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PRINTER'S NO. 850
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
862
Session of
2021
INTRODUCED BY SIMS, SANCHEZ, HOHENSTEIN, GUENST, HILL-EVANS,
SCHLOSSBERG, LEE, KINKEAD, WEBSTER AND BRIGGS, MARCH 11, 2021
REFERRED TO COMMITTEE ON FINANCE, MARCH 11, 2021
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 an Energy Star-rated product
manufacturing 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 XVIII-I
ENERGY STAR-RATED PRODUCT
MANUFACTURING TAX CREDIT
Section 1801-I. 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:
" Department. " The Department of Revenue of the Commonwealth.
" Energy Star-rated product. " A product that has been
certified as in compliance with and qualifies as an Energy Star
product pursuant to the Environmental Protection Agency and the
Department of Energy, Energy Star Program and bears the Energy
Star label.
" Energy Star-rated product manufacturing tax credit " or " tax
credit. " The credit provided under this article.
" Qualified tax liability. " The liability for taxes imposed
under Article III, IV, V or VI. The term does not include any
tax withheld by an employer from an employee under Article III.
" Taxpayer. " An entity subject to tax under Article III, IV,
V or VI.
Section 1802-I. Eligible applicants.
A taxpayer that manufactures Energy Star-rated products may
apply for the Energy Star-rated product manufacturing tax credit
as provided under this article. By February 1 of each year, a
taxpayer must submit an application to the department for the
amount of costs identified under section 1803-I that were paid
in the taxable year that ended the prior calendar year.
Section 1803-I. Award of tax credits.
A taxpayer that is qualified under section 1802-I may receive
an Energy Star-rated product manufacturing tax credit for the
taxable year in an amount equal to 20% of the total amount of
all capital, operation and maintenance costs paid for
manufacturing Energy Star-related products in the taxable year
to be applied against the taxpayer's qualified tax liability.
Section 1804-I. Carryover and carryback of credit.
(a) Carryover.--If the taxpayer cannot use the entire amount
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of the Energy Star-rated product manufacturing 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 that the tax credit is
carried over to a succeeding taxable year, it is to be reduced
by the amount that was used as a credit during the immediately
preceding taxable year. The tax credit provided under this
article may be carried over and applied to succeeding taxable
years for no more than five taxable years following the first
taxable year for which the taxpayer was entitled to claim the
tax credit.
(b) Application.--An Energy Star-rated product manufacturing
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 tax
credit was approved before the tax credit is applied against any
tax liability under subsection (a).
(c) Carryback.--A taxpayer is not entitled to carry back or
obtain a refund of an unused Energy Star-rated product
manufacturing tax credit.
Section 1805-I. Availability of tax credit.
Each fiscal year, $10,000,000 in tax credits shall be made
available to the department and may be awarded by the department
in accordance with this article.
Section 1806-I. Regulations.
The department shall promulgate regulations necessary for the
implementation and administration of this article.
Section 2. The addition of Article XVIII-I of the act shall
apply to tax years beginning after December 31, 2020.
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Section 3. This act shall take effect immediately.
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