Trial Engrossment of Amendment A06143 to Senate Bill 0030 P.N. 1768, Regular Session 2019-2020

A06143

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

Session of

2019

INTRODUCED BY KILLION, VOGEL, HUGHES, HAYWOOD, ARGALL, BLAKE,

BROWNE, COSTA, FONTANA, LEACH, MUTH, SANTARSIERO,

TARTAGLIONE, J. WARD, YUDICHAK, STREET, DINNIMAN, FARNESE AND

L. WILLIAMS, MARCH 21, 2019

AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF

REPRESENTATIVES, AS AMENDED, JUNE 9, 2020

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 Pennsylvania Housing Tax Credit.;

and authorizing local taxing authorities to provide for tax

exemption incentives for the creation of affordable housing

units.

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-G

PENNSYLVANIA HOUSING TAX CREDIT

Section 1901-G. Scope of article.

This article establishes the Pennsylvania Housing Tax Credit.

Section 1902-G. 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:

"Agency." The Pennsylvania Housing Finance Agency.

"Credit period." A 5-year period that begins with the

taxable year in which the qualified low-income housing project

is eligible to claim the credit under section 1907-G or, at the

irrevocable election of the eligible applicant, the next

succeeding taxable year.

"Department." The Department of Revenue of the Commonwealth.

"Eligible applicant." An applicant that meets the agency's

applicant criteria for Federal housing tax credits.

"Federal housing tax credit." The Federal tax credit created

under section 42 of the Internal Revenue Code of 1986 (Public

Law 99-514, 26 U.S.C. § 42).

"Qualified allocation plan." The agency's plan for

allocation of Federal housing tax credits developed under 26

C.F.R. § 1.42-17 (relating to qualified allocation plan).

"Qualified low-income housing project." The term shall have

the same meaning as provided under section 42(g)(1) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

42(g)(1)).

"Qualified tax liability." The tax liability imposed on a

taxpayer under Article III, IV, VI, VII, VIII, IX, XI or XV,

excluding any tax withheld by an employer under Article III.

"Qualified taxpayer." An individual, business firm,

corporation, business trust, limited liability company,

partnership, limited liability partnership, association or any

other form of legal business entity that:

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(1) is subject to a tax imposed under Article III, IV,

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

employer under Article III; and

(2) meets the criteria set forth in guidelines adopted

and promulgated by the agency in accordance with section

1904-G.

"Tax credit." An amount made available to qualified

taxpayers to offset against qualified tax liability as

authorized and allocated under this article.

"Tax credit certificates." The document provided by the

agency evidencing the allocation of tax credits under section

1906-G.

"Taxable year." The term shall have the same meaning as

provided under section 441(b) of the Internal Revenue Code of

1986 (Public Law 99-514, 26 U.S.C. § 441(b)).

Section 1903-G. Pennsylvania Housing Tax Credit.

(a) Tax credit authority.--The agency may allocate tax

credits in an amount not to exceed the sum of:

(1) $10 million per fiscal year;

(2) unused and unallocated tax credits for the preceding

fiscal years ; and

(3) tax credits returned to the agency for the preceding

fiscal years.

(b) Application.--An eligible applicant may apply to the

agency for tax credits for a qualified low-income housing

project.

submitted for tax credits and, in accordance with this article

and the procedures established by the agency, shall select and

shall conditionally award tax credits to eligible applicants.

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(d) Integration with the Federal housing tax credit.--The

agency shall, as much as practical and unless otherwise

indicated in this article, administer the tax credit using the

same guidelines, procedures and priorities that the agency uses

to administer the Federal housing tax credit.

(e) Income targeting.--The agency shall allocate tax credits

in a manner that the agency, at the time of allocation,

reasonably believes will result in at least 10% of the tax

credits being used to provide housing units targeting households

with incomes at or below 30% of area median income.

Section 1904-G. Guidelines and procedures.

The agency shall adopt guidelines and procedures for the tax

credit in conjunction with the qualified allocation plan and

administrative guidelines.

Section 1905-G. Reporting.

The agency shall annually publish a report on the tax credit

allocations on the agency's publicly accessible Internet

website. The report shall include:

(1) Tax credits awarded.

(2) Eligible applicants receiving tax credits.

