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SENATE AMENDED
PRIOR PRINTER'S NOS. 1093, 1630, 2658,
3497
PRINTER'S NO. 3613
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1059
Session of
2021
INTRODUCED BY HICKERNELL, BROOKS, CIRESI, DUNBAR, FREEMAN,
GREINER, JAMES, JOZWIAK, MENTZER, MILLARD, PICKETT, RYAN,
SAINATO, SAYLOR, THOMAS, ZIMMERMAN, RADER AND ARMANINI,
MARCH 31, 2021
SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, OCTOBER 26, 2022
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," in personal income tax, further providing for
declarations of estimated tax.; IN REALTY TRANSFER TAX,
FURTHER PROVIDING FOR TRANSFER OF TAX; PROVIDING FOR
PENNSYLVANIA ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY (PA
EDGE) TAX CREDITS; IMPOSING PENALTIES FOR NONCOMPLIANCE; AND
MAKING EDITORIAL CHANGES.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 325(a) and (d) introductory paragraph of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971, are amended to read:
SECTION 1. SECTIONS 325(A) AND (D) INTRODUCTORY PARAGRAPH
AND 1102-C.6(B) AND ARTICLE XVII-L HEADING OF THE ACT OF MARCH
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4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE
AMENDED TO READ:
Section 325. Declarations of Estimated Tax.--(a) (1) Every
resident and nonresident individual, trust and estate shall at
the time hereinafter prescribed make a declaration of his or its
estimated tax for the taxable year, containing such information
as the department may prescribe by regulations, if his or its
income, other than from income on which tax is withheld under
this article, can reasonably be expected to exceed [eight
thousand dollars ($8,000).] the following dollar amount for the
applicable taxable year:
TAXABLE YEAR DOLLAR AMOUNT
2022 2023 and prior $8,000
2023 2024 9,500
2024 2025 11,000
2025 2026 14,000
2026 2027 17,000
2027 2028 20,000
(2) For taxable years beginning after December 31, 2027
2028 , the dollar amount under paragraph (1) shall increase
annually by five hundred dollars ($500). The department shall
submit a notice containing the new dollar amount for the taxable
year to the Legislative Reference Bureau for publication in the
Pennsylvania Bulletin.
* * *
(d) Except as hereinafter provided, the date for filing a
declaration of estimated tax shall depend upon when the resident
or nonresident individual, trust or estate determines that his
or its income on which no tax has been withheld under this
article can reasonably be expected to exceed [eight thousand
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dollars ($8,000) in the taxable year,] the dollar amount under
subsection (a), as follows:
* * *
SECTION 1102-C.6. TRANSFER OF TAX.--* * *
(B) THE AMOUNT TRANSFERRED UNDER SUBSECTION (A) MAY NOT
EXCEED [FORTY MILLION DOLLARS ($40,000,000).] THE FOLLOWING:
(1) FOR EACH FISCAL YEAR BEGINNING AFTER JUNE 30, 2019, AND
ENDING PRIOR TO JULY 1, 2023, FORTY MILLION DOLLARS
($40,000,000).
(2) FOR THE FISCAL YEAR BEGINNING JULY 1, 2023, AND EACH
FISCAL YEAR THEREAFTER, SIXTY MILLION DOLLARS ($60,000,000).
* * *
ARTICLE XVII-L
[LOCAL RESOURCE MANUFACTURING TAX CREDIT] PENNSYLVANIA ECONOMIC
DEVELOPMENT FOR A GROWING ECONOMY (PA EDGE) TAX CREDITS
SECTION 2. ARTICLE XVII-L OF THE ACT IS AMENDED BY ADDING A
SUBARTICLE HEADING TO READ:
SUBARTICLE A
PRELIMINARY PROVISIONS
SECTION 3. SECTION 1701-L OF THE ACT IS AMENDED TO READ:
SECTION 1701-L. SCOPE OF ARTICLE.
THIS ARTICLE [ESTABLISHES A LOCAL RESOURCE MANUFACTURING TAX
CREDIT.] RELATES TO PENNSYLVANIA ECONOMIC DEVELOPMENT FOR A
GROWING ECONOMY (PA EDGE) TAX CREDITS.
SECTION 4. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 1702-L. 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:
"CAPITAL INVESTMENT." THE AMOUNT OF MONEY OR ASSETS INVESTED
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BY A QUALIFIED TAXPAYER IN CONSTRUCTING AND PLACING INTO SERVICE
ONE OF THE FOLLOWING IN THIS COMMONWEALTH:
(1) A PROJECT FACILITY AS DEFINED IN SECTION 1711-L.
(2) A PROJECT FACILITY AS DEFINED IN SECTION 1731-L.
(3) A PROJECT FACILITY AS DEFINED IN SECTION 1751-L.
(4) A PROJECT FACILITY AS DEFINED IN SECTION 1771-L.
"COMPANY." A CORPORATION, PARTNERSHIP, LIMITED LIABILITY
COMPANY, LIMITED LIABILITY PARTNERSHIP, BUSINESS TRUST,
AFFILIATE, UNINCORPORATED JOINT VENTURE OR OTHER BUSINESS ENTITY
DOING BUSINESS IN THIS COMMONWEALTH.
"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
"DOWNSTREAM COMPANY." A COMPANY THAT PURCHASES PRODUCTS OR
CHEMICAL COMPOUNDS MANUFACTURED OR PROCESSED BY A QUALIFIED
TAXPAYER.
"FULL-TIME-EQUIVALENT JOB." THE QUOTIENT OBTAINED BY
DIVIDING THE TOTAL NUMBER OF HOURS FOR WHICH EMPLOYEES WERE
COMPENSATED FOR EMPLOYMENT OVER THE PRECEDING 12-MONTH PERIOD BY
2,080.
"NATURAL GAS." AS DEFINED IN 58 PA.C.S. § 2301 (RELATING TO
DEFINITIONS).
"NEW JOB." A FULL-TIME-EQUIVALENT JOB CREATED DURING THE
CONSTRUCTION OF THE PROJECT FACILITY AND PAYING THE PREVAILING
MINIMUM WAGE AND BENEFIT RATES FOR EACH CRAFT OR CLASSIFICATION
AS DETERMINED BY THE DEPARTMENT OF LABOR AND INDUSTRY UNDER THE
PREVAILING WAGE ACT.
"PASS-THROUGH ENTITY." ANY OF THE FOLLOWING:
(1) A PARTNERSHIP AS DEFINED IN SECTION 301(N.0).
(2) A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
301(N.1).
(3) AN UNINCORPORATED ENTITY SUBJECT TO SECTION 307.21.
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"PERMANENT JOB." A FULL-TIME-EQUIVALENT JOB CREATED TO
SUPPORT THE ONGOING OPERATION OF THE PROJECT FACILITY.
"PREVAILING WAGE ACT." THE ACT OF AUGUST 15, 1961 (P.L.987,
NO.442), KNOWN AS THE PENNSYLVANIA PREVAILING WAGE ACT.
"QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED
UNDER ARTICLES III, IV, VII, VIII, IX, XI AND XV. THE TERM DOES
NOT INCLUDE TAX WITHHELD UNDER SECTION 316.1.
"TAX CREDIT." THE PENNSYLVANIA ECONOMIC DEVELOPMENT FOR A
GROWING ECONOMY (PA EDGE) TAX CREDIT PROVIDED UNDER THIS
ARTICLE.
"UNIT." ONE THOUSAND CUBIC FEET OF NATURAL GAS AT A
TEMPERATURE OF 60 DEGREES FAHRENHEIT AND AN ABSOLUTE PRESSURE OF
14.73 POUNDS PER SQUARE INCH, IN ACCORDANCE WITH AMERICAN GAS
ASSOCIATION STANDARDS AND ACCORDING TO BOYLE'S LAW FOR THE
MEASUREMENT OF GAS UNDER VARYING PRESSURES WITH DEVIATIONS
THEREFROM AS FOLLOWS:
(1) THE AVERAGE ABSOLUTE ATMOSPHERIC PRESSURE SHALL BE
ASSUMED TO BE 14.4 POUNDS TO THE SQUARE INCH, NOTWITHSTANDING
THE ACTUAL ELEVATION OR LOCATION OF POINT OF DELIVERY ABOVE
SEA LEVEL OR VARIATIONS IN THE ATMOSPHERIC PRESSURE.
(2) THE TEMPERATURE OF THE GAS PASSING THE METERS SHALL
BE DETERMINED BY THE CONTINUOUS USE OF A RECORDING
THERMOMETER INSTALLED SO THAT THE THERMOMETER MAY PROPERLY
RECORD THE TEMPERATURE OF THE GAS FLOWING THROUGH THE METERS.
THE ARITHMETIC AVERAGE OF THE TEMPERATURE RECORDED EACH 24-
HOUR DAY SHALL BE USED IN COMPUTING GAS VOLUMES. IF A
RECORDING THERMOMETER IS NOT INSTALLED, OR IF INSTALLED AND
NOT OPERATING PROPERLY, AN AVERAGE FLOWING TEMPERATURE OF 60
DEGREES FAHRENHEIT SHALL BE USED IN COMPUTING GAS VOLUME.
(3) THE SPECIFIC GRAVITY OF THE GAS SHALL BE DETERMINED
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BY TESTS MADE BY THE USE OF AN EDWARDS OR ACME GRAVITY
BALANCE ANNUALLY OR AT INTERVALS AS ARE FOUND NECESSARY IN
PRACTICE. SPECIFIC GRAVITY SHALL BE USED IN COMPUTING GAS
VOLUMES.
(4) THE DEVIATION OF THE NATURAL GAS FROM BOYLE'S LAW
SHALL BE DETERMINED BY TESTS ANNUALLY OR AT OTHER SHORTER
INTERVALS AS ARE FOUND NECESSARY IN PRACTICE. THE APPARATUS
AND THE METHOD TO BE USED IN MAKING THE TESTS SHALL BE IN
ACCORDANCE WITH RECOMMENDATIONS OF THE NATIONAL BUREAU OF
STANDARDS OF THE DEPARTMENT OF COMMERCE OR REPORT NO. 3 OF
THE GAS MEASUREMENT COMMITTEE OF THE AMERICAN GAS ASSOCIATION
ON THE EFFECTIVE DATE OF THIS SECTION. THE RESULTS OF THE
TESTS SHALL BE USED IN COMPUTING THE VOLUME OF GAS DELIVERED.
