1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in malt beverage tax, further providing for
11limited tax credits.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1.  Section 2010 of the act of March 4, 1971 (P.L.6,
15No.2), known as the Tax Reform Code of 1971, amended December
1623, 2003, (P.L.250, No.46), is amended to read:

17Section 2010.  Limited Tax Credits.--(a)  The General
18Assembly of the Commonwealth, conscious of the financial
19pressures facing small brewers in Pennsylvania and the attendant
20risk of business failure and loss of employment opportunity,
21declares it public policy that renewal and improvement of small
22brewers be encouraged and assisted by a limited tax subsidy to

1be granted during the period set forth in this section.

2(b)  As used in this section:

3"Amounts paid."  The phrase means (i) amounts actually paid,
4or (ii) at the taxpayer's election, amounts promised to be paid
5under firm purchase contracts actually executed during any
6calendar year falling within the effective period of this
7section: Provided, however, That there shall be no duplication
8of "amounts paid" under this definition.

9"Effective period."  The period from January 1, 1974, to
10December 31, 2008, and the period from January 1, 2013, to 
11December 31, 2013, inclusive.

12"Qualifying capital expenditures."  Amounts paid by a
13taxpayer during the effective period of this section for the
14purchase of items of plant, machinery or equipment for use by
15the taxpayer within this Commonwealth in the manufacture and
16sale of malt or brewed beverages: Provided, however, That the
17total amount of qualifying capital expenditures made by a
18taxpayer within a single calendar year shall not exceed two
19hundred thousand dollars ($200,000).

20"Secretary."  The Secretary of Revenue of the Commonwealth of
21Pennsylvania where not otherwise qualified.

22"Taxpayer."  A manufacturer of malt or brewed beverages
23claiming a tax credit or credits under this section and having
24an annual production of malt or brewed beverages that does not
25exceed one million five hundred thousand (1,500,000) barrels.

26(c)  A tax credit or credits shall be allowed for each
27calendar year to a taxpayer, as hereinafter provided, not to
28exceed in total amount the amount of qualifying capital
29expenditures made by the taxpayer and certified by the
30secretary.

1(d)  A taxpayer desiring to claim a tax credit or credits
2under this section shall, within one year of the date of the
3original purchase of the qualifying capital expenditures, in
4accordance with regulations promulgated by the secretary, report
5annually to the secretary the nature, amounts and dates of
6qualifying capital expenditures made by him and such other
7information as the secretary shall require. If satisfied as to
8the correctness of such a report, the secretary shall issue to
9the taxpayer a certificate establishing the amount of qualifying
10capital expenditures made by the taxpayer and included within
11said report. The taxpayer shall also provide to the secretary
12the number of employes, total production of malt or brewed
13beverages and the amount of capital expenditures made by the
14taxpayer at each location operated by the taxpayer or a parent
15corporation, subsidiary, joint venture or affiliate. Also, the
16taxpayer shall notify the secretary of any contract for
17production held with another manufacturer. The secretary shall
18file a report annually with the Chief Clerk of the House of
19Representatives and with the Secretary of the Senate outlining
20the employment, production, expenditures and tax credits
21authorized under this section.

22(e)  Upon receipt from a taxpayer of a certificate from the
23secretary issued under subsection (c), the Secretary of Revenue
24shall grant a tax credit or credits in the amount certified
25against any tax due under this article in the calendar year in
26which the expenditures were incurred or against any tax becoming
27due from the taxpayer under this article in the following three
28calendar years. No credit shall be allowed against any tax due
29for any taxable period ending after December 31, [2008] 2013.

30Section 2.  This act shall take effect in 60 days.