Bill Text: PA HB1087 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for a natural gas corridor tax credit; and imposing penalties.

Spectrum: Moderate Partisan Bill (Republican 51-6)

Status: (Introduced - Dead) 2011-04-20 - Referred to FINANCE [HB1087 Detail]

Download: Pennsylvania-2011-HB1087-Introduced.html

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PRINTER'S NO. 1576
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1087 Session of2011
INTRODUCED BY DENLINGER, MARSHALL, MOUL, PERRY, PICKETT, SAYLOR, MAJOR, WATSON, AUMENT, BAKER, BARRAR, BOYD, CALTAGIRONE, CARROLL, CAUSER, CLYMER, CREIGHTON, CUTLER, DALEY, DAVIS, DAY, ELLIS, J. EVANS, EVERETT, GABLER, GEIST, GIBBONS, GILLESPIE, GINGRICH, GODSHALL, GRELL, GROVE, HARRIS, HELM, HESS, HICKERNELL, KAUFFMAN, M. K. KELLER, KILLION, KNOWLES, MALONEY, MICOZZIE, MILLER, MUSTIO, OBERLANDER, D. O'BRIEN, PYLE, QUINN, ROCK, SCAVELLO, SIMMONS, STEPHENS, WHITE, RAPP, PETRI AND BEAR, APRIL 20, 2011
REFERRED TO COMMITTEE ON FINANCE, APRIL 20, 2011
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 a natural gas corridor tax credit;
and imposing penalties.
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 XVII-G
NATURAL GAS CORRIDOR TAX CREDIT
Section 1701-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:
"Applicant." A company which meets the eligibility
requirements for the tax credit under this article.
"Committee." The Natural Gas Corridor Tax Credit Committee.
"Company." An entity doing business in this Commonwealth
which is subject to tax under Article III, IV or VI. The term
shall include the shareholder of a Pennsylvania S corporation
that is eligible for the tax credit under this article.
"Department." The Department of Revenue of the Commonwealth.
"Eligible corridor." The portions of I-76, I-78, I-79, I-80,
I-81 and I-83 within the boundaries of this Commonwealth.
"Natural gas corridor tax credit." Tax credits for which the
Department of Revenue has issued a certificate under this
article.
"Natural gas fueling station." A facility which dispenses
compressed natural gas or compressed natural gas and liquefied
natural gas to the public for vehicle refueling purposes and
does not include time-fill stations.
"Natural gas infrastructure plan." A company's plan to
transition organizational structures needed for the operation of
natural gas fueling stations, by converting existing stations or
purchasing new or used natural gas fueling equipment.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Start date." The date on which the company may begin the
company's infrastructure plan for natural gas fueling stations.
Section 1702-G. Eligibility.
In order to be eligible to receive a natural gas corridor tax
credit, a company must demonstrate to the department the
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following:
(1) A comprehensive plan to do any of the following:
(i) Build one or more natural gas fueling stations.
(ii) Add compressed natural gas fueling capacity to
one or more existing stations which sells gasoline.
(iii) A combination of paragraph (1) and (2).
(2) The stations must be open to the public.
(3) The stations must be located within two miles of an
eligible corridor.
Section 1703-G. Application process.
(a) Application.--A company must complete and submit to the
department a natural gas corridor tax credit application.
(b) Committee approval process.--
(1) The Natural Gas Corridor Tax Credit Committee is
established and shall be made up of members designated by the
following, except that none of the following may be
designees:
(i) The Secretary of Community and Economic
Development of the Commonwealth.
(ii) The Secretary of Transportation of the
Commonwealth.
(iii) The secretary.
(iv) The Secretary of Environmental Protection.
(v) The chairman of the Marcellus Shale Coalition of
the Commonwealth.
(vi) The Executive Director of Associated Petroleum
Industries of Pennsylvania.
(2) Once applications have been filed with the
department, the committee shall review all applications and
rank applications according to the total number of natural
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gas stations and gasoline stations adding natural gas fueling
capacity proposed to be built along a single eligible
corridor or a continuous travel route utilizing only the
eligible corridors, with a spacing of at least 50 miles and
no more than 100 miles from another natural gas station
within two miles of the eligible corridor.
(c) Approval.--Once applications are ranked by the
committee, the department shall approve the companies'
applications according to their discretion and availability of
natural gas corridor tax credits. The department and the company
shall execute a commitment letter containing the following:
(1) A description of the natural gas fueling
infrastructure plan.
(2) The amount of private capital investment in the
natural gas fueling infrastructure plan.
(3) A signed statement that the company intends to
complete its natural gas fueling infrastructure plan within
eighteen months.
(4) Any other information as the department deems