"UPSTREAM COMPANY." THE TERM INCLUDES A COMPANY THAT IS
ENGAGED IN THE EXPLORATION, DEVELOPMENT, MANUFACTURING,
PRODUCTION, PROCESSING, REFINING OR TRANSPORTATION OF NATURAL
GAS, CLEAN HYDROGEN, MILK OR PRODUCTS USED IN SEMICONDUCTOR
MANUFACTURING, BIOMEDICAL MANUFACTURING OR BIOMEDICAL RESEARCH
IN THIS COMMONWEALTH.
SECTION 5. ARTICLE XVII-L OF THE ACT IS AMENDED BY ADDING A
SUBARTICLE HEADING TO READ:
SUBARTICLE B
LOCAL RESOURCE MANUFACTURING
SECTION 6. SECTION 1702-L OF THE ACT IS AMENDED TO READ:
SECTION [1702-L] 1711-L. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS [ARTICLE]
SUBARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION
UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
["COMPANY." A CORPORATION, PARTNERSHIP, LIMITED LIABILITY
COMPANY, LIMITED LIABILITY PARTNERSHIP, BUSINESS TRUST,
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AFFILIATE, UNINCORPORATED JOINT VENTURE OR OTHER BUSINESS ENTITY
DOING BUSINESS IN THIS COMMONWEALTH.
"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
"DOWNSTREAM COMPANY." THE TERM INCLUDES A COMPANY THAT
PURCHASES CHEMICAL PRODUCTS OR CHEMICAL COMPOUNDS MANUFACTURED
OR PROCESSED BY A QUALIFIED TAXPAYER.]
"DRY NATURAL GAS." NATURAL GAS IN WHICH THERE ARE NO
APPRECIABLE NATURAL GAS LIQUIDS RECOVERABLE BY SEPARATION AT THE
WELLHEAD.
"FERTILIZER." A CHEMICAL PRODUCT DERIVED FROM PETROCHEMICALS
WHICH IS ADDED TO SOIL OR LAND TO INCREASE FERTILITY.
["NATURAL GAS." AS DEFINED IN 58 PA.C.S. § 2301 (RELATING TO
DEFINITIONS).]
"NATURAL GAS LIQUIDS." AS DEFINED IN 58 PA.C.S. § 3203
(RELATING TO DEFINITIONS).
["NEW JOB." A FULL-TIME-EQUIVALENT JOB CREATED DURING THE
CONSTRUCTION OF THE PROJECT FACILITY AND PAYING THE PREVAILING
MINIMUM WAGE AND BENEFIT RATES FOR EACH CRAFT OR CLASSIFICATION
AS DETERMINED BY THE DEPARTMENT OF LABOR AND INDUSTRY UNDER THE
PREVAILING WAGE ACT.
"PASS-THROUGH ENTITY." ANY OF THE FOLLOWING:
(1) A PARTNERSHIP AS DEFINED IN SECTION 301(N.0).
(2) A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
301(N.1).
(3) AN UNINCORPORATED ENTITY SUBJECT TO SECTION 307.21.
"PERMANENT JOB." A FULL-TIME-EQUIVALENT JOB CREATED TO
SUPPORT THE ONGOING OPERATION OF THE PROJECT FACILITY.]
"PETROCHEMICAL." CHEMICAL PRODUCTS OBTAINED FROM REFINING
AND PROCESSING NATURAL GAS. THE TERM DOES NOT INCLUDE
LIQUEFACTION OR OTHER PROCESSING OF NATURAL GAS FOR THE PURPOSE
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OF TRANSPORT.
["PREVAILING WAGE ACT." THE ACT OF AUGUST 15, 1961 (P.L.987,
NO.442), KNOWN AS THE PENNSYLVANIA PREVAILING WAGE ACT.]
"PROJECT FACILITY." A FACILITY LOCATED IN THIS COMMONWEALTH
WHICH MANUFACTURES PETROCHEMICALS OR FERTILIZERS USING DRY
NATURAL GAS AND WHICH REQUIRED A CAPITAL INVESTMENT OF AT LEAST
$400,000,000 TO CONSTRUCT AND PLACE INTO SERVICE.
["QUALIFIED TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED
UNDER ARTICLES III, IV, VII, VIII, IX, XI AND XV. THE TERM DOES
NOT INCLUDE TAX WITHHELD UNDER SECTION 316.1.]
"QUALIFIED TAXPAYER." A COMPANY THAT SATISFIES ALL OF THE
FOLLOWING:
(1) PURCHASES AND USES DRY NATURAL GAS PRODUCED IN THIS
COMMONWEALTH IN THE MANUFACTURE OF PETROCHEMICALS OR
FERTILIZERS AT A PROJECT FACILITY IN THIS COMMONWEALTH THAT
HAS BEEN PLACED IN SERVICE ON OR AFTER THE EFFECTIVE DATE OF
THIS SECTION.
(2) HAS MADE A CAPITAL INVESTMENT OF AT LEAST
$400,000,000 IN ORDER TO CONSTRUCT THE PROJECT FACILITY AND
PLACE THE PROJECT FACILITY INTO SERVICE IN THIS COMMONWEALTH.
(3) HAS CREATED A MINIMUM AGGREGATE TOTAL OF 800 NEW
JOBS AND PERMANENT JOBS.
(4) HAS MADE GOOD FAITH EFFORTS TO RECRUIT AND EMPLOY,
AND TO ENCOURAGE ANY CONTRACTORS OR SUBCONTRACTORS TO RECRUIT
AND EMPLOY, WORKERS FROM THE LOCAL LABOR MARKET FOR
EMPLOYMENT DURING THE CONSTRUCTION OF THE PROJECT FACILITY.
(5) HAS DEMONSTRATED THAT THE NEW JOBS CREATED AT THE
PROJECT FACILITY OR FOR WORK COVERED BY [SECTION 1713-L]
SUBARTICLE F ARE PAID AT LEAST THE PREVAILING MINIMUM WAGE
AND BENEFIT RATES FOR EACH CRAFT OR CLASSIFICATION AS
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DETERMINED BY THE DEPARTMENT OF LABOR AND INDUSTRY.
(6) THE CONSTRUCTION WORK TO PLACE A PROJECT FACILITY
INTO SERVICE SHALL BE PERFORMED SUBJECT TO THE ACT OF MARCH
3, 1978 (P.L.6, NO.3), KNOWN AS THE STEEL PRODUCTS
PROCUREMENT ACT.
["TAX CREDIT." THE LOCAL RESOURCE MANUFACTURING TAX CREDIT
PROVIDED UNDER THIS ARTICLE.
"UNIT." ONE THOUSAND CUBIC FEET OF NATURAL GAS AT A
TEMPERATURE OF 60 DEGREES FAHRENHEIT AND AN ABSOLUTE PRESSURE OF
14.73 POUNDS PER SQUARE INCH, IN ACCORDANCE WITH AMERICAN GAS
ASSOCIATION STANDARDS AND ACCORDING TO BOYLE'S LAW FOR THE
MEASUREMENT OF GAS UNDER VARYING PRESSURES WITH DEVIATIONS
THEREFROM AS FOLLOWS:
(1) THE AVERAGE ABSOLUTE ATMOSPHERIC PRESSURE SHALL BE
ASSUMED TO BE 14.4 POUNDS TO THE SQUARE INCH, NOTWITHSTANDING
THE ACTUAL ELEVATION OR LOCATION OF POINT OF DELIVERY ABOVE
SEA LEVEL OR VARIATIONS IN THE ATMOSPHERIC PRESSURE.
(2) THE TEMPERATURE OF THE GAS PASSING THE METERS SHALL
BE DETERMINED BY THE CONTINUOUS USE OF A RECORDING
THERMOMETER INSTALLED SO THAT THE THERMOMETER MAY PROPERLY
RECORD THE TEMPERATURE OF THE GAS FLOWING THROUGH THE METERS.
THE ARITHMETIC AVERAGE OF THE TEMPERATURE RECORDED EACH 24-
HOUR DAY SHALL BE USED IN COMPUTING GAS VOLUMES. IF A
RECORDING THERMOMETER IS NOT INSTALLED, OR IF INSTALLED AND
NOT OPERATING PROPERLY, AN AVERAGE FLOWING TEMPERATURE OF 60
DEGREES FAHRENHEIT SHALL BE USED IN COMPUTING GAS VOLUME.
(3) THE SPECIFIC GRAVITY OF THE GAS SHALL BE DETERMINED
BY TESTS MADE BY THE USE OF AN EDWARDS OR ACME GRAVITY
BALANCE ANNUALLY OR AT INTERVALS AS ARE FOUND NECESSARY IN
PRACTICE. SPECIFIC GRAVITY SHALL BE USED IN COMPUTING GAS
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VOLUMES.
(4) THE DEVIATION OF THE NATURAL GAS FROM BOYLE'S LAW
SHALL BE DETERMINED BY TESTS ANNUALLY OR AT OTHER SHORTER
INTERVALS AS ARE FOUND NECESSARY IN PRACTICE. THE APPARATUS
AND THE METHOD TO BE USED IN MAKING THE TESTS SHALL BE IN
ACCORDANCE WITH RECOMMENDATIONS OF THE NATIONAL BUREAU OF
STANDARDS OF THE DEPARTMENT OF COMMERCE OR REPORT NO. 3 OF
THE GAS MEASUREMENT COMMITTEE OF THE AMERICAN GAS ASSOCIATION
ON THE EFFECTIVE DATE OF THIS SECTION. THE RESULTS OF THE
TESTS SHALL BE USED IN COMPUTING THE VOLUME OF GAS DELIVERED.
"UPSTREAM COMPANY." THE TERM INCLUDES A COMPANY THAT IS
ENGAGED IN THE EXPLORATION, DEVELOPMENT, PRODUCTION, PROCESSING,
REFINING OR TRANSPORTATION OF DRY NATURAL GAS IN THIS
COMMONWEALTH.]
SECTION 7. SECTION 1703-L OF THE ACT IS RENUMBERED TO READ:
SECTION [1703-L] 1712-L. ELIGIBILITY.
IN ORDER TO BE ELIGIBLE TO RECEIVE A TAX CREDIT, A COMPANY
SHALL DEMONSTRATE THE FOLLOWING:
(1) THE COMPANY MEETS THE REQUIREMENTS OF A QUALIFIED
TAXPAYER.
(2) THE USE OF CARBON CAPTURE AND SEQUESTRATION
TECHNOLOGY, OR SIMILAR TECHNOLOGIES, AT THE PROJECT FACILITY
TO THE EXTENT IT IS COST EFFECTIVE AND FEASIBLE AT THE
DISCRETION OF THE QUALIFIED TAXPAYER.
