SENATE AMENDED
PRIOR PRINTER'S NO. 1440
PRINTER'S NO. 3370
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1342
Session of
2021
INTRODUCED BY RADER, SCHMITT, ROTHMAN, GUENST, COOK, SCHLEGEL
CULVER, NEILSON, ZIMMERMAN, ROWE, RYAN, R. MACKENZIE,
R. BROWN, HAMM, OBERLANDER, JOZWIAK, FARRY, SILVIS AND WELBY,
MAY 5, 2021
SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, JULY 7, 2022
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 inheritance tax, further providing for
transfers not subject to tax.
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
DEFINITIONS, FOR EXCLUSIONS FROM TAX AND FOR LICENSES; IN
PERSONAL INCOME TAX, FURTHER PROVIDING FOR CLASSES OF INCOME
AND REPEALING PROVISIONS RELATING TO COVID-19 EMERGENCY
FINANCE AND TAX PROVISION; IN CORPORATE NET INCOME TAX,
FURTHER PROVIDING FOR DEFINITIONS AND FOR IMPOSITION OF TAX;
IN INSURANCE PREMIUMS TAX, FURTHER PROVIDING FOR IMPOSITION
OF TAX AND FOR CREDITS FOR ASSESSMENTS PAID; IN VEHICLE
RENTAL TAX, FURTHER PROVIDING FOR DEFINITIONS AND FOR VEHICLE
RENTAL TAX; IN RESEARCH AND DEVELOPMENT TAX CREDIT, FURTHER
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PROVIDING FOR LIMITATION ON CREDITS; IN ENTERTAINMENT
PRODUCTION TAX CREDIT, FURTHER PROVIDING FOR DEFINITIONS, FOR
CREDIT FOR QUALIFIED FILM PRODUCTION EXPENSES, FOR
LIMITATIONS, FOR REISSUANCE OF FILM PRODUCTION TAX CREDITS
AND FOR LIMITATIONS; IN WATERFRONT DEVELOPMENT TAX CREDIT,
FURTHER PROVIDING FOR LIMITATIONS; IN CITY REVITALIZATION AND
IMPROVEMENT ZONES, FURTHER PROVIDING FOR REPORTS, FOR
RESTRICTIONS AND FOR CONFIDENTIALITY; IN INNOVATE IN PA TAX
CREDIT, FURTHER PROVIDING FOR DUTIES; IN NEIGHBORHOOD
IMPROVEMENT ZONES, FURTHER PROVIDING FOR CONFIDENTIALITY; IN
KEYSTONE OPPORTUNITY ZONES, KEYSTONE OPPORTUNITY EXPANSION
ZONES AND KEYSTONE OPPORTUNITY IMPROVEMENT ZONES, FURTHER
PROVIDING FOR EXTENSION FOR NEW JOB CREATION OR NEW CAPITAL
INVESTMENT AND FOR ADDITIONAL KEYSTONE OPPORTUNITY EXPANSION
ZONES; PROVIDING FOR AIRPORT LAND DEVELOPMENT ZONES AND FOR
PENNSYLVANIA CHILD AND DEPENDENT CARE ENHANCEMENT PROGRAM AND
FOR TAX CREDIT; IN INHERITANCE TAX, FURTHER PROVIDING FOR
TRANSFERS NOT SUBJECT TO TAX; IN PUBLIC TRANSPORTATION
ASSISTANCE FUND, FURTHER PROVIDING FOR PUBLIC TRANSPORTATION
ASSISTANCE FUND; IN TABLE GAME TAXES, PROVIDING FOR GENERAL
FUND DEPOSIT; IN COMPUTER DATA CENTER EQUIPMENT INCENTIVE
PROGRAM, FURTHER PROVIDING FOR DEFINITIONS, FOR SALES AND USE
TAX EXEMPTION, FOR ELIGIBILITY REQUIREMENTS AND FOR
REVOCATION OF CERTIFICATION; IN GENERAL PROVISIONS, PROVIDING
FOR ALLOCATION OF TAX CREDITS; MAKING TRANSFERS; AND MAKING
RELATED REPEALS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2111 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 subsection to read:
Section 2111. Transfers Not Subject to Tax.--(a) The
transfers enumerated in this section are not subject to the tax
imposed by this article.
* * *
(u) The transfer of personal property, whether tangible or
intangible, that is the result of a decedent military member.
(1) For purposes of this subsection, the term "decedent
military member" shall mean an individual who, while serving in
the armed forces, a reserve component or the National Guard of
the United States, died as a result of injury or illness
received while on active duty, including active duty for
training.
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(2) The term shall include both Federal and State active
duty as evidenced by official activation order.
Section 2. The addition of section 2111(u) of the act shall
apply to inheritance tax imposed as to a decedent whose date of
death is after the effective date of this section.
Section 3. This act shall take effect in 60 days.
SECTION 1. SECTION 201(N) AND (P) OF THE ACT OF MARCH 4,
1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE
AMENDED, SUBSECTION (B)(3.5) IS AMENDED BY ADDING A
SUBPARAGRAPH, SUBSECTIONS (I), (K) AND (O) ARE AMENDED BY ADDING
PARAGRAPHS AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO
READ:
SECTION 201. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
PHRASES WHEN USED IN THIS ARTICLE II SHALL HAVE THE MEANING
ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
CLEARLY INDICATES A DIFFERENT MEANING:
* * *
(B) "MAINTAINING A PLACE OF BUSINESS IN THIS COMMONWEALTH."
* * *
(3.5) * * *
(III) FOR A PEER-TO-PEER CAR-SHARING PROGRAM MARKETPLACE
FACILITATOR, THIS ACTIVITY INCLUDES ALL SALES, LEASES AND
DELIVERIES OF TANGIBLE PERSONAL PROPERTY AND ALL SALES OF
SERVICES BY THE MARKETPLACE SELLER WHOSE SALES ARE FACILITATED
THROUGH THE PEER-TO-PEER CAR-SHARING PROGRAM.
* * *
(I) "RESALE."
* * *
(6) THE TERM DOES NOT INCLUDE THE PURCHASE PRICE OR REPAIR
OF A SHARED VEHICLE BY A SHARED VEHICLE OWNER.
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* * *
(K) "SALE AT RETAIL."
* * *
(20) CAR SHARING THROUGH A SHARED VEHICLE OWNER, PEER-TO-
PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR OR RENTAL
COMPANY.
* * *
(N) "TAXPAYER." ANY PERSON REQUIRED TO PAY OR COLLECT THE
TAX IMPOSED BY THIS ARTICLE, INCLUDING A MARKETPLACE FACILITATOR
[AND], A MARKETPLACE SELLER, A PEER-TO-PEER CAR-SHARING PROGRAM
MARKETPLACE FACILITATOR AND A SHARED VEHICLE OWNER.
(O) "USE."
* * *
(19) CAR SHARING THROUGH A SHARED VEHICLE OWNER, PEER-TO-
PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR OR RENTAL
COMPANY.
(P) "VENDOR." ANY PERSON MAINTAINING A PLACE OF BUSINESS IN
THIS COMMONWEALTH, SELLING OR LEASING TANGIBLE PERSONAL
PROPERTY, OR RENDERING SERVICES, THE SALE OR USE OF WHICH IS
SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE, INCLUDING A
MARKETPLACE FACILITATOR [AND A], MARKETPLACE SELLER, PEER-TO-
PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR OR SHARED
VEHICLE OWNER, BUT NOT INCLUDING ANY EMPLOYE WHO IN THE ORDINARY
SCOPE OF EMPLOYMENT RENDERS SERVICES TO HIS EMPLOYER IN EXCHANGE
FOR WAGES AND SALARIES.
* * *
(MMM) "FLIGHT SIMULATOR." A DEVICE USED FOR THE TRAINING OR
INSTRUCTION OF AN INDIVIDUAL ON A HELICOPTER AND SIMILAR
ROTORCRAFT.
(NNN) "CAR-SHARING PROGRAM AGREEMENT." THE TERMS AND
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CONDITIONS THAT GOVERN THE USE OF A SHARED VEHICLE THROUGH A
PEER-TO-PEER CAR-SHARING PROGRAM.
(OOO) "PEER-TO-PEER CAR SHARING." THE AUTHORIZED USE OF A
SHARED VEHICLE BY AN INDIVIDUAL OTHER THAN THE OWNER OF THE
VEHICLE, THROUGH A PEER-TO-PEER CAR-SHARING PROGRAM.
(PPP) "PEER-TO-PEER CAR-SHARING PAYMENT." FULL
CONSIDERATION PAID OR DELIVERED, OR PROMISED TO BE PAID OR
DELIVERED, TO THE PEER-TO-PEER CAR-SHARING MARKETPLACE
FACILITATOR UNDER A CAR-SHARING PROGRAM AGREEMENT, EXCLUDING
CHARGES FOR LOCAL SALES OR USE TAX, STATE SALES OR USE TAX OR
PUBLIC TRANSPORTATION ASSISTANCE FUND FEES.
(QQQ) "PEER-TO-PEER CAR-SHARING PROGRAM." A BUSINESS
PLATFORM THAT, THROUGH A PEER-TO-PEER CAR-SHARING MARKETPLACE,
CONNECTS SHARED VEHICLE OWNERS WITH DRIVERS TO ENABLE THE
SHARING OF VEHICLES FOR FINANCIAL CONSIDERATION.
(RRR) "PEER-TO-PEER CAR-SHARING PROGRAM MARKETPLACE." A
FORUM ON WHICH A SHARED VEHICLE IS LISTED OR ADVERTISED FOR
PEER-TO-PEER CAR SHARING.
(SSS) "PEER-TO-PEER CAR-SHARING PROGRAM MARKETPLACE
FACILITATOR." A PERSON THAT FACILITATES PEER-TO-PEER CAR
SHARING THROUGH A PEER-TO-PEER CAR-SHARING MARKETPLACE AND
EITHER DIRECTLY OR INDIRECTLY, THROUGH AGREEMENTS OR
ARRANGEMENTS WITH THIRD PARTIES, COLLECTS THE PEER-TO-PEER CAR-
SHARING PAYMENT FROM THE PURCHASER AND TRANSMITS THE PAYMENT TO
THE SHARED VEHICLE OWNER.
(TTT) "SHARED VEHICLE." A VEHICLE THAT IS AVAILABLE FOR
SHARING, INCLUDING THROUGH A PEER-TO-PEER CAR-SHARING PROGRAM.
(UUU) "SHARED VEHICLE OWNER." THE REGISTERED OWNER, OR A
PERSON DESIGNATED BY THE REGISTERED OWNER, OF A VEHICLE MADE
AVAILABLE FOR SHARING, INCLUDING THROUGH A PEER-TO-PEER CAR-
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SHARING PROGRAM.
SECTION 2. SECTION 204(67) AND (68) OF THE ACT, AMENDED JUNE
30, 2021 (P.L.124, NO.25), ARE AMENDED 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
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.]
