Regular Session 2021-2022 House Bill 1342 P.N. 3370

SENATE AMENDED

PRIOR PRINTER'S NO. 1440

PRINTER'S NO. 3370

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1342

Session of

2021

INTRODUCED BY RADER, SCHMITT, ROTHMAN, GUENST, COOK, SCHLEGEL

CULVER, NEILSON, ZIMMERMAN, ROWE, RYAN, R. MACKENZIE,

R. BROWN, HAMM, OBERLANDER, JOZWIAK, FARRY, SILVIS AND WELBY,

MAY 5, 2021

SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS

AMENDED, JULY 7, 2022

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," in inheritance tax, further providing for

transfers not subject to tax.

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," IN SALES AND USE TAX, FURTHER PROVIDING FOR

DEFINITIONS, FOR EXCLUSIONS FROM TAX AND FOR LICENSES; IN

PERSONAL INCOME TAX, FURTHER PROVIDING FOR CLASSES OF INCOME

AND REPEALING PROVISIONS RELATING TO COVID-19 EMERGENCY

FINANCE AND TAX PROVISION; IN CORPORATE NET INCOME TAX,

FURTHER PROVIDING FOR DEFINITIONS AND FOR IMPOSITION OF TAX;

IN INSURANCE PREMIUMS TAX, FURTHER PROVIDING FOR IMPOSITION

OF TAX AND FOR CREDITS FOR ASSESSMENTS PAID; IN VEHICLE

RENTAL TAX, FURTHER PROVIDING FOR DEFINITIONS AND FOR VEHICLE

RENTAL TAX; IN RESEARCH AND DEVELOPMENT TAX CREDIT, FURTHER

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PROVIDING FOR LIMITATION ON CREDITS; IN ENTERTAINMENT

PRODUCTION TAX CREDIT, FURTHER PROVIDING FOR DEFINITIONS, FOR

CREDIT FOR QUALIFIED FILM PRODUCTION EXPENSES, FOR

LIMITATIONS, FOR REISSUANCE OF FILM PRODUCTION TAX CREDITS

AND FOR LIMITATIONS; IN WATERFRONT DEVELOPMENT TAX CREDIT,

FURTHER PROVIDING FOR LIMITATIONS; IN CITY REVITALIZATION AND

IMPROVEMENT ZONES, FURTHER PROVIDING FOR REPORTS, FOR

RESTRICTIONS AND FOR CONFIDENTIALITY; IN INNOVATE IN PA TAX

CREDIT, FURTHER PROVIDING FOR DUTIES; IN NEIGHBORHOOD

IMPROVEMENT ZONES, FURTHER PROVIDING FOR CONFIDENTIALITY; IN

KEYSTONE OPPORTUNITY ZONES, KEYSTONE OPPORTUNITY EXPANSION

ZONES AND KEYSTONE OPPORTUNITY IMPROVEMENT ZONES, FURTHER

PROVIDING FOR EXTENSION FOR NEW JOB CREATION OR NEW CAPITAL

INVESTMENT AND FOR ADDITIONAL KEYSTONE OPPORTUNITY EXPANSION

ZONES; PROVIDING FOR AIRPORT LAND DEVELOPMENT ZONES AND FOR

PENNSYLVANIA CHILD AND DEPENDENT CARE ENHANCEMENT PROGRAM AND

FOR TAX CREDIT; IN INHERITANCE TAX, FURTHER PROVIDING FOR

TRANSFERS NOT SUBJECT TO TAX; IN PUBLIC TRANSPORTATION

ASSISTANCE FUND, FURTHER PROVIDING FOR PUBLIC TRANSPORTATION

ASSISTANCE FUND; IN TABLE GAME TAXES, PROVIDING FOR GENERAL

FUND DEPOSIT; IN COMPUTER DATA CENTER EQUIPMENT INCENTIVE

PROGRAM, FURTHER PROVIDING FOR DEFINITIONS, FOR SALES AND USE

TAX EXEMPTION, FOR ELIGIBILITY REQUIREMENTS AND FOR

REVOCATION OF CERTIFICATION; IN GENERAL PROVISIONS, PROVIDING

FOR ALLOCATION OF TAX CREDITS; MAKING TRANSFERS; AND MAKING

RELATED REPEALS.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 2111 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, is amended by

adding a subsection to read:

Section 2111. Transfers Not Subject to Tax.--(a) The

transfers enumerated in this section are not subject to the tax

imposed by this article.

* * *

(u) The transfer of personal property, whether tangible or

intangible, that is the result of a decedent military member.

(1) For purposes of this subsection, the term "decedent

military member" shall mean an individual who, while serving in

the armed forces, a reserve component or the National Guard of

the United States, died as a result of injury or illness

received while on active duty, including active duty for

training.

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(2) The term shall include both Federal and State active

duty as evidenced by official activation order.

Section 2. The addition of section 2111(u) of the act shall

apply to inheritance tax imposed as to a decedent whose date of

death is after the effective date of this section.

Section 3. This act shall take effect in 60 days.

SECTION 1. SECTION 201(N) AND (P) OF THE ACT OF MARCH 4,

1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE

AMENDED, SUBSECTION (B)(3.5) IS AMENDED BY ADDING A

SUBPARAGRAPH, SUBSECTIONS (I), (K) AND (O) ARE AMENDED BY ADDING

PARAGRAPHS AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO

READ:

SECTION 201. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND

PHRASES WHEN USED IN THIS ARTICLE II SHALL HAVE THE MEANING

ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT

CLEARLY INDICATES A DIFFERENT MEANING:

* * *

(B) "MAINTAINING A PLACE OF BUSINESS IN THIS COMMONWEALTH."

* * *

(3.5) * * *

(III) FOR A PEER-TO-PEER CAR-SHARING PROGRAM MARKETPLACE

FACILITATOR, THIS ACTIVITY INCLUDES ALL SALES, LEASES AND

DELIVERIES OF TANGIBLE PERSONAL PROPERTY AND ALL SALES OF

SERVICES BY THE MARKETPLACE SELLER WHOSE SALES ARE FACILITATED

THROUGH THE PEER-TO-PEER CAR-SHARING PROGRAM.

* * *

(I) "RESALE."

* * *

(6) THE TERM DOES NOT INCLUDE THE PURCHASE PRICE OR REPAIR

OF A SHARED VEHICLE BY A SHARED VEHICLE OWNER.

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* * *

(K) "SALE AT RETAIL."

* * *

(20) CAR SHARING THROUGH A SHARED VEHICLE OWNER, PEER-TO-

PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR OR RENTAL

COMPANY.

