PRINTER'S NO. 338

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

74

Session of

2021

INTRODUCED BY MARTIN, K. WARD, MENSCH, AUMENT, ARGALL, STEFANO,

REGAN, COSTA, BOSCOLA, FONTANA AND SANTARSIERO,

MARCH 10, 2021

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 pediatric cancer research 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

credits.

Section 1702-M. 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:

"Business firm." An entity authorized to do business in this

Commonwealth and subject to taxes imposed under Article III, IV,

VII, VIII, IX or XV. The term includes a pass-through entity.

"Contribution." A donation of cash to a pediatric cancer

research institution .

conducting pediatric cancer research designated by the Secretary

of Health to be eligible to receive contributions under this

article.

"Tax credit." A tax credit for pediatric cancer research

authorized under this article.

Section 1703-M. Pediatric cancer research tax credit.

A tax credit shall be granted to a business firm that meets

the requirements under this article for the purposes of funding

pediatric cancer research in this Commonwealth.

Section 1704-M. Restriction on use of contributions.

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a tax credit if a pediatric cancer research institution receives

a contribution from the business firm as determined by the

department and in accordance with this article.

(b) Tax credit availability.--Tax credits under this section

shall be made available by the department on a first- come,

first-served basis.

(c) Contributions.--A contribution by a business firm to a

pediatric cancer research institution shall be made no later

research institution will, in the alternative, be deemed an

application received by the department on the same date as the

preferred application, but for a different pediatric cancer

research institution authorized under this article if the

business firm's preferred choice of pediatric cancer research

institution has reached the $2,500,000 limit under section 1709-

M. If a business firm does not receive its preferred choice of

pediatric cancer research institution, the department shall

promptly consider the business firm's application in the

alternative for a different pediatric cancer research

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(2) Creating and publishing forms upon which business

firms may apply for the tax credit under this article.

(3) Approving or disapproving applications submitted by

business firms and providing notice of the approval or

disapproval to applicants under section 1707-M(b).

(4) Granting tax credit certificates in accordance with

section 1708-M.

(b) Secretary of Health.--On or before December 31 of each

tax credit under this article shall be filed not later than

December 31.

(b) Notice.--

(1) The department shall notify the business firm

regarding the authorization of tax credits and its

determination, including the amount of the credit available.

(2) The department may return an incomplete application

to the business firm or request additional information,

documents or signatures from the business firm.

(c) Appeals.--Appeals from determinations made under

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grant a tax credit certificate to a business firm eligible to

receive a tax credit in accordance with this article. The

certificate may be used against a tax liability owed to the

department by a business firm that provides proof of a

contribution to a pediatric cancer research institution in the

taxable year in which the contribution is made. The business

firm may apply the credit against any tax due under Article III,

IV, VII, VIII, IX or XV, excluding any tax withheld by an

research institution.

(b) Activities.--No tax credit shall be approved for

activities that are part of a business firm's normal course of

business.

Section 1710-M. Carryover and carryback.

(a) General rule.--If a business firm does not use all or

any portion of a 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 business firm for those taxable

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entitled to claim the credit.

(b) Application.--A tax credit approved by the department in

a taxable year first shall be applied against the business

firm's qualified tax liability for the current taxable year as

of the date on which the tax credit was approved before the tax

credit can be applied against a tax liability under subsection

(a).

(c) No carryback or refund.--A business firm is not entitled

the pass-through entity may elect in writing, according to

procedures established by the department, to transfer all or a

portion of the tax credits to shareholders, members or partners

in proportion to the share of the entity's distributive income

to which each shareholder, member or partner is entitled.

(b) Limitation.--A pass-through entity and a shareholder,

member or partner of a pass-through entity may not claim the tax

credit under subsection (a) for the same contribution.

(c) Claim.--A shareholder, member or partner of a pass-

through entity to whom a tax credit is transferred under

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income taxable under Article III to the shareholder, member or

partner, to the spouse of the shareholder, member or partner or

to both, if both the shareholder, member or partner and the

spouse report income on a joint personal income tax return.

Section 1712-M. Sale or assignment.

(a) Authorization.--Upon approval by the department, a

business firm may sell or assign, in whole or in part, a tax

credit granted to the business firm under this article.

the purchaser or assignee has:

(i) filed all required State tax reports and returns

for all applicable taxable years; and

(ii) paid any balance of State tax due as determined

by assessment or determination by the department and not

under timely appeal.

Section 1713-M. Purchasers and assignees.

(a) Claim.--The purchaser or assignee of all or a portion of

a tax credit under section 1712-M shall immediately claim the

credit in the taxable year in which the purchase or assignment

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carry back or obtain a refund of or sell or assign the tax

credit.

Section 1714-M. Administration.

(a) Audits and assessments.--The department has the

following powers:

(1) To audit a business firm claiming a tax credit to

ascertain the validity of the amount claimed.

(2) To issue an assessment against a business firm for

By October 1, 2022, and October 1 of each year thereafter,

the department shall submit a report on the tax credit provided

by this article to the chairperson and minority chairperson of

the Appropriations Committee of the Senate, the chairperson and

minority chairperson of the Finance Committee of the Senate, the

chairperson and minority chairperson of the Appropriations

Committee of the House of Representatives and the chairperson

and minority chairperson of the Finance Committee of the House

of Representatives. The report must include:

(1) the names of the business firms utilizing the tax

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Section 1716-M . Limitation.

A business firm may not apply for a tax credit after the 10th

fiscal year after the effective date of this section.

Section 1717-M . Applicability.

The tax credit established under this article shall apply to

taxable years beginning after December 31, 2021.

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

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