(3) The amount of tax credits issued to each recipient.

Section 1906-G. Tax credit certificate.

The agency shall issue tax credit certificates in a form

determined by the agency in consultation with the department.

Section 1907-G. Claiming the credit.

(a) General rule.--On presentation to the department, a

qualified taxpayer may claim a dollar for dollar tax credit

against the qualified tax liability of the qualified taxpayer if

a tax credit certificate, issued by the agency after a

determination by the agency that the qualified low-income

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housing project for which the tax credit was allocated, has

fully certified its costs and is in compliance with agency

requirements.

(b) Exception.--The agency shall only issue the

certification under subsection (a) for the first year that the

qualified taxpayer claims the tax credit.

made within the time specified by the guidelines issued by the

agency in consultation with the department.

Section 1908-G. Carryover, sale and assignment.

(a) General rule.--The department, in consultation with the

agency, shall establish guidelines that include procedures for

the carryover, sale and assignment of credits.

(b) Application.--A tax credit certification presented to

the department in accordance with section 1907-G shall first be

applied against the qualified taxpayer's qualified tax liability

for the current taxable year as of the date on which the tax

credit certification was presented and before any carryover is

applied against the qualified tax liability.

entire amount of the tax credit for the taxable year in which it

is first claimed, the excess may be carried over to subsequent

taxable years. Each time a tax credit is carried-over to a

succeeding taxable year, the tax credit shall be reduced by the

amount that was used as a credit during the immediately

preceding taxable year. In no event shall tax credits provided

by this article be carried over and applied to succeeding

taxable years more than five taxable years following the first

taxable year for which the qualified taxpayer claimed the

credit.

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(d) No carryback or refund.--A qualified taxpayer may not

carry back or obtain a refund of all or any portion of an unused

tax credit granted to the qualified taxpayer under this article.

(e) Sale or assignment.--A qualified taxpayer, on

application and approval by the department, in consultation with

the agency and in conformance with department and agency

guidelines, may sell or assign, in whole or in part, a tax

credit granted to the qualified taxpayer under this article. No

relation to the eligible applicant is required of a purchaser or

assignee of tax credits under this article.

(f) Purchasers and assignees.--The purchaser or assignee of

all or a portion of a tax credit obtained under subsection (e)

must be a qualified taxpayer and must, unless determined to be a

pass-through entity distribution under subsection (g),

immediately claim the credit in the taxable year in which the

purchase or assignment is made. The purchaser or assignee may

not carryover, carryback or obtain a refund for the tax credit.

The purchaser or assignee shall notify the department and the

agency of the purchase or assignment of the tax credit in

compliance with procedures specified by the department.

(g) Pass-through entity distributions.--The department shall

establish guidelines that include procedures and limitations for

pass-through entity distributions of tax credits. Subject to the

provisions of section 1909-G, the guidelines shall include, but

not be limited to, provisions allowing the allocation of the tax

credit to the following in order to assign the tax credit to a

qualified taxpayer who wishes to claim the tax credit:

(1) A partner or member.

(2) The parent organizations of any partner or member.

(3) Any successive parent organization.

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(h) Tax credit allocation.--The distribution under

subsection (g) may be allocated in any manner provided by the

partnership agreement or other agreement governing the

operations of an eligible applicant. Tax credits allocated under

this subsection may, in accordance with subsection (e) and

agency guidelines, be sold or assigned.

Section 1909-G. Recapture.

(a) Guidelines.--The department, in consultation with the

agency, shall establish guidelines that include procedures for

recapture of tax credits during the credit period that are

similar in structure and effect to events of noncompliance under

section 42 of the Internal Revenue Code of 1986 (Public Law 99-

514, 26 U.S.C. § 42). The guidelines shall provide for:

(1) An affirmative duty to notify the agency and the

department of any recapture of Federal housing tax credits

within sixty days of the Federal recapture during the five-

year credit period.

(2) The mechanism and formula that the tax credit may be

recaptured over the remaining credit period.

(b) Failure to notify agency and department of Federal

recapture.--A qualified taxpayer receiving tax credits under

this section that fails to give timely notice to the agency and

the department of Federal housing tax credit recapture shall be

subject to debarment of future tax credits and Federal housing

tax credits.