SECTION 3. SECTION 208(A) OF THE ACT IS AMENDED TO READ:
SECTION 208. LICENSES.--(A) EVERY PERSON MAINTAINING A
PLACE OF BUSINESS IN THIS COMMONWEALTH, WITH THE EXCEPTION OF A
MARKETPLACE SELLER WHO MAKES NO SALES OUTSIDE A FORUM FOR WHICH
A MARKETPLACE FACILITATOR IS REQUIRED TO COLLECT SALES TAX ON
THE SELLER'S BEHALF AND A SHARED VEHICLE OWNER WHO MAKES NO
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VEHICLE AVAILABLE FOR SHARING OUTSIDE A FORUM FOR WHICH A PEER-
TO-PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR IS REQUIRED
TO COLLECT SALES TAX ON BEHALF OF THE SHARED VEHICLE OWNER,
SELLING OR LEASING SERVICES OR TANGIBLE PERSONAL PROPERTY, THE
SALE OR USE OF WHICH IS SUBJECT TO TAX AND WHO HAS NOT HITHERTO
OBTAINED A LICENSE FROM THE DEPARTMENT, SHALL, PRIOR TO THE
BEGINNING OF BUSINESS THEREAFTER, MAKE APPLICATION TO THE
DEPARTMENT, ON A FORM PRESCRIBED BY THE DEPARTMENT, FOR A
LICENSE. IF SUCH PERSON MAINTAINS MORE THAN ONE PLACE OF
BUSINESS IN THIS COMMONWEALTH, THE LICENSE SHALL BE ISSUED FOR
THE PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH.
* * *
SECTION 4. SECTION 303(A.3) AND (A.5) OF THE ACT ARE AMENDED
AND SUBSECTION (A.7) IS AMENDED BY ADDING PARAGRAPHS TO READ:
SECTION 303. CLASSES OF INCOME.--* * *
(A.3) THE COST OF PROPERTY COMMONLY REFERRED TO AS SECTION
179 PROPERTY MAY BE TREATED AS A DEDUCTIBLE EXPENSE ONLY TO THE
EXTENT ALLOWABLE UNDER THE VERSION OF SECTION 179 OF THE
INTERNAL REVENUE CODE IN EFFECT AT THE TIME THE PROPERTY IS
PLACED IN SERVICE [OR UNDER SECTION 179 OF THE INTERNAL REVENUE
CODE OF 1986 (26 U.S.C. § 179), WHICHEVER IS EARLIER]. THE BASIS
OF SECTION 179 PROPERTY SHALL BE REDUCED, BUT NOT BELOW ZERO,
FOR COSTS TREATED AS A DEDUCTIBLE EXPENSE. THE AMOUNT OF THE
REDUCTION SHALL BE THE AMOUNT DEDUCTED ON A RETURN AND NOT
DISALLOWED, REGARDLESS OF WHETHER THE DEDUCTION RESULTS IN A
REDUCTION OF INCOME.
* * *
(A.5) THE REQUIREMENTS OF [SECTION] SECTIONS 1031 AND 1035
OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. [§ 1035] §§ 1031
AND 1035), AS AMENDED, SHALL BE APPLICABLE.
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* * *
(A.7) THE FOLLOWING APPLY:
* * *
(5) AS FOLLOWS:
(I) THE CLASSES OF INCOME UNDER THIS SECTION SHALL NOT
INCLUDE ANY AMOUNT WHICH IS EXCLUDED FROM FEDERAL GROSS INCOME
UNDER SECTIONS 276 AND 278(A) OF THE COVID-RELATED TAX RELIEF
ACT OF 2020, ENACTED AS SUBTITLE B OF TITLE II OF DIVISION N OF
THE CONSOLIDATED APPROPRIATIONS ACT, 2021 (PUBLIC LAW 116-260,
134 STAT. 1182).
(II) NO DEDUCTION MAY BE DISALLOWED FROM AN EXPENSE THAT IS
OTHERWISE DEDUCTIBLE IF THE PAYMENT OF THE EXPENSE RESULTS IN
FORGIVENESS OF A COVERED LOAN UNDER SUBPARAGRAPH (I).
(6) THE CLASSES OF INCOME UNDER THIS SECTION SHALL NOT
INCLUDE A PAYMENT RECEIVED BY AN INDIVIDUAL FROM THE UNITED
STATES UNDER SECTION 2201 OF THE CORONAVIRUS AID, RELIEF, AND
ECONOMIC SECURITY ACT (PUBLIC LAW 116-136, 134 STAT. 281) OR
SECTIONS 272 AND 273 OF THE CONSOLIDATED APPROPRIATIONS ACT,
2021.
* * *
SECTION 5. SECTION 330.2 OF THE ACT IS REPEALED:
[SECTION 330.2. COVID-19 EMERGENCY FINANCE AND TAX
PROVISION.--(A) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT
THERE ARE CIRCUMSTANCES UNDER WHICH IT IS IMPOSSIBLE TO
EFFECTIVELY COMPLY WITH LAW RELATING TO STATE FINANCE OR STATE
TAX, AND DURING SUCH CIRCUMSTANCES, IT IS NECESSARY FOR
COMMONWEALTH AGENCIES TO EXERCISE POWERS AND DUTIES PROVIDED
UNDER THIS SECTION.
(D) (1) THIS SUBSECTION SHALL PROVIDE PERMANENT AUTHORITY
TO THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT TO DEAL
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WITH LOCAL TAXATION. NOTWITHSTANDING THE LOCAL TAX ENABLING ACT,
THE FILING DEADLINE OF A FINAL RETURN UNDER CHAPTER 5 OF THE
LOCAL TAX ENABLING ACT AND RELATED STATUTORY PROVISIONS,
ORDINANCES AND RESOLUTIONS SHALL COINCIDE WITH THE FILING
DEADLINE FOR A TAX RETURN UNDER SECTION 330.
(2) THIS SUBSECTION SHALL NOT EXPIRE.]
SECTION 6. SECTION 401(3)2(A)(17) OF THE ACT IS AMENDED AND
THE SECTION IS AMENDED BY ADDING A PHRASE TO READ:
SECTION 401. 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:
* * *
(3) "TAXABLE INCOME." * * *
2. IN CASE THE ENTIRE BUSINESS OF ANY CORPORATION, OTHER
THAN A CORPORATION ENGAGED IN DOING BUSINESS AS A REGULATED
INVESTMENT COMPANY AS DEFINED BY THE INTERNAL REVENUE CODE OF
1986, IS NOT TRANSACTED WITHIN THIS COMMONWEALTH, THE TAX
IMPOSED BY THIS ARTICLE SHALL BE BASED UPON SUCH PORTION OF THE
TAXABLE INCOME OF SUCH CORPORATION FOR THE FISCAL OR CALENDAR
YEAR, AS DEFINED IN SUBCLAUSE 1 HEREOF, AND MAY BE DETERMINED AS
FOLLOWS:
(A) DIVISION OF INCOME.
* * *
(17) SALES, OTHER THAN SALES UNDER PARAGRAPHS (16) AND
(16.1), ARE IN THIS STATE [IF:
(A) THE INCOME-PRODUCING ACTIVITY IS PERFORMED IN THIS
STATE; OR
(B) THE INCOME-PRODUCING ACTIVITY IS PERFORMED BOTH IN AND
OUTSIDE THIS STATE AND A GREATER PROPORTION OF THE INCOME-
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PRODUCING ACTIVITY IS PERFORMED IN THIS STATE THAN IN ANY OTHER
STATE, BASED ON COSTS OF PERFORMANCE.] AS FOLLOWS:
(C) GROSS RECEIPTS FROM THE LEASE OR LICENSE OF INTANGIBLE
PROPERTY, INCLUDING A SALE OR EXCHANGE OF PROPERTY WHERE THE
RECEIPTS FROM THE SALE OR EXCHANGE DERIVE FROM PAYMENTS THAT ARE
CONTINGENT ON THE PRODUCTIVITY, USE OR DISPOSITION OF THE
PROPERTY, IF AND TO THE EXTENT THE PROPERTY IS USED IN THIS
STATE.
(D) GROSS RECEIPTS FROM THE SALE OF INTANGIBLE PROPERTY
WHERE THE PROPERTY SOLD IS A CONTRACT RIGHT, GOVERNMENT LICENSE
OR SIMILAR PROPERTY THAT AUTHORIZES THE HOLDER TO CONDUCT A
BUSINESS ACTIVITY IN A SPECIFIC GEOGRAPHIC AREA, IF AND TO THE
EXTENT THE PROPERTY IS USED IN OR OTHERWISE ASSOCIATED WITH THIS
STATE.
(E) GROSS RECEIPTS FROM THE SALE, REDEMPTION, MATURITY OR
EXCHANGE OF SECURITIES, HELD BY THE TAXPAYER PRIMARILY FOR SALE
TO CUSTOMERS IN THE ORDINARY COURSE OF ITS TRADE OR BUSINESS, IF
THE CUSTOMERS ARE IN THIS STATE.
(F) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY
LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM
INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS
SECURED BY REAL PROPERTY AS FOLLOWS:
(I) THE FOLLOWING SHALL APPLY TO A CALCULATION UNDER THIS
SUBPARAGRAPH:
(I) THE NUMERATOR OF THE SALES FACTOR SHALL INCLUDE
INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS
SECURED BY REAL PROPERTY IF THE PROPERTY IS LOCATED WITHIN THIS
STATE.
(II) IF THE REAL PROPERTY UNDER THIS SUBPARAGRAPH IS LOCATED
BOTH WITHIN THIS STATE AND ONE OR MORE OTHER STATES, THE GROSS
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RECEIPTS UNDER THIS SUBPARAGRAPH SHALL BE INCLUDED IN THE
NUMERATOR OF THE SALES FACTOR IF MORE THAN FIFTY PER CENT OF THE
FAIR MARKET VALUE OF THE REAL PROPERTY IS LOCATED WITHIN THIS
STATE.
(III) IF MORE THAN FIFTY PER CENT OF THE FAIR MARKET VALUE
OF REAL PROPERTY UNDER THIS SUBPARAGRAPH IS NOT LOCATED WITHIN
ANY SINGLE STATE, THE GROSS RECEIPTS UNDER THIS SUBPARAGRAPH
SHALL BE INCLUDED IN THE NUMERATOR OF THE SALES FACTOR IF THE
BORROWER IS LOCATED IN THIS STATE.
(II) THE DETERMINATION OF WHETHER REAL PROPERTY SECURING A
LOAN IS LOCATED WITHIN THIS STATE SHALL BE MADE AS OF THE TIME
THE ORIGINAL AGREEMENT WAS MADE, AND ALL SUBSEQUENT
SUBSTITUTIONS OF COLLATERAL SHALL BE DISREGARDED.
(G) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY
LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM
INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS
RELATED TO THE SALE OF TANGIBLE PERSONAL PROPERTY. THE FOLLOWING
SHALL APPLY TO A CALCULATION UNDER THIS SUBPARAGRAPH:
(I) EXCEPT AS PROVIDED UNDER UNIT (II), THE NUMERATOR OF THE
SALES FACTOR SHALL INCLUDE GROSS RECEIPTS RECEIVED FROM
INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS
RELATED TO THE SALE OF TANGIBLE PERSONAL PROPERTY IF THE
PROPERTY IS DELIVERED OR SHIPPED TO A PURCHASER IN THIS STATE.
