PRINTER'S NO. 3306
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2707
Session of
2022
INTRODUCED BY OBERLANDER, JUNE 24, 2022
REFERRED TO COMMITTEE ON FINANCE, JUNE 24, 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 Computer Data Center Equipment Incentive
Program, further providing for definitions, for sales and use
tax exemption, for eligibility requirements and for
revocation of certification.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "qualification period" in
section 2901-D of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971, is amended 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:
* * *
"Qualification period." [As] Except as provided under
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sections 2931-D(d), 2935-D(b) and 2937-D(c), as follows:
(1) With respect to the owner or operator of a computer
data center certified under this article, a period of time
beginning on the date of certification of the computer data
center and expiring at the end of the fifteenth full calendar
year following the calendar year in which the owner or
operator filed an application for certification.
(2) With respect to a qualified tenant of the owner or
operator of a computer data center certified under this
article, a period of time beginning on the date that the
qualified tenant enters into an agreement concerning the use
or occupancy of the computer data center and expiring at the
earlier of the expiration of the term of the agreement or the
end of the 10th full calendar year following the calendar
year in which the qualified tenant enters into the agreement.
* * *
Section 2. Section 2931-D of the act is amended by adding a
subsection to read:
Section 2931-D. Sales and use tax exemption.
* * *
(d) Definition.--As used in this section, the term
"qualification period" shall mean the following:
(1) With respect to the owner or operator of a computer
data center certified under this subarticle, a period of time
beginning on the date of certification of the computer data
center and expiring at the end of the 30th full calendar year
following the calendar year in which the owner or operator
filed an application for certification .
(2) With respect to a qualified tenant of the owner or
operator of a computer data center certified under this
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article, a period of time beginning on the date that the
qualified tenant enters into an agreement concerning the use
or occupancy of the computer data center and expiring at the
earlier of the expiration of the term of the agreement or the
end of the 10th full calendar year following the calendar
year in which the qualified tenant enters into the agreement.
Section 3. Sections 2935-D(b) and 2937-D(c) of the act,
added June 30, 2021 (P.L.124, No.25), are amended to read:
Section 2935-D. Eligibility requirements.
* * *
(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. As used in this
subsection, the term "qualification period" shall have the same
meaning given to it in section 2931-D(d).
* * *
Section 2937-D. Revocation of certification.
* * *
(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 under section 2942-D.
The department may give special consideration or allow a
temporary exemption from recapture of the tax exemption if there
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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. As used in this subsection, the
term "qualification period" shall have the same meaning given to
it in section 2931-D(d).
* * *
Section 4. This act shall take effect immediately.
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