Regular Session 2021-2022 House Bill 0952 P.N. 1934

SENATE AMENDED

PRIOR PRINTER'S NOS. 965, 1310

PRINTER'S NO. 1934

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

952

Session of

2021

INTRODUCED BY OBERLANDER, MUSTELLO, KAUFER, RYAN, MILLARD,

LONGIETTI, JAMES, NEILSON, SAYLOR, PICKETT, SANKEY,

BERNSTINE, METCALFE, MARSHALL, WHEELAND, SAINATO, FARRY,

LABS, MIHALEK, HENNESSEY, D. WILLIAMS, CIRESI, KAUFFMAN,

SHUSTERMAN, HOWARD, MALAGARI, MIZGORSKI, C. WILLIAMS AND

TOOHIL, MARCH 17, 2021

SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS

AMENDED, JUNE 25, 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," in computer data center equipment incentive

program, further providing for definitions and for review of

application, providing for applicability and for sales and

use tax exemption program; imposing duties on the Department

of Revenue; and making editorial changes.

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 SALES AND USE TAX, FURTHER PROVIDING FOR

EXCLUSIONS FROM TAX; IN PERSONAL INCOME TAX, FURTHER

PROVIDING FOR CLASSES OF INCOME, FOR WITHHOLDING TAX

REQUIREMENT FOR NONEMPLOYER PAYORS, FOR INFORMATION STATEMENT

FOR NONEMPLOYER PAYORS AND FOR INFORMATION STATEMENT FOR

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PAYEES, PROVIDING FOR ELECTRONIC PAYMENT AND FURTHER

PROVIDING FOR REQUIREMENTS CONCERNING RETURNS, NOTICES,

RECORDS AND STATEMENTS AND FOR ADDITIONS, PENALTIES AND FEES;

IN CORPORATE NET INCOME TAX, FURTHER PROVIDING FOR

DEFINITIONS; IN BANK AND TRUST COMPANY SHARES TAX, FURTHER

PROVIDING FOR DEFINITIONS; IN REALTY TRANSFER TAX, CORRECTING

A SCRIVENER'S ERROR RELATING TO CREDITS AGAINST TAX; IN TAX

CREDIT ELIGIBILITY, FURTHER PROVIDING FOR DEFINITIONS AND FOR

ELIGIBILITY AND PROVIDING FOR APPLICATION AND ADMINISTRATION,

FOR ASSESSMENT, FOR ADMINISTERING AGENCY TRAINING, FOR BROKER

REGISTRATION, FOR TAX CREDIT AND TAX BENEFIT REPORTS, FOR

ALLOCATION OF TAX CREDITS OR TAX BENEFITS AWARDED UPON APPEAL

AND FOR GUIDELINES; IN RESEARCH AND DEVELOPMENT TAX CREDIT,

FURTHER PROVIDING FOR CREDIT FOR RESEARCH AND DEVELOPMENT

EXPENSES, FOR CARRYOVER, CARRYBACK, REFUND AND ASSIGNMENT OF

CREDIT AND FOR REPORT TO GENERAL ASSEMBLY; IN ENTERTAINMENT

PRODUCTION TAX CREDIT, FURTHER PROVIDING FOR DEFINITIONS, FOR

CREDIT FOR QUALIFIED FILM PRODUCTION EXPENSES, FOR REISSUANCE

OF FILM PRODUCTION TAX CREDITS, FOR DEFINITIONS AND FOR

LIMITATIONS AND PROVIDING FOR PENNSYLVANIA LIVE EVENTS

INDUSTRY COVID-19 EMERGENCY ASSISTANCE; IN LOCAL RESOURCE

MANUFACTURING TAX CREDIT, FURTHER PROVIDING FOR APPLICATION

AND APPROVAL OF TAX CREDIT; IN KEYSTONE OPPORTUNITY ZONES,

KEYSTONE OPPORTUNITY EXPANSION ZONES AND KEYSTONE OPPORTUNITY

IMPROVEMENT ZONES, PROVIDING FOR EXTENSION FOR KEYSTONE

OPPORTUNITY EXPANSION ZONE AND FURTHER PROVIDING FOR

ADDITIONAL KEYSTONE OPPORTUNITY EXPANSION ZONES; IN MIXED-USE

DEVELOPMENT TAX CREDIT, FURTHER PROVIDING FOR MIXED-USE

DEVELOPMENT TAX CREDITS; IN KEYSTONE INNOVATIONS ZONES,

FURTHER PROVIDING FOR KEYSTONE INNOVATION ZONE TAX CREDITS

AND FOR ANNUAL REPORT; IN PENNSYLVANIA HOUSING TAX CREDIT,

FURTHER PROVIDING FOR PENNSYLVANIA HOUSING TAX CREDIT AND FOR

ANNUAL REPORT; IN TABLE GAME TAXES, REPEALING PROVISIONS

RELATING TO EXPIRATION; IN PROCEDURE AND ADMINISTRATION,

FURTHER PROVIDING FOR PETITION FOR REASSESSMENT, FOR PETITION

PROCEDURE AND FOR REVIEW BY BOARD; IN COMPUTER DATA CENTER

EQUIPMENT INCENTIVE PROGRAM, FURTHER PROVIDING FOR

DEFINITIONS AND PROVIDING FOR APPLICABILITY AND FOR SALES AND

USE TAX EXEMPTION PROGRAM; IN GENERAL PROVISIONS, FURTHER

PROVIDING FOR BAD CHECKS, ELECTRONIC FUNDS TRANSFERS NOT

CREDITED UPON TRANSMISSION AND ADDITIONS TO TAX; IMPOSING

DUTIES ON THE DEPARTMENT OF REVENUE; AND MAKING EDITORIAL

CHANGES.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Article XXIX-D of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended

by adding a subarticle heading to read:

SUBARTICLE A

PRELIMINARY PROVISIONS

Section 2. The definition of "tax refund" in section 2901-D

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of the act is amended and the section is amended by adding

definitions to read:

Section 2901-D. 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:

* * *

"Tax exemption." The tax exemption provided under Subarticle

"Tax refund." The tax refund provided for under [this

article] Subarticle B.

"Telecommunications provider." A provider of

telecommunications services as defined in 61 Pa. Code § 60.20

(relating to telecommunications service).

* * *

Section 3. Article XXIX-D of the act is amended by adding a

subarticle heading to read:

SUBARTICLE B

SALES AND USE TAX REFUND PROGRAM

Section 4. Section 2902-D of the act is renumbered to read:

Section [2902-D] 2911-D. Sales and use tax refund.

(a) Application.--Beginning July 1, 2017, an owner or

operator or qualified tenant of a computer data center certified

under this article may apply for a tax refund of taxes paid

under Article II upon the sale at retail or use of computer data

center equipment for installation in a computer data center,

purchased by:

(1) An owner or operator of a computer data center

certified under this article.