(II) THE FOLLOWING SHALL APPLY:
(I) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY
LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM
INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS
RELATED TO THE SALE OF TRANSPORTATION PROPERTY SHALL BE INCLUDED
IN THE NUMERATOR OF THE SALES FACTOR TO THE EXTENT THAT THE
PROPERTY IS USED IN THIS STATE.
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(II) THE EXTENT AN AIRCRAFT SHALL BE DEEMED TO BE USED IN
THIS STATE AND THE AMOUNT OF GROSS RECEIPTS THAT SHALL BE
INCLUDED IN THE NUMERATOR OF THE SALES FACTOR SHALL BE
DETERMINED BY MULTIPLYING ALL THE GROSS RECEIPTS FROM THE
INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS
RELATED TO THE SALE OF THE AIRCRAFT BY A FRACTION, THE NUMERATOR
OF WHICH IS THE NUMBER OF LANDINGS OF THE AIRCRAFT IN THIS STATE
AND THE DENOMINATOR OF WHICH IS THE TOTAL NUMBER OF LANDINGS OF
THE AIRCRAFT.
(III) A MOTOR VEHICLE SHALL BE DEEMED TO BE USED WHOLLY IN
THE STATE IN WHICH IT IS REGISTERED.
(IV) IF THE EXTENT OF THE USE OF TRANSPORTATION PROPERTY
WITHIN THIS STATE CANNOT BE DETERMINED, THE PROPERTY SHALL BE
DEEMED TO BE USED WHOLLY IN THE STATE IN WHICH THE PROPERTY WAS
DELIVERED OR SHIPPED TO THE PURCHASER.
(H) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY
LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM
INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS
NOT DESCRIBED IN SUBPARAGRAPH (F) OR (G), IF THE BORROWER IS
LOCATED IN THIS STATE.
(I) GROSS RECEIPTS RECEIVED FROM INTEREST, FEES AND
PENALTIES IN THE NATURE OF INTEREST FROM CREDIT CARD RECEIVABLES
AND GROSS RECEIPTS FROM FEES CHARGED TO CARDHOLDERS, SUCH AS
ANNUAL FEES, IF THE BILLING ADDRESS OF THE CARDHOLDER IS IN THIS
STATE.
(J) GROSS RECEIPTS RECEIVED FROM INTEREST, NOT OTHERWISE
DESCRIBED IN THIS PARAGRAPH, SHALL BE INCLUDED IN THE NUMERATOR
OF THE SALES FACTOR IF THE LENDER'S COMMERCIAL DOMICILE IS IN
THIS STATE.
(K) GROSS RECEIPTS RECEIVED FROM INTANGIBLE PROPERTY, NOT
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OTHERWISE DESCRIBED IN THIS PARAGRAPH, SHALL BE EXCLUDED FROM
THE NUMERATOR AND THE DENOMINATOR OF THE SALES FACTOR.
(L) THE DEPARTMENT SHALL PROMULGATE THE RULES AND
REGULATIONS NECESSARY TO IMPLEMENT THIS PARAGRAPH.
* * *
(11) "UNAFFILIATED ENTITY." ANY ENTITY THAT IS NOT AN
AFFILIATED ENTITY AS DEFINED UNDER SECTION 401(10).
SECTION 7. SECTIONS 402, 902, 902.1(D), 1601-A, 1602-A AND
1709-B(A) OF THE ACT ARE AMENDED TO READ:
SECTION 402. IMPOSITION OF TAX.--(A) A CORPORATION SHALL BE
SUBJECT TO AND SHALL PAY AN EXCISE TAX FOR EXERCISING, WHETHER
IN ITS OWN NAME OR THROUGH ANY PERSON, ASSOCIATION, BUSINESS
TRUST, CORPORATION, JOINT VENTURE, LIMITED LIABILITY COMPANY,
LIMITED PARTNERSHIP, PARTNERSHIP OR OTHER ENTITY, ANY OF THE
FOLLOWING PRIVILEGES:
(1) DOING BUSINESS IN THIS COMMONWEALTH.
(2) CARRYING ON ACTIVITIES IN THIS COMMONWEALTH, INCLUDING
SOLICITATION WHICH IS NOT PROTECTED ACTIVITY UNDER THE ACT OF
SEPTEMBER 14, 1959 (PUBLIC LAW 86-272, 15 U.S.C. § 381 ET SEQ.).
(3) HAVING CAPITAL OR PROPERTY EMPLOYED OR USED IN THIS
COMMONWEALTH.
(4) OWNING PROPERTY IN THIS COMMONWEALTH.
(5) (I) HAVING SUBSTANTIAL NEXUS IN THIS COMMONWEALTH.
SUBSTANTIAL NEXUS IN THIS COMMONWEALTH MEANS A DIRECT OR
INDIRECT BUSINESS ACTIVITY THAT IS SUFFICIENT TO GRANT THE
COMMONWEALTH AUTHORITY UNDER THE CONSTITUTION OF THE UNITED
STATES TO IMPOSE TAX UNDER THIS ARTICLE AND FOR WHICH A BASIS
EXISTS UNDER SECTION 401 TO APPORTION OR ALLOCATE THE
CORPORATION'S INCOME TO THIS COMMONWEALTH.
(II) FOR PURPOSES OF THIS SECTION, BUSINESS ACTIVITY
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INCLUDES, BUT IS NOT LIMITED TO:
(A) THE LEASING OR LICENSING OF INTANGIBLE PROPERTY THAT IS
UTILIZED IN THIS COMMONWEALTH;
(B) REGULARLY ENGAGING IN TRANSACTIONS WITH CUSTOMERS IN
THIS COMMONWEALTH INVOLVING INTANGIBLE PROPERTY, INCLUDING LOANS
MADE BY A CORPORATION THAT REGULARLY LENDS FUNDS TO UNAFFILIATED
ENTITIES OR TO INDIVIDUALS; OR
(C) SALES OF INTANGIBLE PROPERTY THAT WAS UTILIZED BY THE
CORPORATION WITHIN THIS COMMONWEALTH.
(III) THERE SHALL BE A REBUTTABLE PRESUMPTION THAT A
CORPORATION WITH $500,000 OR MORE OF SALES SOURCED IN THE
CURRENT TAX YEAR TO THIS COMMONWEALTH UNDER SECTION 401 HAS
SUBSTANTIAL NEXUS IN THIS COMMONWEALTH WITHOUT REGARD TO
PHYSICAL PRESENCE IN THIS COMMONWEALTH.
(6) PARAGRAPH (5) SHALL NOT APPLY TO AN AFFILIATED ENTITY
DOMICILED IN A FOREIGN NATION WHICH HAS IN FORCE A COMPREHENSIVE
INCOME TAX TREATY WITH THE UNITED STATES PROVIDING FOR THE
ALLOCATION OF ALL CATEGORIES OF INCOME SUBJECT TO TAXATION, OR
THE WITHHOLDING OF TAX, ON ROYALTIES, LICENSES, FEES AND
INTEREST FOR THE PREVENTION OF DOUBLE TAXATION OF THE RESPECTIVE
NATIONS' RESIDENTS AND THE SHARING OF INFORMATION.
(B) THE ANNUAL RATE OF TAX ON CORPORATE NET INCOME IMPOSED
BY SUBSECTION (A) FOR TAXABLE YEARS BEGINNING FOR THE CALENDAR
YEAR OR FISCAL YEAR ON OR AFTER THE DATES SET FORTH SHALL BE AS
FOLLOWS:
TAXABLE YEAR TAX RATE
JANUARY 1, 1995, [AND
EACH TAXABLE YEAR
THEREAFTER 9.99%]
THROUGH DECEMBER
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31, 2022 9.99%
JANUARY 1, 2023,
THROUGH DECEMBER
31, 2023 8.99%
JANUARY 1, 2024,
THROUGH DECEMBER
31, 2024 8.49%
JANUARY 1, 2025,
THROUGH DECEMBER
31, 2025 7.99%
JANUARY 1, 2026,
THROUGH DECEMBER
31, 2026 7.49%
JANUARY 1, 2027,
THROUGH DECEMBER
31, 2027 6.99%
JANUARY 1, 2028,
THROUGH DECEMBER
31, 2028 6.49%
JANUARY 1, 2029,
THROUGH DECEMBER
31, 2029 5.99%
JANUARY 1, 2030,
THROUGH DECEMBER
31, 2030 5.49%
JANUARY 1, 2031, AND
EACH TAXABLE YEAR
THEREAFTER 4.99%
(C) AN ENTITY SUBJECT TO TAXATION UNDER ARTICLE VII, VIII,
IX OR XV SHALL NOT BE SUBJECT TO THE TAX IMPOSED BY THIS
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ARTICLE.
SECTION 902. (A) IMPOSITION OF TAX.--EVERY INSURANCE
COMPANY, AS HEREIN DEFINED, TRANSACTING BUSINESS IN THE
COMMONWEALTH OF PENNSYLVANIA, SHALL PAY TO THE DEPARTMENT, A TAX
AT THE RATE OF TWO PER CENT OF THE GROSS PREMIUMS RECEIVED FROM
BUSINESS DONE WITHIN THIS COMMONWEALTH DURING EACH CALENDAR
YEAR.[, EXCEPT THAT ANY INSURANCE COMPANY WHICH WAS NOT SUBJECT
TO THIS TAX PRIOR TO 1971 SHALL BE TAXED AT THE RATE OF ONE PER
CENT FOR THE YEAR 1971 AND THEREAFTER AT THE RATE OF TWO PER
CENT.]
(B) DISPOSITION OF TAXES.--[THE TAXES PAID BY FOREIGN FIRE
INSURANCE COMPANIES UNDER THIS ARTICLE SHALL CONTINUE TO BE
DISTRIBUTED AND USED FOR FIREMEN'S RELIEF PENSION OR RETIREMENT
PURPOSES, AS PROVIDED BY SECTION TWO OF THE ACT, APPROVED THE
TWENTY-EIGHTH DAY OF JUNE, ONE THOUSAND EIGHT HUNDRED NINETY-
FIVE (PAMPHLET LAWS 408), AS AMENDED; AND THE TAXES PAID BY
FOREIGN CASUALTY INSURANCE COMPANIES UNDER THIS ARTICLE SHALL
CONTINUE TO BE DISTRIBUTED AND USED FOR POLICE PENSION,
RETIREMENT OR DISABILITY PURPOSES AS PROVIDED BY THE ACT,
APPROVED THE TWELFTH DAY OF MAY, ONE THOUSAND NINE HUNDRED
FORTY-THREE (PAMPHLET LAWS 259), AS AMENDED.