* * *

(N) "TAXPAYER." ANY PERSON REQUIRED TO PAY OR COLLECT THE

TAX IMPOSED BY THIS ARTICLE, INCLUDING A MARKETPLACE FACILITATOR

[AND], A MARKETPLACE SELLER, A PEER-TO-PEER CAR-SHARING PROGRAM

MARKETPLACE FACILITATOR AND A SHARED VEHICLE OWNER.

(O) "USE."

* * *

(19) CAR SHARING THROUGH A SHARED VEHICLE OWNER, PEER-TO-

PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR OR RENTAL

COMPANY.

(P) "VENDOR." ANY PERSON MAINTAINING A PLACE OF BUSINESS IN

THIS COMMONWEALTH, SELLING OR LEASING TANGIBLE PERSONAL

PROPERTY, OR RENDERING SERVICES, THE SALE OR USE OF WHICH IS

SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE, INCLUDING A

MARKETPLACE FACILITATOR [AND A], MARKETPLACE SELLER, PEER-TO-

PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR OR SHARED

VEHICLE OWNER, BUT NOT INCLUDING ANY EMPLOYE WHO IN THE ORDINARY

SCOPE OF EMPLOYMENT RENDERS SERVICES TO HIS EMPLOYER IN EXCHANGE

FOR WAGES AND SALARIES.

* * *

(MMM) "FLIGHT SIMULATOR." A DEVICE USED FOR THE TRAINING OR

INSTRUCTION OF AN INDIVIDUAL ON A HELICOPTER AND SIMILAR

ROTORCRAFT.

(NNN) "CAR-SHARING PROGRAM AGREEMENT." THE TERMS AND

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CONDITIONS THAT GOVERN THE USE OF A SHARED VEHICLE THROUGH A

PEER-TO-PEER CAR-SHARING PROGRAM.

(OOO) "PEER-TO-PEER CAR SHARING." THE AUTHORIZED USE OF A

SHARED VEHICLE BY AN INDIVIDUAL OTHER THAN THE OWNER OF THE

VEHICLE, THROUGH A PEER-TO-PEER CAR-SHARING PROGRAM.

(PPP) "PEER-TO-PEER CAR-SHARING PAYMENT." FULL

CONSIDERATION PAID OR DELIVERED, OR PROMISED TO BE PAID OR

DELIVERED, TO THE PEER-TO-PEER CAR-SHARING MARKETPLACE

FACILITATOR UNDER A CAR-SHARING PROGRAM AGREEMENT, EXCLUDING

CHARGES FOR LOCAL SALES OR USE TAX, STATE SALES OR USE TAX OR

PUBLIC TRANSPORTATION ASSISTANCE FUND FEES.

(QQQ) "PEER-TO-PEER CAR-SHARING PROGRAM." A BUSINESS

PLATFORM THAT, THROUGH A PEER-TO-PEER CAR-SHARING MARKETPLACE,

CONNECTS SHARED VEHICLE OWNERS WITH DRIVERS TO ENABLE THE

SHARING OF VEHICLES FOR FINANCIAL CONSIDERATION.

(RRR) "PEER-TO-PEER CAR-SHARING PROGRAM MARKETPLACE." A

FORUM ON WHICH A SHARED VEHICLE IS LISTED OR ADVERTISED FOR

PEER-TO-PEER CAR SHARING.

(SSS) "PEER-TO-PEER CAR-SHARING PROGRAM MARKETPLACE

FACILITATOR." A PERSON THAT FACILITATES PEER-TO-PEER CAR

SHARING THROUGH A PEER-TO-PEER CAR-SHARING MARKETPLACE AND

EITHER DIRECTLY OR INDIRECTLY, THROUGH AGREEMENTS OR

ARRANGEMENTS WITH THIRD PARTIES, COLLECTS THE PEER-TO-PEER CAR-

SHARING PAYMENT FROM THE PURCHASER AND TRANSMITS THE PAYMENT TO

THE SHARED VEHICLE OWNER.

(TTT) "SHARED VEHICLE." A VEHICLE THAT IS AVAILABLE FOR

SHARING, INCLUDING THROUGH A PEER-TO-PEER CAR-SHARING PROGRAM.

(UUU) "SHARED VEHICLE OWNER." THE REGISTERED OWNER, OR A

PERSON DESIGNATED BY THE REGISTERED OWNER, OF A VEHICLE MADE

AVAILABLE FOR SHARING, INCLUDING THROUGH A PEER-TO-PEER CAR-

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SHARING PROGRAM.

SECTION 2. SECTION 204(67) AND (68) OF THE ACT, AMENDED JUNE

30, 2021 (P.L.124, NO.25), ARE AMENDED TO READ:

SECTION 204. EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY

SECTION 202 SHALL NOT BE IMPOSED UPON ANY OF THE FOLLOWING:

* * *

(67) THE SALE AT RETAIL OR USE OF REPAIR OR REPLACEMENT

PARTS OR SOFTWARE OR SOFTWARE UPGRADES, INCLUDING THE

INSTALLATION OF THOSE PARTS, SOFTWARE OR SOFTWARE UPGRADES,

EXCLUSIVELY FOR USE IN HELICOPTERS AND SIMILAR ROTORCRAFT AND

FLIGHT SIMULATORS OR IN OVERHAULING OR REBUILDING OF HELICOPTERS

AND SIMILAR ROTORCRAFT AND FLIGHT SIMULATORS OR HELICOPTERS AND

SIMILAR ROTORCRAFT AND FLIGHT SIMULATOR COMPONENTS. [FOR THE

PURPOSES OF THIS CLAUSE, THE TERM "FLIGHT SIMULATOR" SHALL MEAN

A DEVICE USED FOR THE TRAINING OR INSTRUCTION OF AN INDIVIDUAL

ON A HELICOPTER AND SIMILAR ROTORCRAFT.]

(68) THE SALE AT RETAIL OR USE OR LEASE OF HELICOPTERS AND

SIMILAR ROTORCRAFT, AND FLIGHT SIMULATORS, AS WELL AS TRAINING

MATERIALS, OPERATIONAL DOCUMENTS AND PUBLICATIONS RELATING TO

THE USE OR OPERATION OF HELICOPTERS AND SIMILAR ROTORCRAFT AND

FLIGHT SIMULATORS. [FOR THE PURPOSES OF THIS CLAUSE, THE TERM

"FLIGHT SIMULATOR" SHALL MEAN A DEVICE USED FOR THE TRAINING OR

INSTRUCTION OF AN INDIVIDUAL ON A HELICOPTER AND SIMILAR

ROTORCRAFT.]

