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

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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

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PRINTER'S NO. 2429
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1848 Session of2009
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
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," authorizing the Neighborhood Energy Assistance
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 XIX-B
NEIGHBORHOOD ENERGY ASSISTANCE TAX CREDIT
Section 1901-B. Scope.
This article authorizes the Neighborhood Energy Assistance
Tax Credit.
Section 1902-B. 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:
"Business firm." Any business entity authorized to do
business in this Commonwealth and subject to taxes imposed by
Article III, IV, VI, VII or VIII. This term includes an electric
generation or distribution company or natural gas supplier or
distribution company as defined in 66 Pa.C.S. § 2803 (relating
to definitions).
"Commission." The Pennsylvania Public Utility Commission.
"Comprehensive energy services plan." A strategy developed
jointly by a neighborhood energy organization and a sponsoring
business firm for the provision of energy assistance services
within an urban neighborhood, suburban community or rural
community.
"Comprehensive energy services project." Any activity
conducted jointly by a neighborhood or community-based
organization and a sponsoring business firm that implements a
comprehensive energy service plan.
"Energy assistance services." Any type of counseling and
advice or the provision of direct services to reduce the energy
usage and costs to individuals or groups throughout a
geographical area, which counseling, advice or services are in
addition to those services or programs required by Federal or
State statute or regulation or by an ordinance or regulation of
a local government. This term includes, but is not limited to,
the following activities: energy conservation education; home
weatherization services that include the provision of measures
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
nonprofit organization providing a community service; and
administration of the Low Income Bill Payment Assistance
Program. An individual residence includes either a premises
owned and occupied by an individual or a premises rented by an
individual.
"Neighborhood energy assistance." Financial assistance,
labor, material and technical advice to aid in the physical
improvement of any part or all of an individual residence that
will result in the more efficient use of energy and a reduction
in the energy costs within the individual residence.
"Neighborhood energy organization." A private, nonprofit
organization that provides energy assistance services to
residents in an urban neighborhood, suburban community or rural
community and that has obtained a ruling from the Internal
Revenue Service that the organization is exempt from income
taxation under the provisions of the Internal Revenue Code of
1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) and approved by
the Department of Community and Economic Development. This term
includes the sustainable energy funds established under the
restructuring plans required under 66 Pa.C.S. Ch. 28 (relating
to restructuring of electric utility industry) and pursuant to
Pennsylvania Public Utility Commission Docket Nos. R-00973981,
R-00974008, R-00974009, R-00973953 and R-00973954.
"Qualified investment." Any investment made by a business
firm that promotes the efficient use of energy and a reduction
in energy costs pursuant to a plan that has been developed in
cooperation with and approved by a neighborhood or community-
based energy organization operating pursuant to a plan for the
administration of tax credits approved by the Department of
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Community and Economic Development and the Pennsylvania Public
Utility Commission.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV, VI, VII or VIII. The term does not
include any tax withheld by an employer from an employee under
Article III.
"Secretary." The Secretary of Community and Economic
Development of the Commonwealth.
Section 1903-B. Tax credit.
(a) General rule.--A business firm that engages in or
contributes to a neighborhood energy organization that engages
in the activities of providing neighborhood energy assistance to
low-income and moderate-income individuals or to nonprofit
organizations in an urban neighborhood, suburban community or
rural community shall receive a tax credit as provided in
section 1904-B if the secretary and the commission annually
approve the proposal of the business firm or private company.
The proposal shall set forth the program to be conducted, the
urban neighborhood, suburban community or rural community
selected, the estimated amount to be invested in the program and
the plan for implementing the program.
(b) Regulations.--The secretary, in cooperation with the
commission, shall promulgate rules and regulations for the
approval or disapproval of the proposals by business firms or
private companies and provide a listing of all applications
received and their disposition in each fiscal year to the
General Assembly by October 1 of the following fiscal year.
Section 1904-B. Grant of tax credit.