(C) OTHER TAXES.--ALL OTHER TAXES RECEIVED UNDER THIS
ARTICLE SHALL BE CREDITED TO THE GENERAL FUND FOR GENERAL
REVENUE PURPOSES.] THE TOTAL OF THE MONEY RECEIVED FROM THE
FOLLOWING TAXES AND CHARGES SHALL BE DEPOSITED INTO THE GENERAL
FUND:
(1) THE TAX IMPOSED BY SUBSECTION (A).
(2) THE RETALIATORY CHARGE IMPOSED BY SECTION 212 OF THE ACT
OF MAY 17, 1921 (P.L.789, NO.285), KNOWN AS "THE INSURANCE
DEPARTMENT ACT OF 1921."
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(3) THE SURPLUS LINES TAX IMPOSED BY SECTION 1621 OF THE ACT
OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE INSURANCE
COMPANY LAW OF 1921."
(4) THE TAX ON INDEPENDENTLY PROCURED INSURANCE IMPOSED BY
SECTION 1622 OF "THE INSURANCE COMPANY LAW OF 1921."
(5) THE MARINE INSURANCE TAX IMPOSED BY SECTION 2 OF THE ACT
OF MAY 13, 1927 (P.L.998, NO.486), ENTITLED "AN ACT IMPOSING A
TAX FOR STATE PURPOSES ON MARINE INSURANCE UNDERWRITING PROFITS,
AND PROVIDING FOR THE COLLECTION OF SUCH TAX."
(6) THE TAX ON CONTRACTS WITH UNAUTHORIZED COMPANIES IMPOSED
BY SECTION 1 OF THE ACT OF JULY 6, 1917 (P.L.723, NO.262),
ENTITLED "AN ACT IMPOSING A TAX ON PREMIUMS OF INSURANCE AND
REINSURANCE IN FOREIGN INSURANCE COMPANIES AND ASSOCIATIONS NOT
REGISTERED IN THIS COMMONWEALTH; PROVIDING THE METHOD OF
COLLECTION OF SUCH TAX, AND IMPOSING PENALTIES."
(B.1) THE FOLLOWING TRANSFERS WILL OCCUR EACH FISCAL YEAR:
(1) FIRE INSURANCE TAX FUND:
(I) ON OR BEFORE JUNE 30, 2023, AND ON OR BEFORE EACH JUNE
30 THEREAFTER, THE GREATER OF EIGHTY-FIVE MILLION DOLLARS
($85,000,000) OR EIGHT AND ONE-HALF PER CENT OF THE TOTAL TAXES
AND CHARGES UNDER SUBSECTION (B) RECEIVED DURING THE CURRENT
FISCAL YEAR SHALL BE TRANSFERRED TO THE FIRE INSURANCE TAX FUND.
(II) ON OR BEFORE JULY 15, 2023, AND ON OR BEFORE EACH JULY
15 THEREAFTER, IF TAXES OR CHARGES ARE DEPOSITED AFTER THE
TRANSFER UNDER SUBPARAGRAPH (I) AND BEFORE JULY 1, 2023, AND
EACH JULY 1 THEREAFTER, AN ADDITIONAL TRANSFER SHALL OCCUR IF
EIGHT AND ONE-HALF PER CENT OF TOTAL COLLECTIONS UNDER
SUBSECTION (B) FOR THE PRIOR FISCAL YEAR IS GREATER THAN EIGHTY-
FIVE MILLION DOLLARS ($85,000,000). THE CALCULATION FOR THE
ADDITIONAL TRANSFER SHALL EQUAL EIGHT AND ONE-HALF PER CENT OF
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THE TOTAL TAXES AND CHARGES UNDER SUBSECTION (B) MINUS THE
TRANSFER AMOUNT UNDER SUBPARAGRAPH (I).
(III) THE TRANSFERS UNDER SUBPARAGRAPHS (I) AND (II) SHALL
BE USED FOR FIREMEN'S RELIEF PENSION OR RETIREMENT PURPOSES, AS
PROVIDED BY SECTION 706(B) OF THE ACT OF DECEMBER 18, 1984
(P.L.1005, NO.205), KNOWN AS THE "MUNICIPAL PENSION PLAN FUNDING
STANDARD AND RECOVERY ACT."
(2) MUNICIPAL PENSION AID FUND:
(I) ON OR BEFORE JUNE 30, 2023, AND ON OR BEFORE EACH JUNE
30 THEREAFTER, THE GREATER OF THREE HUNDRED FORTY-FIVE MILLION
DOLLARS ($345,000,000) OR THIRTY-EIGHT PER CENT OF THE TOTAL
TAXES AND CHARGES UNDER SUBSECTION (B) RECEIVED DURING THE
CURRENT FISCAL YEAR SHALL BE TRANSFERRED TO THE MUNICIPAL
PENSION AID FUND.
(II) ON OR BEFORE JULY 15, 2023, AND ON OR BEFORE EACH JULY
15 THEREAFTER, IF TAXES OR CHARGES ARE DEPOSITED AFTER THE
TRANSFER UNDER SUBPARAGRAPH (I) AND BEFORE JULY 1, 2023, AND
EACH JULY 1 THEREAFTER, AN ADDITIONAL TRANSFER SHALL OCCUR IF
THIRTY-EIGHT PER CENT OF TOTAL COLLECTIONS UNDER SUBSECTION (B)
FOR THE PRIOR FISCAL YEAR IS GREATER THAN THREE HUNDRED FORTY-
FIVE MILLION DOLLARS ($345,000,000). THE CALCULATION FOR THAT
ADDITIONAL TRANSFER SHALL EQUAL THIRTY-EIGHT PER CENT OF THE
TOTAL TAXES AND CHARGES UNDER SUBSECTION (B) MINUS THE TRANSFER
AMOUNT UNDER SUBPARAGRAPH (I).
(III) THE TRANSFERS UNDER SUBPARAGRAPHS (I) AND (II) SHALL
BE USED FOR POLICE PENSION, RETIREMENT OR DISABILITY PURPOSES AS
PROVIDED BY THE ACT OF MAY 12, 1943 (P.L.259, NO.120), ENTITLED
"AN ACT PROVIDING FOR THE PAYMENT BY THE STATE TREASURER, OF THE
AMOUNT OF THE TAX ON PREMIUMS PAID BY FOREIGN CASUALTY INSURANCE
COMPANIES, TO THE TREASURERS OF THE SEVERAL CITIES, BOROUGHS,
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TOWNS, TOWNSHIPS, AND CERTAIN COUNTIES, AND FOR THE PAYMENT
THEREOF INTO POLICE PENSION FUNDS, AND IN CERTAIN CASES INTO THE
MUNICIPAL EMPLOYES' RETIREMENT SYSTEM, AND FOR PENSION ANNUITY
CONTRACTS, AND IN CERTAIN OTHER CASES INTO THE STATE EMPLOYES'
RETIREMENT FUND, FOR CERTAIN PURPOSES."
SECTION 902.1. CREDITS FOR ASSESSMENTS PAID.--* * *
[(D) THE CREDITS ALLOWED BY THIS SECTION SHALL NOT REDUCE
THE AMOUNTS WHICH WOULD OTHERWISE BE PAYABLE FOR FIREMEN'S
RELIEF PENSION OR RETIREMENT PURPOSES OR FOR POLICE PENSION,
RETIREMENT OR DISABILITY PURPOSES. THE DEPARTMENT SHALL TRANSFER
BY JUNE 30 OF EACH FISCAL YEAR AN AMOUNT EQUAL TO THE CREDITS
TAKEN UNDER THIS SECTION BY FOREIGN FIRE AND CASUALTY INSURANCE
COMPANIES FROM THE GENERAL FUND TO THE MUNICIPAL PENSION AID
FUND AND THE FIRE INSURANCE TAX FUND, AS APPROPRIATE.]
* * *
SECTION 1601-A. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANINGS
ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
CLEARLY INDICATES A DIFFERENT MEANING:
"PEER-TO-PEER CAR-SHARING PROGRAM." AS DEFINED UNDER SECTION
201(QQQ).
"RENTAL VEHICLE." A PRIVATE PASSENGER MOTOR VEHICLE DESIGNED
TO TRANSPORT FIFTEEN OR FEWER PASSENGERS OR A TRUCK, TRAILER OR
SEMITRAILER USED IN THE TRANSPORTATION OF PROPERTY OTHER THAN
COMMERCIAL FREIGHT, THAT IS RENTED WITHOUT A DRIVER AND IS PART
OF A FLEET OF FIVE OR MORE RENTAL VEHICLES USED FOR THAT
PURPOSE, OWNED OR LEASED BY THE SAME PERSON OR ENTITY.
"SHARED VEHICLE." A VEHICLE THAT IS AVAILABLE FOR SHARING
THROUGH A PEER-TO-PEER CAR-SHARING PROGRAM. THE TERM DOES NOT
INCLUDE A RENTAL VEHICLE AS DEFINED UNDER THIS ARTICLE.
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"VEHICLE RENTAL COMPANY." ANY BUSINESS ENTITY ENGAGED IN THE
BUSINESS OF RENTING MOTOR VEHICLES IN THIS COMMONWEALTH.
SECTION 1602-A. VEHICLE RENTAL TAX.--(A) [EACH] EXCEPT AS
PROVIDED UNDER SUBSECTION (B), EACH VEHICLE RENTAL COMPANY SHALL
COLLECT, AT THE TIME THE RENTAL VEHICLE IS RENTED IN THIS
COMMONWEALTH, ON EACH RENTAL CONTRACT FOR A PERIOD OF TWENTY-
NINE OR FEWER CONSECUTIVE DAYS, A TAX EQUAL TO TWO PER CENT OF
THE PURCHASE PRICE OF THE RENTAL.
(B) THE TAX IMPOSED UNDER SUBSECTION (A) SHALL NOT APPLY TO
A SHARED VEHICLE THAT IS RENTED THROUGH A PEER-TO-PEER CAR-
SHARING PROGRAM.
SECTION 1709-B. LIMITATION ON CREDITS.--(A) THE TOTAL
AMOUNT OF CREDITS APPROVED BY THE DEPARTMENT SHALL NOT EXCEED
[FIFTY-FIVE MILLION DOLLARS ($55,000,000)] SIXTY MILLION DOLLARS
($60,000,000) IN ANY FISCAL YEAR. OF THAT AMOUNT, [ELEVEN
MILLION DOLLARS ($11,000,000)] TWELVE MILLION DOLLARS
($12,000,000) SHALL BE ALLOCATED EXCLUSIVELY FOR SMALL
BUSINESSES. HOWEVER, IF THE TOTAL AMOUNTS ALLOCATED TO EITHER
THE GROUP OF APPLICANTS EXCLUSIVE OF SMALL BUSINESSES OR THE
GROUP OF SMALL BUSINESS APPLICANTS IS NOT APPROVED IN ANY FISCAL
YEAR, THE UNUSED PORTION WILL BECOME AVAILABLE FOR USE BY THE
OTHER GROUP OF QUALIFYING TAXPAYERS.
