Regular Session 2015-2016 House Bill 0204 P.N. 1444

PRIOR PRINTER'S NO. 194

PRINTER'S NO. 1444

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, SCHLOSSBERG,

GIBBONS, KIRKLAND AND BURNS, JANUARY 23, 2015

AS REPORTED FROM COMMITTEE ON TOURISM AND RECREATIONAL

DEVELOPMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 5,

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

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commission." The Pennsylvania Tourism Commission

established by law . OR A NONPROFIT ENTITY DESIGNATED BY THE

GOVERNOR 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.).

"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) OR A PENNSYLVANIA S CORPORATION

AS DEFINED UNDER SECTION 301(N.1) 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. THE TERM SHALL NOT INCLUDE ANY TAX

WITHHELD BY AN EMPLOYER FROM AN EMPLOYEE UNDER ARTICLE III.

"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 THE

COMMISSION MAY AWARD a tax credit for contributions made to and

accepted by the commission or a nonprofit entity established by

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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 , BY

NOVEMBER 1 OF THE PROGRAM YEAR, 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

the contribution. THE FOLLOWING:

(1) THE DEPARTMENT OF THE AMOUNT OF THE AWARD UP TO THE

CAPPED AMOUNT, INCLUDING:

(I) THE NAME OF EACH DONOR;

(II) THE FEDERAL ENTITY IDENTIFICATION NUMBER OF

EACH DONOR; AND

(III) THE VALUE OF EACH CONTRIBUTION.

(2) The taxpayer of the award.

(b) Amount of tax credits.--The amount of the tax credit for

the taxable year shall be 100% 55% 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.

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.

(D) TAX LIABILITY.--CREDITS AWARDED BY THE COMMISSION UNDER

THIS SECTION MAY BE UTILIZED AGAINST TAX LIABILITIES INCURRED IN

THE TAX YEAR IN WHICH THE CONTRIBUTION IS MADE.

Section 1903-D. Tourism marketing and promotion tax credits.

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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.

(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

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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.

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 COMMISSION shall submit an annual

report to the General Assembly indicating the effectiveness of

the tax credit 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 AWARDED 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 MAY promulgate regulations OR GUIDELINES

necessary for the implementation and administration of this

article.

SECTION 1909-D. EXPIRATION.

THIS ARTICLE SHALL EXPIRE JULY 1, 2020.

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

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