(3) CONFIRMATION THAT THE COMPANY HAS FILED ALL REQUIRED
STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAXABLE
YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED BY
ASSESSMENT OR DETERMINATION BY THE DEPARTMENT AND NOT UNDER
TIMELY APPEAL.
SECTION 8. SECTION 1704-L OF THE ACT, AMENDED JUNE 30, 2021
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(P.L.124, NO.25), IS AMENDED TO READ:
SECTION [1704-L] 1713-L. APPLICATION AND APPROVAL OF TAX
CREDIT.
(A) RATE.--THE TAX CREDIT SHALL BE EQUAL TO $0.47 PER UNIT
OF DRY NATURAL GAS THAT IS PURCHASED AND USED IN THE
MANUFACTURING OF PETROCHEMICALS OR FERTILIZERS AT THE PROJECT
FACILITY BY A QUALIFIED TAXPAYER.
(B) APPLICATION.--
(1) A QUALIFIED TAXPAYER MAY APPLY TO THE DEPARTMENT FOR
A TAX CREDIT UNDER THIS SECTION.
(2) THE APPLICATION MUST BE SUBMITTED TO THE DEPARTMENT
BY MARCH 1 FOR THE TAX CREDIT CLAIMED FOR DRY NATURAL GAS
PURCHASED AND USED IN MANUFACTURING OF PETROCHEMICALS OR
FERTILIZERS BY THE QUALIFIED TAXPAYER AT THE PROJECT FACILITY
DURING THE PRIOR CALENDAR YEAR.
(3) THE APPLICATION MUST BE ON THE FORM REQUIRED BY THE
DEPARTMENT WHICH SHALL INCLUDE THE FOLLOWING:
(I) INFORMATION REQUIRED BY THE DEPARTMENT TO
DOCUMENT THE AMOUNT OF DRY NATURAL GAS PURCHASED AND USED
IN THE MANUFACTURE OF PETROCHEMICALS OR FERTILIZERS AT
THE PROJECT FACILITY;
(II) INFORMATION REQUIRED BY THE DEPARTMENT TO
VERIFY THAT THE APPLICANT IS A QUALIFIED TAXPAYER; AND
(III) ANY OTHER INFORMATION AS THE DEPARTMENT DEEMS
APPROPRIATE.
(C) REVIEW AND APPROVAL.--
(1) THE DEPARTMENT SHALL REVIEW THE APPLICATIONS AND
SHALL ISSUE AN APPROVAL OR DISAPPROVAL BY MAY 1.
(2) UPON APPROVAL, THE DEPARTMENT SHALL ISSUE A
CERTIFICATE STATING THE AMOUNT OF TAX CREDIT GRANTED FOR DRY
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NATURAL GAS PURCHASED AND USED IN THE MANUFACTURE OF
PETROCHEMICALS OR FERTILIZERS AT THE PROJECT FACILITY IN THE
PRIOR CALENDAR YEAR.
(D) AVAILABILITY OF TAX CREDITS.--
(1) EACH FISCAL YEAR, [$26,666,668] $56,666,668 IN TAX
CREDITS SHALL BE MADE AVAILABLE TO THE DEPARTMENT IN
ACCORDANCE WITH THIS [ARTICLE] SUBARTICLE.
(2) NO MORE THAN TWO QUALIFIED TAXPAYERS SHALL RECEIVE A
TAX CREDIT ANNUALLY, FOR A MAXIMUM CREDIT OF $6,666,667 EACH.
(3) THE DEPARTMENT SHALL ISSUE UNALLOCATED TAX CREDITS
TO NO MORE THAN ONE QUALIFIED TAXPAYER, NOTWITHSTANDING THE
MAXIMUM CREDIT LIMIT UNDER PARAGRAPH (2), IF THE QUALIFIED
TAXPAYER:
(I) HAS MADE A TOTAL CAPITAL INVESTMENT OF AT LEAST
$1,000,000,000 IN ORDER TO CONSTRUCT THE PROJECT FACILITY
AND PLACE THE PROJECT FACILITY INTO SERVICE IN THIS
COMMONWEALTH;
(II) HAS CREATED A MINIMUM AGGREGATE TOTAL OF 1,800
NEW JOBS AND PERMANENT JOBS; AND
(III) HAS SATISFIED ALL OTHER ELIGIBILITY
REQUIREMENTS FOR A QUALIFIED TAXPAYER UNDER THIS
[ARTICLE] SUBARTICLE.
(4) FOR PURPOSES OF PARAGRAPH (3), THE TERM "UNALLOCATED
TAX CREDITS" MEANS THE DIFFERENCE BETWEEN TAX CREDITS
AUTHORIZED UNDER PARAGRAPH (1) AND APPROVED UNDER PARAGRAPH
(2).
SECTION 9. SECTION 1705-L OF THE ACT IS AMENDED TO READ:
SECTION [1705-L] 1714-L. USE OF TAX CREDITS.
(A) INITIAL USE.--PRIOR TO SALE OR ASSIGNMENT OF A TAX
CREDIT UNDER SECTION [1707-L] 1716-L, A QUALIFIED TAXPAYER MUST
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FIRST USE A TAX CREDIT AGAINST THE QUALIFIED TAX LIABILITY
INCURRED IN THE TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS
APPROVED.
(B) ELIGIBILITY.--THE TAX CREDIT MAY BE APPLIED AGAINST UP
TO 20% OF THE QUALIFIED TAXPAYER'S QUALIFIED TAX LIABILITIES
INCURRED IN THE TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS
APPROVED.
(C) LIMIT.--A QUALIFIED TAXPAYER THAT HAS BEEN GRANTED A TAX
CREDIT UNDER THIS [ARTICLE] SUBARTICLE SHALL BE INELIGIBLE FOR
ANY OTHER TAX CREDIT PROVIDED UNDER THIS ACT.
SECTION 10. SECTION 1706-L OF THE ACT IS RENUMBERED TO READ:
SECTION [1706-L] 1715-L. CARRYOVER, CARRYBACK AND REFUND.
A TAX CREDIT CANNOT BE CARRIED BACK, CARRIED FORWARD OR BE
USED TO OBTAIN A REFUND.
SECTION 11. SECTIONS 1707-L, 1708-L AND 1709-L OF THE ACT
ARE AMENDED TO READ:
SECTION [1707-L] 1716-L. SALE OR ASSIGNMENT.
(A) AUTHORIZATION.--IF THE QUALIFIED TAXPAYER HOLDS A TAX
CREDIT THROUGH THE END OF THE CALENDAR YEAR IN WHICH THE TAX
CREDIT WAS GRANTED, THE QUALIFIED TAXPAYER MAY SELL OR ASSIGN A
TAX CREDIT, IN WHOLE OR IN PART, PROVIDED THE SALE IS EFFECTIVE
BY THE CLOSE OF THE FOLLOWING CALENDAR YEAR.
(B) APPLICATION.--
(1) TO SELL OR ASSIGN A TAX CREDIT, A QUALIFIED TAXPAYER
MUST FILE AN APPLICATION FOR THE SALE OR ASSIGNMENT OF THE
TAX CREDIT WITH THE DEPARTMENT. THE APPLICATION MUST BE ON A
FORM REQUIRED BY THE DEPARTMENT.
(2) TO APPROVE AN APPLICATION, THE DEPARTMENT MUST
RECEIVE:
(I) A FINDING FROM THE DEPARTMENT THAT THE APPLICANT
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HAS:
(A) FILED ALL REQUIRED STATE TAX REPORTS AND
RETURNS FOR ALL APPLICABLE TAXABLE YEARS; AND
(B) PAID ANY BALANCE OF STATE TAX DUE AS
DETERMINED BY ASSESSMENT OR DETERMINATION BY THE
DEPARTMENT AND NOT UNDER TIMELY APPEAL; AND
(II) FOR A SALE OR ASSIGNMENT TO A COMPANY THAT IS
NOT AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY, A
CERTIFICATION FROM THE QUALIFIED TAXPAYER THAT THE
QUALIFIED TAXPAYER HAS OFFERED TO SELL OR ASSIGN THE TAX
CREDIT:
(A) EXCLUSIVELY TO A DOWNSTREAM COMPANY FOR A
PERIOD OF 30 DAYS FOLLOWING APPROVAL OF THE TAX
CREDIT UNDER SECTION [1704-L(C)] 1713-L(C); AND
(B) TO AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY
FOR A PERIOD OF 30 DAYS FOLLOWING EXPIRATION OF THE
PERIOD UNDER CLAUSE (A).
(C) APPROVAL.--UPON APPROVAL BY THE DEPARTMENT, A QUALIFIED
TAXPAYER MAY SELL OR ASSIGN, IN WHOLE OR IN PART, A TAX CREDIT.
SECTION [1708-L] 1717-L. PURCHASERS AND ASSIGNEES.
(A) TIME.--THE PURCHASER OR ASSIGNEE UNDER SECTION [1707-L]
1716-L MUST CLAIM THE TAX CREDIT IN THE CALENDAR YEAR IN WHICH
THE PURCHASE OR ASSIGNMENT IS MADE.
(B) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A PURCHASER
OR ASSIGNEE UNDER SECTION [1707-L] 1716-L MAY USE AGAINST ANY
ONE QUALIFIED TAX LIABILITY MAY NOT EXCEED 50% OF ANY OF THE
QUALIFIED TAX LIABILITIES OF THE PURCHASER OR ASSIGNEE FOR THE
TAXABLE YEAR.
(C) RESALE AND ASSIGNMENT.--
(1) A PURCHASER UNDER SECTION [1707-L] 1716-L MAY NOT
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SELL OR ASSIGN THE PURCHASED TAX CREDIT.
(2) AN ASSIGNEE UNDER SECTION [1707-L] 1716-L MAY NOT
SELL OR ASSIGN THE ASSIGNED TAX CREDIT.
(D) NOTICE.--THE PURCHASER OR ASSIGNEE UNDER SECTION [1707-
L] 1716-L SHALL NOTIFY THE DEPARTMENT OF THE SELLER OR ASSIGNOR
OF THE TAX CREDIT IN COMPLIANCE WITH PROCEDURES SPECIFIED BY THE
DEPARTMENT.
SECTION [1709-L] 1718-L. PASS-THROUGH ENTITY.