* * *
SECTION 8. THE DEFINITION OF "MULTIFILM" IN SECTION 1711-D
OF THE ACT, ADDED JUNE 30, 2021 (P.L.124, NO.25), IS AMENDED AND
THE SECTION IS AMENDED BY ADDING DEFINITIONS TO READ:
SECTION 1711-D. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBARTICLE
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
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* * *
["MULTIFILM." A SERIES OF SEPARATE AND DISTINCT FILMS
PRODUCED BY THE SAME TAXPAYER OVER A PERIOD OF NO LESS THAN ONE
YEAR AND NO MORE THAN FOUR YEARS FROM THE TIME OF APPLICATION.]
"MULTIFILM PRODUCTION." A SERIES OF SEPARATE AND DISTINCT
FILMS THAT ARE PRODUCED BY THE SAME TAXPAYER, OR DIRECTLY OR
INDIRECTLY PRODUCED BY THE SAME TAXPAYERS WHO HAVE NO LESS THAN
80% COMMON OWNERSHIP, OVER A PERIOD OF NO MORE THAN FOUR YEARS
FROM THE TIME OF APPLICATION.
* * *
"PENNSYLVANIA FILM PRODUCER." A PENNSYLVANIA DOMICILED FILM
PRODUCTION COMPANY THAT MEETS THE FOLLOWING:
(1) THE PRINCIPAL TAX JURISDICTION IS THIS COMMONWEALTH.
(2) A MAJORITY OF THE TAXPAYER'S OWNERS ARE PENNSYLVANIA
RESIDENTS.
(3) THE TAXPAYER EMPLOYS FEWER THAN 15 FULL-TIME
EMPLOYEES.
* * *
SECTION 9. SECTION 1712-D(B)(7.1) OF THE ACT, ADDED JUNE 30,
2021 (P.L.124, NO.25), IS AMENDED AND THE SUBSECTION IS AMENDED
BY ADDING PARAGRAPHS TO READ:
SECTION 1712-D. CREDIT FOR QUALIFIED FILM PRODUCTION EXPENSES.
* * *
(B) REVIEW AND APPROVAL.--THE DEPARTMENT SHALL ESTABLISH
APPLICATION PERIODS NOT TO EXCEED 90 DAYS EACH. ALL APPLICATIONS
RECEIVED DURING THE APPLICATION PERIOD SHALL BE REVIEWED AND
EVALUATED BY THE DEPARTMENT BASED ON THE FOLLOWING CRITERIA:
* * *
(5.1) FOR A PENNSYLVANIA FILM PRODUCER, THE PORTION OF
ALL PREPRODUCTION EXPENSES, PRODUCTION EXPENSES AND
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POSTPRODUCTION EXPENSES INCURRED IN PENNSYLVANIA.
* * *
(7.1) IF A MULTIFILM PRODUCTION APPLICATION IS
SUBMITTED, THE DEPARTMENT SHALL CONSIDER THE ABILITY OF THE
TAXPAYER TO PRODUCE MULTIPLE FILMS WITHIN THIS COMMONWEALTH
DURING THE PROPOSED PERIOD OF PRODUCTION AND THE POTENTIAL
ECONOMIC IMPACT, INCLUDING TOURISM IMPACT, OF THE MULTIPLE
FILMS TO THIS COMMONWEALTH. THE TAXPAYER MAY SUPPLEMENT THE
MULTIFILM PRODUCTION APPLICATION WITH ADDITIONAL FILMS DURING
THE PERIOD OF PRODUCTION. THE DEPARTMENT MAY ANNUALLY EXTEND
THE MULTIFILM PRODUCTION APPLICATION'S PERIOD OF PRODUCTION
BEFORE THE EXPIRATION OF THE PERIOD OF PRODUCTION. THE
TAXPAYER MAY NOT INCLUDE A FILM IN THE MULTIFILM PRODUCTION
APPLICATION THAT WAS THE SUBJECT OF AN APPLICATION SUBMITTED
UNDER THIS SUBSECTION BEFORE JANUARY 1, 2022.
(7.2) THE FILM WILL BE PRODUCED BY A PENNSYLVANIA FILM
PRODUCER.
* * *
SECTION 10. SECTION 1716-D(A) INTRODUCTORY PARAGRAPH OF THE
ACT IS AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS
TO READ:
SECTION 1716-D. LIMITATIONS.
(A) CAP.--EXCEPT FOR TAX CREDITS REISSUED UNDER SECTION
1716.1-D, IN NO CASE SHALL THE AGGREGATE AMOUNT OF TAX CREDITS
AWARDED IN ANY FISCAL YEAR UNDER THIS SUBARTICLE EXCEED
[$70,000,000] $100,000,000. THE DEPARTMENT MAY, IN ITS
DISCRETION, AWARD IN ONE FISCAL YEAR UP TO:
* * *
(E) PENNSYLVANIA FILM PRODUCER RESERVE.--THE DEPARTMENT
SHALL ANNUALLY RESERVE AND ALLOCATE $5,000,000 OF THE TAX
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CREDITS AUTHORIZED UNDER THIS SUBARTICLE IN SUPPORT OF PROJECTS
PRODUCED BY A PENNSYLVANIA FILM PRODUCER. A PENNSYLVANIA FILM
PRODUCER SHALL NOT BE LIMITED IN ELIGIBILITY FOR A TAX CREDIT
SOLELY TO THE PENNSYLVANIA FILM PRODUCER RESERVE IN ANY FISCAL
YEAR.
(F) IF THE TOTAL AMOUNT OF TAX CREDITS RESERVED AND
ALLOCATED UNDER SUBSECTION (E) IS NOT AWARDED IN A FISCAL YEAR,
THE AMOUNT NOT AWARDED SHALL BE MADE AVAILABLE FOR USE BY
TAXPAYERS WHO ARE NOT PENNSYLVANIA FILM PRODUCERS.
SECTION 11. SECTIONS 1716.1-D(A)(4) AND 1777-D(A)(1) OF THE
ACT, AMENDED OR ADDED JUNE 30, 2021 (P.L.124, NO.25), ARE
AMENDED TO READ:
SECTION 1716.1-D. REISSUANCE OF FILM PRODUCTION TAX CREDITS.
(A) REISSUANCE.--IN ANY FISCAL YEAR, THE DEPARTMENT MAY
REISSUE A TAX CREDIT WHICH MEETS ALL OF THE FOLLOWING:
* * *
(4) IF AN INDIVIDUAL FILM THAT WAS ISSUED A TAX CREDIT
AS PART OF A MULTIFILM PRODUCTION APPLICATION IS CANCELED,
THE DEPARTMENT MAY REISSUE THAT TAX CREDIT ONLY AFTER
ALLOWING THE TAXPAYER OR THE TAXPAYER'S AFFILIATE 90 DAYS TO
SUBMIT AN APPLICATION FOR AN ALTERNATIVE INDIVIDUAL FILM,
PRODUCED BY THE TAXPAYER OR THE TAXPAYER'S AFFILIATE FOR THAT
TAX CREDIT. THE DEPARTMENT MAY APPROVE OR REJECT THE
APPLICATION.
* * *
SECTION 1777-D. LIMITATIONS.
(A) CAP.--
(1) THE AGGREGATE AMOUNT OF TAX CREDITS AWARDED IN A
FISCAL YEAR UNDER THIS SUBARTICLE MAY NOT EXCEED [$8,000,000]
$24,000,000.
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* * *
SECTION 12. SECTIONS L708-K(4), 1809-C(C)(2), 1813-C(A)
(1.1), 1817-C(A), 1805-F(C) AND 1908-B OF THE ACT ARE AMENDED TO
READ:
SECTION 1708-K. LIMITATIONS.
THE FOLLOWING LIMITATIONS SHALL APPLY TO THE TAX CREDITS:
* * *
(4) THE TOTAL AMOUNT OF ALL TAX CREDITS SHALL NOT EXCEED
[$1,500,000] $5,000,000 IN ANY ONE FISCAL YEAR.
* * *
SECTION 1809-C. REPORTS.
* * *
(C) PENALTIES.--
* * *
(2) [A PENALTY FOR A VIOLATION OF SUBSECTION (A) SHALL
BE IMPOSED, ASSESSED AND COLLECTED BY THE DEPARTMENT] THE
DEPARTMENT SHALL NOTIFY THE CONTRACTING AUTHORITY OF ALL
QUALIFIED BUSINESSES THAT VIOLATED SUBSECTION (A) PRIOR TO
DECEMBER 31 OF THE YEAR IN WHICH THE REPORT WAS TO BE FILED.
A PENALTY FOR A VIOLATION OF SUBSECTION (A) SHALL BE IMPOSED,
ASSESSED AND COLLECTED BY THE DEPARTMENT UNDER PROCEDURES SET
FORTH IN ARTICLE II. MONEY COLLECTED UNDER THIS PARAGRAPH
SHALL BE DEPOSITED IN THE GENERAL FUND.
* * *
SECTION 1813-C. RESTRICTIONS.
(A) UTILIZATION.--MONEY TRANSFERRED UNDER SECTION 1812-C MAY
ONLY BE UTILIZED FOR THE FOLLOWING:
* * *
(1.1) PAYMENT OF DEBT SERVICE ON BONDS ISSUED OR
REFINANCED TO ESTABLISH A REVOLVING [LOAN] FUND THAT WILL
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PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF A GRANT OR A LOAN
TO A QUALIFIED BUSINESS ACQUIRING PROPERTY FOR THE BUSINESS,
CONSTRUCTING A NEW FACILITY, RECONSTRUCTING OR RENOVATING AN
EXISTING FACILITY OR ACQUIRING NEW EQUIPMENT TO BE USED BY
THE QUALIFYING BUSINESS IN A ZONE.
* * *
SECTION 1817-C. CONFIDENTIALITY.
(A) SOLE USE.--A ZONE REPORT OR CERTIFICATION UNDER THIS
ARTICLE SHALL ONLY BE USED BY THE CONTRACTING AUTHORITY TO
VERIFY THE AMOUNT OF THE STATE TAX BASELINE AMOUNT CALCULATED
UNDER SECTION 1810-C [AND], THE STATE TAX CERTIFICATION UNDER
SECTION 1811-C AND THE AMOUNT ALLOCATED TO ANY USES SPECIFIED
UNDER SECTION 1813-C.
* * *
SECTION 1805-F. DUTIES.
* * *
[(C) TRANSFERS OF AMOUNTS.--IN A FISCAL YEAR IN WHICH A TAX
CREDIT IS CLAIMED UNDER THIS ARTICLE, THE STATE TREASURER SHALL,
PRIOR TO JUNE 30 OF THE FISCAL YEAR, DO ALL OF THE FOLLOWING:
(1) TRANSFER AN AMOUNT FROM THE GENERAL FUND EQUAL TO
THE AMOUNT OF PREMIUMS TAX CREDITS CLAIMED BY A FOREIGN FIRE
INSURANCE COMPANY AGAINST TAXES THAT OTHERWISE WOULD BE
DISTRIBUTED IN ACCORDANCE WITH CHAPTER 7 OF THE ACT OF
DECEMBER 18, 1984 (P.L.1005, NO.205), KNOWN AS THE MUNICIPAL
PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, TO THE FUND
AS DEFINED IN SECTION 702 OF THE MUNICIPAL PENSION PLAN
FUNDING STANDARD AND RECOVERY ACT.