(2) A qualified tenant certified under this article.

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(b) Applicability.--Taxes paid under Article II during the

qualification period shall be eligible for a refund under this

article.

refund:

(1) Computer data center equipment used by the computer

data center to:

(i) generate electricity for resale purposes to a

power utility, except for sales incidental to the primary

sale to computer data centers and which qualify under

subparagraph (ii); or

(ii) generate, provide or sell more than 5% of its

electricity outside of the computer data center.

(2) (Reserved).

Section 5. Sections 2903-D, 2904-D and 2905-D of the act are

amended to read:

Section [2903-D] 2912-D. Application for certification.

To be considered for a certification, an owner or operator of

a computer data center shall submit to the department an

application on a form prescribed by the department that includes

the following:

(1) The owner's or operator's name, address and

telephone number.

(2) The address of the site where the facility is or

will be located, including, if applicable, information

sufficient to identify the specific portion or portions of

the facility comprising the computer data center.

(3) If the computer data center is to qualify under

section [2906-D(1)] 2915-D(1), the following information:

(i) The anticipated investment associated with the

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computer data center for which the certification is being

sought.

(ii) An affirmation, signed by an authorized

executive representing the owner or operator, that the

computer data center is expected to satisfy the

certification requirements prescribed in section [2906-

D(1)] 2915-D(1).

(4) If the computer data center is to qualify under

section [2906-D(2)] 2915-D(2), an affirmation, signed by an

authorized executive representing the owner or operator, that

the computer data center has satisfied, or will satisfy, the

certification requirements prescribed in section [2906-D(2)]

2915-D(2).

(5) The department shall begin accepting applications no

later than 90 days after the effective date of this section.

Section [2904-D] 2913-D. Review of application.

(a) General rule.--Within 60 days after receiving a complete

and correct application, the department shall review the

application and either issue a written certification that the

computer data center qualifies for the certification or provide

written reasons for its denial.

(b) Deemed approval.--Failure of the department to approve

or deny an application within 60 days after the date the owner

or operator of a computer data center submits the application to

the department constitutes certification of the computer data

center, and the department shall issue written certification to

the owner or operator within 14 days. The department may not

certify any computer data center after December 31, 2029.

data center under this subarticle after December 31, 2021.

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Section [2905-D] 2914-D. Separation of facilities.

(a) Separate certification.--An owner or operator of a

computer data center may separate a facility into one or more

computer data centers, which may each receive a separate

certification, if each computer data center individually meets

the requirements prescribed in section [2906-D] 2915-D.

(b) Limitation.--A portion of a facility or an article of

computer data equipment shall not be deemed to be a part of more

than one computer data center.

more parcels, buildings or condominiums in a facility into a

single computer data center if, in the aggregate, the parcels,

buildings and condominiums meet the requirements of this

article.

Section 6. Section 2906-D of the act is renumbered to read:

Section [2906-D] 2915-D. Eligibility requirements.

A computer data center must meet one of the following

requirements, after taking into account the combined investments

made and annual compensation paid by the owner or operator of

the computer data center or the qualified tenant:

(1) On or before the fourth anniversary of

certification, the computer data center creates a minimum

investment of:

(i) At least $25,000,000 of new investment if the

computer data center is located in a county with a

population of 250,000 or fewer individuals; or

(ii) At least $50,000,000 of new investment if the

computer data center is located in a county with a

population of more than 250,000 individuals.

(2) One or more taxpayers operating or occupying a

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computer data center, in the aggregate, pay annual

compensation of at least $1,000,000 to employees at the

certified computer data center site for each year of the

certification after the fourth anniversary of certification.

Section 7. Sections 2907-D and 2908-D of the act are amended

to read:

Section [2907-D] 2916-D. Notification.

(a) Requirements satisfied.--On or before the fourth

anniversary of the certification of a computer data center, the

owner or operator of a computer data center shall notify the

department in writing whether the computer data center for which

the certification is requested has satisfied the requirements

prescribed in section [2906-D] 2915-D.

(b) Records.--Until a computer data center satisfies the

requirements prescribed in section [2906-D] 2915-D, the owner,

operator and qualified tenants shall maintain detailed records

of all investments created by the computer data center,

including costs of buildings and computer data center equipment,

and all tax refunds directly received by the owner, operator or

qualified tenant.

Section [2908-D] 2917-D. Revocation of certification.

(a) Revocation.--If the department determines that the

requirements of section [2906-D] 2915-D have not been satisfied,

the department may revoke the certification of a computer data

center.

(b) Appeal.--The owner or operator of the computer data

center may appeal the revocation. Appeals filed under this

section shall be governed by Article II.

section, the qualification period of any owner, operator or

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qualified tenant of the computer data center expires, and the

department may recapture from the owner, operator or qualified

tenant all or part of the tax refund provided directly to the

owner or operator or qualified tenant. The department may give

special consideration or allow a temporary exemption from

recapture of the tax refund if there is extraordinary hardship

due to factors beyond the control of the owner or operator or

qualified tenant.

Section 8. Section 2909-D of the act is renumbered to read:

Section [2909-D] 2918-D. Guidelines.

The department shall publish guidelines and prescribe forms

and procedures as necessary for the purposes of this article.

Section 9. Section 2910-D of the act is amended to read:

Section [2910-D] 2919-D. Confidential information.

Proprietary business information contained in the application

form described in section [2903-D] 2912-D and the written notice

described in section [2907-D] 2916-D, as well as information

concerning the identity of a qualified tenant, are confidential

and may not be disclosed to the public. The department may

disclose the name of a computer data center that has been

certified under this article.

Section 10. Section 2911-D of the act is renumbered to read:

Section [2911-D] 2920-D. List of tenants.

An owner or operator of a computer data center shall provide,

to the extent permissible under Federal law, the department with

a list of qualified tenants, including the commencement and

expiration dates of each qualified tenant's agreement to use or

occupy part of the computer data center. The list shall be

provided to the department annually, upon request by the

department.

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Section 11. Section 2912-D of the act is amended to read:

Section [2912-D] 2921-D. Sale or transfer.

Except as provided in section [2908-D] 2917-D, a computer

data center retains its certification regardless of a transfer,

sale or other disposition, directly or indirectly, of the

computer data center.

Section 12. Sections 2913-D and 2914-D of the act are

renumbered to read:

Section [2913-D] 2922-D. Application.

(a) General rule.--An owner, operator or qualified tenant

may apply for a tax refund under this article on or before July

30, 2017, and each July 30 thereafter.

(b) Notification.--No later than September 30, 2017, and

each September 30 thereafter, the department shall notify each

applicant of the amount of tax refund approved by the

department.

Section [2914-D] 2923-D. Limitations.

