAR IN WHICH THE
PURCHASE OR ASSIGNMENT IS MADE.
(B) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A PURCHASER
OR ASSIGNEE UNDER SECTION 1707-L MAY USE AGAINST ANY ONE
QUALIFIED TAX LIABILITY MAY NOT EXCEED 50% OF ANY OF THE
QUALIFIED TAX LIABILITIES OF THE PURCHASER OR ASSIGNEE FOR THE
TAXABLE YEAR.
(C) RESALE AND ASSIGNMENT.--
(1) A PURCHASER UNDER SECTION 1707-L MAY NOT SELL OR
ASSIGN THE PURCHASED TAX CREDIT.
(2) AN ASSIGNEE UNDER SECTION 1707-L MAY NOT SELL OR
ASSIGN THE ASSIGNED TAX CREDIT.
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(D) NOTICE.--THE PURCHASER OR ASSIGNEE UNDER SECTION 1707-L
SHALL NOTIFY THE DEPARTMENT OF THE SELLER OR ASSIGNOR OF THE TAX
CREDIT IN COMPLIANCE WITH PROCEDURES SPECIFIED BY THE
DEPARTMENT.
SECTION 1709-L. PASS-THROUGH ENTITY.
(A) ELECTION.--IF A PASS-THROUGH ENTITY HAS AN UNUSED TAX
CREDIT, THE PASS-THROUGH ENTITY MAY ELECT, IN WRITING, ACCORDING
TO PROCEDURES ESTABLISHED BY THE DEPARTMENT, TO TRANSFER ALL OR
A PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS OR PARTNERS IN
PROPORTION TO THE SHARE OF THE ENTITY'S DISTRIBUTIVE INCOME TO
WHICH THE SHAREHOLDERS, MEMBERS OR PARTNERS ARE ENTITLED.
(B) LIMITATION.--THE SAME UNUSED TAX CREDIT UNDER SUBSECTION
(A) MAY NOT BE CLAIMED BY:
(1) THE PASS-THROUGH ENTITY; AND
(2) A SHAREHOLDER, MEMBER OR PARTNER OF THE PASS-THROUGH
ENTITY.
(C) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A TRANSFEREE
UNDER SUBSECTION (A) MAY USE AGAINST ANY ONE QUALIFIED TAX
LIABILITY MAY NOT EXCEED 20% OF ANY QUALIFIED TAX LIABILITIES
FOR THE TAXABLE YEAR.
(D) TIME.--A TRANSFEREE UNDER SUBSECTION (A) MUST CLAIM THE
TAX CREDIT IN THE CALENDAR YEAR IN WHICH THE TRANSFER IS MADE.
(E) SALE AND ASSIGNMENT.--A TRANSFEREE UNDER SUBSECTION (A)
MAY NOT SELL OR ASSIGN THE TAX CREDIT.
SECTION 1710-L. (RESERVED).
SECTION 1711-L. ADMINISTRATION.
(A) AUDITS AND ASSESSMENTS.--
(1) THE DEPARTMENT MAY AUDIT A TAXPAYER AWARDED A TAX
CREDIT TO ASCERTAIN THE VALIDITY OF THE AMOUNT AWARDED.
(2) THE DEPARTMENT MAY ISSUE AN ASSESSMENT AGAINST A
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TAXPAYER FOR AN IMPROPERLY ISSUED TAX CREDIT. THE PROCEDURES,
COLLECTION, ENFORCEMENT AND APPEALS OF AN ASSESSMENT MADE
UNDER THIS SECTION SHALL BE GOVERNED BY ARTICLE II.
(B) GUIDELINES AND REGULATIONS.--THE DEPARTMENT SHALL
DEVELOP WRITTEN GUIDELINES FOR THE IMPLEMENTATION OF THIS
ARTICLE. THE GUIDELINES SHALL BE IN EFFECT UNTIL THE DEPARTMENT
PROMULGATES REGULATIONS FOR THE IMPLEMENTATION OF THE PROVISIONS
OF THIS ARTICLE.
SECTION 1712-L. REPORTS TO GENERAL ASSEMBLY.
(A) ANNUAL REPORT.--NO LATER THAN THE YEAR AFTER WHICH TAX
CREDITS ARE FIRST AWARDED UNDER THIS ARTICLE, AND EACH OCTOBER 1
THEREAFTER, THE DEPARTMENT SHALL SUBMIT A REPORT ON THE TAX
CREDIT PROVIDED UNDER THIS ARTICLE TO THE CHAIRPERSON AND
MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE
SENATE, THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE
APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES, THE
CHAIRPERSON AND MINORITY CHAIRPERSON OF THE FINANCE COMMITTEE OF
THE SENATE AND THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE
FINANCE COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE REPORT
MUST INCLUDE THE NAMES OF THE QUALIFIED TAXPAYERS UTILIZING THE
TAX CREDIT AS OF THE DATE OF THE REPORT AND THE AMOUNT OF TAX
CREDITS APPROVED FOR, UTILIZED BY OR SOLD OR ASSIGNED BY A
QUALIFIED TAXPAYER.