SECTION 3. SECTION 208(A) OF THE ACT IS AMENDED TO READ:

SECTION 208. LICENSES.--(A) EVERY PERSON MAINTAINING A

PLACE OF BUSINESS IN THIS COMMONWEALTH, WITH THE EXCEPTION OF A

MARKETPLACE SELLER WHO MAKES NO SALES OUTSIDE A FORUM FOR WHICH

A MARKETPLACE FACILITATOR IS REQUIRED TO COLLECT SALES TAX ON

THE SELLER'S BEHALF AND A SHARED VEHICLE OWNER WHO MAKES NO

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VEHICLE AVAILABLE FOR SHARING OUTSIDE A FORUM FOR WHICH A PEER-

TO-PEER CAR-SHARING PROGRAM MARKETPLACE FACILITATOR IS REQUIRED

TO COLLECT SALES TAX ON BEHALF OF THE SHARED VEHICLE OWNER,

SELLING OR LEASING SERVICES OR TANGIBLE PERSONAL PROPERTY, THE

SALE OR USE OF WHICH IS SUBJECT TO TAX AND WHO HAS NOT HITHERTO

OBTAINED A LICENSE FROM THE DEPARTMENT, SHALL, PRIOR TO THE

BEGINNING OF BUSINESS THEREAFTER, MAKE APPLICATION TO THE

DEPARTMENT, ON A FORM PRESCRIBED BY THE DEPARTMENT, FOR A

LICENSE. IF SUCH PERSON MAINTAINS MORE THAN ONE PLACE OF

BUSINESS IN THIS COMMONWEALTH, THE LICENSE SHALL BE ISSUED FOR

THE PRINCIPAL PLACE OF BUSINESS IN THIS COMMONWEALTH.

* * *

SECTION 4. SECTION 303(A.3) AND (A.5) OF THE ACT ARE AMENDED

AND SUBSECTION (A.7) IS AMENDED BY ADDING PARAGRAPHS TO READ:

SECTION 303. CLASSES OF INCOME.--* * *

(A.3) THE COST OF PROPERTY COMMONLY REFERRED TO AS SECTION

179 PROPERTY MAY BE TREATED AS A DEDUCTIBLE EXPENSE ONLY TO THE

EXTENT ALLOWABLE UNDER THE VERSION OF SECTION 179 OF THE

INTERNAL REVENUE CODE IN EFFECT AT THE TIME THE PROPERTY IS

PLACED IN SERVICE [OR UNDER SECTION 179 OF THE INTERNAL REVENUE

CODE OF 1986 (26 U.S.C. § 179), WHICHEVER IS EARLIER]. THE BASIS

OF SECTION 179 PROPERTY SHALL BE REDUCED, BUT NOT BELOW ZERO,

FOR COSTS TREATED AS A DEDUCTIBLE EXPENSE. THE AMOUNT OF THE

REDUCTION SHALL BE THE AMOUNT DEDUCTED ON A RETURN AND NOT

DISALLOWED, REGARDLESS OF WHETHER THE DEDUCTION RESULTS IN A

REDUCTION OF INCOME.

* * *

(A.5) THE REQUIREMENTS OF [SECTION] SECTIONS 1031 AND 1035

OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. [§ 1035] §§ 1031

AND 1035), AS AMENDED, SHALL BE APPLICABLE.

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* * *

(A.7) THE FOLLOWING APPLY:

* * *

(5) AS FOLLOWS:

(I) THE CLASSES OF INCOME UNDER THIS SECTION SHALL NOT

INCLUDE ANY AMOUNT WHICH IS EXCLUDED FROM FEDERAL GROSS INCOME

UNDER SECTIONS 276 AND 278(A) OF THE COVID-RELATED TAX RELIEF

ACT OF 2020, ENACTED AS SUBTITLE B OF TITLE II OF DIVISION N OF

THE CONSOLIDATED APPROPRIATIONS ACT, 2021 (PUBLIC LAW 116-260,

134 STAT. 1182).

(II) NO DEDUCTION MAY BE DISALLOWED FROM AN EXPENSE THAT IS

OTHERWISE DEDUCTIBLE IF THE PAYMENT OF THE EXPENSE RESULTS IN

FORGIVENESS OF A COVERED LOAN UNDER SUBPARAGRAPH (I).

(6) THE CLASSES OF INCOME UNDER THIS SECTION SHALL NOT

INCLUDE A PAYMENT RECEIVED BY AN INDIVIDUAL FROM THE UNITED

STATES UNDER SECTION 2201 OF THE CORONAVIRUS AID, RELIEF, AND

ECONOMIC SECURITY ACT (PUBLIC LAW 116-136, 134 STAT. 281) OR

SECTIONS 272 AND 273 OF THE CONSOLIDATED APPROPRIATIONS ACT,

2021.

* * *

SECTION 5. SECTION 330.2 OF THE ACT IS REPEALED:

[SECTION 330.2. COVID-19 EMERGENCY FINANCE AND TAX

PROVISION.--(A) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT

THERE ARE CIRCUMSTANCES UNDER WHICH IT IS IMPOSSIBLE TO

EFFECTIVELY COMPLY WITH LAW RELATING TO STATE FINANCE OR STATE

TAX, AND DURING SUCH CIRCUMSTANCES, IT IS NECESSARY FOR

COMMONWEALTH AGENCIES TO EXERCISE POWERS AND DUTIES PROVIDED

UNDER THIS SECTION.

(D) (1) THIS SUBSECTION SHALL PROVIDE PERMANENT AUTHORITY

TO THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT TO DEAL

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WITH LOCAL TAXATION. NOTWITHSTANDING THE LOCAL TAX ENABLING ACT,

THE FILING DEADLINE OF A FINAL RETURN UNDER CHAPTER 5 OF THE

LOCAL TAX ENABLING ACT AND RELATED STATUTORY PROVISIONS,

ORDINANCES AND RESOLUTIONS SHALL COINCIDE WITH THE FILING

DEADLINE FOR A TAX RETURN UNDER SECTION 330.

(2) THIS SUBSECTION SHALL NOT EXPIRE.]

SECTION 6. SECTION 401(3)2(A)(17) OF THE ACT IS AMENDED AND

THE SECTION IS AMENDED BY ADDING A PHRASE TO READ:

SECTION 401. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND

PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANING

ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT

CLEARLY INDICATES A DIFFERENT MEANING:

* * *

(3) "TAXABLE INCOME." * * *

2. IN CASE THE ENTIRE BUSINESS OF ANY CORPORATION, OTHER

THAN A CORPORATION ENGAGED IN DOING BUSINESS AS A REGULATED

INVESTMENT COMPANY AS DEFINED BY THE INTERNAL REVENUE CODE OF

1986, IS NOT TRANSACTED WITHIN THIS COMMONWEALTH, THE TAX

IMPOSED BY THIS ARTICLE SHALL BE BASED UPON SUCH PORTION OF THE

TAXABLE INCOME OF SUCH CORPORATION FOR THE FISCAL OR CALENDAR

YEAR, AS DEFINED IN SUBCLAUSE 1 HEREOF, AND MAY BE DETERMINED AS

FOLLOWS:

(A) DIVISION OF INCOME.

