Regular Session 2019-2020 House Bill 0732 P.N. 4118

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.

(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.

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).

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.

(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.

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.

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.

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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