(A) ELECTION.--IF A PASS-THROUGH ENTITY HAS AN UNUSED TAX
CREDIT, THE PASS-THROUGH ENTITY 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 SHAREHOLDERS, MEMBERS OR PARTNERS ARE ENTITLED.
(B) LIMITATION.--THE SAME UNUSED TAX CREDIT UNDER SUBSECTION
(A) MAY NOT BE CLAIMED BY:
(1) THE PASS-THROUGH ENTITY; AND
(2) A SHAREHOLDER, MEMBER OR PARTNER OF THE PASS-THROUGH
ENTITY.
(C) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A TRANSFEREE
UNDER SUBSECTION (A) MAY USE AGAINST ANY ONE QUALIFIED TAX
LIABILITY MAY NOT EXCEED 20% OF ANY QUALIFIED TAX LIABILITIES
FOR THE TAXABLE YEAR.
(D) TIME.--A TRANSFEREE UNDER SUBSECTION (A) MUST CLAIM THE
TAX CREDIT IN THE CALENDAR YEAR IN WHICH THE TRANSFER IS MADE.
(E) SALE AND ASSIGNMENT.--A TRANSFEREE UNDER SUBSECTION (A)
MAY NOT SELL OR ASSIGN THE TAX CREDIT.
SECTION 12. SECTION 1710-L OF THE ACT IS RENUMBERED TO READ:
SECTION [1710-L] 1719-L. (RESERVED).
SECTION 13. SECTIONS 1711-L AND 1712-L OF THE ACT ARE
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AMENDED TO READ:
SECTION [1711-L] 1720-L. ADMINISTRATION.
(A) AUDITS AND ASSESSMENTS.--
(1) THE DEPARTMENT MAY AUDIT A TAXPAYER AWARDED A TAX
CREDIT TO ASCERTAIN THE VALIDITY OF THE AMOUNT AWARDED.
(2) THE DEPARTMENT MAY ISSUE AN ASSESSMENT AGAINST A
TAXPAYER FOR AN IMPROPERLY ISSUED TAX CREDIT. THE PROCEDURES,
COLLECTION, ENFORCEMENT AND APPEALS OF AN ASSESSMENT MADE
UNDER THIS SECTION SHALL BE GOVERNED BY ARTICLE II.
(B) GUIDELINES AND REGULATIONS.--THE DEPARTMENT SHALL
DEVELOP WRITTEN GUIDELINES FOR THE IMPLEMENTATION OF THIS
[ARTICLE] SUBARTICLE. THE GUIDELINES SHALL BE IN EFFECT UNTIL
THE DEPARTMENT PROMULGATES REGULATIONS FOR THE IMPLEMENTATION OF
THE PROVISIONS OF THIS [ARTICLE] SUBARTICLE.
SECTION [1712-L] 1721-L. REPORTS TO GENERAL ASSEMBLY.
(A) ANNUAL REPORT.--NO LATER THAN THE YEAR AFTER WHICH TAX
CREDITS ARE FIRST AWARDED UNDER THIS [ARTICLE] SUBARTICLE, AND
EACH OCTOBER 1 THEREAFTER, THE DEPARTMENT SHALL SUBMIT A REPORT
ON THE TAX CREDIT PROVIDED UNDER THIS [ARTICLE] SUBARTICLE TO
THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS
COMMITTEE OF THE SENATE, THE CHAIRPERSON AND MINORITY
CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF
REPRESENTATIVES, THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE
FINANCE COMMITTEE OF THE SENATE AND THE CHAIRPERSON AND MINORITY
CHAIRPERSON OF THE FINANCE COMMITTEE OF THE HOUSE OF
REPRESENTATIVES. THE REPORT MUST INCLUDE THE NAMES OF THE
QUALIFIED TAXPAYERS UTILIZING THE TAX CREDIT AS OF THE DATE OF
THE REPORT AND THE AMOUNT OF TAX CREDITS APPROVED FOR, UTILIZED
BY OR SOLD OR ASSIGNED BY A QUALIFIED TAXPAYER.
(B) RECONCILIATION REPORT.--ON MAY 1 OF THE YEAR WHICH IS 10
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YEARS AFTER THE YEAR IN WHICH TAX CREDITS ARE FIRST AWARDED
UNDER THIS [ARTICLE] SUBARTICLE, THE DEPARTMENT SHALL SUBMIT TO
THE SECRETARY OF THE SENATE AND THE CHIEF CLERK OF THE HOUSE OF
REPRESENTATIVES A RECONCILIATION REPORT ON THE EFFECTIVENESS OF
THIS [ARTICLE] SUBARTICLE. THE REPORT SHALL INCLUDE, TO THE
EXTENT POSSIBLE, THE FOLLOWING INFORMATION FOR THE PRECEDING 10
YEARS:
(1) THE NAME AND BUSINESS ADDRESS OF ALL QUALIFIED
TAXPAYERS WHO HAVE BEEN GRANTED TAX CREDITS UNDER THIS
[ARTICLE] SUBARTICLE.
(2) THE AMOUNT OF TAX CREDITS GRANTED TO EACH QUALIFIED
TAXPAYER.
(3) THE TOTAL NUMBER OF JOBS CREATED BY THE QUALIFIED
TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY AND ANY
COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER SERVICES
THAT SUPPORT THE BUSINESS OPERATIONS OF THE QUALIFIED
TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY. THIS
PARAGRAPH INCLUDES THE AVERAGE ANNUAL SALARY AND HOURLY WAGE
INFORMATION.
(4) THE AMOUNT OF TAXES PAID UNDER ARTICLE II BY THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY
AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER
SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(5) THE AMOUNT OF TAXES WITHHELD FROM EMPLOYEES OR PAID
BY MEMBERS, PARTNERS OR SHAREHOLDERS OF THE PASS-THROUGH
ENTITIES UNDER ARTICLE III OF THE QUALIFIED TAXPAYER,
UPSTREAM COMPANY AND DOWNSTREAM COMPANY AND ANY COMPANIES
THAT PROVIDE GOODS, UTILITIES OR OTHER SERVICES THAT SUPPORT
THE BUSINESS OPERATIONS OF THE QUALIFIED TAXPAYER, UPSTREAM
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COMPANY AND DOWNSTREAM COMPANY.
(6) THE AMOUNT OF TAXES PAID UNDER ARTICLE IV BY THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY
AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER
SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(7) THE AMOUNT OF TAXES PAID UNDER ARTICLE XI BY THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY
AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR OTHER
SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(8) THE AMOUNT OF ANY OTHER STATE OR LOCAL TAXES PAID BY
THE QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM
COMPANY AND ANY COMPANIES THAT PROVIDE GOODS, UTILITIES OR
OTHER SERVICES THAT SUPPORT THE BUSINESS OPERATIONS OF THE
QUALIFIED TAXPAYER, UPSTREAM COMPANY AND DOWNSTREAM COMPANY.
(9) ANY OTHER INFORMATION PERTAINING TO THE ECONOMIC
IMPACT OF THIS [ARTICLE] SUBARTICLE ON THIS COMMONWEALTH.
(C) REDUCTION.--IF THE RECONCILIATION REPORT ISSUED UNDER
SUBSECTION (B) REVEALS THAT THE TOTAL AMOUNT OF THE TAX CREDITS
GRANTED UNDER THIS [ARTICLE] SUBARTICLE EXCEEDS THE TOTAL AMOUNT
OF TAX REVENUE REPORTED UNDER SUBSECTION (B)(4), (5), (6), (7),
(8) AND (9), THE REPORT MUST INCLUDE ANY RECOMMENDATION FOR
CHANGES IN THE CALCULATION OF THE CREDIT.
(D) PUBLICATION.--THE REPORTS REQUIRED BY THIS SECTION SHALL
BE A PUBLIC RECORD AS DEFINED UNDER SECTION 102 OF THE ACT OF
FEBRUARY 14, 2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO-KNOW LAW,
AND SHALL BE AVAILABLE ELECTRONICALLY ON THE PUBLICLY ACCESSIBLE
INTERNET WEBSITE OF THE DEPARTMENT. THE REPORTS REQUIRED UNDER
THIS SECTION MAY NOT CONTAIN "CONFIDENTIAL PROPRIETARY
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INFORMATION" AS DEFINED IN SECTION 102 OF THE RIGHT-TO-KNOW LAW.
SECTION 14. SECTION 1713-L OF THE ACT IS REPEALED:
[SECTION 1713-L. PREVAILING WAGE.
(A) APPLICATION.--A PROJECT FACILITY FOR WHICH A TAX CREDIT
IS SOUGHT AND AWARDED UNDER THIS ARTICLE IS DEEMED TO MEET EACH
OF THE MINIMUM REQUIREMENTS NECESSARY TO APPLY THE WAGE AND
BENEFIT RATES, AND RELATED CERTIFICATION OF PAYROLL RECORDS,
REQUIRED BY THE PREVAILING WAGE ACT. A QUALIFIED TAXPAYER, OR
THE QUALIFIED TAXPAYER'S AGENT, AND ALL CONTRACTORS AND
SUBCONTRACTORS, OF EVERY TIER, ENGAGED TO PERFORM ON THE PROJECT
FACILITY MUST COMPLY WITH ALL PROVISIONS AND REQUIREMENTS OF THE
PREVAILING WAGE ACT FOR ALL NEW JOBS AND FOR ALL CRAFTS OR
CLASSIFICATIONS PERFORMING CONSTRUCTION, RECONSTRUCTION,
DEMOLITION, ALTERATION AND/OR REPAIR WORK, OTHER THAN
MAINTENANCE WORK, UNDERTAKEN AT THE PROJECT FACILITY DURING THE
INITIAL CONSTRUCTION AND DURING ANY PERIOD IN WHICH TAX CREDITS
ARE SOUGHT AND AWARDED FOR THE PROJECT FACILITY.
(B) COMPLIANCE.--THE DEPARTMENT OF LABOR AND INDUSTRY SHALL
ENFORCE THIS SECTION AND SHALL APPLY THE SAME ADMINISTRATION AND
ENFORCEMENT APPLICABLE TO ANY PROJECT OF CONSTRUCTION,
RECONSTRUCTION, DEMOLITION, ALTERATION AND/OR REPAIR WORK, OTHER
THAN MAINTENANCE WORK, UNDERTAKEN PURSUANT TO THE REQUIREMENTS
OF THE PREVAILING WAGE ACT TO ENSURE COMPLIANCE.