* * *

(17) SALES, OTHER THAN SALES UNDER PARAGRAPHS (16) AND

(16.1), ARE IN THIS STATE [IF:

(A) THE INCOME-PRODUCING ACTIVITY IS PERFORMED IN THIS

STATE; OR

(B) THE INCOME-PRODUCING ACTIVITY IS PERFORMED BOTH IN AND

OUTSIDE THIS STATE AND A GREATER PROPORTION OF THE INCOME-

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PRODUCING ACTIVITY IS PERFORMED IN THIS STATE THAN IN ANY OTHER

STATE, BASED ON COSTS OF PERFORMANCE.] AS FOLLOWS:

PROPERTY, INCLUDING A SALE OR EXCHANGE OF PROPERTY WHERE THE

RECEIPTS FROM THE SALE OR EXCHANGE DERIVE FROM PAYMENTS THAT ARE

CONTINGENT ON THE PRODUCTIVITY, USE OR DISPOSITION OF THE

PROPERTY, IF AND TO THE EXTENT THE PROPERTY IS USED IN THIS

STATE.

(D) GROSS RECEIPTS FROM THE SALE OF INTANGIBLE PROPERTY

WHERE THE PROPERTY SOLD IS A CONTRACT RIGHT, GOVERNMENT LICENSE

OR SIMILAR PROPERTY THAT AUTHORIZES THE HOLDER TO CONDUCT A

BUSINESS ACTIVITY IN A SPECIFIC GEOGRAPHIC AREA, IF AND TO THE

EXTENT THE PROPERTY IS USED IN OR OTHERWISE ASSOCIATED WITH THIS

STATE.

(E) GROSS RECEIPTS FROM THE SALE, REDEMPTION, MATURITY OR

EXCHANGE OF SECURITIES, HELD BY THE TAXPAYER PRIMARILY FOR SALE

TO CUSTOMERS IN THE ORDINARY COURSE OF ITS TRADE OR BUSINESS, IF

THE CUSTOMERS ARE IN THIS STATE.

(F) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY

LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM

INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS

SECURED BY REAL PROPERTY AS FOLLOWS:

(I) THE FOLLOWING SHALL APPLY TO A CALCULATION UNDER THIS

SUBPARAGRAPH:

(I) THE NUMERATOR OF THE SALES FACTOR SHALL INCLUDE

INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS

SECURED BY REAL PROPERTY IF THE PROPERTY IS LOCATED WITHIN THIS

STATE.

(II) IF THE REAL PROPERTY UNDER THIS SUBPARAGRAPH IS LOCATED

BOTH WITHIN THIS STATE AND ONE OR MORE OTHER STATES, THE GROSS

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RECEIPTS UNDER THIS SUBPARAGRAPH SHALL BE INCLUDED IN THE

NUMERATOR OF THE SALES FACTOR IF MORE THAN FIFTY PER CENT OF THE

FAIR MARKET VALUE OF THE REAL PROPERTY IS LOCATED WITHIN THIS

STATE.

(III) IF MORE THAN FIFTY PER CENT OF THE FAIR MARKET VALUE

OF REAL PROPERTY UNDER THIS SUBPARAGRAPH IS NOT LOCATED WITHIN

ANY SINGLE STATE, THE GROSS RECEIPTS UNDER THIS SUBPARAGRAPH

SHALL BE INCLUDED IN THE NUMERATOR OF THE SALES FACTOR IF THE

BORROWER IS LOCATED IN THIS STATE.

(II) THE DETERMINATION OF WHETHER REAL PROPERTY SECURING A

LOAN IS LOCATED WITHIN THIS STATE SHALL BE MADE AS OF THE TIME

THE ORIGINAL AGREEMENT WAS MADE, AND ALL SUBSEQUENT

SUBSTITUTIONS OF COLLATERAL SHALL BE DISREGARDED.

(G) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY

LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM

INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS

RELATED TO THE SALE OF TANGIBLE PERSONAL PROPERTY. THE FOLLOWING

SHALL APPLY TO A CALCULATION UNDER THIS SUBPARAGRAPH:

(I) EXCEPT AS PROVIDED UNDER UNIT (II), THE NUMERATOR OF THE

SALES FACTOR SHALL INCLUDE GROSS RECEIPTS RECEIVED FROM

INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS

RELATED TO THE SALE OF TANGIBLE PERSONAL PROPERTY IF THE

PROPERTY IS DELIVERED OR SHIPPED TO A PURCHASER IN THIS STATE.

(II) THE FOLLOWING SHALL APPLY:

(I) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY

LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM

INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS

RELATED TO THE SALE OF TRANSPORTATION PROPERTY SHALL BE INCLUDED

IN THE NUMERATOR OF THE SALES FACTOR TO THE EXTENT THAT THE

PROPERTY IS USED IN THIS STATE.

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(II) THE EXTENT AN AIRCRAFT SHALL BE DEEMED TO BE USED IN

THIS STATE AND THE AMOUNT OF GROSS RECEIPTS THAT SHALL BE

INCLUDED IN THE NUMERATOR OF THE SALES FACTOR SHALL BE

DETERMINED BY MULTIPLYING ALL THE GROSS RECEIPTS FROM THE

INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS

RELATED TO THE SALE OF THE AIRCRAFT BY A FRACTION, THE NUMERATOR

OF WHICH IS THE NUMBER OF LANDINGS OF THE AIRCRAFT IN THIS STATE

AND THE DENOMINATOR OF WHICH IS THE TOTAL NUMBER OF LANDINGS OF

THE AIRCRAFT.

(III) A MOTOR VEHICLE SHALL BE DEEMED TO BE USED WHOLLY IN

THE STATE IN WHICH IT IS REGISTERED.

(IV) IF THE EXTENT OF THE USE OF TRANSPORTATION PROPERTY

WITHIN THIS STATE CANNOT BE DETERMINED, THE PROPERTY SHALL BE

DEEMED TO BE USED WHOLLY IN THE STATE IN WHICH THE PROPERTY WAS

DELIVERED OR SHIPPED TO THE PURCHASER.

(H) GROSS RECEIPTS RECEIVED BY A CORPORATION THAT REGULARLY

LENDS FUNDS TO UNAFFILIATED ENTITIES OR TO INDIVIDUALS FROM

INTEREST, FEES AND PENALTIES IMPOSED IN CONNECTION WITH LOANS

NOT DESCRIBED IN SUBPARAGRAPH (F) OR (G), IF THE BORROWER IS

LOCATED IN THIS STATE.

