Bill Text: PA HB1815 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for carryover, carryback, refund and assignment of credit.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-07-01 - Referred to FINANCE [HB1815 Detail]

Download: Pennsylvania-2009-HB1815-Introduced.html

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PRINTER'S NO. 2361
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1815 Session of2009
INTRODUCED BY LEVDANSKY, SCAVELLO, R. TAYLOR, REED, YOUNGBLOOD, PEIFER, SHAPIRO, DENLINGER, BRIGGS, KORTZ, PALLONE, GERBER, VULAKOVICH, ADOLPH, BENNINGHOFF, BRADFORD, BRENNAN, BURNS, CALTAGIRONE, EVERETT, FREEMAN, GINGRICH, HARHAI, HENNESSEY, JOSEPHS, KOTIK, MAHONEY, MENSCH, MILNE, MURT, PAYTON, PETRARCA, PETRI, READSHAW, ROSS, SIPTROTH, SOLOBAY, SWANGER, WATSON AND WHEATLEY, JULY 1, 2009
REFERRED TO COMMITTEE ON FINANCE, JULY 1, 2009
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," further providing for carryover, carryback,
refund and assignment of credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1704-B of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
December 23, 2003 (P.L.250, No.46), is amended to read:
Section 1704-B. Carryover, Carryback, Refund and Assignment
of Credit.--(a) If the taxpayer cannot use the entire amount of
the research and development tax credit for the taxable year in
which the research and development tax credit is first approved,
then the excess may be carried over to succeeding taxable years
and used as a credit against the qualified tax liability of the
taxpayer for those taxable years. Each time that the research
and development tax credit is carried over to a succeeding
taxable year, it is to be reduced by the amount that was used as
a credit during the immediately preceding taxable year. The
research and development tax credit provided by this article may
be carried over and applied to succeeding taxable years for no
more than fifteen taxable years following the first taxable year
for which the taxpayer was entitled to claim the credit.
(b) A research and development tax credit approved by the
department for Pennsylvania qualified research and development
expense in a taxable year first shall be applied against the
taxpayer's qualified tax liability for the current taxable year
as of the date on which the credit was approved before the
research and development tax credit is applied against any tax
liability under subsection (a).
(c) A taxpayer is not entitled to carry back or obtain a
refund of an unused research and development tax credit.
(d) A taxpayer, upon application to and approval by the
Department of Community and Economic Development, may sell or
assign, in whole or in part, a research and development tax
credit granted to the taxpayer under this article [if no claim
for allowance of the credit is filed within one year from the
date the credit is approved by the department under section
1703-B]. The Department of Community and Economic Development
shall establish guidelines for the approval of applications
under this subsection.
(e) The purchaser or assignee of a portion of a research and
development tax credit under subsection (d) shall immediately
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claim the credit in the taxable year in which the purchase or
assignment is made. The amount of the research and development
credit that a purchaser or assignee may use against any one
qualified tax liability may not exceed seventy-five per cent of
such qualified tax liability for the taxable year. The purchaser
or assignee may not carry over, carry back, obtain a refund of
or assign the research and development tax credit. The purchaser
or assignee shall notify the department of the seller or
assignor of the research and development tax credit in
compliance with procedures specified by the department.
Section 2. This act shall take effect in 60 days.
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