(B) RECONCILIATION REPORT.--ON MAY 1 OF THE YEAR WHICH IS 10
YEARS AFTER THE YEAR IN WHICH TAX CREDITS ARE FIRST AWARDED
UNDER THIS ARTICLE, THE DEPARTMENT SHALL SUBMIT TO THE SECRETARY
OF THE SENATE AND THE CHIEF CLERK OF THE HOUSE OF
REPRESENTATIVES A RECONCILIATION REPORT ON THE EFFECTIVENESS OF
THIS ARTICLE. THE REPORT SHALL INCLUDE, TO THE EXTENT POSSIBLE,
THE FOLLOWING INFORMATION FOR THE PRECEDING 10 YEARS:
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(1) THE NAME AND BUSINESS ADDRESS OF ALL QUALIFIED
TAXPAYERS WHO HAVE BEEN GRANTED TAX CREDITS UNDER THIS
ARTICLE.
(2) THE AMOUNT OF TAX CREDITS GRANTED TO EACH QUALIFIED
TAXPAYER.
(3) THE TOTAL NUMBER OF JOBS CREATED BY THE QUALIFIED
TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY AND ANY
COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER SERVICES
THAT SUPPORT THE BUSINESS OPERATIONS OF THE QUALIFIED
TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY. THIS
PARAGRAPH INCLUDES THE AVERAGE ANNUAL SALARY AND HOURLY WAGE
INFORMATION.
(4) THE AMOUNT OF TAXES PAID UNDER ARTICLE II BY THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY
AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER
SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(5) THE AMOUNT OF TAXES WITHHELD FROM EMPLOYEES OR PAID
BY MEMBERS, PARTNERS OR SHAREHOLDERS OF THE PASS-THROUGH
ENTITIES UNDER ARTICLE III OF THE QUALIFIED TAXPAYER,
UPSTREAM COMPANY AND DOWNSTREAM COMPANY AND ANY COMPANIES
THAT PROVIDE GOODS, UTILITIES OR OTHER SERVICES THAT SUPPORT
THE BUSINESS OPERATIONS OF THE QUALIFIED TAXPAYER, UPSTREAM
COMPANY AND DOWNSTREAM COMPANY.
(6) THE AMOUNT OF TAXES PAID UNDER ARTICLE IV BY THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY
AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER
SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(7) THE AMOUNT OF TAXES PAID UNDER ARTICLE XI BY THE
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QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY
AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER
SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(8) THE AMOUNT OF ANY OTHER STATE OR LOCAL TAXES PAID BY
THE QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM
COMPANY AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR
OTHER SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(9) ANY OTHER INFORMATION PERTAINING TO THE ECONOMIC
IMPACT OF THIS ARTICLE ON THIS COMMONWEALTH.
(C) REDUCTION.--IF THE RECONCILIATION REPORT ISSUED UNDER
SUBSECTION (B) REVEALS THAT THE TOTAL AMOUNT OF THE TAX CREDITS
GRANTED UNDER THIS ARTICLE EXCEEDS THE TOTAL AMOUNT OF TAX
REVENUE REPORTED UNDER SUBSECTION (B)(4), (5), (6), (7), (8) AND
(9), THE REPORT MUST INCLUDE ANY RECOMMENDATION FOR CHANGES IN
THE CALCULATION OF THE CREDIT.
(D) PUBLICATION.--THE REPORTS REQUIRED BY THIS SECTION SHALL
BE A PUBLIC RECORD AS DEFINED UNDER SECTION 102 OF THE ACT OF
FEBRUARY 14, 2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO-KNOW LAW,
AND SHALL BE AVAILABLE ELECTRONICALLY ON THE PUBLICLY ACCESSIBLE
INTERNET WEBSITE OF THE DEPARTMENT. THE REPORTS REQUIRED UNDER
THIS SECTION MAY NOT CONTAIN "CONFIDENTIAL PROPRIETARY
INFORMATION" AS DEFINED IN SECTION 102 OF THE RIGHT-TO-KNOW LAW .
SECTION 1713-L. PREVAILING WAGE.
(A) APPLICATION.--A PROJECT FACILITY FOR WHICH A TAX CREDIT
IS SOUGHT AND AWARDED UNDER THIS ARTICLE IS DEEMED TO MEET EACH
OF THE MINIMUM REQUIREMENTS NECESSARY TO APPLY THE WAGE AND
BENEFIT RATES, AND RELATED CERTIFICATION OF PAYROLL RECORDS,
REQUIRED BY THE PREVAILING WAGE ACT. A QUALIFIED TAXPAYER, OR
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THE QUALIFIED TAXPAYER'S AGENT, AND ALL CONTRACTORS AND
SUBCONTRACTORS, OF EVERY TIER, ENGAGED TO PERFORM ON THE PROJECT
FACILITY MUST COMPLY WITH ALL PROVISIONS AND REQUIREMENTS OF THE
PREVAILING WAGE ACT FOR ALL NEW JOBS AND FOR ALL CRAFTS OR
CLASSIFICATIONS PERFORMING CONSTRUCTION, RECONSTRUCTION,
DEMOLITION, ALTERATION AND/OR REPAIR WORK, OTHER THAN
MAINTENANCE WORK, UNDERTAKEN AT THE PROJECT FACILITY DURING THE
INITIAL CONSTRUCTION AND DURING ANY PERIOD IN WHICH TAX CREDITS
ARE SOUGHT AND AWARDED FOR THE PROJECT FACILITY.