(2) TRANSFER FROM THE GENERAL FUND AN AMOUNT EQUAL TO
THE AMOUNT OF A PREMIUMS TAX CREDIT CLAIMED BY A FOREIGN
CASUALTY INSURANCE COMPANY AGAINST TAXES THAT OTHERWISE WOULD
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BE DISTRIBUTED AND USED FOR POLICE PENSION, RETIREMENT OR
DISABILITY PURPOSES AS PROVIDED BY THE ACT OF MAY 12, 1943
(P.L.259, NO.120), REFERRED TO AS THE FOREIGN CASUALTY
INSURANCE PREMIUM TAX ALLOCATION LAW, FOR DISTRIBUTION IN
ACCORDANCE WITH THE FOREIGN CASUALTY INSURANCE PREMIUM TAX
ALLOCATION LAW.]
SECTION 1908-B. CONFIDENTIALITY.
NOTWITHSTANDING ANY LAW PROVIDING FOR THE CONFIDENTIALITY OF
TAX RECORDS, THE CONTRACTING AUTHORITY AND THE LOCAL TAXING
AUTHORITIES SHALL HAVE ACCESS TO ANY REPORTS AND CERTIFICATIONS
FILED UNDER THIS ARTICLE, AND THE CONTRACTING AUTHORITY SHALL
HAVE ACCESS TO ANY STATE OR LOCAL TAX INFORMATION FILED BY A
QUALIFIED BUSINESS IN THE NEIGHBORHOOD IMPROVEMENT ZONE SOLELY
FOR THE PURPOSE OF DOCUMENTING THE CERTIFICATIONS REQUIRED BY
THIS ARTICLE OR DETERMINING THE AMOUNT ALLOCATED TO ANY USES
SPECIFIED UNDER SECTION 1904-B(E)(1). ANY OTHER USE OF THE TAX
INFORMATION SHALL BE PROHIBITED AS PROVIDED UNDER LAW.
SECTION 13. SECTION 1912-D(D) OF THE ACT IS AMENDED AND THE
SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:
SECTION 1912-D. EXTENSION FOR NEW JOB CREATION OR NEW CAPITAL
INVESTMENT.
* * *
(A.1) AFFILIATES.--IF AN AFFILIATE OF A QUALIFIED BUSINESS
WHOSE INDIVIDUAL OR JOINT EXTENSION APPLICATION UNDER SUBSECTION
(A) WAS APPROVED AND THE AFFILIATE LOCATES WITHIN AN EXTENDED
PARCEL BEFORE THE EXPIRATION OF THE CERTIFICATION ISSUED UNDER
SUBSECTION (B)(3), THE AFFILIATE IS ENTITLED TO THE TAX
EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SPECIFIED UNDER
THIS SECTION, PROVIDED THE AFFILIATE MEETS THE REQUIREMENTS OF
SECTION 307(A) OF THE KOZ ACT.
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* * *
(D) EXPIRATION.--THE FOLLOWING APPLY:
(1) ALL CONTINUATIONS SHALL EXPIRE NO LATER THAN 10
YEARS FOLLOWING THE EFFECTIVE DATE OF CERTIFICATION BY THE
DEPARTMENT.
(2) IF THE QUALIFIED BUSINESS THAT IS A SOLE APPLICANT
REMOVES ITSELF FROM THE [CONTINUED] EXTENDED PARCEL OR PARCEL
PRIOR TO THE EXPIRATION OF THE [CONTINUATION, THE
CONTINUATION] EXTENSION AND NO AFFILIATE REMAINS WITHIN THE
CONTINUED PARCEL, THE EXTENSION SHALL EXPIRE UPON THE DATE OF
DEPARTURE OF THAT QUALIFIED BUSINESS. IF ONE OR MORE
AFFILIATES REMAIN WITHIN THE EXTENDED PARCEL, THE EXTENSION
SHALL EXPIRE UPON THE DATE OF DEPARTURE OF THE LAST REMAINING
AFFILIATE OR UPON THE EXPIRATION OF THE EXTENSION DATE,
WHICHEVER OCCURS FIRST.
(3) IF TWO OR MORE QUALIFIED BUSINESSES SUBMITTED AN
APPLICATION UNDER SUBSECTION (A) AS JOINT APPLICANTS[, THIS
SUBSECTION SHALL APPLY ONLY IF ALL THE QUALIFIED BUSINESSES
THAT WERE THE JOINT APPLICANTS REMOVE THEMSELVES FROM THE
PARCEL PRIOR TO THE EXPIRATION OF THE CONTINUATION. IN THAT
CASE, THE CONTINUATION] AND ALL THE JOINT APPLICANTS REMOVE
THEMSELVES FROM THE PARCEL PRIOR TO THE EXPIRATION OF THE
EXTENSION AND NO AFFILIATE OF A JOINT APPLICANT IS LOCATED ON
OR REMAINS WITHIN THE EXTENDED PARCEL, THE EXTENSION SHALL
EXPIRE UPON THE DATE OF DEPARTURE OF THE LAST QUALIFIED
BUSINESS. IF ONE OR MORE AFFILIATES REMAIN, THE EXTENSION
SHALL EXPIRE UPON THE DEPARTURE DATE OF THE LAST REMAINING
AFFILIATE OR UPON THE EXPIRATION OF THE EXTENSION DATE,
WHICHEVER OCCURS FIRST.
* * *
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(F) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
"AFFILIATE." A PERSON WHO DIRECTLY OR INDIRECTLY:
(1) OWNS OR CONTROLS ANOTHER PERSON;
(2) IS OWNED OR CONTROLLED BY ANOTHER PERSON; OR
(3) IS UNDER COMMON OWNERSHIP OR CONTROL WITH ANOTHER
PERSON.
"PERSON." AS DEFINED UNDER 1 PA.C.S. § 1991 (RELATING TO
DEFINITIONS).
SECTION 14. SECTION 1921-D(D)(1) AND (3) OF THE ACT, AMENDED
JUNE 30, 2021 (P.L.124, NO.25), ARE AMENDED TO READ:
SECTION 1921-D. ADDITIONAL KEYSTONE OPPORTUNITY EXPANSION
ZONES.
* * *
(D) APPLICATION.--
(1) IN ORDER TO RECEIVE A DESIGNATION UNDER THIS
SECTION, THE DEPARTMENT MUST RECEIVE AN APPLICATION FROM A
POLITICAL SUBDIVISION OR ITS DESIGNEE NO LATER THAN OCTOBER
1, [2022] 2023. THE APPLICATION MUST CONTAIN THE INFORMATION
REQUIRED UNDER SECTION 302(A)(1), (2)(I) AND (IX), (5) AND
(6) OF THE KOZ ACT.
* * *
(3) THE DEPARTMENT SHALL ACT ON AN APPLICATION FOR A
DESIGNATION UNDER SECTION 302(A)(1) OF THE KOZ ACT BY
DECEMBER 31, [2022] 2023.
* * *
SECTION 15. THE ACT IS AMENDED BY ADDING ARTICLES TO READ:
ARTICLE XIX-H
AIRPORT LAND DEVELOPMENT ZONES
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SECTION 1901-H. 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:
"AFFILIATE." AS FOLLOWS:
(1) AN ENTITY WHICH IS PART OF THE SAME AFFILIATED GROUP
AS DEFINED IN SECTION 1504(A) OF THE INTERNAL REVENUE CODE OF
1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1504(A)), AS AN AIRPORT
LAND DEVELOPMENT ZONE EMPLOYER; OR
(2) AN ENTITY THAT WOULD BE PART OF THE SAME AFFILIATED
GROUP EXCEPT THAT THE ENTITY OR THE AIRPORT LAND DEVELOPMENT
ZONE EMPLOYER IS NOT A CORPORATION.
"AIRPORT." A COMMERCIAL SERVICE AIRPORT OR A NONCOMMERCIAL
SERVICE AIRPORT.
"AIRPORT LAND DEVELOPMENT ZONE." AS FOLLOWS:
(1) AN AREA OF NO MORE THAN 300 ACRES, CONSISTING OF
PARCELS OF REAL PROPERTY THAT ARE OWNED BY A COMMERCIAL
SERVICE AIRPORT OR LEASED UNDER PARAGRAPH (3), WITH, AS OF
DECEMBER 31, 2021, NO PERMANENT VERTICAL STRUCTURES AFFIXED
OR BUILDINGS WITH BUSINESSES LOCATED IN THE STRUCTURES. THE
TOTAL ACRES FOR ALL COMMERCIAL SERVICE AIRPORTS IN THE
PROGRAM MAY NOT EXCEED 2,000 ACRES.
(2) AN AREA OF NO MORE THAN 50 ACRES, CONSISTING OF
PARCELS OF REAL PROPERTY THAT ARE OWNED BY A NONCOMMERCIAL
SERVICE AIRPORT OR LEASED UNDER PARAGRAPH (3), WITH, AS OF
DECEMBER 31, 2021, NO PERMANENT VERTICAL STRUCTURES AFFIXED
OR VACANT BUILDINGS WITH BUSINESSES LOCATED IN THE
STRUCTURES. THE TOTAL ACRES FOR ALL NONCOMMERCIAL SERVICE
AIRPORTS IN THE PROGRAM MAY NOT EXCEED 2,000 ACRES.
(3) A PARCEL OF REAL PROPERTY IN THE ZONE MAY BE LEASED
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OR GROUND LEASED TO A THIRD PARTY WHILE CONTINUING TO BE
OWNED BY A COMMERCIAL SERVICE AIRPORT OR A NONCOMMERCIAL
SERVICE AIRPORT FOR THE DURATION OF THE PROGRAM.
"AIRPORT LAND DEVELOPMENT ZONE EMPLOYER." A PERSON OR ENTITY
SUBJECT TO THE TAXES IMPOSED UNDER ARTICLE III, IV, VII, VIII OR
XV WHO EMPLOYS AT LEAST ONE EMPLOYEE IN AN AIRPORT LAND
DEVELOPMENT ZONE. THE TERM SHALL INCLUDE A PASS-THROUGH ENTITY.
THE TERM SHALL NOT INCLUDE AN EMPLOYER ENGAGED IN CONSTRUCTION
IMPROVEMENTS IN AN AIRPORT LAND DEVELOPMENT ZONE.
"AIRPORT LAND DEVELOPMENT ZONE PLAN." THE DOCUMENT SUBMITTED
TO THE DEPARTMENT THAT DETAILS THE PARCELS INCLUDED IN THE
AIRPORT LAND DEVELOPMENT ZONE BY AN AIRPORT. THE PLAN SHALL
INCLUDE THE FOLLOWING:
(1) A LEGAL DESCRIPTION, IDENTIFICATION NUMBER AND
ACREAGE OF EACH PARCEL INCLUDED IN THE ZONE.
