Bill Text: PA HB1848 | 2009-2010 | Regular Session | Introduced


Bill Title: Authorizing the Neighborhood Energy Assistance Tax Credit.

Spectrum: Moderate Partisan Bill (Republican 18-5)

Status: (Introduced - Dead) 2009-07-10 - Referred to FINANCE [HB1848 Detail]

Download: Pennsylvania-2009-HB1848-Introduced.html

  

 

    

PRINTER'S NO.  2429

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1848

Session of

2009

  

  

INTRODUCED BY MUSTIO, BARRAR, BEYER, BRENNAN, CIVERA, DENLINGER, EVERETT, GEIST, GINGRICH, KILLION, KOTIK, MURT, O'NEILL, PYLE, RAPP, READSHAW, REICHLEY, ROSS, SIPTROTH, J. TAYLOR, VULAKOVICH AND YOUNGBLOOD, JULY 10, 2009

  

  

REFERRED TO COMMITTEE ON FINANCE, JULY 10, 2009  

  

  

  

AN ACT

  

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Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

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act relating to tax reform and State taxation by codifying

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and enumerating certain subjects of taxation and imposing

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taxes thereon; providing procedures for the payment,

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collection, administration and enforcement thereof; providing

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for tax credits in certain cases; conferring powers and

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imposing duties upon the Department of Revenue, certain

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employers, fiduciaries, individuals, persons, corporations

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and other entities; prescribing crimes, offenses and

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penalties," authorizing the Neighborhood Energy Assistance

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Tax Credit.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as

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the Tax Reform Code of 1971, is amended by adding an article to

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read:

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ARTICLE XIX-B

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NEIGHBORHOOD ENERGY ASSISTANCE TAX CREDIT

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Section 1901-B.  Scope.

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This article authorizes the Neighborhood Energy Assistance

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Tax Credit.

 


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Section 1902-B.  Definitions.

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The following words and phrases when used in this article

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shall have the meanings given to them in this section unless the

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context clearly indicates otherwise:

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"Business firm."  Any business entity authorized to do

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business in this Commonwealth and subject to taxes imposed by

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Article III, IV, VI, VII or VIII. This term includes an electric

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generation or distribution company or natural gas supplier or

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distribution company as defined in 66 Pa.C.S. § 2803 (relating

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to definitions).

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"Commission."  The Pennsylvania Public Utility Commission.

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"Comprehensive energy services plan."  A strategy developed

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jointly by a neighborhood energy organization and a sponsoring

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business firm for the provision of energy assistance services

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within an urban neighborhood, suburban community or rural

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community.

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"Comprehensive energy services project."  Any activity

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conducted jointly by a neighborhood or community-based

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organization and a sponsoring business firm that implements a

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comprehensive energy service plan.

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"Energy assistance services."  Any type of counseling and

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advice or the provision of direct services to reduce the energy

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usage and costs to individuals or groups throughout a

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geographical area, which counseling, advice or services are in

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addition to those services or programs required by Federal or

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State statute or regulation or by an ordinance or regulation of

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a local government. This term includes, but is not limited to,

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the following activities: energy conservation education; home

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weatherization services that include the provision of measures

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that affect either heating or cooling costs or both in an

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individual residence or within a building owned or operated by a

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nonprofit organization providing a community service; and

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administration of the Low Income Bill Payment Assistance

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Program. An individual residence includes either a premises

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owned and occupied by an individual or a premises rented by an

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individual.

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"Neighborhood energy assistance."  Financial assistance,

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labor, material and technical advice to aid in the physical

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improvement of any part or all of an individual residence that

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will result in the more efficient use of energy and a reduction

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in the energy costs within the individual residence.

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"Neighborhood energy organization."  A private, nonprofit

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organization that provides energy assistance services to

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residents in an urban neighborhood, suburban community or rural

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community and that has obtained a ruling from the Internal

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Revenue Service that the organization is exempt from income

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taxation under the provisions of the Internal Revenue Code of

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1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) and approved by

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the Department of Community and Economic Development. This term

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includes the sustainable energy funds established under the

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restructuring plans required under 66 Pa.C.S. Ch. 28 (relating

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to restructuring of electric utility industry) and pursuant to

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Pennsylvania Public Utility Commission Docket Nos. R-00973981,

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R-00974008, R-00974009, R-00973953 and R-00973954.

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"Qualified investment."  Any investment made by a business

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firm that promotes the efficient use of energy and a reduction

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in energy costs pursuant to a plan that has been developed in

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cooperation with and approved by a neighborhood or community-

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based energy organization operating pursuant to a plan for the

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administration of tax credits approved by the Department of

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Community and Economic Development and the Pennsylvania Public

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Utility Commission.

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"Qualified tax liability."  The liability for taxes imposed

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under Article III, IV, VI, VII or VIII. The term does not

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include any tax withheld by an employer from an employee under

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Article III.

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"Secretary."  The Secretary of Community and Economic

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Development of the Commonwealth.

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Section 1903-B.  Tax credit.

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(a)  General rule.--A business firm that engages in or

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contributes to a neighborhood energy organization that engages

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in the activities of providing neighborhood energy assistance to

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low-income and moderate-income individuals or to nonprofit

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organizations in an urban neighborhood, suburban community or

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rural community shall receive a tax credit as provided in

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section 1904-B if the secretary and the commission annually

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approve the proposal of the business firm or private company.

