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PRINTER'S NO. 924
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
747
Session of
2019
INTRODUCED BY MENSCH, BROWNE, BARTOLOTTA, J. WARD, REGAN,
DINNIMAN, BOSCOLA AND YUDICHAK, JUNE 10, 2019
REFERRED TO FINANCE, JUNE 10, 2019
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 corporate net income tax, further providing
for manufacturing innovation and reinvestment deduction.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 407.7(a) and (d)(1) of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended to read:
Section 407.7. Manufacturing Innovation and Reinvestment
Deduction.--(a) In order to be eligible to receive a
manufacturing innovation and reinvestment deduction, a taxpayer
must demonstrate to the department a private capital investment
in excess of one [hundred million dollars ($100,000,000)]
million dollars ($1,000,000) for the creation of new or
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refurbished manufacturing capacity within three years of a
designated start date.
* * *
(d) (1) Upon determining a taxpayer's satisfaction of the
eligibility criteria, the department shall calculate the maximum
allowable deduction that a taxpayer may claim against the
taxpayer's taxable income under this article. The deduction
shall be equal to:
(i) if the private capital investment is in excess of one
million dollars ($1,000,000) but not more than ten million
dollars ($10,000,000), ten per cent of the private capital
investment utilized in the creation of new or refurbished
manufacturing capacity per tax year for a period of five years;
(ii) if the private capital investment is in excess of ten
million dollars ($10,000,000) but not more than one hundred
million dollars ($100,000,000), seven and one-half per cent of
the private capital investment utilized in the creation of new
or refurbished manufacturing capacity per tax year for a period
of five years; or
(iii) if the private capital investment is in excess of one
hundred million dollars ($100,000,000), five per cent of the
private capital investment utilized in the creation of new or
refurbished manufacturing capacity per tax year for a period of
five years.
* * *
Section 2. This act shall take effect in 60 days.
20190SB0747PN0924 - 2 -
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