(B) COMPLIANCE.--THE DEPARTMENT OF LABOR AND INDUSTRY SHALL
ENFORCE THIS SECTION AND SHALL APPLY THE SAME ADMINISTRATION AND
ENFORCEMENT APPLICABLE TO ANY PROJECT OF CONSTRUCTION,
RECONSTRUCTION, DEMOLITION, ALTERATION AND/OR REPAIR WORK, OTHER
THAN MAINTENANCE WORK, UNDERTAKEN PURSUANT TO THE REQUIREMENTS
OF THE PREVAILING WAGE ACT TO ENSURE COMPLIANCE.
(C) NOTIFICATION.--PRIOR TO THE SOLICITATION OF BIDS OR
PROPOSALS OF ANY CONTRACT OR SUBCONTRACT COVERED UNDER
SUBSECTION (A), THE QUALIFIED TAXPAYER, OR THE QUALIFIED
TAXPAYER'S AGENT, SHALL NOTIFY THE DEPARTMENT OF LABOR AND
INDUSTRY OF THE SOLICITATION AND REQUEST THE ISSUANCE OF A WAGE
AND BENEFIT RATE DETERMINATION FOR ALL CRAFTS AND
CLASSIFICATIONS ANTICIPATED TO PERFORM AT THE PROJECT FACILITY.
RATE REQUESTS SHALL BE IN CONFORMITY WITH THE PROCEDURES OF THE
PREVAILING WAGE ACT, AND THE DEPARTMENT OF LABOR AND INDUSTRY
SHALL ISSUE RATES UPON REQUEST AS REQUIRED PURSUANT TO THIS
SECTION AND THE PROVISIONS OF THE PREVAILING WAGE ACT.
(D) VIOLATION.--IN ADDITION TO ENFORCEMENT AUTHORIZED UNDER
THE PREVAILING WAGE ACT AND SUBSECTION (B), IF, AFTER NOTICE AND
HEARING, THE DEPARTMENT OF LABOR AND INDUSTRY DETERMINES THAT
THE QUALIFIED TAXPAYER INTENTIONALLY FAILED TO PAY OR
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INTENTIONALLY CAUSED ANOTHER TO FAIL TO PAY PREVAILING WAGE
RATES OR BENEFIT RATES AS SET FORTH UNDER SECTION 11(H) OF THE
PREVAILING WAGE ACT FOR WORK COVERED UNDER SUBSECTION (A), OR
RATIFIED ANY SUCH INTENTIONAL FAILURE BY ANY CONTRACTORS OR
SUBCONTRACTORS OF THE QUALIFIED TAXPAYER, THE QUALIFIED TAXPAYER
SHALL BE REQUIRED TO REFUND 10% OF THE AMOUNT OF THE TAX CREDITS
AWARDED TO THE QUALIFIED TAXPAYER FOR THE FIRST FISCAL YEAR FOR
WHICH TAX CREDITS ARE AWARDED, IN THE CASE OF INITIAL
CONSTRUCTION, OR THE FISCAL YEAR IN WHICH THE INTENTIONAL
NONCOMPLIANCE OCCURRED AS DETERMINED BY THE DEPARTMENT.
(E) APPEAL.--A FINDING OF A VIOLATION UNDER SUBSECTION (D)
SHALL BE APPEALABLE UNDER SECTION 2.2(E)(1) OF THE PREVAILING
WAGE ACT AND 34 PA. CODE § 213.3 (RELATING TO APPEALS FROM
DETERMINATIONS OF THE SECRETARY) . ANY FINAL DETERMINATION BY THE
APPEALS BOARD UNDER THE PREVAILING WAGE ACT MAY BE APPEALED
PURSUANT TO 2 PA.C.S. (RELATING TO ADMINISTRATIVE LAW AND
PROCEDURE).
SECTION 1714-L. APPLICABILITY.
THIS ARTICLE SHALL APPLY TO THE PURCHASE OF DRY NATURAL GAS
PRODUCED IN THIS COMMONWEALTH FOR THE PERIOD BEGINNING JANUARY
1, 2024, AND ENDING DECEMBER 31, 2049.
SECTION 1715-L. EXPIRATION.
THIS ARTICLE SHALL EXPIRE DECEMBER 31, 2050.
Section 2. The amendment of section 1102-C.3(23) shall be
retroactive to January 1, 2019.
Section 3. This act shall take effect immediately.
SECTION 3. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
(1) THE ADDITION OF ARTICLE XVII-L OF THE ACT SHALL TAKE
EFFECT IN 60 DAYS.
(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
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IMMEDIATELY.
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