(a) Total.--The total amount of State tax refunds approved

by the department under this article shall not exceed $7,000,000

in any fiscal year.

(b) Allocation.--If the total amount of tax refunds approved

for all applicants exceeds the limitation on the amount of tax

refunds in subsection (a) in a fiscal year, the tax refund to be

received by each applicant shall be determined as follows:

(1) Divide:

(i) the tax refund approved for the applicant; by

(ii) the total of all tax refunds approved for all

applicants.

(2) Multiply:

(i) the amount under subsection (a); by

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(ii) the quotient under paragraph (1).

(3) The algebraic form of the calculation under this

subsection is:

Taxpayer's tax refund = amount allocated for those

tax refunds X (tax refund approved for the

applicant/total of all tax refunds approved for all

applicants).

Section 13. Article XXIX-D of the act is amended by adding a

section to read:

Section 2924-D. Applicability.

Notwithstanding any other provision of this article, the

department may not issue a tax refund under this subarticle for

the tax imposed upon the sale at retail or use of computer data

center equipment purchased after December 31, 2021.

Section 14. Article XXIX-D of the act is amended by adding a

subarticle to read:

SUBARTICLE C

SALES AND USE TAX EXEMPTION PROGRAM

Section 2931-D. Sales and use tax exemption.

(a) State sales and use tax.--Beginning January 1, 2022, the

tax imposed under Article II shall not be imposed upon the sale

at retail or use of computer data center equipment purchased for

installation in a certified computer data center, if purchased

by any of the following:

(1) An owner or operator of a computer data center

certified under this subarticle.

(2) A qualified tenant of a computer data center

certified under this subarticle.

(b) Local sales and use tax.--Beginning January 1, 2022, the

tax imposed under Article XXXI-B of the act of July 28, 1953

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(P.L.723, No.230), known as the Second Class County Code, the

tax imposed under Chapter 6 of the act of June 5, 1991 (P.L.9,

No.6), known as the Pennsylvania Intergovernmental Cooperation

Authority Act for Cities of the First Class, and the tax imposed

under Article II-B, shall not be imposed upon the sale at retail

or use of, or the purchase price of, computer data center

equipment purchased for installation in a certified computer

data center if purchased by any of the following:

(1) An owner or operator of a computer data center

certified under this subarticle.

(2) A qualified tenant of a computer data center

certified under this subarticle.

subarticle shall apply during the qualification period.

(d) Exclusions.--The following shall not qualify for a tax

exemption:

(1) A telecommunications provider's computer data center

that does not have retail or wholesale customers being billed

or paying for services and does provide a majority of

services for internal use or use by the telecommunications

provider's subsidiaries.

(2) Computer data center equipment used by the certified

computer data center for any of the following purposes:

(i) Generating electricity for resale purposes to a

power utility.

(ii) Generating, providing or selling more than 5%

of its electricity outside of the certified computer data

center.

Section 2932-D. Application for certification.

(a) Application.--To be considered for a certification, an

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owner or operator of a computer data center shall submit to the

department an application on a form prescribed by the department

that includes all of the following:

(1) The owner's or operator's name, address and

telephone number.

(2) The address of the site where the computer data

center is or will be located, including, if applicable,

information sufficient to identify the specific portion of a

facility comprising the computer data center.

(3) An affirmation, signed by an authorized executive

representing the owner or operator, that the computer data

center is expected to satisfy the certification requirements

prescribed under section 2935-D.

(b) Acceptance.--The department shall begin accepting

applications no later than 30 days after the effective date of

this section.

Section 2933-D. Review of application.

(a) General rule.--Within 60 days after receiving a complete

and correct application, the department shall review the

application and either issue a written certification that the

computer data center qualifies for the certification or provide

written reasons for its denial.

(b) Deemed approval.--Failure of the department to approve

or deny an application within 60 days after the date the owner

or operator of a computer data center submits the application to

the department shall constitute certification of the computer

data center, and the department shall issue written

certification to the owner or operator within 14 days.

Section 2934-D. Separation of facilities.

(a) Separate certification.--An owner or operator of a

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computer data center may separate a facility into one or more

computer data centers, which may each receive a separate

certification, if each computer data center individually meets

the requirements prescribed in section 2935-D.

(b) Limitation.--A portion of a facility or an article of

computer data equipment shall not be deemed to be a part of more

than one computer data center for certification under this

subarticle.

more parcels, buildings or condominiums in a facility into a

single computer data center for certification under this

subarticle if, in the aggregate, the parcels, buildings and

condominiums meet the requirements prescribed in section 2935-D.

Section 2935-D. Eligibility requirements.

(a) General rule.--In order to be certified under this

subarticle, an owner or operator of a computer data center must

meet all of the following requirements:

(1) On or before the fourth anniversary of

certification, the combined investment, in the aggregate, of

the owner or operator or qualified tenant of the computer

data center must total a minimum of any of the following:

(i) At least $75,000,000 of new investment if the

computer data center is located in a county with a

population of 250,000 or fewer individuals and creates 25

new jobs.

(ii) At least $100,000,000 of new investment if the

computer data center is located in a county with a

population of more than 250,000 individuals and creates

45 new jobs.

(2) On or before the fourth anniversary of

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certification, the owner or operator or qualified tenant of a

computer data center, in the aggregate, must pay annual

compensation of at least $1,000,000 to employees at the

certified computer data center site for each year of the

certification after the fourth anniversary of certification.

(b) Prior applications.--A computer data center that has met

the eligibility requirements as prescribed under section 2915-D

and has, prior to July 1, 2021, been certified under section

2913-D shall be deemed to meet the certification requirements of

this section. The certification shall not be revoked, except as

provided under section 2917-D, and shall remain in effect for

the remainder of the qualification period.

data center under this subarticle after December 31, 2032.

(d) Definition.--As used in this section, the term "new

investment" means construction, expansion or build out of data

center space at either a new or an existing computer data center

on or after January 1, 2022, and the purchase and installation

of computer data center equipment, except for items described

under paragraph (4) of the definition of "computer data center

equipment" in section 2901-D.

Section 2936-D. Notification.

(a) Requirements satisfied.--On or before the fourth

anniversary of the certification of a computer data center, the

owner or operator of the computer data center shall notify the

department in writing whether the computer data center for which

the certification is requested has satisfied the requirements

prescribed under section 2935-D.

(b) Records.--Until a computer data center satisfies the

requirements prescribed in section 2935-D, the owner or operator

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or qualified tenant shall maintain detailed records of all

investments created by the computer data center, including costs

of buildings and computer data center equipment and all tax

exemptions received by the owner or operator or qualified

tenant.

Section 2937-D. Revocation of certification.

(a) Revocation.--If the department determines that the

requirements of section 2935-D have not been satisfied, the

department may revoke the certification of a computer data

center.

