S0288B0276A01050 MSP:CDM 05/21/21 #90 A01050
AMENDMENTS TO SENATE BILL NO. 288
Sponsor: SENATOR HUTCHINSON
Printer's No. 276
Amend Bill, page 1, lines 14 through 17, by striking out all
of said lines and inserting
Section 1. Section 407.7(a) and (d) 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 a subsection to
read:
Amend Bill, page 1, line 22; page 2, line 1; by striking out
"one hundred" in line 22 on page 1 and "million dollars
($100,000,000)" in line 1 on page 2 and inserting
one million dollars ($1,000,000)
Amend Bill, page 2, lines 4 through 30; page 3, lines 1
through 9; by striking out all of said lines on said pages and
inserting
(a.1) The qualified manufacturing innovation and
reinvestment deduction shall be applied to a taxpayer's taxable
income to reduce the taxpayer's liability following the
allocation and apportionment of income.
* * *
(d) (1.1) If the private capital investment is in excess of
one million dollars ($1,000,000), but not more than ten million
dollars ($10,000,000), the maximum allowable deduction shall be
equal to sixty-two and one-half per cent of the private capital
investment utilized in the creation of new or refurbished
manufacturing capacity. A taxpayer may utilize the deduction in
an amount not to exceed twelve and one-half per cent of the
private capital investment utilized in the creation of new or
refurbished manufacturing capacity in any one year of the
succeeding ten tax years immediately following the department's
satisfaction determination and the execution of a satisfaction
commitment letter, up to the maximum allowable deduction.
(1.2) If the private capital investment is in excess of ten
million dollars ($10,000,000), but not more than sixty million
dollars ($60,000,000), the maximum allowable deduction shall be
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equal to fifty per cent of the private capital investment
utilized in the creation of new or refurbished manufacturing
capacity. A taxpayer may utilize the deduction in an amount not
to exceed ten per cent of the private capital investment
utilized in the creation of new or refurbished manufacturing
capacity in any one year of the succeeding ten tax years
immediately following the department's satisfaction
determination and the execution of a satisfaction commitment
letter, up to the maximum allowable deduction.
[(1.1)] (1.3) If the private capital investment is in
excess of sixty million dollars ($60,000,000), but not more than
one hundred million dollars ($100,000,000), the maximum
allowable deduction shall be equal to thirty-seven and one-half
per cent of the private capital investment utilized in the
creation of new or refurbished manufacturing capacity. A
taxpayer may utilize the deduction in an amount not to exceed
seven and one-half per cent of the private capital investment
utilized in the creation of new or refurbished manufacturing
capacity in any one year of the succeeding ten tax years
immediately following the department's satisfaction
determination and the execution of a satisfaction commitment
letter, up to the maximum allowable deduction.
[(1.2)] (1.4) If the private capital investment exceeds one
hundred million dollars ($100,000,000), the maximum allowable
deduction shall be equal to twenty-five per cent of the private
capital investment utilized in the creation of new or
refurbished manufacturing capacity. A taxpayer may utilize the
deduction in an amount not to exceed five per cent of the
private capital investment utilized in the creation of new or
refurbished manufacturing capacity in any one year of the
succeeding ten tax years immediately following the department's
satisfaction determination and the execution of a satisfaction
commitment letter, up to the maximum allowable deduction.
(3) A taxpayer cannot use the deduction to reduce its tax
liability by more than fifty per cent of the tax liability under
this article for the taxable year. The deduction is
nontransferable and any unused portion in a tax year shall
expire at the end of the corresponding tax year.
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See A01050 in
the context
of SB0288