(I) GROSS RECEIPTS RECEIVED FROM INTEREST, FEES AND

PENALTIES IN THE NATURE OF INTEREST FROM CREDIT CARD RECEIVABLES

AND GROSS RECEIPTS FROM FEES CHARGED TO CARDHOLDERS, SUCH AS

ANNUAL FEES, IF THE BILLING ADDRESS OF THE CARDHOLDER IS IN THIS

STATE.

(J) GROSS RECEIPTS RECEIVED FROM INTEREST, NOT OTHERWISE

DESCRIBED IN THIS PARAGRAPH, SHALL BE INCLUDED IN THE NUMERATOR

OF THE SALES FACTOR IF THE LENDER'S COMMERCIAL DOMICILE IS IN

THIS STATE.

(K) GROSS RECEIPTS RECEIVED FROM INTANGIBLE PROPERTY, NOT

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OTHERWISE DESCRIBED IN THIS PARAGRAPH, SHALL BE EXCLUDED FROM

THE NUMERATOR AND THE DENOMINATOR OF THE SALES FACTOR.

(L) THE DEPARTMENT SHALL PROMULGATE THE RULES AND

REGULATIONS NECESSARY TO IMPLEMENT THIS PARAGRAPH.

* * *

(11) "UNAFFILIATED ENTITY." ANY ENTITY THAT IS NOT AN

AFFILIATED ENTITY AS DEFINED UNDER SECTION 401(10).

SECTION 7. SECTIONS 402, 902, 902.1(D), 1601-A, 1602-A AND

1709-B(A) OF THE ACT ARE AMENDED TO READ:

SECTION 402. IMPOSITION OF TAX.--(A) A CORPORATION SHALL BE

SUBJECT TO AND SHALL PAY AN EXCISE TAX FOR EXERCISING, WHETHER

IN ITS OWN NAME OR THROUGH ANY PERSON, ASSOCIATION, BUSINESS

TRUST, CORPORATION, JOINT VENTURE, LIMITED LIABILITY COMPANY,

LIMITED PARTNERSHIP, PARTNERSHIP OR OTHER ENTITY, ANY OF THE

FOLLOWING PRIVILEGES:

(1) DOING BUSINESS IN THIS COMMONWEALTH.

(2) CARRYING ON ACTIVITIES IN THIS COMMONWEALTH, INCLUDING

SOLICITATION WHICH IS NOT PROTECTED ACTIVITY UNDER THE ACT OF

SEPTEMBER 14, 1959 (PUBLIC LAW 86-272, 15 U.S.C. § 381 ET SEQ.).

(3) HAVING CAPITAL OR PROPERTY EMPLOYED OR USED IN THIS

COMMONWEALTH.

(4) OWNING PROPERTY IN THIS COMMONWEALTH.

(5) (I) HAVING SUBSTANTIAL NEXUS IN THIS COMMONWEALTH.

SUBSTANTIAL NEXUS IN THIS COMMONWEALTH MEANS A DIRECT OR

INDIRECT BUSINESS ACTIVITY THAT IS SUFFICIENT TO GRANT THE

COMMONWEALTH AUTHORITY UNDER THE CONSTITUTION OF THE UNITED

STATES TO IMPOSE TAX UNDER THIS ARTICLE AND FOR WHICH A BASIS

EXISTS UNDER SECTION 401 TO APPORTION OR ALLOCATE THE

CORPORATION'S INCOME TO THIS COMMONWEALTH.

(II) FOR PURPOSES OF THIS SECTION, BUSINESS ACTIVITY

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INCLUDES, BUT IS NOT LIMITED TO:

(A) THE LEASING OR LICENSING OF INTANGIBLE PROPERTY THAT IS

UTILIZED IN THIS COMMONWEALTH;

(B) REGULARLY ENGAGING IN TRANSACTIONS WITH CUSTOMERS IN

THIS COMMONWEALTH INVOLVING INTANGIBLE PROPERTY, INCLUDING LOANS

MADE BY A CORPORATION THAT REGULARLY LENDS FUNDS TO UNAFFILIATED

ENTITIES OR TO INDIVIDUALS; OR

CORPORATION WITHIN THIS COMMONWEALTH.

(III) THERE SHALL BE A REBUTTABLE PRESUMPTION THAT A

CORPORATION WITH $500,000 OR MORE OF SALES SOURCED IN THE

CURRENT TAX YEAR TO THIS COMMONWEALTH UNDER SECTION 401 HAS

SUBSTANTIAL NEXUS IN THIS COMMONWEALTH WITHOUT REGARD TO

PHYSICAL PRESENCE IN THIS COMMONWEALTH.

(6) PARAGRAPH (5) SHALL NOT APPLY TO AN AFFILIATED ENTITY

DOMICILED IN A FOREIGN NATION WHICH HAS IN FORCE A COMPREHENSIVE

INCOME TAX TREATY WITH THE UNITED STATES PROVIDING FOR THE

ALLOCATION OF ALL CATEGORIES OF INCOME SUBJECT TO TAXATION, OR

THE WITHHOLDING OF TAX, ON ROYALTIES, LICENSES, FEES AND

INTEREST FOR THE PREVENTION OF DOUBLE TAXATION OF THE RESPECTIVE

NATIONS' RESIDENTS AND THE SHARING OF INFORMATION.

(B) THE ANNUAL RATE OF TAX ON CORPORATE NET INCOME IMPOSED

BY SUBSECTION (A) FOR TAXABLE YEARS BEGINNING FOR THE CALENDAR

YEAR OR FISCAL YEAR ON OR AFTER THE DATES SET FORTH SHALL BE AS

FOLLOWS:

TAXABLE YEAR TAX RATE

JANUARY 1, 1995, [AND

EACH TAXABLE YEAR

THEREAFTER 9.99%]

THROUGH DECEMBER

20210HB1342PN3370 - 14 -

31, 2022 9.99%

JANUARY 1, 2023,

THROUGH DECEMBER

31, 2023 8.99%

JANUARY 1, 2024,

THROUGH DECEMBER

31, 2024 8.49%

JANUARY 1, 2025,

THROUGH DECEMBER

31, 2025 7.99%

JANUARY 1, 2026,

THROUGH DECEMBER

31, 2026 7.49%

JANUARY 1, 2027,

THROUGH DECEMBER

31, 2027 6.99%

JANUARY 1, 2028,

THROUGH DECEMBER

31, 2028 6.49%

JANUARY 1, 2029,

THROUGH DECEMBER

31, 2029 5.99%

JANUARY 1, 2030,

THROUGH DECEMBER

31, 2030 5.49%

JANUARY 1, 2031, AND

EACH TAXABLE YEAR

THEREAFTER 4.99%

IX OR XV SHALL NOT BE SUBJECT TO THE TAX IMPOSED BY THIS

20210HB1342PN3370 - 15 -

ARTICLE.

