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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
C.
"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.
(c) Exclusions.--The following do not qualify for a tax
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.
(c) Limitation.--The department may not certify any computer
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.
(c) Aggregation.--An owner or operator may aggregate one or
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.
(c) Recapture.--If certification is revoked pursuant to this
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.
(c) Applicability.--A tax exemption approved under this
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.
(c) Aggregation.--An owner or operator may aggregate one or
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.
(c) Limitation.--The department may not certify any computer
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.
(c) Recapture.--If certification is revoked under this
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
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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.--* * *
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(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
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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.
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* * *
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
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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.--* * *
(C) WHERE THERE IS A TRANSFER OF REAL ESTATE WHICH IS
[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,
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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.
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"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
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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
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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.
(C) ELECTRONIC APPLICATIONS.--THE DEPARTMENT OR
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.
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(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 APPLICANT THAT IS NOT AN INDIVIDUA