(C) NOTIFICATION.--PRIOR TO THE SOLICITATION OF BIDS OR
PROPOSALS OF ANY CONTRACT OR SUBCONTRACT COVERED UNDER
SUBSECTION (A), THE QUALIFIED TAXPAYER, OR THE QUALIFIED
TAXPAYER'S AGENT, SHALL NOTIFY THE DEPARTMENT OF LABOR AND
INDUSTRY OF THE SOLICITATION AND REQUEST THE ISSUANCE OF A WAGE
AND BENEFIT RATE DETERMINATION FOR ALL CRAFTS AND
CLASSIFICATIONS ANTICIPATED TO PERFORM AT THE PROJECT FACILITY.
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RATE REQUESTS SHALL BE IN CONFORMITY WITH THE PROCEDURES OF THE
PREVAILING WAGE ACT, AND THE DEPARTMENT OF LABOR AND INDUSTRY
SHALL ISSUE RATES UPON REQUEST AS REQUIRED PURSUANT TO THIS
SECTION AND THE PROVISIONS OF THE PREVAILING WAGE ACT.
(D) VIOLATION.--IN ADDITION TO ENFORCEMENT AUTHORIZED UNDER
THE PREVAILING WAGE ACT AND SUBSECTION (B), IF, AFTER NOTICE AND
HEARING, THE DEPARTMENT OF LABOR AND INDUSTRY DETERMINES THAT
THE QUALIFIED TAXPAYER INTENTIONALLY FAILED TO PAY OR
INTENTIONALLY CAUSED ANOTHER TO FAIL TO PAY PREVAILING WAGE
RATES OR BENEFIT RATES AS SET FORTH UNDER SECTION 11(H) OF THE
PREVAILING WAGE ACT FOR WORK COVERED UNDER SUBSECTION (A), OR
RATIFIED ANY SUCH INTENTIONAL FAILURE BY ANY CONTRACTORS OR
SUBCONTRACTORS OF THE QUALIFIED TAXPAYER, THE QUALIFIED TAXPAYER
SHALL BE REQUIRED TO REFUND 10% OF THE AMOUNT OF THE TAX CREDITS
AWARDED TO THE QUALIFIED TAXPAYER FOR THE FIRST FISCAL YEAR FOR
WHICH TAX CREDITS ARE AWARDED, IN THE CASE OF INITIAL
CONSTRUCTION, OR THE FISCAL YEAR IN WHICH THE INTENTIONAL
NONCOMPLIANCE OCCURRED AS DETERMINED BY THE DEPARTMENT.
(E) APPEAL.--A FINDING OF A VIOLATION UNDER SUBSECTION (D)
SHALL BE APPEALABLE UNDER SECTION 2.2(E)(1) OF THE PREVAILING
WAGE ACT AND 34 PA. CODE § 213.3 (RELATING TO APPEALS FROM
DETERMINATIONS OF THE SECRETARY). ANY FINAL DETERMINATION BY THE
APPEALS BOARD UNDER THE PREVAILING WAGE ACT MAY BE APPEALED
PURSUANT TO 2 PA.C.S. (RELATING TO ADMINISTRATIVE LAW AND
PROCEDURE).]
SECTION 15. SECTIONS 1714-L AND 1715-L OF THE ACT ARE
AMENDED TO READ:
SECTION [1714-L] 1722-L. APPLICABILITY.
THIS [ARTICLE] SUBARTICLE SHALL APPLY TO THE PURCHASE OF DRY
NATURAL GAS PRODUCED IN THIS COMMONWEALTH FOR THE PERIOD
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BEGINNING JANUARY 1, 2024, AND ENDING DECEMBER 31, 2049.
SECTION [1715-L] 1723-L. EXPIRATION.
THIS [ARTICLE] SUBARTICLE SHALL EXPIRE DECEMBER 31, 2050.
SECTION 16. ARTICLE XVII-L OF THE ACT IS AMENDED BY ADDING
SUBARTICLES TO READ:
SUBARTICLE C
PENNSYLVANIA MILK PROCESSING
SECTION 1731-L. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBARTICLE
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
"GALLON." A UNITED STATES LIQUID GALLON EQUAL TO A VOLUME OF
231 CUBIC INCHES AND EQUAL TO 3.785411784 LITERS OR 0.13368
CUBIC FEET, WHERE VOLUMETRIC MEASUREMENTS MADE AT AMBIENT
FLOWING CONDITIONS ARE TYPICALLY ADJUSTED FOR COMPOSITION AND TO
STANDARD CONDITIONS USING ESTABLISHED INDUSTRY STANDARD
PRACTICES.
"MILK." THE LACTEAL SECRETION, PRACTICALLY FREE FROM
COLOSTRUM, OBTAINED BY THE COMPLETE MILKING OF ONE OR MORE
HEALTHY COWS.
"PROJECT FACILITY." A FACILITY LOCATED IN THIS COMMONWEALTH
WHICH IS OWNED AND OPERATED BY A QUALIFIED TAXPAYER AND WHICH
UTILIZES MILK PURCHASED FROM SOURCES WITHIN THIS COMMONWEALTH
AND PROCESSED BY A QUALIFIED TAXPAYER AT THE PROJECT FACILITY.
"QUALIFIED TAXPAYER." A COMPANY THAT SATISFIES ALL OF THE
FOLLOWING:
(1) PURCHASES AND PROCESSES MILK PRODUCED IN THIS
COMMONWEALTH AT A PROJECT FACILITY IN THIS COMMONWEALTH THAT
HAS BEEN PLACED IN SERVICE ON OR AFTER THE EFFECTIVE DATE OF
THIS SECTION.
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(2) HAS MADE A CAPITAL INVESTMENT OF AT LEAST
$500,000,000 IN ORDER TO CONSTRUCT THE PROJECT FACILITY AND
PLACE THE PROJECT FACILITY INTO SERVICE IN THIS COMMONWEALTH.
(3) HAS CREATED A MINIMUM AGGREGATE TOTAL OF 1,200 NEW
JOBS AND PERMANENT JOBS.
(4) HAS MADE GOOD FAITH EFFORTS TO RECRUIT AND EMPLOY,
AND TO ENCOURAGE ANY CONTRACTORS OR SUBCONTRACTORS TO RECRUIT
AND EMPLOY, WORKERS FROM THE LOCAL LABOR MARKET FOR
EMPLOYMENT DURING THE CONSTRUCTION OF THE PROJECT FACILITY.
(5) HAS DEMONSTRATED THAT THE NEW JOBS CREATED AT THE
PROJECT FACILITY OR FOR WORK COVERED BY SUBARTICLE F ARE PAID
AT LEAST THE PREVAILING MINIMUM WAGE AND BENEFIT RATES FOR
EACH CRAFT OR CLASSIFICATION AS DETERMINED BY THE DEPARTMENT
OF LABOR AND INDUSTRY.
(6) THE CONSTRUCTION WORK TO PLACE A PROJECT FACILITY
INTO SERVICE SHALL BE PERFORMED SUBJECT TO THE ACT OF MARCH
3, 1978 (P.L.6, NO.3), KNOWN AS THE STEEL PRODUCTS
PROCUREMENT ACT.
SECTION 1732-L. ELIGIBILITY.
IN ORDER TO BE ELIGIBLE TO RECEIVE A TAX CREDIT, A COMPANY
SHALL DEMONSTRATE THE FOLLOWING:
(1) THE COMPANY MEETS THE REQUIREMENTS OF A QUALIFIED
TAXPAYER.
(2) CONFIRMATION THAT THE COMPANY HAS FILED ALL REQUIRED
STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAXABLE
YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED BY
ASSESSMENT OR DETERMINATION BY THE DEPARTMENT AND NOT UNDER
TIMELY APPEAL.
SECTION 1733-L. APPLICATION AND APPROVAL OF TAX CREDIT.
(A) RATE.--THE TAX CREDIT SHALL BE EQUAL TO $0.05 PER GALLON
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OF MILK PURCHASED AND PRODUCED FROM SOURCES EXCLUSIVELY WITHIN
THIS COMMONWEALTH AND PROCESSED AT THE PROJECT FACILITY BY A
QUALIFIED TAXPAYER.
(B) APPLICATION.--
(1) A QUALIFIED TAXPAYER MAY APPLY TO THE DEPARTMENT FOR
A TAX CREDIT UNDER THIS SECTION.
(2) THE APPLICATION MUST BE SUBMITTED TO THE DEPARTMENT
BY MARCH 1 FOR THE TAX CREDIT CLAIMED FOR MILK PURCHASED AND
PROCESSED BY THE QUALIFIED TAXPAYER AT THE PROJECT FACILITY
DURING THE PRIOR CALENDAR YEAR.
(3) THE APPLICATION MUST BE ON THE FORM REQUIRED BY THE
DEPARTMENT WHICH SHALL INCLUDE THE FOLLOWING:
(I) INFORMATION REQUIRED BY THE DEPARTMENT TO
DOCUMENT THE AMOUNT OF MILK PURCHASED AND PROCESSED AT
THE PROJECT FACILITY;
(II) INFORMATION REQUIRED BY THE DEPARTMENT TO
VERIFY THAT THE APPLICANT IS A QUALIFIED TAXPAYER; AND
(III) ANY OTHER INFORMATION AS THE DEPARTMENT DEEMS
APPROPRIATE.
(C) REVIEW AND APPROVAL.--
(1) THE DEPARTMENT SHALL REVIEW THE APPLICATIONS AND
SHALL ISSUE AN APPROVAL OR DISAPPROVAL BY MAY 1.
(2) UPON APPROVAL, THE DEPARTMENT SHALL ISSUE A
CERTIFICATE STATING THE AMOUNT OF TAX CREDIT GRANTED FOR MILK
PURCHASED AND PROCESSED AT THE PROJECT FACILITY IN THE PRIOR
CALENDAR YEAR.
(D) AVAILABILITY OF TAX CREDITS.--
(1) EACH FISCAL YEAR, $15,000,000 IN TAX CREDITS SHALL
BE MADE AVAILABLE TO THE DEPARTMENT IN ACCORDANCE WITH THIS
SUBARTICLE.
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(2) THE DEPARTMENT SHALL ISSUE UP TO $15,000,000 IN TAX
CREDITS IN A FISCAL YEAR TO THE QUALIFIED TAXPAYER WHICH
FIRST MEETS THE QUALIFICATIONS TO RECEIVE A TAX CREDIT UNDER
THIS SUBARTICLE.