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The proposal shall set forth the program to be conducted, the

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urban neighborhood, suburban community or rural community

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selected, the estimated amount to be invested in the program and

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the plan for implementing the program.

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(b)  Regulations.--The secretary, in cooperation with the

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commission, shall promulgate rules and regulations for the

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approval or disapproval of the proposals by business firms or

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private companies and provide a listing of all applications

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received and their disposition in each fiscal year to the

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General Assembly by October 1 of the following fiscal year.

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Section 1904-B.  Grant of tax credit.

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(a)  Authorization.--The Department of Revenue shall grant a

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tax credit against any tax due under Article III, IV, VI, VII or

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VIII. The total amount of tax credit granted for programs

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approved under this article shall not exceed $20,000,000 of tax

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credit in any fiscal year, subject to the following:

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(1)  A business firm that incurs a Pennsylvania qualified

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neighborhood energy assistance expense in a taxable year may

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apply for a neighborhood energy assistance tax credit as

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provided in this article. By September 15, a business firm

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must submit an application to the Department of Revenue for

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Pennsylvania neighborhood energy assistance expenses incurred

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in the taxable year that ended in the prior calendar year.

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(2)  A business firm that is qualified under section

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1903-B and incurs an expense that supports a program of

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energy education, counseling or advice or that does not show

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a direct energy savings or cost reduction shall receive a

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neighborhood energy assistance tax credit for the taxable

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year in the amount of 50% of the excess of the business

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firm's total Pennsylvania qualified neighborhood energy

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assistance expense for the taxable year.

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(3)  A business firm that is qualified under section

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1903-B and incurs an expense that supports a program

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providing direct energy services that include the

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installation of actual energy efficiency measures, including

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solar water heating and solar photovoltaic systems, that

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demonstrate a direct energy savings or cost reduction, or

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that administer low income bill payment assistance programs

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shall receive a neighborhood assistance tax credit for the

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taxable year in the amount of 70% of the excess of the

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business firm's total Pennsylvania qualified neighborhood or

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community-based energy assistance expense for the taxable

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year.

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(b)  Notification of approved tax credits.--By December 15 of

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the calendar year following the close of the taxable year during

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which the Pennsylvania qualified neighborhood energy assistance

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expense was incurred, the Department of Revenue shall notify the

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business firm of the amount of the business firm's neighborhood

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energy assistance tax credit approved by the Department of

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Revenue.

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(c)  Carryover, carryback, refund and assignment of credit.--

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(1)  If the business firm cannot use the entire amount of

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the tax credit for the taxable year in which the tax credit

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is first approved, then the excess may be carried over to

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succeeding taxable years and used as a credit against the

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qualified tax liability of the business firm for those

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taxable years. Each time that the tax credit is carried over

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to a succeeding taxable year, it shall be reduced by the

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amount that was used as a credit during the immediately

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preceding taxable year. The tax credit provided by this

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article may be carried over and applied to succeeding taxable

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years for no more than 15 taxable years following the first

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taxable year for which the business firm was entitled to

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claim the credit.

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(2)  A tax credit approved by the Department of Revenue

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for a neighborhood energy assistance tax credit expense in a

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calendar year first shall be applied against the business

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firm's qualified tax liability for the current taxable year

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as of the date on which the credit was approved before the

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tax credit is applied against any tax liability under section

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1903-B.

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(3)  A business firm may not carry back or obtain a

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refund of an unused tax credit.

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(4)  Tax credits under this article shall be provided on

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a first-come-first-served basis until all annual available

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credits have been allocated.

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(d)  Pass-through entity.--

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(1)  If a pass-through entity has any unused tax credit

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under section 1903-B, the entity may elect, in writing,

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according to the Department of Revenue's procedures, to

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transfer all or a portion of the credit to shareholders,

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members or partners in proportion to the shares of the

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entity's distributive income to which the shareholder, member

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or partner is entitled.

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(2)  The tax credit provided under section 1903-B is in

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addition to any tax credit to which a shareholder, member or

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partner of a pass-through entity is otherwise entitled under

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this article. However, a pass-through entity and a

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shareholder, member or partner of a pass-through entity may

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not claim a credit under this article for the same qualified

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expense.

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(3)  A shareholder, member or partner of a pass-through

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entity to whom credit is transferred under section 1903-B

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must immediately claim the credit in the taxable year in

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which the transfer is made. The shareholder, member or

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partner may not carry forward, carry back, obtain a refund or

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sell or assign the credit.

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Section 1905-B.  Report.

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The Department of Revenue shall annually make a report to the

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Environmental Resources and Energy Committee of the Senate and

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Environmental Resources and Energy Committee of the House of

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Representatives on the activities undertaken pursuant to this

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article, including, but not limited to:

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(1)  The number and amount of tax credits provided.

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(2)  The number and description of the neighborhood or

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community-based energy organizations receiving the tax

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credits.

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(3)  The type of programs receiving support and the

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amount of investment on which the tax credits were provided

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against.

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Section 1906-B.  Regulations.

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The Department of Revenue, the Department of Community and

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Economic Development and the commission shall promulgate

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regulations necessary for the implementation and administration

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of this article.

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Section 1907-B.  Decision in writing.

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The decision of the secretary to approve or disapprove a

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proposal pursuant to section 1903-B shall be in writing and, if

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it approves the proposal, it shall state the maximum credit

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allowable to the business firm. A copy of the decision of the

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secretary shall be transmitted to the Governor and to the

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Secretary of Revenue.

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Section 2.  This act shall take effect in 60 days.

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