(b) Appeal.--The owner or operator of the computer data

center may appeal the revocation. Appeals filed under this

section shall be governed by Article II.

section, the qualification period of any owner or operator or

qualified tenant of the computer data center shall expire and

the department may recapture from the owner or operator or

qualified tenant all or part of the tax exemption received by

the owner or operator or qualified tenant. The department may

give special consideration or allow a temporary exemption from

recapture of the tax exemption if there is extraordinary

hardship due to factors beyond the control of the owner or

operator or qualified tenant. The department may require the

owner or operator or qualified tenant to file appropriate

amended tax returns in order to reflect any recapture of the tax

exemption.

Section 2938-D. Guidelines.

The department shall publish guidelines and prescribe forms

and procedures as necessary for the purposes of this article.

Section 2939-D. Confidential information.

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Proprietary business information contained in the application

form described under section 2932-D and the written notice

described under section 2936-D, as well as information

concerning the identity of a qualified tenant, shall be

confidential and may not be disclosed to the public. The

department may disclose the name of a computer data center that

has been certified under this subarticle.

Section 2940-D. List of tenants.

An owner or operator of a certified computer data center

shall provide, to the extent permissible under Federal law, the

department with a list of qualified tenants, including the

commencement and expiration dates of each qualified tenant's

agreement to use or occupy part of the certified computer data

center. The list shall be provided to the department annually,

upon request by the department.

Section 2941-D. Sale or transfer.

Except as provided under section 2937-D, a computer data

center retains its certification regardless of a transfer, sale

or other disposition, directly or indirectly, of the computer

data center.

Section 2942-D. Exemption certificate.

The owner or operator or qualified tenant of a certified

computer data center shall prepare and deliver a properly

executed exemption certificate to a vendor from which the owner

or operator or qualified tenant purchases exempt computer data

center equipment.

Section 15. This act shall take effect immediately.

SECTION 1. THE GENERAL ASSEMBLY FINDS AND DECLARES AS

FOLLOWS:

(1) AN ERROR APPEARED IN THE PUBLICATION OF SECTION 8 OF

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<--

THE ACT OF JULY 2, 1986 (P.L.318, NO.77): THE AMENDMENT OF

THE DEFINITION OF "DOCUMENT" IN SECTION 1101-C OF THE ACT OF

MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF

1971, USED THE WORD "DEVISES" INSTEAD OF THE WORD "DEMISES"

AND THE WORD "DEVISE" INSTEAD OF THE WORD "DEMISE."

(2) AN ERROR APPEARED IN THE PUBLICATION OF SECTION 11

OF ACT 77 OF 1986: THE ADDITION OF SECTION 1102-C.4 OF THE

TAX REFORM CODE OF 1971, USED THE WORD "DEVISE" INSTEAD OF

THE WORD "DEMISE."

(3) AN ERROR APPEARED IN THE PUBLICATION OF SECTION 12

OF ACT 77 OF 1986: THE ADDITION OF SECTION 1103-C(C) OF THE

TAX REFORM CODE OF 1971, USED THE WORD "DEVISE" INSTEAD OF

THE WORD "DEMISE" AND THE WORD "DEVISED" INSTEAD OF THE WORD

"DEMISED."

(4) THE PUBLICATION OF THE OFFICIAL LAW, WITHOUT A

FOOTNOTE, DOES NOT MATCH THE ENROLLED BILL NOR COMPORT WITH

THE INTERPRETIVE REGULATION OF THE DEPARTMENT OF REVENUE AT

61 PA. CODE §§ 91.111(A) (RELATING TO IMPOSITION OF TAX ON

DOCUMENTS) AND 91.112(A) (RELATING TO STATEMENT OF VALUE).

(5) THE ERRORS ARE CORRECTED BY THE AMENDMENT OF THE

DEFINITION OF "DOCUMENT" IN SECTION 1101-C AND SECTIONS 1102-

C.4 AND 1103-C(C) OF THE TAX REFORM CODE OF 1971.

SECTION 2. SECTION 204(67) AND (68) OF THE ACT OF MARCH 4,

1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE

AMENDED AND THE SECTION IS AMENDED BY ADDING CLAUSES TO READ:

SECTION 204. EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY

SECTION 202 SHALL NOT BE IMPOSED UPON ANY OF THE FOLLOWING:

* * *

(67) THE SALE AT RETAIL OR USE OF REPAIR OR REPLACEMENT

PARTS OR SOFTWARE OR SOFTWARE UPGRADES, INCLUDING THE

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INSTALLATION OF THOSE PARTS, SOFTWARE OR SOFTWARE UPGRADES,

EXCLUSIVELY FOR USE IN HELICOPTERS AND SIMILAR ROTORCRAFT AND

FLIGHT SIMULATORS OR IN OVERHAULING OR REBUILDING OF HELICOPTERS

AND SIMILAR ROTORCRAFT AND FLIGHT SIMULATORS OR HELICOPTERS AND

SIMILAR ROTORCRAFT AND FLIGHT SIMULATOR COMPONENTS. FOR THE

PURPOSES OF THIS CLAUSE, THE TERM "FLIGHT SIMULATOR" SHALL MEAN

A DEVICE USED FOR THE TRAINING OR INSTRUCTION OF AN INDIVIDUAL

ON A HELICOPTER AND SIMILAR ROTORCRAFT.

(68) THE SALE AT RETAIL OR USE OR LEASE OF HELICOPTERS AND

SIMILAR ROTORCRAFT[.], AND FLIGHT SIMULATORS, AS WELL AS

TRAINING MATERIALS, OPERATIONAL DOCUMENTS AND PUBLICATIONS

RELATING TO THE USE OR OPERATION OF HELICOPTERS AND SIMILAR

ROTORCRAFT AND FLIGHT SIMULATORS. FOR THE PURPOSES OF THIS

CLAUSE, THE TERM "FLIGHT SIMULATOR" SHALL MEAN A DEVICE USED FOR

THE TRAINING OR INSTRUCTION OF AN INDIVIDUAL ON A HELICOPTER AND

SIMILAR ROTORCRAFT.

* * *

(74) THE SALE AT RETAIL OR USE OF A MULTIPURPOSE

AGRICULTURAL VEHICLE OPERATED FOR THE BENEFIT OF OR PURSUANT TO

THE OPERATION OF A FARM OWNED OR OPERATED BY THE OWNER OF THE

VEHICLE OR A BUSINESS WHOSE ENTERPRISES AND ACTIVITIES ARE

CONSIDERED PART OF FARMING. FOR THE PURPOSES OF THIS CLAUSE, THE

FOLLOWING TERMS OR PHRASES SHALL HAVE THE FOLLOWING MEANINGS:

"MULTIPURPOSE AGRICULTURAL VEHICLE" SHALL MEAN A MOTOR

VEHICLE EXEMPT FROM REGISTRATION IN ACCORDANCE WITH 75 PA.C.S. §

1302(17) (RELATING TO VEHICLES EXEMPT FROM REGISTRATION) WHICH

IS 66 INCHES OR LESS IN WIDTH AND 2,000 POUNDS OR LESS IN DRY

WEIGHT AND WHICH IS USED EXCLUSIVELY FOR AGRICULTURAL OPERATIONS

AND ONLY INCIDENTALLY OPERATED OR MOVED UPON THE HIGHWAYS.