Section 1910-G. Eligible uses.

The use of any money generated in connection with the sale,

assignment or pass-through of tax credits under this article

shall be limited to the uses allowed under the Federal housing

tax credit set forth in guidelines issued by the agency.

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Section 1911-G. Fraud and misrepresentation.

If an eligible applicant or a qualified taxpayer engages in

fraud or intentional misrepresentation of information required

to be provided to the agency or the department under this

article or the agency's guidelines, the department may:

(1) Recapture all or a portion of the tax credit.

(2) Debar the applicant or qualified taxpayer from

future tax credits and Federal housing tax credit

opportunities.

(3) Impose other penalties as specified in the agency's

guidelines.

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

ARTICLE XIX-G

PENNSYLVANIA HOUSING TAX CREDIT

SECTION 1901-G. SCOPE OF ARTICLE.

THIS ARTICLE ESTABLISHES THE PENNSYLVANIA HOUSING TAX CREDIT.

SECTION 1902-G. 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:

"AGENCY." THE PENNSYLVANIA HOUSING FINANCE AGENCY.

"CREDIT PERIOD." A 5-YEAR PERIOD THAT BEGINS WITH THE

TAXABLE YEAR IN WHICH A TAXPAYER IS AWARDED A TAX CREDIT

CERTIFICATE IN ACCORDANCE WITH SECTION 1904-G OR, AT THE

IRREVOCABLE ELECTION OF A TAXPAYER, THE NEXT SUCCEEDING TAXABLE

YEAR FOLLOWING THE COMPLETION OF A QUALIFIED LOW-INCOME HOUSING

PROJECT.

"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.

"FEDERAL HOUSING TAX CREDIT." THE FEDERAL TAX CREDIT CREATED

UNDER SECTION 42 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC

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LAW 99-514, 26 U.S.C. § 42).

"PASS-THROUGH ENTITY." ANY OF THE FOLLOWING:

(1) A PARTNERSHIP AS DEFINED IN SECTION 301(N.1).

(2) A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION

301(N.1).

(3) AN UNINCORPORATED ENTITY SUBJECT TO SECTION 307.21.

"QUALIFIED ALLOCATION PLAN." THE AGENCY'S PLAN FOR

ALLOCATION OF FEDERAL HOUSING TAX CREDITS DEVELOPED UNDER

SECTION 42(M)(1) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC

LAW 99-514, 26 U.S.C. § 42(M)(1)).

"QUALIFIED LOW-INCOME HOUSING PROJECT." THE TERM SHALL HAVE

THE SAME MEANING AS PROVIDED UNDER SECTION 42(G)(1) OF THE

INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §

42(G)(1)).

"QUALIFIED TAX LIABILITY." THE TAX LIABILITY IMPOSED ON A

TAXPAYER UNDER ARTICLE III, IV, VII, VIII, IX, XI OR XV,

EXCLUDING ANY TAX WITHHELD BY AN EMPLOYER UNDER ARTICLE III.

"TAX CREDIT." THE PENNSYLVANIA HOUSING TAX CREDIT

ESTABLISHED UNDER THIS ARTICLE.

"TAXABLE YEAR." THE TERM SHALL HAVE THE SAME MEANING AS

PROVIDED UNDER SECTION 441(B) OF THE INTERNAL REVENUE CODE OF

1986 (PUBLIC LAW 99-514, 26 U.S.C. § 441(B)).

"TAXPAYER." AN INDIVIDUAL, BUSINESS FIRM, CORPORATION,

BUSINESS TRUST, LIMITED LIABILITY COMPANY, PARTNERSHIP, LIMITED

LIABILITY PARTNERSHIP, ASSOCIATION OR ANY OTHER FORM OF LEGAL

BUSINESS ENTITY.

SECTION 1903-G. PENNSYLVANIA HOUSING TAX CREDIT.

(A) ESTABLISHMENT.--THE PENNSYLVANIA HOUSING TAX CREDIT IS

ESTABLISHED TO ENCOURAGE THE DEVELOPMENT OF QUALIFIED LOW-INCOME

HOUSING PROJECTS IN THIS COMMONWEALTH. THE AGENCY AND DEPARTMENT

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SHALL ADMINISTER THE TAX CREDIT AS PROVIDED IN THIS ARTICLE.