SECTION 902. (A) IMPOSITION OF TAX.--EVERY INSURANCE

COMPANY, AS HEREIN DEFINED, TRANSACTING BUSINESS IN THE

COMMONWEALTH OF PENNSYLVANIA, SHALL PAY TO THE DEPARTMENT, A TAX

AT THE RATE OF TWO PER CENT OF THE GROSS PREMIUMS RECEIVED FROM

BUSINESS DONE WITHIN THIS COMMONWEALTH DURING EACH CALENDAR

YEAR.[, EXCEPT THAT ANY INSURANCE COMPANY WHICH WAS NOT SUBJECT

TO THIS TAX PRIOR TO 1971 SHALL BE TAXED AT THE RATE OF ONE PER

CENT FOR THE YEAR 1971 AND THEREAFTER AT THE RATE OF TWO PER

CENT.]

(B) DISPOSITION OF TAXES.--[THE TAXES PAID BY FOREIGN FIRE

INSURANCE COMPANIES UNDER THIS ARTICLE SHALL CONTINUE TO BE

DISTRIBUTED AND USED FOR FIREMEN'S RELIEF PENSION OR RETIREMENT

PURPOSES, AS PROVIDED BY SECTION TWO OF THE ACT, APPROVED THE

TWENTY-EIGHTH DAY OF JUNE, ONE THOUSAND EIGHT HUNDRED NINETY-

FIVE (PAMPHLET LAWS 408), AS AMENDED; AND THE TAXES PAID BY

FOREIGN CASUALTY INSURANCE COMPANIES UNDER THIS ARTICLE SHALL

CONTINUE TO BE DISTRIBUTED AND USED FOR POLICE PENSION,

RETIREMENT OR DISABILITY PURPOSES AS PROVIDED BY THE ACT,

APPROVED THE TWELFTH DAY OF MAY, ONE THOUSAND NINE HUNDRED

FORTY-THREE (PAMPHLET LAWS 259), AS AMENDED.

ARTICLE SHALL BE CREDITED TO THE GENERAL FUND FOR GENERAL

REVENUE PURPOSES.] THE TOTAL OF THE MONEY RECEIVED FROM THE

FOLLOWING TAXES AND CHARGES SHALL BE DEPOSITED INTO THE GENERAL

FUND:

(1) THE TAX IMPOSED BY SUBSECTION (A).

(2) THE RETALIATORY CHARGE IMPOSED BY SECTION 212 OF THE ACT

OF MAY 17, 1921 (P.L.789, NO.285), KNOWN AS "THE INSURANCE

DEPARTMENT ACT OF 1921."

20210HB1342PN3370 - 16 -

(3) THE SURPLUS LINES TAX IMPOSED BY SECTION 1621 OF THE ACT

OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE INSURANCE

COMPANY LAW OF 1921."

(4) THE TAX ON INDEPENDENTLY PROCURED INSURANCE IMPOSED BY

SECTION 1622 OF "THE INSURANCE COMPANY LAW OF 1921."

(5) THE MARINE INSURANCE TAX IMPOSED BY SECTION 2 OF THE ACT

OF MAY 13, 1927 (P.L.998, NO.486), ENTITLED "AN ACT IMPOSING A

TAX FOR STATE PURPOSES ON MARINE INSURANCE UNDERWRITING PROFITS,

AND PROVIDING FOR THE COLLECTION OF SUCH TAX."

(6) THE TAX ON CONTRACTS WITH UNAUTHORIZED COMPANIES IMPOSED

BY SECTION 1 OF THE ACT OF JULY 6, 1917 (P.L.723, NO.262),

ENTITLED "AN ACT IMPOSING A TAX ON PREMIUMS OF INSURANCE AND

REINSURANCE IN FOREIGN INSURANCE COMPANIES AND ASSOCIATIONS NOT

REGISTERED IN THIS COMMONWEALTH; PROVIDING THE METHOD OF

COLLECTION OF SUCH TAX, AND IMPOSING PENALTIES."

(B.1) THE FOLLOWING TRANSFERS WILL OCCUR EACH FISCAL YEAR:

(1) FIRE INSURANCE TAX FUND:

(I) ON OR BEFORE JUNE 30, 2023, AND ON OR BEFORE EACH JUNE

30 THEREAFTER, THE GREATER OF EIGHTY-FIVE MILLION DOLLARS

($85,000,000) OR EIGHT AND ONE-HALF PER CENT OF THE TOTAL TAXES

AND CHARGES UNDER SUBSECTION (B) RECEIVED DURING THE CURRENT

FISCAL YEAR SHALL BE TRANSFERRED TO THE FIRE INSURANCE TAX FUND.

(II) ON OR BEFORE JULY 15, 2023, AND ON OR BEFORE EACH JULY

15 THEREAFTER, IF TAXES OR CHARGES ARE DEPOSITED AFTER THE

TRANSFER UNDER SUBPARAGRAPH (I) AND BEFORE JULY 1, 2023, AND

EACH JULY 1 THEREAFTER, AN ADDITIONAL TRANSFER SHALL OCCUR IF

EIGHT AND ONE-HALF PER CENT OF TOTAL COLLECTIONS UNDER

SUBSECTION (B) FOR THE PRIOR FISCAL YEAR IS GREATER THAN EIGHTY-

FIVE MILLION DOLLARS ($85,000,000). THE CALCULATION FOR THE

ADDITIONAL TRANSFER SHALL EQUAL EIGHT AND ONE-HALF PER CENT OF

20210HB1342PN3370 - 17 -

THE TOTAL TAXES AND CHARGES UNDER SUBSECTION (B) MINUS THE

TRANSFER AMOUNT UNDER SUBPARAGRAPH (I).

(III) THE TRANSFERS UNDER SUBPARAGRAPHS (I) AND (II) SHALL

BE USED FOR FIREMEN'S RELIEF PENSION OR RETIREMENT PURPOSES, AS

PROVIDED BY SECTION 706(B) OF THE ACT OF DECEMBER 18, 1984

(P.L.1005, NO.205), KNOWN AS THE "MUNICIPAL PENSION PLAN FUNDING

STANDARD AND RECOVERY ACT."

(2) MUNICIPAL PENSION AID FUND:

(I) ON OR BEFORE JUNE 30, 2023, AND ON OR BEFORE EACH JUNE

30 THEREAFTER, THE GREATER OF THREE HUNDRED FORTY-FIVE MILLION

DOLLARS ($345,000,000) OR THIRTY-EIGHT PER CENT OF THE TOTAL

TAXES AND CHARGES UNDER SUBSECTION (B) RECEIVED DURING THE

CURRENT FISCAL YEAR SHALL BE TRANSFERRED TO THE MUNICIPAL

PENSION AID FUND.