"USE OF A MULTIPURPOSE AGRICULTURAL VEHICLE IN FARMING" SHALL

20210HB0952PN1934 - 18 -

MEAN REPAIRING AND MAINTAINING BUILDINGS, INCLUDING HOUSES,

GARAGES, BARNS, STABLES, GREENHOUSES, MUSHROOM HOUSES AND

STOREHOUSES, FENCES AND STANCHIONS PERMANENTLY AFFIXED TO REAL

ESTATE, AS WELL AS TRANSPORTING FARMING PERSONNEL, COLLECTING,

CONVEYING OR TRANSPORTING PROPERTY TO BE USED IN FARMING AND

TRANSPORTING OR CONVEYING THE FARM PRODUCT AFTER THE FINAL

FARMING OPERATION, WHICH INCLUDES, BUT DOES NOT EXTEND BEYOND,

THE OPERATION OF PACKAGING FOR THE ULTIMATE CONSUMER AND

STORAGE.

(75) THE SALE AT RETAIL OR USE OF TANGIBLE PERSONAL PROPERTY

MANUFACTURED FOR THE PURPOSE OF INITIATING, SUPPORTING OR

SUSTAINING BREAST FEEDING.

SECTION 3. SECTION 303 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 303. CLASSES OF INCOME.--* * *

(A.10) THE PROVISIONS OF SECTION 451(F) OF THE INTERNAL

REVENUE CODE OF 1986, AS AMENDED, SHALL BE APPLICABLE.

SECTION 3.1. SECTIONS 316.2(A), 317.1 AND 317.2 OF THE ACT

ARE AMENDED TO READ:

SECTION 316.2. WITHHOLDING TAX REQUIREMENT FOR NONEMPLOYER

PAYORS.--(A) TO THE EXTENT NOT ALREADY REQUIRED TO WITHHOLD TAX

ON PAYMENTS UNDER SECTION 316.1, A PERSON THAT:

(1) MAKES PAYMENTS OF INCOME FROM SOURCES WITHIN THIS

COMMONWEALTH DESCRIBED IN SECTION 303(A)(1) OR (2) TO EITHER A

NONRESIDENT INDIVIDUAL OR AN ENTITY THAT IS DISREGARDED UNDER

SECTION 307.21 THAT HAS A NONRESIDENT MEMBER; AND

(2) IS REQUIRED UNDER SECTION 335(F)(1) TO FILE A COPY OF

FORM 1099-MISC OR 1099-NEC WITH THE DEPARTMENT REGARDING THE

PAYMENTS;

SHALL DEDUCT AND WITHHOLD FROM THE PAYMENTS AN AMOUNT EQUAL TO

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THE NET AMOUNT OF THE PAYMENTS MULTIPLIED BY THE TAX RATE

SPECIFIED UNDER SECTION 302(B).

* * *

SECTION 317.1. INFORMATION STATEMENT FOR NONEMPLOYER

PAYORS.--EVERY PAYOR REQUIRED TO DEDUCT AND WITHHOLD TAX UNDER

SECTION 316.2 SHALL FURNISH TO A PAYEE TO WHOM THE PAYOR HAS

PAID INCOME FROM SOURCES WITHIN THIS COMMONWEALTH DURING THE

CALENDAR YEAR A COPY OF FORM 1099-MISC OR 1099-NEC REQUIRED

UNDER SECTION 335(F)(1). THE COPY OF FORM 1099-MISC OR 1099-NEC

REQUIRED BY THIS SECTION FOR EACH CALENDAR YEAR SHALL BE

FORWARDED TO THE PAYEE ON OR BEFORE MARCH 1 OF THE YEAR

SUCCEEDING THE CALENDAR YEAR.

SECTION 317.2. INFORMATION STATEMENT FOR PAYEES.--EVERY

PAYEE RECEIVING A COPY OF FORM 1099-MISC OR 1099-NEC FROM A

PAYOR UNDER SECTION 317.1 SHALL FILE A DUPLICATE OF SUCH

INFORMATION RETURN WITH THE PAYEE'S STATE INCOME TAX RETURN.

SECTION 3.2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 332.1. ELECTRONIC PAYMENT.--ANY PAYMENT IN THE

AMOUNT OF FIFTEEN THOUSAND DOLLARS ($15,000) OR MORE REMITTED TO

THE DEPARTMENT FOR THE TAX IMPOSED UNDER THIS ARTICLE SHALL BE

REMITTED ELECTRONICALLY AS PRESCRIBED BY THE DEPARTMENT. THIS

SECTION SHALL NOT APPLY TO EMPLOYER WITHHOLDING PAYMENTS UNDER

PART VII OF THIS ARTICLE AND SECTION 9 OF THE ACT OF APRIL 9,

1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE."

SECTION 4. SECTION 335(F)(1) AND (2) OF THE ACT ARE AMENDED

TO READ:

SECTION 335. REQUIREMENTS CONCERNING RETURNS, NOTICES,

RECORDS AND STATEMENTS.--* * *

(F) THE FOLLOWING APPLY:

(1) ANY PERSON WHO:

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(I) MAKES PAYMENTS OF PENNSYLVANIA SOURCE INCOME THAT FALL

WITHIN ANY OF THE EIGHT CLASSES OF INCOME ENUMERATED IN SECTION

303(A);

(II) MAKES SUCH PAYMENTS TO AN INDIVIDUAL, AN ENTITY TREATED

AS A PARTNERSHIP FOR TAX PURPOSES OR A SINGLE MEMBER LIMITED

LIABILITY COMPANY; AND

(III) IS REQUIRED TO MAKE A FORM 1099-MISC OR 1099-NEC

RETURN TO THE SECRETARY OF THE TREASURY OF THE UNITED STATES

WITH RESPECT TO SUCH PAYMENTS, SHALL FILE A COPY OF SUCH FORM

1099-MISC OR 1099-NEC WITH THE DEPARTMENT [AND SEND A COPY OF

SUCH FORM 1099-MISC TO THE PAYEE BY MARCH 1 OF EACH YEAR OR, IF

FILED ELECTRONICALLY, BY MARCH 31 OF EACH YEAR] ON THE DUE DATE

OF THE FORM 1099-MISC OR 1099-NEC. IF THE FORM 1099-MISC OR

1099-NEC FILED BY A PAYOR WITH THE SECRETARY OF THE TREASURY OF

THE UNITED STATES [IS NOT COMPLETED IN SUCH A MANNER THAT] DOES

NOT INCLUDE THE STATE INCOME AND STATE TAX WITHHELD

[INFORMATION, CURRENTLY BOXES 16 THROUGH 18 ON FEDERAL FORM

1099-MISC, IS REFLECTED THEREON] AS REQUIRED UNDER SECTION

316.2, THE PAYOR SHALL UPDATE THE COPIES OF FORM 1099-MISC OR

1099-NEC TO BE PROVIDED PURSUANT TO THIS SECTION TO REFLECT SUCH

INFORMATION PRIOR TO FILING IT WITH THE DEPARTMENT AND SENDING

IT TO THE PAYEE.

