|Posted:||February 13, 2019 11:09 AM|
|From:||Representative Jason Ortitay|
|To:||All House members|
|Subject:||Ending the Ability to Sell a Tax Credit|
|The intent of a tax credit is to offset the tax liability, to help a business grow development, or both. But, a number of tax credit programs in Pennsylvania allow the tax credits to be sold or transferred to other individuals or companies. For some programs, upwards of 99% of the credits are sold.
These tax credit programs have become simply financing mechanisms for businesses, which goes beyond the original purpose of tax credit programs and further distorts the state’s tax climate. I am asking you to join me as a cosponsor of legislation to end the practice of allowing these tax credits to be sold.
The legislation amends the Tax Reform Code and only applies to tax credit programs that currently have eligible taxpayers and where the program authorizes a taxpayer to sell or transfer a tax credit to taxpayers other than its shareholders. Those tax credit programs are as follows: Research and Development Tax Credit, Film Production Tax Credit, Video Game Production Tax Credit, Entertainment Economic Enhancement Tax Credit , Resource Enhancement and Protection Tax Credit, Historic Preservation Incentive Tax Credit, Coal Refuse Energy and Reclamation Tax Credit, Waterfront Development Tax Credit, Innovate in PA Tax Credit, Manufacturing Tax Credit, Neighborhood Assistance Tax Credit, tax credits under the Keystone Special Development Zone Program, and tax credits under the Keystone Innovation Zone Program.
I hope that you join me in co-sponsoring this important legislation.
Introduced as HB551