(II) ON OR BEFORE JULY 15, 2023, AND ON OR BEFORE EACH JULY

15 THEREAFTER, IF TAXES OR CHARGES ARE DEPOSITED AFTER THE

TRANSFER UNDER SUBPARAGRAPH (I) AND BEFORE JULY 1, 2023, AND

EACH JULY 1 THEREAFTER, AN ADDITIONAL TRANSFER SHALL OCCUR IF

THIRTY-EIGHT PER CENT OF TOTAL COLLECTIONS UNDER SUBSECTION (B)

FOR THE PRIOR FISCAL YEAR IS GREATER THAN THREE HUNDRED FORTY-

FIVE MILLION DOLLARS ($345,000,000). THE CALCULATION FOR THAT

ADDITIONAL TRANSFER SHALL EQUAL THIRTY-EIGHT PER CENT OF THE

TOTAL TAXES AND CHARGES UNDER SUBSECTION (B) MINUS THE TRANSFER

AMOUNT UNDER SUBPARAGRAPH (I).

(III) THE TRANSFERS UNDER SUBPARAGRAPHS (I) AND (II) SHALL

BE USED FOR POLICE PENSION, RETIREMENT OR DISABILITY PURPOSES AS

PROVIDED BY THE ACT OF MAY 12, 1943 (P.L.259, NO.120), ENTITLED

"AN ACT PROVIDING FOR THE PAYMENT BY THE STATE TREASURER, OF THE

AMOUNT OF THE TAX ON PREMIUMS PAID BY FOREIGN CASUALTY INSURANCE

COMPANIES, TO THE TREASURERS OF THE SEVERAL CITIES, BOROUGHS,

20210HB1342PN3370 - 18 -

TOWNS, TOWNSHIPS, AND CERTAIN COUNTIES, AND FOR THE PAYMENT

THEREOF INTO POLICE PENSION FUNDS, AND IN CERTAIN CASES INTO THE

MUNICIPAL EMPLOYES' RETIREMENT SYSTEM, AND FOR PENSION ANNUITY

CONTRACTS, AND IN CERTAIN OTHER CASES INTO THE STATE EMPLOYES'

RETIREMENT FUND, FOR CERTAIN PURPOSES."

SECTION 902.1. CREDITS FOR ASSESSMENTS PAID.--* * *

[(D) THE CREDITS ALLOWED BY THIS SECTION SHALL NOT REDUCE

THE AMOUNTS WHICH WOULD OTHERWISE BE PAYABLE FOR FIREMEN'S

RELIEF PENSION OR RETIREMENT PURPOSES OR FOR POLICE PENSION,

RETIREMENT OR DISABILITY PURPOSES. THE DEPARTMENT SHALL TRANSFER

BY JUNE 30 OF EACH FISCAL YEAR AN AMOUNT EQUAL TO THE CREDITS

TAKEN UNDER THIS SECTION BY FOREIGN FIRE AND CASUALTY INSURANCE

COMPANIES FROM THE GENERAL FUND TO THE MUNICIPAL PENSION AID

FUND AND THE FIRE INSURANCE TAX FUND, AS APPROPRIATE.]

* * *

SECTION 1601-A. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND

PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANINGS

ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT

CLEARLY INDICATES A DIFFERENT MEANING:

"PEER-TO-PEER CAR-SHARING PROGRAM." AS DEFINED UNDER SECTION

201(QQQ).

"RENTAL VEHICLE." A PRIVATE PASSENGER MOTOR VEHICLE DESIGNED

TO TRANSPORT FIFTEEN OR FEWER PASSENGERS OR A TRUCK, TRAILER OR

SEMITRAILER USED IN THE TRANSPORTATION OF PROPERTY OTHER THAN

COMMERCIAL FREIGHT, THAT IS RENTED WITHOUT A DRIVER AND IS PART

OF A FLEET OF FIVE OR MORE RENTAL VEHICLES USED FOR THAT

PURPOSE, OWNED OR LEASED BY THE SAME PERSON OR ENTITY.

"SHARED VEHICLE." A VEHICLE THAT IS AVAILABLE FOR SHARING

THROUGH A PEER-TO-PEER CAR-SHARING PROGRAM. THE TERM DOES NOT

INCLUDE A RENTAL VEHICLE AS DEFINED UNDER THIS ARTICLE.

20210HB1342PN3370 - 19 -

"VEHICLE RENTAL COMPANY." ANY BUSINESS ENTITY ENGAGED IN THE

BUSINESS OF RENTING MOTOR VEHICLES IN THIS COMMONWEALTH.

SECTION 1602-A. VEHICLE RENTAL TAX.--(A) [EACH] EXCEPT AS

PROVIDED UNDER SUBSECTION (B), EACH VEHICLE RENTAL COMPANY SHALL

COLLECT, AT THE TIME THE RENTAL VEHICLE IS RENTED IN THIS

COMMONWEALTH, ON EACH RENTAL CONTRACT FOR A PERIOD OF TWENTY-

NINE OR FEWER CONSECUTIVE DAYS, A TAX EQUAL TO TWO PER CENT OF

THE PURCHASE PRICE OF THE RENTAL.

(B) THE TAX IMPOSED UNDER SUBSECTION (A) SHALL NOT APPLY TO

A SHARED VEHICLE THAT IS RENTED THROUGH A PEER-TO-PEER CAR-

SHARING PROGRAM.

SECTION 1709-B. LIMITATION ON CREDITS.--(A) THE TOTAL

AMOUNT OF CREDITS APPROVED BY THE DEPARTMENT SHALL NOT EXCEED

[FIFTY-FIVE MILLION DOLLARS ($55,000,000)] SIXTY MILLION DOLLARS

($60,000,000) IN ANY FISCAL YEAR. OF THAT AMOUNT, [ELEVEN

MILLION DOLLARS ($11,000,000)] TWELVE MILLION DOLLARS

($12,000,000) SHALL BE ALLOCATED EXCLUSIVELY FOR SMALL

BUSINESSES. HOWEVER, IF THE TOTAL AMOUNTS ALLOCATED TO EITHER

THE GROUP OF APPLICANTS EXCLUSIVE OF SMALL BUSINESSES OR THE

GROUP OF SMALL BUSINESS APPLICANTS IS NOT APPROVED IN ANY FISCAL

YEAR, THE UNUSED PORTION WILL BECOME AVAILABLE FOR USE BY THE

OTHER GROUP OF QUALIFYING TAXPAYERS.