(2) IF THE PAYOR IS REQUIRED TO PERFORM ELECTRONIC FILING

FOR PENNSYLVANIA EMPLOYER WITHHOLDING PURPOSES, THE FORM 1099-

MISC OR 1099-NEC SHALL BE FILED ELECTRONICALLY WITH THE

DEPARTMENT.

* * *

SECTION 5. SECTION 352(F)(4) AND (5) OF THE ACT ARE AMENDED

AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 352. ADDITIONS, PENALTIES AND FEES.--* * *

20210HB0952PN1934 - 21 -

(F) * * *

(4) ANY PERSON REQUIRED TO FILE A COPY OF FORM 1099-MISC OR

1099-NEC WITH THE DEPARTMENT UNDER THE PROVISIONS OF SECTION

335(F) WHO WILFULLY FURNISHES A FALSE OR FRAUDULENT FORM OR WHO

WILFULLY FAILS TO FILE THE FORM IN THE MANNER, AT THE TIME AND

SHOWING THE INFORMATION REQUIRED UNDER SECTION 335(F) SHALL, FOR

EACH SUCH FAILURE, BE SUBJECT TO A PENALTY OF FIFTY DOLLARS

($50).

(5) ANY PERSON REQUIRED UNDER THE PROVISIONS OF SECTION

335(F) TO FURNISH A COPY OF FORM 1099-MISC OR 1099-NEC TO A

PAYEE WHO WILFULLY FURNISHES A FALSE OR FRAUDULENT FORM OR WHO

WILFULLY FAILS TO FURNISH A FORM IN THE MANNER, AT THE TIME AND

SHOWING THE INFORMATION REQUIRED BY SECTION 335(F) SHALL, FOR

EACH SUCH FAILURE, BE SUBJECT TO A PENALTY OF FIFTY DOLLARS

($50).

* * *

(K) IF A TAX PAYMENT IS MADE AND THE PAYMENT DOES NOT COMPLY

WITH SECTION 332.1 WHEN REQUIRED, THE TAXPAYER THAT IS LIABLE

FOR THE TAX SHALL, IN ADDITION TO ANY OTHER PENALTY, INTEREST OR

ADDITION PROVIDED BY LAW, BE LIABLE FOR A PENALTY OF THREE PER

CENT OF THE PAYMENT REMITTED NOT TO EXCEED FIVE HUNDRED DOLLARS

($500).

SECTION 6. SECTION 407.6(A)(5) OF THE ACT IS AMENDED TO

READ:

SECTION 407.6. DEFINITIONS.--(A) FOR THE PURPOSES OF THIS

PART ONLY, THE FOLLOWING WORDS, TERMS AND PHRASES SHALL HAVE THE

MEANING ASCRIBED TO THEM IN THIS SUBSECTION, EXCEPT WHERE THE

CONTEXT CLEARLY INDICATES A DIFFERENT MEANING:

* * *

(5) "QUALIFIED MANUFACTURING INNOVATION AND REINVESTMENT

20210HB0952PN1934 - 22 -

DEDUCTION." AN ALLOWABLE DEDUCTION AS DETERMINED, CALCULATED

AND EXECUTED IN A COMMITMENT LETTER BETWEEN THE DEPARTMENT AND

THE TAXPAYER. THE DEDUCTION SHALL BE APPLIED TO THE TAXABLE

INCOME OF THE TAXPAYER TO REDUCE A QUALIFIED TAX LIABILITY OF

THE TAXPAYER FOLLOWING THE ALLOCATION AND APPORTIONMENT OF THE

INCOME OF THE TAXPAYER.

* * *

SECTION 7. THE DEFINITION OF "RECEIPTS" IN SECTION 701.5 OF

THE ACT IS AMENDED TO READ:

SECTION 701.5. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND

PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANING

ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT

CLEARLY INDICATES A DIFFERENT MEANING:

* * *

"RECEIPTS." THE TOTAL OF ALL ITEMS OF INCOME REPORTED ON THE

INCOME STATEMENT OF THE INSTITUTION'S REPORTS OF CONDITION AT

THE END OF THE PRECEDING CALENDAR YEAR. IF THERE IS A

COMBINATION OF TWO OR MORE INSTITUTIONS INTO ONE, THE TOTAL OF

ALL ITEMS OF INCOME THAT WOULD BE REPORTED ON THE INCOME

STATEMENTS OF THE REPORTS OF CONDITION OF THE CONSTITUENT

INSTITUTIONS SHALL BE COMBINED AS IF A SINGLE INSTITUTION HAD

BEEN IN EXISTENCE FOR THE YEAR. FOR PURPOSES OF THIS DEFINITION,

A COMBINATION SHALL INCLUDE ANY ACQUISITION REQUIRED TO BE

ACCOUNTED FOR BY USING THE PURCHASE METHOD IN ACCORDANCE WITH

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES OR A STATUTORY MERGER

OR CONSOLIDATION. IF THE INSTITUTION DOES NOT FILE QUARTERLY

REPORTS OF CONDITION, THE TERM SHALL INCLUDE ALL ITEMS OF INCOME

INCLUDED ON AN INCOME STATEMENT DETERMINED IN ACCORDANCE WITH

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR THE PRECEDING

CALENDAR YEAR.