(B) AVAILABILITY.--

(1) BEGINNING IN FISCAL YEAR 2020-2021 AND EACH FISCAL

YEAR THEREAFTER, THE AGENCY MAY AWARD A TOTAL OF $10,000,000

IN TAX CREDITS PER FISCAL YEAR IN ACCORDANCE WITH THIS

ARTICLE.

(2) IN ADDITION TO THE AMOUNT AVAILABLE UNDER PARAGRAPH

(1), THE AGENCY MAY AWARD THE FOLLOWING, AS AVAILABLE, DURING

A FISCAL YEAR:

(I) UNUSED AND UNALLOCATED TAX CREDITS FOR THE

PRECEDING FISCAL YEAR; AND

(II) TAX CREDITS RETURNED TO THE AGENCY.

IN AN AMOUNT THAT EXCEEDS $1,500,000 FOR A QUALIFIED LOW-INCOME

HOUSING PROJECT.

(D) APPLICATION.--

(1) A TAXPAYER MAY APPLY TO THE AGENCY FOR A TAX CREDIT

UNDER THIS SECTION BY SUBMITTING AN APPLICATION ON A FORM

REQUIRED BY THE AGENCY.

(2) THE AGENCY MAY REQUIRE SUCH INFORMATION ON THE

APPLICATION AS NECESSARY TO VERIFY THE COSTS INCURRED IN

CONSTRUCTING THE QUALIFIED LOW-INCOME HOUSING PROJECT.

(E) REVIEW OF APPLICATION BY AGENCY.--

(1) THE AGENCY SHALL REVIEW APPLICATIONS SUBMITTED FOR A

TAX CREDIT AND, IN ACCORDANCE WITH THE PROCEDURES ESTABLISHED

BY THE AGENCY UNDER SECTION 1909-G, ISSUE A CERTIFICATE

STATING THE AMOUNT OF THE TAX CREDIT FOR A QUALIFIED LOW-

INCOME HOUSING PROJECT.

(2) THE AGENCY SHALL CONDITIONALLY AWARD A TAX CREDIT IN

A MANNER THAT THE AGENCY, AT THE TIME OF ALLOCATION,

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REASONABLY BELIEVES WILL RESULT IN AT LEAST 10% OF THE TAX

CREDITS BEING USED TO PROVIDE HOUSING UNITS TARGETING

HOUSEHOLDS WITH INCOMES AT OR BELOW 30% OF AREA MEDIAN

INCOME.

(3) THE AGENCY SHALL DETERMINE THE AMOUNT OF A TAX

CREDIT CONDITIONALLY AWARDED TO A TAXPAYER BASED ON THE

MERITS OF THE QUALIFIED LOW-INCOME HOUSING PROJECT.

SECTION 1904-G. USE OF TAX CREDITS.

(A) INITIAL USE.--

(1) UNLESS OTHERWISE PERMITTED UNDER PARAGRAPH (2),

PRIOR TO THE SALE OR ASSIGNMENT OF A TAX CREDIT UNDER SECTION

1905-G, A TAXPAYER MUST FIRST USE A TAX CREDIT AGAINST THE

QUALIFIED TAX LIABILITY INCURRED IN THE TAXABLE YEAR IN WHICH

THE TAX CREDIT WAS APPROVED.

(2) A TAXPAYER MAY ELECT TO USE A TAX CREDIT THE NEXT

SUCCEEDING TAXABLE YEAR FOLLOWING THE COMPLETION OF A

QUALIFIED LOW-INCOME HOUSING PROJECT.

(B) APPLICATION.--THE TAX CREDIT SHALL BE APPLIED AGAINST A

TAXPAYER'S QUALIFIED TAX LIABILITY ONLY AFTER ALL OTHER TAX

CREDITS AND DEDUCTIONS AVAILABLE TO THE TAXPAYER UNDER ACT OF

THE GENERAL ASSEMBLY HAVE BEEN USED.

TO EXCEED 50% OF THE TAXPAYER'S QUALIFIED TAX LIABILITY OR 20%

OF THE AMOUNT CERTIFIED PER TAXABLE YEAR DURING THE CREDIT

PERIOD, WHICHEVER IS LESS.