(3) AN AMOUNT UNDER PARAGRAPH (1) WHICH REMAINS
UNALLOCATED UNDER PARAGRAPH (2) SHALL BE ISSUED TO THE
QUALIFIED TAXPAYER WHICH NEXT MEETS THE QUALIFICATIONS TO
RECEIVE A TAX CREDIT UNDER THIS SUBARTICLE.
(4) THE TOTAL AGGREGATE AMOUNT OF TAX CREDITS AWARDED TO
A QUALIFIED TAXPAYER UNDER THIS SUBARTICLE MAY NOT EXCEED 25%
OF THE CAPITAL INVESTMENT MADE TO CONSTRUCT A PROJECT
FACILITY AND PLACE THE PROJECT FACILITY INTO SERVICE IN THIS
COMMONWEALTH.
SECTION 1734-L. USE OF TAX CREDITS.
(A) INITIAL USE.--PRIOR TO SALE OR ASSIGNMENT OF A TAX
CREDIT UNDER SECTION 1736-L, A QUALIFIED TAXPAYER MUST FIRST USE
A TAX CREDIT AGAINST THE QUALIFIED TAX LIABILITY INCURRED IN THE
TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS APPROVED.
(B) ELIGIBILITY.--THE TAX CREDIT MAY BE APPLIED AGAINST UP
TO 20% OF A QUALIFIED TAXPAYER'S QUALIFIED TAX LIABILITIES
INCURRED IN THE TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS
APPROVED.
(C) LIMIT.--A QUALIFIED TAXPAYER THAT HAS BEEN GRANTED A TAX
CREDIT UNDER THIS SUBARTICLE SHALL BE INELIGIBLE FOR ANY OTHER
TAX CREDIT PROVIDED UNDER THIS ACT OR A TAX BENEFIT AS DEFINED
IN SECTION 1701-A.1.
SECTION 1735-L. CARRYOVER, CARRYBACK AND REFUND.
A TAX CREDIT CANNOT BE CARRIED BACK, CARRIED FORWARD OR BE
USED TO OBTAIN A REFUND.
SECTION 1736-L. SALE OR ASSIGNMENT.
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(A) AUTHORIZATION.--IF THE QUALIFIED TAXPAYER HOLDS A TAX
CREDIT THROUGH THE END OF THE CALENDAR YEAR IN WHICH THE TAX
CREDIT WAS GRANTED, THE QUALIFIED TAXPAYER MAY SELL OR ASSIGN A
TAX CREDIT, IN WHOLE OR IN PART, PROVIDED THE SALE IS EFFECTIVE
BY THE CLOSE OF THE FOLLOWING CALENDAR YEAR.
(B) APPLICATION.--
(1) TO SELL OR ASSIGN A TAX CREDIT, A QUALIFIED TAXPAYER
MUST FILE AN APPLICATION FOR THE SALE OR ASSIGNMENT OF THE
TAX CREDIT WITH THE DEPARTMENT. THE APPLICATION MUST BE ON A
FORM REQUIRED BY THE DEPARTMENT.
(2) TO APPROVE AN APPLICATION, THE DEPARTMENT MUST
RECEIVE:
(I) A FINDING FROM THE DEPARTMENT THAT THE APPLICANT
HAS:
(A) FILED ALL REQUIRED STATE TAX REPORTS AND
RETURNS FOR ALL APPLICABLE TAXABLE YEARS; AND
(B) PAID ANY BALANCE OF STATE TAX DUE AS
DETERMINED BY ASSESSMENT OR DETERMINATION BY THE
DEPARTMENT AND NOT UNDER TIMELY APPEAL; AND
(II) FOR A SALE OR ASSIGNMENT TO A COMPANY THAT IS
NOT AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY, A
CERTIFICATION FROM THE QUALIFIED TAXPAYER THAT THE
QUALIFIED TAXPAYER HAS OFFERED TO SELL OR ASSIGN THE TAX
CREDIT:
(A) EXCLUSIVELY TO A DOWNSTREAM COMPANY FOR A
PERIOD OF 30 DAYS FOLLOWING APPROVAL OF THE TAX
CREDIT UNDER SECTION 1733-L(C); AND
(B) TO AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY
FOR A PERIOD OF 30 DAYS FOLLOWING EXPIRATION OF THE
PERIOD UNDER CLAUSE (A).
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(C) APPROVAL.--UPON APPROVAL BY THE DEPARTMENT, A QUALIFIED
TAXPAYER MAY SELL OR ASSIGN, IN WHOLE OR IN PART, A TAX CREDIT.
SECTION 1737-L. PURCHASERS AND ASSIGNEES.
(A) TIME.--THE PURCHASER OR ASSIGNEE UNDER SECTION 1736-L
MUST CLAIM THE TAX CREDIT IN THE CALENDAR YEAR IN WHICH THE
PURCHASE OR ASSIGNMENT IS MADE.
(B) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A PURCHASER
OR ASSIGNEE UNDER SECTION 1736-L MAY USE AGAINST ANY ONE
QUALIFIED TAX LIABILITY MAY NOT EXCEED 50% OF ANY OF THE
QUALIFIED TAX LIABILITIES OF THE PURCHASER OR ASSIGNEE FOR THE
TAXABLE YEAR.
(C) RESALE AND ASSIGNMENT.--
(1) A PURCHASER UNDER SECTION 1736-L MAY NOT SELL OR
ASSIGN THE PURCHASED TAX CREDIT.
(2) AN ASSIGNEE UNDER SECTION 1736-L MAY NOT SELL OR
ASSIGN THE ASSIGNED TAX CREDIT.
(D) NOTICE.--THE PURCHASER OR ASSIGNEE UNDER SECTION 1736-L
SHALL NOTIFY THE DEPARTMENT OF THE SELLER OR ASSIGNOR OF THE TAX
CREDIT IN COMPLIANCE WITH PROCEDURES SPECIFIED BY THE
DEPARTMENT.
SECTION 1738-L. PASS-THROUGH ENTITY.
(A) ELECTION.--IF A PASS-THROUGH ENTITY HAS AN UNUSED TAX
CREDIT, THE PASS-THROUGH ENTITY 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 SHAREHOLDERS, MEMBERS OR PARTNERS ARE ENTITLED.
(B) LIMITATION.--THE SAME UNUSED TAX CREDIT UNDER SUBSECTION
(A) MAY NOT BE CLAIMED BY:
(1) THE PASS-THROUGH ENTITY; AND
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(2) A SHAREHOLDER, MEMBER OR PARTNER OF THE PASS-THROUGH
ENTITY.
(C) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A TRANSFEREE
UNDER SUBSECTION (A) MAY USE AGAINST ANY ONE QUALIFIED TAX
LIABILITY MAY NOT EXCEED 20% OF ANY QUALIFIED TAX LIABILITIES
FOR THE TAXABLE YEAR.
(D) TIME.--A TRANSFEREE UNDER SUBSECTION (A) MUST CLAIM THE
TAX CREDIT IN THE CALENDAR YEAR IN WHICH THE TRANSFER IS MADE.
(E) SALE AND ASSIGNMENT.--A TRANSFEREE UNDER SUBSECTION (A)
MAY NOT SELL OR ASSIGN THE TAX CREDIT.
SECTION 1739-L. (RESERVED).
SECTION 1740-L. GUIDELINES AND REGULATIONS.
THE DEPARTMENT SHALL DEVELOP WRITTEN GUIDELINES FOR THE
IMPLEMENTATION OF THIS SUBARTICLE. THE GUIDELINES SHALL BE IN
EFFECT UNTIL THE DEPARTMENT PROMULGATES REGULATIONS FOR THE
IMPLEMENTATION OF THE PROVISIONS OF THIS SUBARTICLE.
SECTION 1741-L. REPORT TO GENERAL ASSEMBLY.
(A) REPORT.--
(1) NO LATER THAN THE YEAR AFTER WHICH TAX CREDITS ARE
FIRST AWARDED UNDER THIS SUBARTICLE, AND EACH OCTOBER 1
THEREAFTER, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE
GENERAL ASSEMBLY SUMMARIZING THE EFFECTIVENESS OF THE TAX
CREDIT. THE REPORT SHALL INCLUDE THE NAMES OF ALL QUALIFIED
TAXPAYERS UTILIZING THE TAX CREDIT AS OF THE DATE OF THE
REPORT AND THE AMOUNT OF TAX CREDITS APPROVED FOR, UTILIZED
BY OR SOLD OR ASSIGNED BY EACH QUALIFIED TAXPAYER. THE REPORT
SHALL BE SUBMITTED TO THE FOLLOWING:
(I) THE CHAIR AND MINORITY CHAIR OF THE AGRICULTURE
AND RURAL AFFAIRS COMMITTEE OF THE SENATE.
(II) THE CHAIR AND MINORITY CHAIR OF THE AGRICULTURE
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AND RURAL AFFAIRS COMMITTEE OF THE HOUSE OF
REPRESENTATIVES.
(III) THE CHAIR AND MINORITY CHAIR OF THE FINANCE
COMMITTEE OF THE SENATE.
(IV) THE CHAIR AND MINORITY CHAIR OF THE FINANCE
COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
(2) IN ADDITION TO THE INFORMATION REQUIRED UNDER
PARAGRAPH (1), THE REPORT SHALL INCLUDE THE FOLLOWING
INFORMATION IN A MANNER THAT IS SEPARATED BY GEOGRAPHIC
LOCATION WITHIN THIS COMMONWEALTH:
(I) THE AMOUNT OF TAX CREDITS CLAIMED BY QUALIFIED
TAXPAYERS DURING THE FISCAL YEAR.
(II) THE TOTAL NUMBER OF NEW JOBS AND PERMANENT JOBS
CREATED BY QUALIFIED TAXPAYERS DURING THE FISCAL YEAR,
INCLUDING THE DURATION OF THE JOBS.
(B) PUBLIC INFORMATION.--NOTWITHSTANDING ANY LAW PROVIDING
FOR THE CONFIDENTIALITY OF TAX RECORDS, THE INFORMATION IN THE
REPORT UNDER SUBSECTION (A) SHALL BE PUBLIC INFORMATION, AND ALL
REPORT INFORMATION SHALL BE POSTED ON THE DEPARTMENT'S PUBLICLY
ACCESSIBLE INTERNET WEBSITE.
SECTION 1742-L. APPLICABILITY.