20210HB0952PN1934 - 23 -

* * *

SECTION 8. THE DEFINITION OF "DOCUMENT" IN SECTION 1101-C OF

THE ACT IS AMENDED TO READ:

SECTION 1101-C. DEFINITIONS.--THE FOLLOWING WORDS WHEN USED

IN THIS ARTICLE SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THIS

SECTION:

* * *

"DOCUMENT." ANY DEED, INSTRUMENT OR WRITING WHICH CONVEYS,

TRANSFERS, [DEVISES] DEMISES, VESTS, CONFIRMS OR EVIDENCES ANY

TRANSFER OR [DEVISE] DEMISE OF TITLE TO REAL ESTATE IN THIS

COMMONWEALTH, BUT DOES NOT INCLUDE WILLS, MORTGAGES, DEEDS OF

TRUST OR OTHER INSTRUMENTS OF LIKE CHARACTER GIVEN AS SECURITY

FOR A DEBT AND DEEDS OF RELEASE THEREOF TO THE DEBTOR, LAND

CONTRACTS WHEREBY THE LEGAL TITLE DOES NOT PASS TO THE GRANTEE

UNTIL THE TOTAL CONSIDERATION SPECIFIED IN THE CONTRACT HAS BEEN

PAID OR ANY CANCELLATION THEREOF UNLESS THE CONSIDERATION IS

PAYABLE OVER A PERIOD OF TIME EXCEEDING THIRTY YEARS OR

INSTRUMENTS WHICH SOLELY GRANT, VEST OR CONFIRM A PUBLIC UTILITY

EASEMENT. "DOCUMENT" SHALL ALSO INCLUDE A DECLARATION OF

ACQUISITION REQUIRED TO BE PRESENTED FOR RECORDING UNDER SECTION

1102-C.5 OF THIS ARTICLE.

* * *

SECTION 9. SECTIONS 1102-C.4 AND 1103-C(C) OF THE ACT ARE

AMENDED TO READ:

SECTION 1102-C.4. DOCUMENTS RELATING TO ASSOCIATIONS OR

CORPORATIONS AND MEMBERS, PARTNERS, STOCKHOLDERS OR SHAREHOLDERS

THEREOF.--EXCEPT AS OTHERWISE PROVIDED IN SECTIONS 1102-C.3 AND

1102-C.5, DOCUMENTS WHICH MAKE, CONFIRM OR EVIDENCE ANY TRANSFER

OR [DEVISE] DEMISE OF TITLE TO REAL ESTATE BETWEEN ASSOCIATIONS

OR CORPORATIONS AND THE MEMBERS, PARTNERS, SHAREHOLDERS OR

20210HB0952PN1934 - 24 -

STOCKHOLDERS THEREOF ARE FULLY TAXABLE. FOR THE PURPOSES OF THIS

ARTICLE, CORPORATIONS AND ASSOCIATIONS ARE ENTITIES SEPARATE

FROM THEIR MEMBERS, PARTNERS, STOCKHOLDERS OR SHAREHOLDERS.

SECTION 1103-C. CREDITS AGAINST TAX.--* * *

[DEVISED] DEMISED BY THE GRANTOR, A CREDIT FOR THE AMOUNT OF TAX

PAID AT THE TIME OF THE [DEVISE] DEMISE SHALL BE GIVEN THE

GRANTOR TOWARD THE TAX DUE UPON THE TRANSFER.

* * *

SECTION 10. THE HEADING OF ARTICLE XVII-A.1 OF THE ACT IS

AMENDED TO READ:

ARTICLE XVII-A.1

TAX CREDIT [ELIGIBILITY] AND TAX BENEFIT ADMINISTRATION

SECTION 11. THE DEFINITION OF "TAX CREDIT" IN SECTION 1701-

A.1 OF THE ACT IS AMENDED AND THE SECTION IS AMENDED BY ADDING

DEFINITIONS TO READ:

SECTION 1701-A.1. 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:

"ADMINISTERING AGENCY." A DEPARTMENT, BOARD OR COMMISSION

THAT ADMINISTERS A TAX CREDIT OR TAX BENEFIT AS REQUIRED BY A

LAW OF THIS COMMONWEALTH. THE TERM DOES NOT INCLUDE A KEYSTONE

INNOVATION ZONE COORDINATOR UNDER ARTICLE XIX-F.

"APPLICANT." A PERSON APPLYING TO AN ADMINISTERING AGENCY

FOR A TAX CREDIT OR A TAX BENEFIT.

"APPLICATION." AN APPLICATION SUBMITTED TO AN ADMINISTERING

AGENCY BY AN APPLICANT FOR A TAX CREDIT OR TAX BENEFIT. THE TERM

INCLUDES A TRANSFER APPLICATION AND SUPPLEMENTAL DOCUMENTATION

REQUIRED TO BE PROVIDED BY AN APPLICANT, INCLUDING REPORTS,

20210HB0952PN1934 - 25 -

RETURNS AND STATEMENTS.

"BROKER." A PERSON THAT ENGAGES IN THE BUSINESS OF

EFFECTUATING TRANSACTIONS IN TAX CREDITS FOR THE ACCOUNT OF

OTHERS, INCLUDING ASSISTING A TAXPAYER TO APPLY FOR, SELL,

TRANSFER, ASSIGN OR PURCHASE A TAX CREDIT. THE TERM INCLUDES AN

ENTITY AND ALL OF THE FOLLOWING THAT PERFORM SIMILAR FUNCTIONS

FOR THE ENTITY:

(1) A PARTNER, OFFICER OR DIRECTOR OF THE ENTITY.

(2) AN AFFILIATE OF THE ENTITY.

(3) ANY OTHER PERSON OCCUPYING A SIMILAR STATUS OF THE

ENTITY.

* * *

"PERSON." ANY INDIVIDUAL, EMPLOYER, ASSOCIATION, FIDUCIARY,

PARTNERSHIP, CORPORATION, ENTITY, ESTATE OR TRUST, WHETHER A

RESIDENT OR NONRESIDENT OF THIS COMMONWEALTH.

"PROGRAM YEAR." THE ANNUAL PERIOD IN WHICH THE TAX CREDIT OR

TAX BENEFIT OPERATES.

"RECIPIENT." A PERSON THAT IS SOLD, ASSIGNED OR TRANSFERRED

A TRANSFERRABLE TAX CREDIT.

"TAX BENEFIT." FOR PURPOSES OF THIS ARTICLE, A TAX BENEFIT

AUTHORIZED UNDER ANY OF THE FOLLOWING:

(1) ARTICLE XVII-A.

(2) ARTICLE XVIII-C.

(3) ARTICLE XIX-B.

(4) ARTICLE XIX-D.

(5) ARTICLE XXIX-C.

(6) ARTICLE XXIX-D.

(7) THE ACT OF OCTOBER 6, 1998 (P.L.705, NO.92), KNOWN

AS THE KEYSTONE OPPORTUNITY ZONE, KEYSTONE OPPORTUNITY

EXPANSION ZONE AND KEYSTONE OPPORTUNITY IMPROVEMENT ZONE ACT.

20210HB0952PN1934 - 26 -

"TAX CREDIT." A TAX CREDIT AUTHORIZED UNDER ANY OF THE

FOLLOWING:

(1) ARTICLE XVII-B.

(2) ARTICLE XVII-D.

(3) ARTICLE XVII-E.

(4) ARTICLE XVII-G.

(5) ARTICLE XVII-H.

(6) ARTICLE XVII-I.

(7) ARTICLE XVII-J.

(8) ARTICLE XVII-K.

(8.1) ARTICLE XVII-L.