(2) CERTIFICATION BY AN AIRPORT THAT ANY BUILDING IN THE
ZONE WAS VACANT AND ANY PARCEL IN THE ZONE HAD NO PERMANENT,
VERTICAL STRUCTURES AFFIXED TO THE PARCEL ON OR AFTER
DECEMBER 31, 2021.
(3) A MAP AND DIAGRAM OF EACH PARCEL INCLUDED IN THE
PLAN.
"COMMERCIAL SERVICE AIRPORT." A PUBLICLY OWNED AIRPORT WITH
AT LEAST 2,500 ANNUAL ENPLANEMENTS AND SCHEDULED AIR CARRIER
SERVICE. THE TERM INCLUDES A PUBLIC USE AIRPORT IN A COUNTY OF
THE FOURTH CLASS WITH A POPULATION OF BETWEEN 140,000 AND
148,000 PEOPLE UNDER THE 2020 DECENNIAL CENSUS.
"DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
DEVELOPMENT OF THE COMMONWEALTH.
"EMPLOYEE." AN INDIVIDUAL WHO MEETS ALL OF THE FOLLOWING:
(1) IS EMPLOYED IN THIS COMMONWEALTH BY AN AIRPORT LAND
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DEVELOPMENT ZONE EMPLOYER OR ITS PREDECESSOR AFTER THE
EFFECTIVE DATE OF THIS SECTION.
(2) IS EMPLOYED FOR AT LEAST 35 HOURS PER WEEK BY AN
AIRPORT LAND DEVELOPMENT ZONE EMPLOYER.
(3) SPENDS AT LEAST 90% OF THE INDIVIDUAL'S WORKING TIME
FOR THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER AT THE AIRPORT
LAND DEVELOPMENT ZONE LOCATION.
"FULL-TIME EQUIVALENT EMPLOYEE." AS FOLLOWS:
(1) THE WHOLE NUMBER OF EMPLOYEES, ROUNDED DOWN, THAT
EQUALS THE SUM OF:
(I) THE TOTAL PAID HOURS, INCLUDING PAID TIME OFF
AND FAMILY LEAVE UNDER THE FAMILY AND MEDICAL LEAVE ACT
OF 1993 (PUBLIC LAW 103-3, 29 U.S.C. § 2601 ET SEQ.), OF
ALL OF AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S
EMPLOYEES CLASSIFIED AS NONEXEMPT DURING THE AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER'S TAX YEAR DIVIDED BY 2,000;
AND
(II) A TOTAL NUMBER ARRIVED AT BY ADDING, FOR EACH
AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S EMPLOYEES
CLASSIFIED AS EXEMPT SCHEDULED TO WORK AT LEAST 35 HOURS
PER WEEK, THE FRACTION EQUAL TO THE PORTION OF THE YEAR
THE EXEMPT EMPLOYEE WAS PAID BY THE AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER. WHETHER AN EMPLOYEE SHALL BE
CLASSIFIED AS EXEMPT OR NONEXEMPT SHALL BE DETERMINED
UNDER THE FAIR LABOR STANDARDS ACT OF 1938 (52 STAT.
1060, 29 U.S.C. § 201 ET SEQ.).
(2) THE CALCULATION UNDER PARAGRAPH (1) SHALL EXCLUDE
EMPLOYEES PREVIOUSLY EMPLOYED BY AN AFFILIATE AND EMPLOYEES
PREVIOUSLY EMPLOYED BY THE AIRPORT LAND DEVELOPMENT ZONE
EMPLOYER OUTSIDE OF AN AIRPORT LAND DEVELOPMENT ZONE.
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"NONCOMMERCIAL SERVICE AIRPORT." AN AIRPORT THAT IS PUBLICLY
OR PRIVATELY OWNED, OPEN TO THE PUBLIC, WITH LESS THAN 2,500
ANNUAL ENPLANEMENTS AND WITHOUT SCHEDULED AIR CARRIER SERVICE.
"PASS-THROUGH ENTITY." A PARTNERSHIP AS DEFINED IN SECTION
301(N.0) OR A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
301(N.1).
"PLAN." AN AIRPORT LAND DEVELOPMENT ZONE PLAN.
"PROGRAM." THE AIRPORT LAND DEVELOPMENT ZONE PROGRAM
ESTABLISHED UNDER SECTION 1902-H.
"QUALIFIED TAX LIABILITY." A TAX OWED BY AN AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER ATTRIBUTABLE TO A BUSINESS ACTIVITY
CONDUCTED WITHIN AN AIRPORT LAND DEVELOPMENT ZONE FOR A TAX YEAR
UNDER ARTICLE III, IV, VII, VIII OR XV, EXCLUDING ANY TAX
WITHHELD BY AN EMPLOYER UNDER ARTICLE III.
"ZONE." AN AIRPORT LAND DEVELOPMENT ZONE.
SECTION 1902-H. AIRPORT LAND DEVELOPMENT ZONE PROGRAM.
THE AIRPORT LAND DEVELOPMENT ZONE PROGRAM IS ESTABLISHED TO
ENCOURAGE AND PROMOTE THE CREATION OF NEW JOBS ON LAND AND
BUILDINGS OWNED BY AIRPORTS WITHIN THIS COMMONWEALTH, WHILE
ACCELERATING ECONOMIC ACTIVITY AT AND AROUND AIRPORTS ON
UNDEVELOPED LAND OR VACANT BUILDINGS OWNED BY AIRPORTS THAT CAN
PROVIDE NEW REVENUE SOURCES FOR AIRPORTS.
SECTION 1903-H. APPLICATION AND PLAN.
(A) APPLICATION.--WITHIN FOUR MONTHS OF THE EFFECTIVE DATE
OF THIS SECTION, THE DEPARTMENT SHALL PUBLISH GUIDELINES AND AN
APPLICATION FOR AIRPORTS.
(B) FILING PLAN.--THE DEPARTMENT SHALL BEGIN ACCEPTING PLANS
FROM EACH AIRPORT 30 DAYS AFTER THE DEPARTMENT PUBLISHES THE
GUIDELINES AND APPLICATION.
(C) APPROVAL OF PLAN.--UPON RECEIPT OF A PLAN SUBMITTED BY
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AN AIRPORT UNDER SUBSECTION (B), THE DEPARTMENT SHALL HAVE 60
CALENDAR DAYS TO REVIEW THE PLAN FOR APPROPRIATENESS AND
CONFORMITY. IF THE PROPOSED PLAN CONFORMS WITH THIS ARTICLE, THE
DEPARTMENT SHALL APPROVE THE PLAN. IF THE PROPOSED PLAN DOES NOT
CONFORM, THE DEPARTMENT SHALL NOTIFY THE APPLICANT IN WRITING.
THE AIRPORT MAY REVISE THE PLAN TO MAKE THE PLAN CONFORM WITH
THIS ARTICLE. UPON RECEIPT OF THE REVISED PLAN, THE DEPARTMENT
SHALL HAVE 60 DAYS TO APPROVE THE REVISED PLAN.
(D) ACREAGE LIMIT.--IN THE EVENT THE AREA COVERED BY THE
AGGREGATE APPLICATIONS RECEIVED BY THE DEPARTMENT WOULD CAUSE
THE AREA COVERED UNDER THE PROGRAM TO EXCEED THE 2,000 ACRE ZONE
LIMIT, APPLICATIONS SHALL BE APPROVED BY THE DEPARTMENT IN THE
ORDER RECEIVED.
(E) NOTIFICATION.--WHEN A PLAN SUBMITTED BY AN AIRPORT UNDER
SUBSECTION (B) IS APPROVED, THE DEPARTMENT SHALL NOTIFY THE
DEPARTMENT OF REVENUE OF PARCELS INCLUDED IN THE ZONE WITHIN 60
DAYS OF APPROVAL.
(F) CHANGE.--AN AIRPORT MAY CHANGE THE APPROVED PLAN BY
SUBDIVIDING A PARCEL, CHANGING THE LEGAL DESCRIPTION OF A
PARCEL, MOVING THE ZONE DESIGNATION TO ANOTHER QUALIFYING PARCEL
OWNED BY AN AIRPORT OR MAKING PHYSICAL CHANGES TO A VACANT
BUILDING IN THE ZONE BY ADDING TO THE BUILDING'S SIZE OR
REDUCING THE BUILDING'S SIZE AFTER THE PLAN HAS BEEN APPROVED.
IF AN AIRPORT CHOOSES TO MAKE THE CHANGES, THE AIRPORT SHALL
NOTIFY THE DEPARTMENT AND THE DEPARTMENT OF REVENUE OF THE
CHANGES. THE DEPARTMENT SHALL ISSUE A DOCUMENT CONFIRMING THE
CHANGES TO THE AIRPORT'S ZONE.
SECTION 1904-H. AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT.
(A) TAX CREDIT.--AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER
MAY CLAIM A TAX CREDIT AGAINST A QUALIFIED TAX LIABILITY AS
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PROVIDED UNDER THIS ARTICLE.
(B) PROCESS.--
(1) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER SHALL
NOTIFY THE DEPARTMENT AND THE DEPARTMENT OF REVENUE OF THE
AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S QUALIFICATION FOR A
TAX CREDIT UNDER THIS SECTION BY FEBRUARY 15 FOR TAX CREDITS
EARNED DURING A TAXABLE YEAR ENDING IN THE PRIOR CALENDAR
YEAR.
(2) THE NOTIFICATION UNDER PARAGRAPH (1) SHALL CONTAIN
THE FOLLOWING:
(I) THE NAME, ADDRESS AND TAXPAYER IDENTIFICATION
NUMBER OF THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER.
(II) VERIFICATION THAT THE AIRPORT LAND DEVELOPMENT
ZONE EMPLOYER IS AN AIRPORT LAND DEVELOPMENT ZONE
EMPLOYER LOCATED IN AN AIRPORT LAND DEVELOPMENT ZONE.
(III) A FILE PREPARED FOR THE DEPARTMENT OF REVENUE
CONTAINING THE NAMES, ADDRESSES AND SOCIAL SECURITY
NUMBERS OF EACH EMPLOYEE FOR WHICH THE CREDIT IS CLAIMED.
(IV) A FILE PREPARED FOR THE DEPARTMENT OF REVENUE
CONTAINING VERIFICATION THAT EACH EMPLOYEE IDENTIFIED IN
SUBPARAGRAPH (III) SPENT AT LEAST 90% OF THE EMPLOYEE'S
WORKING TIME FOR THE AIRPORT LAND DEVELOPMENT ZONE
EMPLOYER AT THE EMPLOYER'S AIRPORT LAND DEVELOPMENT ZONE
LOCATION.
(V) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT
OR THE DEPARTMENT OF REVENUE.
(3) TO QUALIFY FOR THE CREDIT, THE DEPARTMENT OF REVENUE
MUST CERTIFY THAT THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER
IS CURRENT WITH ALL TAX LIABILITIES.
