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," providing for deer processor tax credit.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1. The act of act of March 4, 1971 (P.L.6, No.2),
14known as the Tax Reform Code of 1971, is amended by adding an
15article to read:

16Article XVII-J

17Deer PROCESSOR'S Tax Credit

18Section 1701-J. Scope.

19This article relates to a deer processor's tax credit.

20Section 1702-J. Definitions.

21The following words and phrases when used in this article

1shall have the meanings given to them in this section unless the
2context clearly indicates otherwise:

3"Accepting registered public charity." An institution that 
4meets the criteria under section 5 of the act of November 26, 
51997 (P.L.508, No.55), known as the Institutions of Purely 
6Public Charity Act, and accepts venison as a means of feeding 
7the hungry.

8"Department." The Department of Revenue of the Commonwealth.

9"Pass-through entity." Any of the following:

10(1) A partnership, limited partnership, limited
11liability company, business trust or other unincorporated
12entity that for Federal income tax purposes is taxable as a

14(2) A Pennsylvania S corporation.

15"Qualified processing expense." The expense a processor
16incurs as a result of processing a single deer, from which the
17meat is being donated for the sole purpose of human consumption.

18"Qualified tax liability." The liability for taxes imposed
19under Article III, IV or VI. The term shall include the
20liability for taxes imposed under Article III on a shareholder
21of a pass-through entity.

22"Secretary." The Secretary of Revenue of the Commonwealth.

23"Tax credit." The deer processor's tax credit authorized
24under this article.

25"Taxpayer." An entity subject to tax under Article III, IV
26or VI. The term shall include the shareholder, owner or member
27of a pass-through entity that receives a tax credit.

28Section 1703-J. Credit for qualified processing expense.

29(a) Application.--A taxpayer may apply for a tax credit as
30provided in this article when the taxpayer incurs a qualified

1processing expense while donating the taxpayer's service to an
2individual who wishes to donate all of the consumable venison
3from a single deer to an accepting registered public charity. By
4September 15, a taxpayer must submit an application to the
5department for a qualified processing expense incurred in the
6taxable year that ended in the prior calendar year.

7(b) Accountability.--The qualifying processor must retain
8for recordkeeping purposes each appropriate Pennsylvania Game
9Commission numbered and issued ear tag that is affixed to each
10deer being donated.

11(c) Receipt.--A taxpayer that is qualified under subsection
12(a) shall receive a tax credit for the taxable year in the
13amount of $50 per deer processed. The maximum tax credit amount
14which a taxpayer that is qualified under subsection (a) shall
15receive may not exceed $2,500 for the taxable year.

16(d) Notification.--By December 15 of the calendar year
17following the close of the taxable year during which the
18qualified processing expense was incurred, the department shall
19notify the taxpayer of the amount of the taxpayer's tax credit
20approved by the department.

21Section 1704-J. Carryover, carryback, refund and assignment of

23(a) General rule.--If the taxpayer cannot use the entire
24amount of the tax credit for the taxable year in which the tax
25credit is first approved, then the excess may be carried over
26succeeding taxable years and used as a credit against the
27qualified tax liability of the taxpayer for those taxable years.
28Each time that the tax credit is carried over to a succeeding
29taxable year, it is to be reduced by the amount that was used as
30a credit during the immediately preceding taxable year. The tax

1credit provided by this article may be carried over and applied
2to succeeding taxable years for no more than fifteen taxable
3years following the first taxable year for which the taxpayer
4was entitled to claim the credit.

5(b) Application.--A tax credit approved by the department
6for qualified processing expense in a taxable year first shall
7be applied against the taxpayer's qualified tax liability for
8the current taxable year as of the date on which the credit was
9approved before the tax credit is applied against any tax
10liability under subsection (a).

11(c) No carryback or refund.--A taxpayer is not entitled to
12carry back or obtain a refund of an unused tax credit.

13Section 1705-J. Time limitations.

14A taxpayer is not entitled to a tax credit for qualified
15processing expenses incurred in taxable years ending after
16December 31, 2016.

17Section 1706-J. Limitation on credits.

18(a) Total amount.--The total amount of tax credits approved
19by the department shall not exceed $100,000 in any fiscal year.

20(b) Allocation of credits.--Tax credits under this article
21shall be provided on a first-come-first-served basis until all
22annual available credits have been allocated.

23Section 1707-J. Shareholder, owner or member pass-through.

24(a) Application to Pennsylvania S corporations.--If a
25Pennsylvania S corporation does not have an eligible tax
26liability against which the tax credit may be applied, a
27shareholder of the Pennsylvania S corporation is entitled to a
28tax credit equal to the tax credit determined for the
29Pennsylvania S corporation for the taxable year multiplied by
30the percentage of the Pennsylvania S corporation's distributive

1income to which the shareholder is entitled.

2(b) Other applications.--If a pass-through entity other than
3a Pennsylvania S corporation does not have an eligible tax
4liability against which the tax credit may be applied, an owner
5or member of the pass-through entity is entitled to a tax credit
6equal to the tax credit determined for the pass-through entity
7for the taxable year multiplied by the percentage of the pass-
8through entities' distributive income to which the owner or
9member is entitled.

10(c) Additional credit.--The credit provided under subsection
11(a) or (b) is in addition to any tax credit to which a
12shareholder, owner or member of a pass-through entity is
13otherwise entitled under this article. However, a pass-through
14entity and a shareholder, owner or member of a pass-through
15entity may not claim a credit under this article for the same
16qualified processing expense.

17Section 1708-J. Termination.

18The department shall not approve a tax credit under this
19article for taxable years ending after December 31, 2014.

20Section 1709-J. Regulations.

21The secretary shall promulgate regulations necessary for the
22implementation and administration of this article.

23Section 2. This act shall apply to taxable years beginning
24after December 31, 2012.

25Section 3. This act shall take effect July 1, 2013, or
26immediately, whichever is later.