SECTION 1905-G. CARRYOVER, SALE AND ASSIGNMENT.

(A) GENERAL RULE.--A TAXPAYER SHALL BE ENTITLED TO CARRY

FORWARD A TAX CREDIT FOR A PERIOD NOT TO EXCEED FIVE TAXABLE

YEARS FROM THE TAXABLE YEAR IN WHICH THE TAX CREDIT WAS AWARDED.

EACH TIME THE TAX CREDIT IS CARRIED OVER TO A SUCCEEDING TAXABLE

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YEAR, THE TAX CREDIT SHALL BE REDUCED BY THE AMOUNT THAT WAS

USED AS A CREDIT DURING THE IMMEDIATELY PRECEDING TAXABLE YEAR.

(B) APPLICATION.--A TAX CREDIT CERTIFICATE RECEIVED BY THE

DEPARTMENT IN A TAXABLE YEAR SHALL FIRST BE APPLIED AGAINST THE

TAXPAYER'S QUALIFIED TAX LIABILITY FOR THE CURRENT TAXABLE YEAR

AS OF THE DATE ON WHICH THE CREDIT WAS ISSUED BEFORE THE TAX

CREDIT CAN BE APPLIED AGAINST A QUALIFIED TAX LIABILITY UNDER

SUBSECTION (A).

OR OBTAIN A REFUND OF ALL OR ANY PORTION OF AN UNUSED TAX CREDIT

GRANTED TO THE TAXPAYER UNDER THIS ARTICLE.

SECTION 1906-G. PASS-THROUGH ENTITY.

(A) GENERAL RULE.--IF A PASS-THROUGH ENTITY HAS ANY UNUSED

TAX CREDIT UNDER SECTION 1906-G, THE TAXPAYER 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 MAY NOT CLAIM THE

CREDIT UNDER SUBSECTION (A) FOR THE SAME QUALIFIED PROJECT.

PASS-THROUGH ENTITY TO WHOM A CREDIT IS TRANSFERRED UNDER

SUBSECTION (A) SHALL IMMEDIATELY CLAIM THE 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.

(D) TAX CREDIT ALLOCATION.--THE DISTRIBUTION UNDER SECTION

1908-G MAY BE ALLOCATED IN ANY MANNER PROVIDED BY THE

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PARTNERSHIP AGREEMENT OR OTHER AGREEMENT GOVERNING THE

OPERATIONS OF THE TAXPAYER.

SECTION 1907-G. SALE OR ASSIGNMENT.

(A) AUTHORIZATION.--UPON APPROVAL BY THE DEPARTMENT, A

QUALIFIED TAXPAYER MAY SELL OR ASSIGN, IN WHOLE OR IN PART, A

TAX CREDIT GRANTED TO THE TAXPAYER UNDER THIS ARTICLE.

(B) APPLICATION.--THE FOLLOWING PROVISIONS SHALL APPLY TO

THE SALE AND ASSIGNMENT OF A TAX CREDIT:

(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) THE DEPARTMENT SHALL APPROVE A SALE OR ASSIGNMENT IF

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 1908-G. PURCHASERS AND ASSIGNEES.

(A) CLAIM.--THE PURCHASER OR ASSIGNEE OF ALL OR A PORTION OF

A TAX CREDIT UNDER SECTION 1710-J SHALL IMMEDIATELY CLAIM THE

TAX CREDIT IN THE TAXABLE YEAR IN WHICH THE PURCHASE OR

ASSIGNMENT IS MADE.

(B) AMOUNT.--THE AMOUNT OF THE TAX CREDIT THAT A PURCHASER

OR ASSIGNEE MAY USE AGAINST ANY ONE QUALIFIED TAX LIABILITY MAY

NOT EXCEED 75% OF SUCH QUALIFIED TAX LIABILITY FOR THE TAXABLE

YEAR.

CARRY BACK OR OBTAIN A REFUND OF OR SELL OR ASSIGN THE TAX

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CREDIT.

SECTION 1909-G. ADMINISTRATION.