(4) BY MAY 15 OF EACH YEAR, THE DEPARTMENT SHALL SEND
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THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER WHO SUBMITTED THE
NOTIFICATION A CERTIFICATE OF THE AIRPORT LAND DEVELOPMENT
ZONE EMPLOYER'S QUALIFICATION FOR THE CREDIT. THE AIRPORT
LAND DEVELOPMENT ZONE EMPLOYER SHALL PRESENT THE CERTIFICATE
TO THE DEPARTMENT OF REVENUE WHEN FILING THE AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER'S RETURN CLAIMING THE CREDIT.
(C) AMOUNT.--THE AMOUNT OF THE TAX CREDIT AN AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER MAY EARN IN ANY TAX YEAR SHALL BE
EQUAL TO $2,100 FOR EACH FULL-TIME EQUIVALENT EMPLOYEE IN EXCESS
OF THE NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES EMPLOYED BY THE
AIRPORT LAND DEVELOPMENT ZONE EMPLOYER PRIOR TO JANUARY 1, 2021.
(D) APPLICATION OF TAX CREDITS.--AN AIRPORT LAND DEVELOPMENT
ZONE EMPLOYER MUST FIRST USE THE AIRPORT LAND DEVELOPMENT ZONE
EMPLOYER'S AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT AGAINST THE
AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S QUALIFIED TAX
LIABILITY.
(D.1) SALE OR ASSIGNMENT OF TAX CREDIT.--
(1) IF THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER IS
ENTITLED TO A CREDIT IN ANY YEAR THAT EXCEEDS THE AIRPORT
LAND DEVELOPMENT ZONE EMPLOYER'S QUALIFIED TAX LIABILITY FOR
THAT YEAR, UPON APPLICATION TO AND APPROVAL BY THE
DEPARTMENT, AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER THAT
HAS BEEN AWARDED A TAX CREDIT MAY SELL OR ASSIGN, IN WHOLE OR
IN PART, THE TAX CREDIT GRANTED TO THE AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER. THE APPLICATION MUST BE ON THE
FORM REQUIRED BY THE DEPARTMENT AND MUST INCLUDE OR
DEMONSTRATE ALL OF THE FOLLOWING:
(I) THE APPLICANT'S NAME AND ADDRESS.
(II) A COPY OF THE TAX CREDIT CERTIFICATE PREVIOUSLY
ISSUED BY THE DEPARTMENT.
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(III) A STATEMENT AS TO WHETHER ANY PART OF THE TAX
CREDIT HAS BEEN APPLIED TO TAX LIABILITY OF THE APPLICANT
AND THE AMOUNT SO APPLIED.
(IV) ANY OTHER INFORMATION REQUIRED BY THE
DEPARTMENT.
(V) BEFORE AN APPLICATION FOR SALE OR ASSIGNMENT IS
APPROVED, THE DEPARTMENT OF REVENUE MUST FIND THAT THE
APPLICANT 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,
ASSESSMENT OR DETERMINATION BY THE DEPARTMENT OF REVENUE.
(2) THE DEPARTMENT SHALL REVIEW THE APPLICATION AND, IF
ALL REQUIREMENTS HAVE BEEN MET, APPROVE THE APPLICATION AND
NOTIFY THE DEPARTMENT OF REVENUE.
(3) THE PURCHASER OR ASSIGNEE OF ALL OR A PORTION OF AN
AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT UNDER THIS SECTION
SHALL CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE
PURCHASE OR ASSIGNMENT IS MADE. THE PURCHASER OR ASSIGNEE OF
A TAX CREDIT MAY USE THE TAX CREDIT AGAINST ANY TAX LIABILITY
OF THE PURCHASER OR ASSIGNEE UNDER ARTICLE III, IV, VII, VIII
OR XV, EXCLUDING ANY TAX WITHHELD BY AN EMPLOYER UNDER
ARTICLE III. THE AMOUNT OF THE TAX CREDIT USED MAY NOT EXCEED
75% OF THE PURCHASER'S OR ASSIGNEE'S TAX LIABILITY FOR THE
TAXABLE YEAR. THE PURCHASER OR ASSIGNEE MAY NOT CARRY OVER,
CARRY BACK, OBTAIN A REFUND OF OR ASSIGN THE AIRPORT LAND
DEVELOPMENT ZONE CREDIT. THE PURCHASER OR ASSIGNEE SHALL
NOTIFY THE DEPARTMENT AND THE DEPARTMENT OF REVENUE OF THE
SELLER OR ASSIGNOR OF THE AIRPORT LAND DEVELOPMENT ZONE TAX
CREDIT IN COMPLIANCE WITH PROCEDURES SPECIFIED BY THE
DEPARTMENT.
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(E) USE AND CARRYFORWARD.--
(1) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER MAY EARN
THE TAX CREDIT ALLOWED UNDER THIS ARTICLE IN ANY TAX YEAR
BEGINNING IN 2022 AND FOR A PERIOD OF UP TO 10 TAX YEARS
DURING THE 20-YEAR PERIOD BEGINNING JULY 1, 2022, AND ENDING
JUNE 30, 2041.
(2) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER MAY CARRY
FORWARD FOR UP TO 10 YEARS A TAX CREDIT EARNED UNDER THIS
ARTICLE:
(I) WHICH THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER
IS UNABLE TO USE; OR
(II) WHICH THE AIRPORT LAND DEVELOPMENT ZONE
EMPLOYER DOES NOT SELL OR ASSIGN.
(3) TAX CREDITS CARRIED FORWARD UNDER PARAGRAPH (2)
SHALL BE USED ON A FIRST-IN, FIRST-OUT BASIS.
(F) DUAL-USE PROHIBITED.--EACH YEAR, AN AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER MAY ONLY EARN TAX CREDITS UNDER
SUBSECTION (C) OR (D) OR UNDER 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. AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER
MAY NOT CLAIM A CREDIT UNDER BOTH THIS SECTION AND ARTICLE
XVIII-B.
(G) PASS-THROUGH ENTITIES.--
(1) IF AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER IS A
PASS-THROUGH ENTITY AND HAS AN UNUSED TAX CREDIT UNDER
SUBSECTION (C), (D) OR (E), THE AIRPORT LAND DEVELOPMENT ZONE
EMPLOYER MAY ELECT IN WRITING, ACCORDING TO PROCEDURES
ESTABLISHED BY THE DEPARTMENT OF REVENUE, TO TRANSFER ALL OR
A PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS OR PARTNERS
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IN PROPORTION TO THE SHARE OF THE ENTITY'S DISTRIBUTIVE
INCOME TO WHICH THE SHAREHOLDER, MEMBER OR PARTNER IS
ENTITLED.
(2) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER THAT IS A
PASS-THROUGH ENTITY AND A SHAREHOLDER, MEMBER OR PARTNER OF
THAT AIRPORT LAND DEVELOPMENT ZONE EMPLOYER MAY NOT BOTH
CLAIM THE AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT EARNED BY
THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER FOR ANY TAX YEAR.
(3) A SHAREHOLDER, MEMBER OR PARTNER OF AN AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER THAT IS A PASS-THROUGH ENTITY TO
WHOM A CREDIT IS TRANSFERRED UNDER THIS SUBSECTION SHALL
IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE
TRANSFER IS MADE.
(H) TRANSFER.--A TAX CREDIT OR TAX CREDIT CARRYFORWARD THAT
AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER IS ENTITLED TO USE MAY
BE TRANSFERRED TO A SUCCESSOR ENTITY OF THE AIRPORT LAND
DEVELOPMENT ZONE EMPLOYER.
(I) PENALTIES.--THE FOLLOWING APPLY:
(1) A COMPANY WHICH RECEIVES AIRPORT LAND DEVELOPMENT
ZONE TAX CREDITS AND FAILS TO SUBSTANTIALLY MAINTAIN THE
OPERATIONS RELATED TO THE AIRPORT LAND DEVELOPMENT ZONE TAX
CREDITS IN THIS COMMONWEALTH FOR A PERIOD OF FIVE YEARS FROM
THE DATE THE COMPANY FIRST SUBMITS AN AIRPORT LAND
DEVELOPMENT ZONE TAX CREDIT CERTIFICATE TO THE DEPARTMENT OF
REVENUE SHALL BE REQUIRED TO REFUND TO THE COMMONWEALTH THE
TOTAL AMOUNT OF CREDITS GRANTED.
(2) THE DEPARTMENT MAY WAIVE THE PENALTY UNDER PARAGRAPH
(1) IF IT IS DETERMINED THAT A COMPANY'S OPERATIONS WERE NOT
MAINTAINED OR THE NEW JOBS WERE NOT CREATED BECAUSE OF
CIRCUMSTANCES BEYOND THE COMPANY'S CONTROL. CIRCUMSTANCES
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SHALL INCLUDE NATURAL DISASTERS, UNFORESEEN INDUSTRY TRENDS
OR A LOSS OF A MAJOR SUPPLIER OR MARKET.
ARTICLE XIX-I
PENNSYLVANIA CHILD AND DEPENDENT
CARE ENHANCEMENT PROGRAM
SECTION 1901-I. SCOPE OF ARTICLE.
THIS ARTICLE RELATES TO THE PENNSYLVANIA CHILD AND DEPENDENT
CARE ENHANCEMENT TAX CREDIT PROGRAM.
SECTION 1902-I. 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:
"APPLICABLE PERCENT." AS DEFINED IN SECTION 21(A)(2) OF THE
INTERNAL REVENUE CODE OF 1986 IN EFFECT FOR THE TAXABLE YEAR
BEGINNING AFTER DECEMBER 31, 2021, AND ENDING BEFORE JANUARY 1,
2023.
"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
"EMPLOYMENT-RELATED EXPENSES." AS DEFINED IN SECTION 21(B)
(2) OF THE INTERNAL REVENUE CODE OF 1986.
"INTERNAL REVENUE CODE OF 1986." THE INTERNAL REVENUE CODE
OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1 ET SEQ.).
"QUALIFYING INDIVIDUAL." AS DEFINED IN SECTION 21(B)(1) OF
THE INTERNAL REVENUE CODE OF 1986.
"RESIDENT INDIVIDUAL." AS DEFINED IN SECTION 301.
"SECTION 21 OF THE INTERNAL REVENUE CODE OF 1986." SECTION
21 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26
U.S.C. § 21).
"TAXPAYER." A RESIDENT INDIVIDUAL SUBJECT TO THE TAX IMPOSED
UNDER ARTICLE III.
"TAX CREDIT." THE PENNSYLVANIA CHILD AND DEPENDENT CARE
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ENHANCEMENT TAX CREDIT PROVIDED FOR UNDER THIS ARTICLE.
"TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED UNDER
ARTICLE III, EXCLUDING ANY TAX WITHHELD BY AN EMPLOYER UNDER
ARTICLE III.
SECTION 1903-I. CREDIT FOR CHILD AND DEPENDENT CARE EMPLOYMENT-
RELATED EXPENSES.
(A) TAX CREDIT.--FOR TAXABLE YEARS BEGINNING AFTER DECEMBER
31, 2021, A TAXPAYER WHO RECEIVES A CREDIT UNDER SECTION 21 OF
THE INTERNAL REVENUE CODE OF 1986 MAY CLAIM A TAX CREDIT AGAINST