(a) Authorization.--The Department of Revenue shall grant a
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
approved under this article shall not exceed $20,000,000 of tax
credit in any fiscal year, subject to the following:
(1) A business firm that incurs a Pennsylvania qualified
neighborhood energy assistance expense in a taxable year may
apply for a neighborhood energy assistance tax credit as
provided in this article. By September 15, a business firm
must submit an application to the Department of Revenue for
Pennsylvania neighborhood energy assistance expenses incurred
in the taxable year that ended in the prior calendar year.
(2) A business firm that is qualified under section
1903-B and incurs an expense that supports a program of
energy education, counseling or advice or that does not show
a direct energy savings or cost reduction shall receive a
neighborhood energy assistance tax credit for the taxable
year in the amount of 50% of the excess of the business
firm's total Pennsylvania qualified neighborhood energy
assistance expense for the taxable year.
(3) A business firm that is qualified under section
1903-B and incurs an expense that supports a program
providing direct energy services that include the
installation of actual energy efficiency measures, including
solar water heating and solar photovoltaic systems, that
demonstrate a direct energy savings or cost reduction, or
that administer low income bill payment assistance programs
shall receive a neighborhood assistance tax credit for the
taxable year in the amount of 70% of the excess of the
business firm's total Pennsylvania qualified neighborhood or
community-based energy assistance expense for the taxable
year.
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(b) Notification of approved tax credits.--By December 15 of
the calendar year following the close of the taxable year during
which the Pennsylvania qualified neighborhood energy assistance
expense was incurred, the Department of Revenue shall notify the
business firm of the amount of the business firm's neighborhood
energy assistance tax credit approved by the Department of
Revenue.
(c) Carryover, carryback, refund and assignment of credit.--
(1) If the business firm 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 credit against the
qualified tax liability of the business firm for those
taxable years. Each time that 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 15 taxable years following the first
taxable year for which the business firm was entitled to
claim the credit.
(2) A tax credit approved by the Department of Revenue
for a neighborhood energy assistance tax credit expense in a
calendar year first shall be applied against the business
firm's qualified tax liability for the current taxable year
as of the date on which the credit was approved before the
tax credit is applied against any tax liability under section
1903-B.
(3) A business firm may not carry back or obtain a
refund of an unused tax credit.
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(4) Tax credits under this article shall be provided on
a first-come-first-served basis until all annual available
credits have been allocated.
(d) Pass-through entity.--
(1) If a pass-through entity has any unused tax credit
under section 1903-B, the entity may elect, in writing,
according to the Department of Revenue's procedures, to
transfer all or a portion of the credit to shareholders,
members or partners in proportion to the shares of the
entity's distributive income to which the shareholder, member
or partner is entitled.
(2) The tax credit provided under section 1903-B is in
addition to any tax credit to which a shareholder, member or
partner of a pass-through entity is otherwise entitled under
this article. However, a pass-through entity and a
shareholder, member or partner of a pass-through entity may
not claim a credit under this article for the same qualified
expense.
(3) A shareholder, member or partner of a pass-through
entity to whom credit is transferred under section 1903-B
must 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 or
sell or assign the credit.
Section 1905-B. Report.
The Department of Revenue shall annually make a report to the
Environmental Resources and Energy Committee of the Senate and
Environmental Resources and Energy Committee of the House of
Representatives on the activities undertaken pursuant to this
article, including, but not limited to:
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(1) The number and amount of tax credits provided.
(2) The number and description of the neighborhood or
community-based energy organizations receiving the tax
credits.
(3) The type of programs receiving support and the
amount of investment on which the tax credits were provided
against.
Section 1906-B. Regulations.
The Department of Revenue, the Department of Community and
Economic Development and the commission shall promulgate
regulations necessary for the implementation and administration
of this article.
Section 1907-B. Decision in writing.
The decision of the secretary to approve or disapprove a
proposal pursuant to section 1903-B shall be in writing and, if
it approves the proposal, it shall state the maximum credit
allowable to the business firm. A copy of the decision of the
secretary shall be transmitted to the Governor and to the
Secretary of Revenue.
Section 2. This act shall take effect in 60 days.
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