Bill Text: PA HB1834 | 2009-2010 | Regular Session | Introduced

---

Bill Title: Providing for the Interstate 80 toll road impact tax credit.

Spectrum: Moderate Partisan Bill (Democrat 12-3)

Status: (Introduced - Dead) 2009-07-08 - Referred to TRANSPORTATION [HB1834 Detail]

Download: Pennsylvania-2009-HB1834-Introduced.html

---

PRINTER'S NO. 2406
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1834 Session of2009
INTRODUCED BY HANNA, BELFANTI, CARROLL, EVERETT, FAIRCHILD, GEORGE, GIBBONS, HORNAMAN, JOSEPHS, KORTZ, LONGIETTI, MAHONEY, PHILLIPS, READSHAW AND WAGNER, JULY 8, 2009
REFERRED TO COMMITTEE ON TRANSPORTATION, JULY 8, 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," providing for the Interstate 80 toll road impact
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
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-F
INTERSTATE 80 TOLL ROAD IMPACT TAX CREDIT
Section 1701-F. Scope of article.
This article relates to economic development tax credits for
businesses impacted by the conversion of Interstate 80 into a
toll road.
Section 1702-F. 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:
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Manufacture." The term shall have the same meaning given to
it under section 201.
"Pass-through entity." A partnership as defined in section
301(n.0) or a Pennsylvania S corporation as defined in section
301(n.1).
"Qualified expense." All toll road expenses incurred by a
qualified taxpayer.
"Qualified taxpayer." A taxpayer that incurs toll road
expense.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV or VI. The term shall not include any tax
withheld by an employer from an employee under Article III.
"Tax credit." The Interstate 80 toll road impact tax credit
provided under this article.
"Taxpayer." An entity subject to tax under Article III, IV
or VI. The term does not include contractors or subcontractors
of an entity.
"Toll road expense." Payment of any toll on Interstate 80 to
the Commonwealth or any agency or instrumentality thereof.
Section 1703-F. Tax credit for qualified expenses.
(a) Application.--A taxpayer may apply to the department for
a tax credit under this section. The application shall be on the
form required by the department.
(b) Review and approval.--The department shall review and
20090HB1834PN2406 - 2 -
approve or disapprove the applications in the order in which
they are received. Upon determining the taxpayer has incurred
qualified expenses, the department may approve the taxpayer for
a tax credit.
(c) Contract.--If the department approves the taxpayer's
application under subsection (b), the department and the
taxpayer shall enter into a contract.
(d) Certificate.--Upon execution of the contract required by
subsection (c), the department shall award the taxpayer a tax
credit and issue the taxpayer a tax credit certificate.
Section 1704-F. Tax credits.
A taxpayer may claim a tax credit against the qualified tax
liability of the taxpayer.
Section 1705-F. Carryover, carryback and assignment of tax
credit.
(a) General rule.--If the taxpayer cannot use the entire
amount of the tax credit for the taxable year in which the tax
credit is first approved, then the excess may be carried over to
succeeding taxable years and used as a tax credit against the
qualified tax liability of the taxpayer for those taxable years.
Each time the tax credit is carried over to a succeeding taxable
year, it shall be reduced by the amount that was used as a
credit during the immediately preceding taxable year. The tax
credit provided by this article may be carried over and applied
to succeeding taxable years for no more than three taxable years
following the first taxable year for which the taxpayer was
entitled to claim the tax credit.
(b) Application.--A tax credit approved by the department in
a taxable year first shall be applied against the taxpayer's
qualified tax liability for the current taxable year as of the
20090HB1834PN2406 - 3 -
date on which the tax credit was approved before the tax credit
can be applied against any tax liability under subsection (a).
(c) No carryback or refund.--A taxpayer is not entitled to
carry back or obtain a refund of all or any portion of an unused
tax credit granted to the taxpayer under this article.
(d) (Reserved).
(e) Sale or assignment.--The following shall apply:
(1) A taxpayer, upon application to and approval by the
department, may sell or assign, in whole or in part, a tax
credit granted to the taxpayer under this article.
(2) The department and the Department of Revenue shall
jointly promulgate regulations for the approval of
applications under this subsection.
(3) Before an application is approved, the Department of
Revenue must make a finding that the applicant has filed all
required State tax 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 of Revenue.
(4) Notwithstanding any other provision of law, the
Department of Revenue shall settle, assess or determine the
tax of an applicant under this subsection within 90 days of
the filing of all required final returns or reports in
accordance with section 806.1(a)(5) of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code.
(f) Purchasers and assignees.--The purchaser or assignee of
all or a portion of a tax credit under subsection (e) shall
immediately claim the tax credit in the taxable year in which
the purchase or assignment is made. The amount of the tax credit
that a purchaser or assignee may use against any one qualified
20090HB1834PN2406 - 4 -
tax liability may not exceed 50% of such qualified tax liability
for the taxable year. The purchaser or assignee may not carry
forward, carry back or obtain a refund of or sell or assign the
tax credit. The purchaser or assignee shall notify the
Department of Revenue of the seller or assignor of the tax
credit in compliance with procedures specified by the Department
of Revenue.
Section 1706-F. Limitations.
(a) (Reserved).
(b) Individual limitations.--The aggregate amount of tax
credits awarded by the department under this article to a
taxpayer may not exceed 100% of the qualified expenses incurred.
Section 1707-F. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
tax credit under this article, it may elect in writing,
according to procedures established by the Department of
Revenue, 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 shareholders,
members or partners are entitled.
(b) Limitation.--A pass-through entity and a shareholder,
member or partner of a pass-through entity shall not claim the
tax credit under subsection (a) for the same qualified expense.
(c) Application.--A shareholder, member or partner of a
pass-through entity to whom a tax credit is transferred under
subsection (a) shall immediately claim the tax 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 or sell or assign the tax credit.
Section 1708-F. Department guidelines and regulations.
20090HB1834PN2406 - 5 -
The department shall develop written guidelines for the
implementation of the provisions of this article. The guidelines
shall be in effect until such time as the department promulgates
regulations for the implementation of the provisions of this
article. The department shall promulgate regulations for the
implementation of this article within two years of the effective
date of this section.
Section 1709-F. Report to General Assembly.
(a) General rule.--No later than June 1, 2009, and September
1 of each year thereafter, the Secretary of Community and
Economic Development shall submit a report to the General
Assembly summarizing the effectiveness of the tax credit
provided by this article. The report shall include the names of
all taxpayers utilizing the tax credit as of the date of the
report and the amount of tax credits approved for, utilized by
or sold or assigned by each taxpayer. The report may also
include any recommendations for changes in the calculation or
administration of the tax credit. The report shall be submitted
to the chairman and minority chairman of the Appropriations
Committee of the Senate, the chairman and minority chairman of
the Finance Committee of the Senate, the chairman and minority
chairman of the Appropriations Committee of the House of
Representatives and the chairman and minority chairman of the
Finance Committee of the House of Representatives.
(b) Public information.--Notwithstanding any law providing
for the confidentiality of tax records, the information in the
report shall be public information, and all report information
shall be posted on the department's Internet website.
Section 2. This act shall apply to taxable years commencing
on and after January 1 of the year following the date of
20090HB1834PN2406 - 6 -
enactment.
Section 3. This act shall take effect immediately.
20090HB1834PN2406 - 7 -