A05297
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2358
Session of
2024
INTRODUCED BY PROKOPIAK, SAMUELSON, BRENNAN, SIEGEL, DONAHUE,
KINSEY, SAPPEY, HILL-EVANS, T. DAVIS, SCHLOSSBERG, ABNEY,
MALAGARI, ROZZI, PROBST, HARKINS AND FREEMAN, JUNE 4, 2024
REFERRED TO COMMITTEE ON FINANCE, JUNE 4, 2024
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 historic preservation incentive tax credit,
further providing for tax credit certificates. and for
carryover, carryback and assignment of credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1703-H(b)(2.3) and (5)(i) 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 1703-H(b)(2.3) and (5)(i) and 1705-H(d)
and (e) 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 1703-H. Tax credit certificates.
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(b) Review, recommendation and approval.--
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(2.3) Any amount of tax credit certificates up to the
annual program limit of [$5,000,000] $20,000,000 not awarded
within the initial application period shall be available on a
first-come, first-served basis through a process determined
by the Department of Community and Economic Development.
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(5) In granting tax credit certificates under this
article, the Department of Community and Economic
Development:
(i) Shall not grant more than [$5,000,000]
$20,000,000 in tax credit certificates in any fiscal year
exclusive of any tax credit certificates not awarded or
returned from previous fiscal years.
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Section 1705-H. Carryover, carryback and assignment of credit.
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[(d) Sale or assignment.--The following shall apply:
(1) A qualified taxpayer or a purchaser or assignee of a
tax credit obtained under section 1703-H or a shareholder,
member or partner of a pass-through entity that was
transferred the tax credit or a portion of the tax credit
from such pass-through entity subject to section 1706-H, upon
application to and approval by the Department of Community
and Economic Development, may sell or assign, in whole or in
part, a tax credit granted to the qualified taxpayer under
this article.
(2) Before an application is approved, the department
must find that the applicant has filed all required State tax
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reports and returns for all applicable taxable years and paid
any balance of State tax due as determined at settlement,
assessment or determination by the department.
(e) Purchasers and assignees.--
(1) If a purchaser or assignee of all or a portion of a
tax credit obtained under section 1703-H cannot use the
entire amount of the tax credit for the taxable year in which
the tax credit was purchased or assigned, the excess may be
carried over to succeeding taxable years and used as a credit
against the qualified tax liability of the purchaser or
assignee for those taxable years.
(2) 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.
(3) The tax credit may be carried over and applied to
succeeding taxable years for not more than seven taxable
years following the first taxable year for which the
qualified taxpayer was entitled to claim the credit.
(4) The purchaser or assignee may not carry back the
credit or obtain a refund.]
Section 2. The amendment of section 1703-H(b)(2.3) and (5)
(i) of the act shall apply to fiscal years beginning after June
30, 2025.
Section 3. The amendment of section 1705-H(d) and (e) of the
act shall apply after December 31, 2024.
Section 3 4. This act shall take effect immediately.
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