(A) AGENCY GUIDELINES AND PROCEDURES.--THE AGENCY SHALL

ISSUE GUIDELINES AND PROCEDURES FOR THE ADMINISTRATION OF THE

TAX CREDIT IN CONJUNCTION WITH THE QUALIFIED ALLOCATION PLAN AND

WHEN POSSIBLE, ADMINISTER THE TAX CREDIT USING THE SAME

GUIDELINES, PROCEDURES AND PRIORITIES THAT THE AGENCY USES TO

ADMINISTER THE FEDERAL HOUSING TAX CREDIT.

(B) RECAPTURE.--THE DEPARTMENT, IN CONSULTATION WITH THE

AGENCY, SHALL ESTABLISH GUIDELINES THAT INCLUDE PROCEDURES FOR

RECAPTURE OF TAX CREDITS DURING THE CREDIT PERIOD THAT ARE

SIMILAR IN STRUCTURE AND EFFECT TO EVENTS OF NONCOMPLIANCE UNDER

SECTION 42 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-

514, 26 U.S.C. § 42). THE GUIDELINES SHALL PROVIDE FOR THE

MECHANISM AND FORMULA THAT THE TAX CREDIT MAY BE RECAPTURED OVER

THE REMAINING CREDIT PERIOD.

FRAUD OR INTENTIONAL MISREPRESENTATION OF INFORMATION REQUIRED

TO BE PROVIDED TO THE AGENCY OR THE DEPARTMENT UNDER THIS

ARTICLE OR THE AGENCY'S GUIDELINES, THE DEPARTMENT MAY:

(1) RECAPTURE ALL OR A PORTION OF THE TAX CREDIT.

(2) DEEM INELIGIBLE THE APPLICANT OR TAXPAYER FROM

FUTURE TAX CREDITS.

(3) IMPOSE OTHER PENALTIES AS SPECIFIED IN THE AGENCY'S

GUIDELINES.

(D) FEE.--THE AGENCY MAY CHARGE A TAXPAYER APPLYING FOR A

TAX CREDIT A REASONABLE FEE NOT TO EXCEED 5% OF THE TAX CREDIT

ALLOCATED FOR THE ADMINISTRATIVE EXPENSES OF THE AGENCY FOR

PROCESSING APPLICATIONS UNDER THIS ARTICLE.

SECTION 1910-G. ANNUAL REPORT.

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(A) DUTY OF AGENCY.--BY JUNE 30, 2021, AND EACH JUNE 30

THEREAFTER, THE AGENCY SHALL SUBMIT A REPORT ON THE TAX CREDIT

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 URBAN AFFAIRS AND HOUSING COMMITTEE OF THE

SENATE AND THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE URBAN

AFFAIRS COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE REPORT

SHALL INCLUDE:

(1) THE NUMBER AND AMOUNT OF TAX CREDITS AWARDED.

(2) THE TAXPAYERS THAT WERE AWARDED TAX CREDITS.

(3) THE AMOUNT OF TAX CREDITS ISSUED TO EACH TAXPAYER.

(B) PUBLIC POSTING.--THE AGENCY SHALL MAKE THE REPORT

IDENTIFIED IN SUBSECTION (A) AVAILABLE ON THE AGENCY'S PUBLICLY

ACCESSIBLE INTERNET WEBSITE.

Section 2. The following shall, pursuant to section 2(b)(ii)

of Article VIII of the Constitution of Pennsylvania, apply:

(1) A local taxing authority may by ordinance or

resolution exempt from real property taxation the assessed

valuation of affordable housing units in the amounts and in

accordance with the following:

(i) A local taxing authority granting a tax

exemption under this section may provide for tax

exemption on the assessment attributable to the actual

cost of new construction or improvements or up to any

maximum cost uniformly established by the municipal

corporation. The maximum cost shall uniformly apply to

all eligible property within the local taxing authority's

jurisdiction.

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(ii) The real property tax exemption shall remain in

force until such time as the period of the affordability

or resale restrictions are in place.

(2) For purposes of this section, "affordable housing"

means rental housing, or housing for purchase, for which

there is a legally enforceable document, including, but not

limited to, a deed or mortgage restriction, that requires

units to be rented or sold to individuals residing in poverty

whose total amount of household income is insufficient to

adequately provide the taxpayer, the taxpayer's spouse and

dependent children with the necessities of life.

SECTION 2 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.

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