(9) ARTICLE XVIII.

(10) ARTICLE XVIII-B.

(11) ARTICLE XVIII-D.

(12) ARTICLE XVIII-E.

(13) ARTICLE XVIII-F.

(14) ARTICLE XVIII-G.

(14.1) ARTICLE XVIII-H.

(15) ARTICLE XIX-A.

(15.1) ARTICLE XIX-C.

(16) ARTICLE XIX-E.

(16.1) ARTICLE XIX-F.

(17) SECTION 2010.

[(18) ARTICLE XXIX-D.]

(19) ARTICLE XX-B OF THE ACT OF MARCH 10, 1949 (P.L.30,

NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949.

(20) THE ACT OF DECEMBER 1, 2004 (P.L.1750, NO.226),

KNOWN AS THE FIRST CLASS CITIES ECONOMIC DEVELOPMENT DISTRICT

ACT.

(21) 12 PA.C.S. CH. 34 (RELATING TO INFRASTRUCTURE AND

20210HB0952PN1934 - 27 -

FACILITIES IMPROVEMENT PROGRAM).

(22) ANY OTHER PROGRAM ESTABLISHED BY A LAW OF THIS

COMMONWEALTH IN WHICH A PERSON APPLIES FOR AND RECEIVES A

CREDIT AGAINST A TAX. THIS PARAGRAPH SHALL NOT APPLY TO A

CREDIT AGAINST A TAX LIABILITY AS A RESULT OF AN OVERPAYMENT.

"TAXPAYER." A PERSON THAT WAS APPROVED FOR A TAX CREDIT OR

TAX BENEFIT OR THAT RECEIVED A TRANSFERRABLE TAX CREDIT BY SALE,

ASSIGNMENT OR TRANSFER.

"TRANSFER APPLICATION." AN APPLICATION SUBMITTED TO THE

DEPARTMENT OR THE ADMINISTERING AGENCY BY AN APPLICANT OR A

RECIPIENT AS PART OF THE SALE, ASSIGNMENT OR TRANSFER OF A

TRANSFERRABLE TAX CREDIT TO A RECIPIENT.

"TRANSFERRABLE TAX CREDIT." A TAX CREDIT WHICH MAY BE SOLD,

ASSIGNED OR TRANSFERRED FROM AN APPLICANT TO A DIFFERENT

TAXPAYER. THE TERM INCLUDES A TAX CREDIT WHICH MAY BE

TRANSFERRED TO A SHAREHOLDER, MEMBER OR PARTNER OF AN APPLICANT.

SECTION 12. SECTION 1702-A.1 OF THE ACT IS AMENDED TO READ:

SECTION 1702-A.1. [ELIGIBILITY.] DETERMINATION OF ELIGIBILITY

AND METHOD OF SUBMISSION.

(A) TAX REPORTS AND RETURNS.--EXCEPT AS OTHERWISE PROVIDED

BY LAW, BEFORE A TAX CREDIT [CAN] OR TAX BENEFIT MAY BE AWARDED,

THE DEPARTMENT [MAY] OR ADMINISTERING AGENCY, AS APPLICABLE,

SHALL MAKE A FINDING THAT [THE TAXPAYER] AN APPLICANT OR A

RECIPIENT HAS FILED ALL REQUIRED STATE TAX REPORTS AND RETURNS

FOR ALL APPLICABLE TAXABLE YEARS AND PAID ANY BALANCE OF STATE

TAX DUE AS DETERMINED AT SETTLEMENT OR ASSESSMENT BY THE

DEPARTMENT, UNLESS THE TAX DUE IS [CURRENTLY] UNDER APPEAL AT

THE TIME THE FINDING WAS MADE BY THE DEPARTMENT OR ADMINISTERING

AGENCY.

(B) [(RESERVED).] NOTIFICATION.--FOR A TAX CREDIT AUTHORIZED

20210HB0952PN1934 - 28 -

UNDER ARTICLE XX-B OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14),

KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, THE DEPARTMENT SHALL

NOTIFY THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF

ANY FINDING REQUIRED UNDER SUBSECTION (A) WITHIN 30 DAYS OF THE

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT RECEIVING A

COMPLETED APPLICATION.

ADMINISTERING AGENCY, AS APPLICABLE, MAY REQUIRE AN APPLICATION

FOR A TAX CREDIT OR TAX BENEFIT TO BE FILED ELECTRONICALLY.

SECTION 13. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 1703-A.1. APPLICATION AND ADMINISTRATION.

(A) INSUFFICIENT APPLICATION.--IF AN ADMINISTERING AGENCY

FINDS THAT AN APPLICATION IS INSUFFICIENT FOR THE ADMINISTERING

AGENCY TO DETERMINE WHETHER THE APPLICANT IS ELIGIBLE TO RECEIVE

A TAX CREDIT OR TAX BENEFIT, THE DEPARTMENT, IN CONSULTATION

WITH THE ADMINISTERING AGENCY, MAY DO ALL OF THE FOLLOWING FOR

APPLICANTS OTHER THAN INDIVIDUALS WHO OWN LESS THAN 20% OF THE

APPLICANT:

(1) REQUIRE THE SUBMISSION OF ADDITIONAL DOCUMENTATION

OR VERIFICATION WHICH VERIFIES MATERIAL IN THE APPLICATION.

ADDITIONAL DOCUMENTATION OR VERIFICATION REQUIRED UNDER THIS

PARAGRAPH MAY INCLUDE ANY OF THE FOLLOWING:

(I) A COPY OF THE PHOTO IDENTIFICATION OF THE

APPLICANT'S OR RECIPIENT'S CHIEF EXECUTIVE OFFICER AND

ANY AUTHORIZED REPRESENTATIVE RESPONSIBLE FOR SUBMITTING

THE APPLICATION. A COPY OF PHOTO IDENTIFICATION UNDER

THIS SUBPARAGRAPH SHALL INCLUDE THE INDIVIDUAL'S NAME AND

ADDRESS.

(II) BANK ACCOUNT STATEMENTS RELATING TO THE

BUSINESS.

20210HB0952PN1934 - 29 -

(III) BUSINESS RECORDS, INCLUDING RECEIPTS AND

EXPENDITURES.

(IV) BUSINESS ORIGINATION DOCUMENTS, INCLUDING

ARTICLES OF INCORPORATION, PARTNERSHIP OR REFERENCE TO

DOCUMENTS UNDER THIS SUBPARAGRAPH IN RECORDS OF THE

DEPARTMENT OF STATE OR SIMILAR ENTITY IN ANOTHER

JURISDICTION.

(V) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT

OR ADMINISTERING AGENCY TO DETERMINE THAT THE APPLICANT

IS ELIGIBLE TO RECEIVE A TAX CREDIT OR TAX BENEFIT WITH

THE APPLICATION.

(2) FOR AN AP