PRINTER'S NO. 194
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
204
Session of
2015
INTRODUCED BY MURT, BOBACK, D. COSTA, DEASY, GINGRICH, GODSHALL,
HARKINS, KOTIK, LONGIETTI, MILLARD, READSHAW AND SCHLOSSBERG,
JANUARY 23, 2015
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
JANUARY 23, 2015
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," providing for the tourism marketing and promotion
tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XIX-D
TOURISM MARKETING AND
PROMOTION TAX CREDIT
Section 1901-D. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commission." The Pennsylvania Tourism Commission
established by law.
"Contribution." A donation of cash, personal property, in-
kind contributions or tourism marketing and promotion services,
the value of which is determined by the department in
cooperation with the commission.
"Department." The Department of Revenue of the Commonwealth.
"Pass-through entity." A partnership or small corporation as
defined under section 301(n.0) and (s.2).
"Qualified tax liability." The liability for taxes imposed
under Article III, IV or VI. The term includes the liability for
taxes imposed under Article III on a shareholder of a
Pennsylvania S corporation.
"Tax credit." The tourism marketing and promotion tax credit
established under this article.
"Taxpayer." An entity subject to tax under Article III, IV
or VI. The term shall include the shareholder of a Pennsylvania
S corporation that receives a tourism marketing and promotion
tax credit.
Section 1902-D. Tax credit.
(a) Eligibility.--A taxpayer shall be eligible for a tax
credit for contributions made to and accepted by the commission
or a nonprofit entity established by the commission that is
exempt from Federal taxation under section 501(c)(3) of the
Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1
et seq.). The commission shall notify the department in writing
of the acceptance of a contribution, including the name of the
donor, the amount or value of the contribution and the type of
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the contribution.
(b) Amount of tax credits.--The amount of the tax credit for
the taxable year shall be 100% of the value of contributions
made to the commission or the nonprofit entity under subsection
(a). The amount of the tax credit shall not exceed the total
qualified tax liability of the taxpayer for the taxable year.
(c) Limitation on single taxpayer tax credits.--No single
taxpayer shall receive more than 20% of the total amount of tax
credits authorized under this article in a fiscal year.
(d) Availability of tax credits.--Tax credits shall be made
available by the department on a first-come, first-served basis.
(e) Application for credits.--A taxpayer must apply to the
department for a tax credit.
Section 1903-D. Tourism marketing and promotion tax credits.
A taxpayer may claim a tax credit against the qualified tax
liability of the taxpayer.
Section 1904-D. Carryover, carryback, refund and assignment of
tax credit.
(a) General rule.--If the taxpayer cannot use the entire
amount of the tax credit for the taxable year in which the tax
credit is first approved, the excess may be carried over to
succeeding taxable years and used as a credit against the
qualified tax liability of the taxpayer for those taxable years.
Each time the tax credit is carried over to a succeeding taxable
year, it shall be reduced by the amount that was used as a
credit during the immediately preceding taxable year. The tax
credit provided by this article may be carried over and applied
to succeeding taxable years for not more than three taxable
years following the first taxable year for which the taxpayer
was entitled to claim the credit.
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(b) Application.--A tax credit approved by the department in
a taxable year first shall be applied against the taxpayer's
qualified tax liability for the current taxable year as of the
date on which the credit was approved before the tax credit can
be applied against any tax liability under subsection (a). A
taxpayer may not carry forward, carry back, obtain a refund of
or sell or assign the credit.
Section 1905-D. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
tax credit under section 1902-D, it may elect in writing,
according to procedures established by the department, to
transfer all or a portion of the tax credit to shareholders,
members or partners in proportion to the share of the entity's
distributive income to which the shareholder, member or partner
is entitled.
(b) Limitation.--A pass-through entity and a shareholder,
member or partner of a pass-through entity shall not claim the
tax credit under subsection (a) for the same contributions.
(c) Application.--A shareholder, member or partner of a
pass-through entity to whom a tax credit is transferred under
subsection (a) shall immediately claim the tax credit in the
taxable year in which the transfer is made. The shareholder,
member or partner may not carry forward, carry back, obtain a
refund of or sell or assign the tax credit.
Section 1906-D. Annual cap on tax credits.
The total amount of tax credits approved under this article
shall not be more than $15,000,000 in a fiscal year.
Section 1907-D. Report to General Assembly.
The Secretary of Revenue shall submit an annual report to the
General Assembly indicating the effectiveness of the tax credit
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not later than June 30 following the year in which the tax
credits were approved. The report shall include the names of all
taxpayers utilizing the tax credit as of the date of the report
and the amount of tax credits approved and used by each
taxpayer. Notwithstanding any law providing for the
confidentiality of tax records, the information contained in the
report shall be public information.
Section 1908-D. Regulations.
The department shall promulgate regulations necessary for the
implementation and administration of this article.
Section 2. This act shall take effect in 60 days.
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