appropriate.
(d) Commitment letter.--After a commitment letter has been
signed by the Commonwealth and the company, the company shall
receive a natural gas corridor tax credit certificate and filing
information.
Section 1704-G. Natural gas corridor tax credits.
(a) Maximum amount.--A company may claim a natural gas
corridor tax credit for up to 50% of the total cost of the
compressed natural gas station or the total cost of adding
compressed natural gas fueling capacity to an existing station
which sells gasoline. For the purposes of this subsection, the
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total cost may not exceed $500,000.
(b) Applicable taxes.--A company may apply the natural gas
corridor tax credit to 100% of all or a combination of any of
the following taxes of the company:
(1) State corporate net income tax.
(2) Capital stock and franchise tax or the capital stock
and franchise tax of a shareholder of the company if the
company is a Pennsylvania S corporation.
(3) Gross premiums tax.
(4) Gross receipts tax.
(5) Bank and trust company shares tax.
(6) Mutual thrift institution tax.
(7) Title insurance company shares tax.
(8) Personal income tax or the personal income tax of
shareholders of a Pennsylvania S corporation.
(c) Term.--A company may claim the natural gas corridor tax
credit in one year or spread the credit over a period determined
by the department but not to exceed five years from the date the
company first submits a certificate.
(d) Sale or assignment.--
(1) A natural gas corridor tax credit recipient, upon
application to and approval by the department, may sell or
assign, in whole or in part, a natural gas corridor tax
credit granted to the recipient if no claim for allowance of
the credit is filed within one year from the date the credit
is granted by the department.
(2) The purchaser or assignee of a natural gas corridor
tax credit shall immediately claim the credit in the taxable
year in which the purchase or assignment is made. The
purchaser or assignee may not carry back, obtain a refund of
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or sell or assign the natural gas corridor tax credit. The
purchaser or assignee shall notify the department of the
seller or assignor of the natural gas corridor tax credit in
compliance with procedures specified by the department.
(3) The department shall promulgate guidelines for the
approval of applications under this subsection.
(e) Availability.--Each fiscal year, $5,000,000 in natural
gas corridor tax credits shall be made available to the
department and may be awarded by the department in accordance
with this article.
Section 1705-G. Penalties.
(a) Failure to maintain operations.--A company which
receives natural gas corridor tax credits and fails to operate
the natural gas fueling station for which it received the tax
credits for a period of five years from the start date shall
refund to the Commonwealth the total amount of credits granted.
(b) Failure to complete the natural gas infrastructure
plan.--A company which receives natural gas corridor tax credits
and fails to complete the natural gas infrastructure plan within
18 months shall refund to the Commonwealth the total amount of
credits granted.
(c) Waiver.--The department may waive the penalties under
subsections (a) and (b) if it is determined that a company's
natural gas fueling infrastructure plan was not completed
because of circumstances beyond the company's control.
Circumstances shall include natural disasters, unforeseen
industry trends or a loss of a major supplier or market. The
company must promptly notify the department of circumstances
beyond the company's control which would delay completion of the
project.
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Section 1706-G. Report to General Assembly.
No later than June 1, 2012, and each June 1 thereafter, the
department shall submit a report on the natural gas corridor tax
credits granted under this article. The report shall include the
names of taxpayers who utilized the credit as of the date of the
report and the amount of credits approved. The report may
include recommendations for changes in the calculation or
administration of the natural gas corridor tax credit and other
information as the department deems appropriate. The report
shall be submitted to all of the following:
(1) The chairman and minority chairman of the
Appropriations Committee of the Senate.
(2) The chairman and minority chairman of the
Appropriations Committee of the House of Representatives.
(3) The chairman and minority chairman of the Finance
Committee of the Senate.
(4) The chairman and the minority chairman of the
Finance Committee of the House of Representatives.
Section 1707-G. Time limitations.
A company shall not be entitled to a natural gas corridor tax
credit for taxable years ending after December 31, 2016.
Section 1708-G. Regulations.
The secretary shall promulgate regulations necessary for the
implementation and administration of this article.
Section 2. This act shall take effect in 60 days.
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