(A) DURATION.--THE TAX CREDIT UNDER THIS SUBARTICLE SHALL
APPLY TO THE PURCHASE AND PROCESSING OF MILK PRODUCED IN THIS
COMMONWEALTH FOR A PERIOD OF EIGHT YEARS FROM THE DATE THE FIRST
PROJECT FACILITY IS PLACED INTO SERVICE.
(B) LIMITATION.--THE TOTAL AGGREGATE AMOUNT OF TAX CREDITS
AWARDED BY THE DEPARTMENT UNDER THIS SUBARTICLE MAY NOT EXCEED
$120,000,000.
SUBARTICLE D
REGIONAL CLEAN HYDROGEN HUBS
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SECTION 1751-L. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBARTICLE
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
"CLEAN HYDROGEN." HYDROGEN USED IN A PROJECT WHICH HAS BEEN
DETERMINED BY THE UNITED STATES DEPARTMENT OF ENERGY TO
DEMONSTRABLY AID ACHIEVEMENT OF THE CLEAN HYDROGEN PRODUCTION
STANDARD UNDER SECTION 822 OF THE ENERGY POLICY ACT OF 2005
(PUBLIC LAW 109-58, 11 STAT. 594) BY MITIGATING EMISSIONS ACROSS
THE SUPPLY CHAIN THROUGH AGGRESSIVE CARBON CAPTURE, BY MEASURES
TO MITIGATE FUGITIVE METHANE EMISSIONS OR BY THE USE OF CLEAN
ELECTRICITY OR OTHER TECHNOLOGIES OR PRACTICES APPROVED BY THE
UNITED STATES DEPARTMENT OF ENERGY.
"PROJECT FACILITY." A FACILITY LOCATED IN THIS COMMONWEALTH
WHICH IS OWNED BY A QUALIFIED TAXPAYER WHICH IS PART OF A
REGIONAL CLEAN HYDROGEN HUB DESIGNATED BY THE UNITED STATES
DEPARTMENT OF ENERGY AUTHORIZED UNDER SECTION 813 OF THE ENERGY
POLICY ACT OF 2005 .
"QUALIFIED TAXPAYER." A COMPANY THAT SATISFIES ALL OF THE
FOLLOWING:
(1) OWNS AND OPERATES A PROJECT FACILITY LOCATED WITHIN
A REGIONAL CLEAN HYDROGEN HUB DESIGNATED BY THE UNITED STATES
DEPARTMENT OF ENERGY AUTHORIZED UNDER SECTION 813 OF THE
ENERGY POLICY ACT OF 2005 .
(2) HAS ENTERED INTO A COMMITMENT LETTER UNDER SECTION
1752-L(B) TO PURCHASE CLEAN HYDROGEN FROM A REGIONAL CLEAN
HYDROGEN HUB WITHIN THIS COMMONWEALTH FOR USE IN
MANUFACTURING AT A PROJECT FACILITY IN THIS COMMONWEALTH
WHICH HAS BEEN PLACED IN SERVICE ON OR AFTER THE EFFECTIVE
DATE OF THIS SECTION.
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(3) HAS MADE A CAPITAL INVESTMENT OF AT LEAST
$500,000,000 IN ORDER TO CONSTRUCT THE PROJECT FACILITY AND
PLACE THE PROJECT FACILITY INTO SERVICE IN THIS COMMONWEALTH.
(4) HAS CREATED A MINIMUM AGGREGATE TOTAL OF 1,200 NEW
JOBS AND PERMANENT JOBS.
(5) HAS MADE GOOD FAITH EFFORTS TO RECRUIT AND EMPLOY,
AND TO ENCOURAGE ANY CONTRACTORS OR SUBCONTRACTORS TO RECRUIT
AND EMPLOY, WORKERS FROM THE LOCAL LABOR MARKET FOR
EMPLOYMENT DURING THE CONSTRUCTION OF THE PROJECT FACILITY.
(6) HAS DEMONSTRATED THAT THE NEW JOBS CREATED AT THE
PROJECT FACILITY OR FOR WORK COVERED BY SUBARTICLE F ARE PAID
AT LEAST THE PREVAILING MINIMUM WAGE AND BENEFIT RATES FOR
EACH CRAFT OR CLASSIFICATION AS DETERMINED BY THE DEPARTMENT
OF LABOR AND INDUSTRY.
(7) THE CONSTRUCTION WORK TO PLACE A PROJECT FACILITY
INTO SERVICE SHALL BE PERFORMED SUBJECT TO THE ACT OF MARCH
3, 1978 (P.L.6, NO.3), KNOWN AS THE STEEL PRODUCTS
PROCUREMENT ACT.
SECTION 1752-L. ELIGIBILITY.
(A) DEMONSTRATION.--IN ORDER TO BE ELIGIBLE TO RECEIVE A TAX
CREDIT, A COMPANY SHALL DEMONSTRATE THE FOLLOWING:
(1) THE COMPANY MEETS THE REQUIREMENTS OF A QUALIFIED
TAXPAYER.
(2) CONFIRMATION THAT THE COMPANY HAS FILED ALL REQUIRED
STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAXABLE
YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED BY
ASSESSMENT OR DETERMINATION BY THE DEPARTMENT AND NOT UNDER
TIMELY APPEAL.
(B) COMMITMENT LETTER.--A COMPANY THAT APPLIES FOR AND
RECEIVES A TAX CREDIT UNDER THIS SUBARTICLE SHALL ENTER INTO A
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COMMITMENT LETTER WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC
DEVELOPMENT TO PRESCRIBE THE DATE BY WHICH THE PROJECT FACILITY
WILL BEGIN TO PURCHASE CLEAN HYDROGEN FROM SOURCES WITHIN THE
REGIONAL CLEAN HYDROGEN HUB IN THIS COMMONWEALTH FOR USE IN
MANUFACTURING AT THE PROJECT FACILITY.
SECTION 1753-L. APPLICATION AND APPROVAL OF TAX CREDIT.
(A) RATE.--THE TAX CREDIT SHALL BE EQUAL TO ANY ONE OR MORE
OF THE FOLLOWING:
(1) $0.81 PER KILOGRAM OF CLEAN HYDROGEN PURCHASED FROM
A REGIONAL CLEAN HYDROGEN HUB WITHIN THIS COMMONWEALTH AND
USED IN MANUFACTURING AT THE PROJECT FACILITY BY A QUALIFIED
TAXPAYER.
(2) $0.47 PER UNIT OF NATURAL GAS THAT IS PURCHASED AND
USED IN MANUFACTURING AT THE PROJECT FACILITY BY A QUALIFIED
TAXPAYER.
(B) APPLICATION.--
(1) A QUALIFIED TAXPAYER MAY APPLY TO THE DEPARTMENT FOR
A TAX CREDIT UNDER THIS SECTION.
(2) THE APPLICATION MUST BE SUBMITTED TO THE DEPARTMENT
BY MARCH 1 FOR THE TAX CREDIT CLAIMED FOR CLEAN HYDROGEN OR
NATURAL GAS PURCHASED AND USED IN MANUFACTURING BY THE
QUALIFIED TAXPAYER AT THE PROJECT FACILITY DURING THE PRIOR
CALENDAR YEAR.
(3) THE APPLICATION MUST BE ON A FORM REQUIRED BY THE
DEPARTMENT WHICH SHALL INCLUDE THE FOLLOWING:
(I) INFORMATION REQUIRED BY THE DEPARTMENT TO
DOCUMENT THE AMOUNT OF NATURAL GAS PURCHASED AND USED IN
MANUFACTURING AT THE PROJECT FACILITY;
(II) INFORMATION REQUIRED BY THE DEPARTMENT TO
DOCUMENT THE AMOUNT OF CLEAN HYDROGEN TO BE PURCHASED
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FROM SOURCES WITHIN THE REGIONAL CLEAN HYDROGEN HUB IN
THIS COMMONWEALTH AND USED IN MANUFACTURING AT THE
PROJECT FACILITY;
(III) INFORMATION REQUIRED BY THE DEPARTMENT TO
VERIFY THAT THE APPLICANT IS A QUALIFIED TAXPAYER; AND
(IV) ANY OTHER INFORMATION AS THE DEPARTMENT DEEMS
APPROPRIATE.
(C) REVIEW AND APPROVAL.--
(1) THE DEPARTMENT SHALL REVIEW THE APPLICATIONS AND
SHALL ISSUE AN APPROVAL OR DISAPPROVAL BY MAY 1.
(2) UPON APPROVAL, THE DEPARTMENT SHALL ISSUE A
CERTIFICATE STATING THE AMOUNT OF THE TAX CREDIT GRANTED FOR
NATURAL GAS PURCHASED AND USED IN MANUFACTURING AT THE
PROJECT FACILITY IN THE PRIOR CALENDAR YEAR.
(3) UPON APPROVAL, THE DEPARTMENT SHALL ISSUE A
CERTIFICATE STATING THE AMOUNT OF THE TAX CREDIT GRANTED FOR
CLEAN HYDROGEN PURCHASED FROM SOURCES LOCATED IN A REGIONAL
CLEAN HYDROGEN HUB LOCATED IN THIS COMMONWEALTH AND USED IN
MANUFACTURING AT THE PROJECT FACILITY IN THE PRIOR CALENDAR
YEAR.
(D) AVAILABILITY OF TAX CREDITS.--
(1) EACH FISCAL YEAR, $50,000,000 IN TAX CREDITS SHALL
BE MADE AVAILABLE TO THE DEPARTMENT IN ACCORDANCE WITH THIS
SUBARTICLE.
(2) THE DEPARTMENT SHALL ISSUE UP TO $50,000,000 IN A
FISCAL YEAR TO THE QUALIFIED TAXPAYER WHICH FIRST MEETS THE
QUALIFICATIONS TO RECEIVE A TAX CREDIT UNDER THIS SUBARTICLE.
(3) AN AMOUNT UNDER PARAGRAPH (1) WHICH REMAINS
UNALLOCATED UNDER PARAGRAPH (2) SHALL BE ISSUED TO THE
QUALIFIED TAXPAYER WHICH NEXT MEETS THE QUALIFICATIONS TO
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RECEIVE A TAX CREDIT UNDER THIS SUBARTICLE.
(4) THE TOTAL AGGREGATE AMOUNT OF TAX CREDITS AWARDED TO
A QUALIFIED TAXPAYER UNDER THIS SUBARTICLE MAY NOT EXCEED 50%
OF THE CAPITAL INVESTMENT MADE TO CONSTRUCT A PROJECT
FACILITY AND PLACE THE PROJECT FACILITY INTO SERVICE IN THIS
COMMONWEALTH.
