PRINTER'S NO. 1140
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
831
Session of
2019
INTRODUCED BY FARNESE, FONTANA, STREET, LEACH, TARTAGLIONE AND
COSTA, AUGUST 26, 2019
REFERRED TO FINANCE, AUGUST 26, 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," providing for a medical marijuana 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 XVII-L
MEDICAL MARIJUANA TAX CREDIT
Section 1701-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:
"Applicant." A taxpayer who applies for the medical
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marijuana tax credit under section 1702-L.
"Caregiver." As defined in section 103 of the Medical
Marijuana Act.
"Department." The Department of Revenue of the Commonwealth.
"Dispensary." As defined in section 103 of the Medical
Marijuana Act.
"Medical marijuana." As defined in section 103 of the
Medical Marijuana Act.
"Medical Marijuana Act." The act of April 17, 2016 (P.L.84,
No.16), known as the Medical Marijuana Act.
"Patient." As defined in section 103 of the Medical
Marijuana Act.
"Qualified tax liability." The liability for taxes imposed
under Article III. The term shall not include any tax withheld
by an employer from an employee under Article III.
"Taxpayer." An individual subject to payment of taxes under
Article III.
Section 1702-L. Procedure.
(a) Application.--A taxpayer may submit an application for a
tax credit under this article in a manner required by the
department. The department shall approve or deny the
application. The application shall contain the following
information:
(1) The name and tax identification number of the
taxpayer.
(2) Receipts for purchase of medical marijuana in the
applicable tax year.
(3) Proof of registration as a patient or caregiver.
(4) Any other information deemed appropriate by the
department.
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(b) Attachment.--The application must be attached to the
applicant's annual tax return required to be filed under Article
III.
Section 1703-L. Claim.
(a) Eligibility.--A taxpayer may claim a tax credit against
the qualified tax liability of the taxpayer for the amount the
taxpayer spent on the purchase of medical marijuana as a patient
or caregiver within this Commonwealth if the expense was not
reimbursed by any other person.
(b) Maximum.--A taxpayer who qualifies under subsection (a)
may claim a tax credit of up to $1,000.
Section 1704-L. Carryover and carryback.
(a) General rule.--
(1) If the taxpayer cannot use the entire amount of the
tax credit for the taxable year in which the taxpayer is
eligible for the tax credit, the excess may be carried over
to succeeding taxable years and used as a tax credit against
the qualified tax liability of the taxpayer for those taxable
years.
(2) 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 tax credit during the immediately
preceding taxable year.
(3) The tax credit provided under this article 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 tax
credit.
(b) Application.--A tax credit approved by the department in
a taxable year shall first be applied against the taxpayer's
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qualified liability for the current taxable year as of the date
on which the tax credit was approved before the tax credit can
be applied against any tax liability under subsection (a).
(c) Limitations.--A taxpayer may not carry back, obtain a
refund of, sell or assign an unused tax credit.
Section 1705-L. Total amount of tax credits.
The total amount of tax credits authorized under this article
may not exceed $10,000,000.
Section 1706-L. Guidelines.
The department shall adopt guidelines, including forms,
necessary to administer this article. The department shall
require receipts from a dispensary and proof of registration as
a patient or caregiver to claim the tax credit.
Section 1707-L. Report to General Assembly.
(a) Time.--No later than June 1, 2021, the department shall
submit a report on the tax credits granted under this article.
The report shall include the amount of tax credits approved and
the average tax credit approved per taxpayer.
(b) Contents.--The report may include recommendations for
changes in the calculation or administration of the tax credit.
The report may include other information that the department
deems appropriate.
(c) Submittal.--The report shall be submitted to each of the
following:
(1) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(2) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(3) The chairperson and minority chairperson of the
Finance Committee of the Senate.
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(4) The chairperson and minority chairperson of the
Finance Committee of the House of Representatives.
Section 2. This act shall take effect in 60 days.
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