Regular Session 2021-2022 House Bill 2396 P.N. 2818

PRINTER'S NO. 2818

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2396

Session of

2022

INTRODUCED BY GREINER, RYAN, LONGIETTI, MIZGORSKI, JAMES,

CAUSER, PICKETT, STAMBAUGH, HENNESSEY, FEE, FRITZ, ROTHMAN,

ARMANINI, IRVIN, BROOKS, ROAE, JOZWIAK, B. MILLER, ZIMMERMAN,

METCALFE, ECKER AND LEWIS DELROSSO, MARCH 10, 2022

REFERRED TO COMMITTEE ON FINANCE, MARCH 10, 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 manufacturing and investment tax credit,

further providing for rural growth funds, for business firms,

for tax credit certificates and for claiming the tax credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1824-G(a), (c) and (f) of the act of

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971, amended July 23, 2020 (P.L.665, No.68), are amended to

read:

Section 1824-G. Rural growth funds.

(a) [Application] Applications.--

(1) Beginning on the effective date of this section, an

application to qualify as a rural growth fund must be

submitted on a form and in a manner as required by the

department.

(2) The department shall begin accepting applications to

qualify as a rural growth fund with respect to an additional

$50,000,000 of investment authority under subsection (f)(2)

on October 1, 2022.

* * *

applications received from rural growth funds under this

section. Subject to the [limitation] limitations in subsection

(f), the department shall make allocations of investment

authority for approved applications in the order in which the

applications are received. Applications received on the same day

shall be deemed to have been received simultaneously. If

requests for investment authority on approved applications

exceed the [limitation] limitations in subsection (f), the

department shall reduce the applicable awards of the investment

authority and the credit-eligible capital contributions

proportionally based upon the amount of investment authority

sought in the application for each approved application as

necessary to not exceed the [limitation] limitations in

subsection (f).

* * *

(f) Limitation.--

(1) The department may not approve more than $50,000,000

in investment authority under this part prior to October 1,

2022.

(2) On or after October 1, 2022, the department may not

approve more than an additional $50,000,000 in investment

authority under this part.

20220HB2396PN2818 - 2 -

Section 2. Section 1828-G(c) of the act is amended to read:

Section 1828-G. Business firms.

* * *

$30,000,000 in credit-eligible capital contributions [under this

part.] with respect to awards of investment authority subject to

the limitations under section 1824-G(f)(1) and not more than

$30,000,000 in credit-eligible capital contributions with

respect to awards of investment authority subject to the

limitations under section 1824-G(f)(2).

Section 3. Sections 1829-G(b)(3) and 1830-G(a) of the act,

amended July 23, 2020 (P.L.665, No.68), are amended to read:

Section 1829-G. Tax credit certificates.

* * *

(b) Review, recommendation and approval.--

* * *

(3) In awarding tax credit certificates under this part,

the department:

(i) [Beginning] With respect to awards of investment

authority subject to the limitation under section 1824-

G(f)(1), beginning with fiscal year 2020-2021, may not

award tax credit certificates that would result in the

utilization of more than $6,000,000 in tax credits in any

fiscal year, except for tax credits carried forward.

(ii) [May not award more than $30,000,000 in tax

credit certificates, in the aggregate, under this part.]

With respect to awards of investment authority subject to

the limitation under section 1824-G(f)(2), may not award

tax credit certificates that would result in the

utilization of more than $6,000,000 in tax credits in any

20220HB2396PN2818 - 3 -

fiscal year, except for tax credits carried forward.

(iii) May not award more than $60,000,000 in tax

credit certificates in the aggregate of section 1829-G(b)

(3)(i) and (ii). The tax credit utilization limitation

under subsection (b)(3)(i) shall not offset the tax

credit utilization limitation in subsection (b)(3)(ii).

Section 1830-G. Claiming the tax credit.

(a) Presentation.--[Beginning]

(1) With respect to awards of investment authority

subject to the limitation of section 1824-G(f)(1), beginning

July 1, 2020, upon presenting a tax credit certificate to the

Department of Revenue, a business firm may claim a tax credit

of up to 20% of the amount awarded under section 1829-G for

each of the taxable years that includes the third, fourth,

fifth, sixth and seventh anniversaries of the closing date,

exclusive of any tax credit amounts carried over under

section 1831-G(b).

(2) With respect to awards of investment authority

subject to the limitation of section 1824-G(f)(2), upon

presenting a tax credit certificate to the Department of

Revenue, a business firm may claim a tax credit of up to 20%

of the amount awarded under section 1829-G for each of the

taxable years that includes the third, fourth, fifth, sixth

and seventh anniversaries of the closing date, exclusive of

any tax credit amounts carried over under section 1831-G(b).

* * *

Section 4. This act shall take effect in 60 days.

20220HB2396PN2818 - 4 -