SECTION 1754-L. USE OF TAX CREDITS.
(A) INITIAL USE.--PRIOR TO SALE OR ASSIGNMENT OF A TAX
CREDIT UNDER SECTION 1756-L, A QUALIFIED TAXPAYER MUST FIRST USE
A TAX CREDIT AGAINST THE QUALIFIED TAX LIABILITY INCURRED IN THE
TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS APPROVED.
(B) ELIGIBILITY.--THE TAX CREDIT MAY BE APPLIED AGAINST UP
TO 20% OF THE QUALIFIED TAXPAYER'S QUALIFIED TAX LIABILITIES
INCURRED IN THE TAXABLE YEAR FOR WHICH THE TAX CREDIT WAS
APPROVED.
(C) LIMIT.--A QUALIFIED TAXPAYER THAT HAS BEEN GRANTED A TAX
CREDIT UNDER THIS SUBARTICLE SHALL BE INELIGIBLE FOR ANY OTHER
TAX CREDIT PROVIDED UNDER THIS ACT OR A TAX BENEFIT AS DEFINED
IN SECTION 1701-A.1.
SECTION 1755-L. CARRYOVER, CARRYBACK AND REFUND.
A TAX CREDIT CANNOT BE CARRIED BACK, CARRIED FORWARD OR BE
USED TO OBTAIN A REFUND.
SECTION 1756-L. SALE OR ASSIGNMENT.
(A) AUTHORIZATION.--IF THE QUALIFIED TAXPAYER HOLDS A TAX
CREDIT THROUGH THE END OF THE CALENDAR YEAR IN WHICH THE TAX
CREDIT WAS GRANTED, THE QUALIFIED TAXPAYER MAY SELL OR ASSIGN A
TAX CREDIT, IN WHOLE OR IN PART, PROVIDED THE SALE IS EFFECTIVE
BY THE CLOSE OF THE FOLLOWING CALENDAR YEAR.
(B) APPLICATION.--
(1) TO SELL OR ASSIGN A TAX CREDIT, A QUALIFIED TAXPAYER
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MUST SUBMIT AN APPLICATION FOR THE SALE OR ASSIGNMENT OF THE
TAX CREDIT WITH THE DEPARTMENT. THE APPLICATION MUST BE ON A
FORM REQUIRED BY THE DEPARTMENT.
(2) TO APPROVE AN APPLICATION, THE DEPARTMENT MUST
RECEIVE:
(I) A FINDING FROM THE DEPARTMENT THAT THE APPLICANT
HAS:
(A) FILED ALL REQUIRED STATE TAX REPORTS AND
RETURNS FOR ALL APPLICABLE TAXABLE YEARS; AND
(B) PAID ANY BALANCE OF STATE TAX DUE AS
DETERMINED BY ASSESSMENT OR DETERMINATION BY THE
DEPARTMENT AND NOT UNDER TIMELY APPEAL; AND
(II) FOR A SALE OR ASSIGNMENT TO A COMPANY THAT IS
NOT AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY, A
CERTIFICATION FROM THE QUALIFIED TAXPAYER THAT THE
QUALIFIED TAXPAYER HAS OFFERED TO SELL OR ASSIGN THE TAX
CREDIT:
(A) EXCLUSIVELY TO A DOWNSTREAM COMPANY FOR A
PERIOD OF 30 DAYS FOLLOWING APPROVAL OF THE TAX
CREDIT UNDER SECTION 1753-L(C); AND
(B) TO AN UPSTREAM COMPANY OR DOWNSTREAM COMPANY
FOR A PERIOD OF 30 DAYS FOLLOWING EXPIRATION OF THE
PERIOD UNDER CLAUSE (A).
(C) APPROVAL.--UPON APPROVAL BY THE DEPARTMENT, A QUALIFIED
TAXPAYER MAY SELL OR ASSIGN, IN WHOLE OR IN PART, A TAX CREDIT.
SECTION 1757-L. PURCHASERS AND ASSIGNEES.
(A) TIME.--THE PURCHASER OR ASSIGNEE UNDER SECTION 1756-L
MUST CLAIM THE TAX CREDIT IN THE CALENDAR YEAR IN WHICH THE
PURCHASE OR ASSIGNMENT IS MADE.
(B) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A PURCHASER
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OR ASSIGNEE UNDER SECTION 1756-L MAY USE AGAINST ANY ONE
QUALIFIED TAX LIABILITY MAY NOT EXCEED 50% OF ANY OF THE
QUALIFIED TAX LIABILITIES OF THE PURCHASER OR ASSIGNEE FOR THE
TAXABLE YEAR.
(C) RESALE AND ASSIGNMENT.--
(1) A PURCHASER UNDER SECTION 1756-L MAY NOT SELL OR
ASSIGN THE PURCHASED TAX CREDIT.
(2) AN ASSIGNEE UNDER SECTION 1756-L MAY NOT SELL OR
ASSIGN THE ASSIGNED TAX CREDIT.
(D) NOTICE.--THE PURCHASER OR ASSIGNEE UNDER SECTION 1756-L
SHALL NOTIFY THE DEPARTMENT OF THE SELLER OR ASSIGNOR OF THE TAX
CREDIT IN COMPLIANCE WITH PROCEDURES SPECIFIED BY THE
DEPARTMENT.
SECTION 1758-L. PASS-THROUGH ENTITY.
(A) ELECTION.--IF A PASS-THROUGH ENTITY HAS AN UNUSED TAX
CREDIT, THE PASS-THROUGH ENTITY 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 SHAREHOLDERS, MEMBERS OR PARTNERS ARE ENTITLED.
(B) LIMITATION.--THE SAME UNUSED TAX CREDIT UNDER SUBSECTION
(A) MAY NOT BE CLAIMED BY:
(1) THE PASS-THROUGH ENTITY; AND
(2) A SHAREHOLDER, MEMBER OR PARTNER OF THE PASS-THROUGH
ENTITY.
(C) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A TRANSFEREE
UNDER SUBSECTION (A) MAY USE AGAINST ANY ONE QUALIFIED TAX
LIABILITY MAY NOT EXCEED 20% OF ANY QUALIFIED TAX LIABILITIES
FOR THE TAXABLE YEAR.
(D) TIME.--A TRANSFEREE UNDER SUBSECTION (A) MUST CLAIM THE
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TAX CREDIT IN THE CALENDAR YEAR IN WHICH THE TRANSFER IS MADE.
(E) SALE AND ASSIGNMENT.--A TRANSFEREE UNDER SUBSECTION (A)
MAY NOT SELL OR ASSIGN THE TAX CREDIT.
SECTION 1759-L. (RESERVED).
SECTION 1760-L. GUIDELINES AND REGULATIONS.
THE DEPARTMENT SHALL DEVELOP WRITTEN GUIDELINES FOR THE
IMPLEMENTATION OF THIS SUBARTICLE. THE GUIDELINES SHALL BE IN
EFFECT UNTIL THE DEPARTMENT PROMULGATES REGULATIONS FOR THE
IMPLEMENTATION OF THE PROVISIONS OF THIS SUBARTICLE.
SECTION 1761-L. REPORT TO GENERAL ASSEMBLY.
(A) REPORT.--
(1) NO LATER THAN THE YEAR AFTER WHICH TAX CREDITS ARE
FIRST AWARDED UNDER THIS SUBARTICLE, AND EACH OCTOBER 1
THEREAFTER, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE
GENERAL ASSEMBLY SUMMARIZING THE EFFECTIVENESS OF THE TAX
CREDIT. THE REPORT SHALL INCLUDE THE NAMES OF ALL QUALIFIED
TAXPAYERS UTILIZING THE TAX CREDIT AS OF THE DATE OF THE
REPORT AND THE AMOUNT OF TAX CREDITS APPROVED FOR, UTILIZED
BY OR SOLD OR ASSIGNED BY EACH QUALIFIED TAXPAYER. THE REPORT
SHALL BE SUBMITTED TO ALL OF THE FOLLOWING:
(I) THE CHAIR AND MINORITY CHAIR OF THE
APPROPRIATIONS COMMITTEE OF THE SENATE.
(II) THE CHAIR AND MINORITY CHAIR OF THE
APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
(III) THE CHAIR AND MINORITY CHAIR OF THE FINANCE
COMMITTEE OF THE SENATE.
(IV) THE CHAIR AND MINORITY CHAIR OF THE FINANCE
COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
(V) THE CHAIR AND MINORITY CHAIR OF THE
ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE
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SENATE.
(VI) THE CHAIR AND MINORITY CHAIR OF THE
ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE HOUSE
OF REPRESENTATIVES.
(2) IN ADDITION TO THE INFORMATION REQUIRED UNDER
PARAGRAPH (1), THE REPORT SHALL INCLUDE THE FOLLOWING
INFORMATION IN A MANNER SEPARATED BY GEOGRAPHIC LOCATION
WITHIN THIS COMMONWEALTH:
(I) THE AMOUNT OF TAX CREDITS CLAIMED BY QUALIFIED
TAXPAYERS DURING THE FISCAL YEAR.
(II) THE TOTAL NUMBER OF NEW JOBS AND PERMANENT JOBS
CREATED BY QUALIFIED TAXPAYERS DURING THE FISCAL YEAR,
INCLUDING THE DURATION OF THE JOBS.
(B) PUBLIC INFORMATION.--NOTWITHSTANDING ANY LAW PROVIDING
FOR THE CONFIDENTIALITY OF TAX RECORDS, THE INFORMATION IN THE
REPORT UNDER SUBSECTION (A) SHALL BE PUBLIC INFORMATION, AND ALL
REPORT INFORMATION SHALL BE POSTED ON THE DEPARTMENT'S PUBLICLY
ACCESSIBLE INTERNET WEBSITE.
SECTION 1762-L. APPLICABILITY.
THIS SUBARTICLE SHALL APPLY TO THE PURCHASE OF CLEAN HYDROGEN
FROM SOURCES LOCATED IN A REGIONAL CLEAN HYDROGEN HUB WITHIN
THIS COMMONWEALTH OR NATURAL GAS USED IN MANUFACTURING AT A
PROJECT FACILITY FOR THE PERIOD BEGINNING JANUARY 1, 2024, AND
ENDING DECEMBER 31, 2043.
SUBARTICLE E
SEMICONDUCTOR MANUFACTURING AND BIOMEDICAL
MANUFACTURING AND RESEARCH
SECTION 1771-L. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBARTICLE
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
20210HB1059PN3613 - 37 -
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