Bill Text: PA HB1392 | 2011-2012 | Regular Session | Introduced

---

Bill Title: Further providing, in resource enhancement and protection tax credit, for resource enhancement and protection tax credit program and for annual tax credits.

Spectrum: Moderate Partisan Bill (Republican 27-7)

Status: (Introduced - Dead) 2011-04-26 - Referred to FINANCE [HB1392 Detail]

Download: Pennsylvania-2011-HB1392-Introduced.html

---

PRINTER'S NO. 1640
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1392 Session of2011
INTRODUCED BY STERN, BEAR, BOYD, CLYMER, D. COSTA, COX, CUTLER, FLECK, GEIST, GEORGE, GIBBONS, GILLESPIE, GINGRICH, GODSHALL, GOODMAN, GRELL, GROVE, HANNA, HESS, HUTCHINSON, KAUFFMAN, M. K. KELLER, KIRKLAND, MARSHALL, MILLARD, MILLER, MOUL, MURT, PICKETT, REICHLEY, ROCK, SCHRODER, STURLA AND SWANGER, APRIL 26, 2011
REFERRED TO COMMITTEE ON FINANCE, APRIL 26, 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," further providing, in resource enhancement and
protection tax credit, for resource enhancement and
protection tax credit program and for annual tax credits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1703-E and 1709-E of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added
July 25, 2007 (P.L.373, No.55), are amended to read:
Section 1703-E. Resource Enhancement and Protection Tax Credit
Program.
(a) Establishment.--The Resource Enhancement and Protection
Tax Credit Program is established to encourage private
investment in the implementation of best management practices on
agricultural operations, the planting of riparian forest buffers
and the remediation of legacy sediment.
(b) Limits.--The following limits shall apply:
(1) Except as set forth in paragraph (5), an eligible
applicant may be granted a maximum of $150,000 in tax credits
under this program.
(2) No more than $150,000 in tax credits shall be
granted toward projects for an agricultural operation.
(3) An eligible applicant may submit an application for
a single project or multiple applications for multiple
projects within the limits of this section.
(4) There shall be no limit on the amount of tax credits
that may be purchased from or be assigned from an eligible
applicant.
(5) Notwithstanding paragraph (1), there shall be no
limit on the amount of tax credits granted to a sponsor under
subsection (e).
(6) The credits for legacy sediment shall not be issued
prior to July 1, 2008. Applications for legacy sediment
remediation will not be accepted prior to July 1, 2008.
(c) Carryover.--
(1) If the eligible applicant cannot use the entire
amount of the tax credit for the taxable year in which the
tax credit is first granted, then the excess may be carried
over to succeeding taxable years and used as a credit against
the qualified tax liability of the eligible applicant for
those taxable years. Each time that the 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
20110HB1392PN1640 - 2 -
preceding taxable year. The tax credit provided by this
article may be carried over and applied to succeeding taxable
years for no more than 15 taxable years following the first
taxable year for which the eligible applicant was entitled to
claim the credit.
(2) A tax credit granted by the department shall be
applied against the taxpayer's qualified tax liability for
the current taxable year as of the date on which the credit
was granted before the tax credit is applied against any tax
liability under paragraph (1).
(3) A tax credit granted under this article shall not be
carried back or refunded.
(d) Sale or assignment of credit.--
(1) An eligible applicant, upon application to and
approval by the commission, may sell or assign, in whole or
in part, a tax credit granted to the eligible applicant under
this article [if no claim for allowance of the credit is
filed within one year from the date the credit is granted by
the department under section 1708-E]. The commission, in
consultation with the department, shall establish guidelines
for the approval of applications under this subsection.
(2) The purchaser or assignee of a portion of a tax
credit under this subsection shall immediately claim the
credit in the taxable year in which the purchase or
assignment is made. The amount of the credit that a purchaser
or assignee may use against a qualified tax liability may not
exceed 75% of the qualified tax liability for the taxable
year. The purchaser or assignee may not carry over, carry
back, obtain a refund of or sell or assign the tax credit.
The purchaser or assignee shall notify the department of the
20110HB1392PN1640 - 3 -
seller or assignor of the tax credit in compliance with
procedures specified by the department.
(3) Before an application is approved, the department
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.
(4) Notwithstanding any other provision of law, the
department 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.
(e) Sponsorship.--An eligible applicant may be a sponsor by
applying for a tax credit for a project authorized under section
1707-E if a written [agreement] contract between the eligible
applicant and the owner of property on which the project will be
completed is submitted to the commission, certifying that the
property owner will comply with all the provisions of this
article.
(f) Tax credits for pass-through entities.--
(1) If a pass-through entity has any unused tax credit
under section 1704-E, it may elect in writing, according to
procedures established by the department, to transfer all or
a portion of the 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.
(2) The credit provided under paragraph (1) is in
addition to any tax credit to which the shareholder, member
20110HB1392PN1640 - 4 -
or partner is otherwise entitled under this article. However,
a pass-through entity and its shareholders, members or
partners shall not claim a tax credit under this article for
the same project authorized under section 1707-E.
(3) A shareholder, member or partner of a pass-through
entity to whom credit is transferred under paragraph (1)
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 credit.
Section 1709-E. Annual tax credits.
The total amount of tax credits authorized by the commission
shall not exceed [$10,000,000] $20,000,000 in any fiscal year.
Section 2. The amendment of section 1703-E(d) of the act
shall apply retroactively to July 1, 2009.
Section 3. This act shall take effect immediately.
20110HB1392PN1640 - 5 -