* * *

SECTION 8. THE DEFINITION OF "MULTIFILM" IN SECTION 1711-D

OF THE ACT, ADDED JUNE 30, 2021 (P.L.124, NO.25), IS AMENDED AND

THE SECTION IS AMENDED BY ADDING DEFINITIONS TO READ:

SECTION 1711-D. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBARTICLE

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

20210HB1342PN3370 - 20 -

* * *

["MULTIFILM." A SERIES OF SEPARATE AND DISTINCT FILMS

PRODUCED BY THE SAME TAXPAYER OVER A PERIOD OF NO LESS THAN ONE

YEAR AND NO MORE THAN FOUR YEARS FROM THE TIME OF APPLICATION.]

"MULTIFILM PRODUCTION." A SERIES OF SEPARATE AND DISTINCT

FILMS THAT ARE PRODUCED BY THE SAME TAXPAYER, OR DIRECTLY OR

INDIRECTLY PRODUCED BY THE SAME TAXPAYERS WHO HAVE NO LESS THAN

80% COMMON OWNERSHIP, OVER A PERIOD OF NO MORE THAN FOUR YEARS

FROM THE TIME OF APPLICATION.

* * *

"PENNSYLVANIA FILM PRODUCER." A PENNSYLVANIA DOMICILED FILM

PRODUCTION COMPANY THAT MEETS THE FOLLOWING:

(1) THE PRINCIPAL TAX JURISDICTION IS THIS COMMONWEALTH.

(2) A MAJORITY OF THE TAXPAYER'S OWNERS ARE PENNSYLVANIA

RESIDENTS.

(3) THE TAXPAYER EMPLOYS FEWER THAN 15 FULL-TIME

EMPLOYEES.

* * *

SECTION 9. SECTION 1712-D(B)(7.1) OF THE ACT, ADDED JUNE 30,

2021 (P.L.124, NO.25), IS AMENDED AND THE SUBSECTION IS AMENDED

BY ADDING PARAGRAPHS TO READ:

SECTION 1712-D. CREDIT FOR QUALIFIED FILM PRODUCTION EXPENSES.

* * *

(B) REVIEW AND APPROVAL.--THE DEPARTMENT SHALL ESTABLISH

APPLICATION PERIODS NOT TO EXCEED 90 DAYS EACH. ALL APPLICATIONS

RECEIVED DURING THE APPLICATION PERIOD SHALL BE REVIEWED AND

EVALUATED BY THE DEPARTMENT BASED ON THE FOLLOWING CRITERIA:

* * *

(5.1) FOR A PENNSYLVANIA FILM PRODUCER, THE PORTION OF

ALL PREPRODUCTION EXPENSES, PRODUCTION EXPENSES AND

20210HB1342PN3370 - 21 -

POSTPRODUCTION EXPENSES INCURRED IN PENNSYLVANIA.

* * *

(7.1) IF A MULTIFILM PRODUCTION APPLICATION IS

SUBMITTED, THE DEPARTMENT SHALL CONSIDER THE ABILITY OF THE

TAXPAYER TO PRODUCE MULTIPLE FILMS WITHIN THIS COMMONWEALTH

DURING THE PROPOSED PERIOD OF PRODUCTION AND THE POTENTIAL

ECONOMIC IMPACT, INCLUDING TOURISM IMPACT, OF THE MULTIPLE

FILMS TO THIS COMMONWEALTH. THE TAXPAYER MAY SUPPLEMENT THE

MULTIFILM PRODUCTION APPLICATION WITH ADDITIONAL FILMS DURING

THE PERIOD OF PRODUCTION. THE DEPARTMENT MAY ANNUALLY EXTEND

THE MULTIFILM PRODUCTION APPLICATION'S PERIOD OF PRODUCTION

BEFORE THE EXPIRATION OF THE PERIOD OF PRODUCTION. THE

TAXPAYER MAY NOT INCLUDE A FILM IN THE MULTIFILM PRODUCTION

APPLICATION THAT WAS THE SUBJECT OF AN APPLICATION SUBMITTED

UNDER THIS SUBSECTION BEFORE JANUARY 1, 2022.

(7.2) THE FILM WILL BE PRODUCED BY A PENNSYLVANIA FILM

PRODUCER.

* * *

SECTION 10. SECTION 1716-D(A) INTRODUCTORY PARAGRAPH OF THE

ACT IS AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS

TO READ:

SECTION 1716-D. LIMITATIONS.

(A) CAP.--EXCEPT FOR TAX CREDITS REISSUED UNDER SECTION

1716.1-D, IN NO CASE SHALL THE AGGREGATE AMOUNT OF TAX CREDITS

AWARDED IN ANY FISCAL YEAR UNDER THIS SUBARTICLE EXCEED

[$70,000,000] $100,000,000. THE DEPARTMENT MAY, IN ITS

DISCRETION, AWARD IN ONE FISCAL YEAR UP TO:

* * *

(E) PENNSYLVANIA FILM PRODUCER RESERVE.--THE DEPARTMENT

SHALL ANNUALLY RESERVE AND ALLOCATE $5,000,000 OF THE TAX

20210HB1342PN3370 - 22 -

CREDITS AUTHORIZED UNDER THIS SUBARTICLE IN SUPPORT OF PROJECTS

PRODUCED BY A PENNSYLVANIA FILM PRODUCER. A PENNSYLVANIA FILM

PRODUCER SHALL NOT BE LIMITED IN ELIGIBILITY FOR A TAX CREDIT

SOLELY TO THE PENNSYLVANIA FILM PRODUCER RESERVE IN ANY FISCAL

YEAR.

(F) IF THE TOTAL AMOUNT OF TAX CREDITS RESERVED AND

ALLOCATED UNDER SUBSECTION (E) IS NOT AWARDED IN A FISCAL YEAR,

THE AMOUNT NOT AWARDED SHALL BE MADE AVAILABLE FOR USE BY

TAXPAYERS WHO ARE NOT PENNSYLVANIA FILM PRODUCERS.

SECTION 11. SECTIONS 1716.1-D(A)(4) AND 1777-D(A)(1) OF THE

ACT, AMENDED OR ADDED JUNE 30, 2021 (P.L.124, NO.25), ARE

AMENDED TO READ:

SECTION 1716.1-D. REISSUANCE OF FILM PRODUCTION TAX CREDITS.

(A) REISSUANCE.--IN ANY FISCAL YEAR, THE DEPARTMENT MAY

REISSUE A TAX CREDIT WHICH MEETS ALL OF THE FOLLOWING:

* * *

(4) IF AN INDIVIDUAL FILM THAT WAS ISSUED A TAX CREDIT

AS PART OF A MULTIFILM PRODUCTION APPLICATION IS CANCELED,

THE DEPARTMENT MAY REISSUE THAT TAX CREDIT ONLY AFTER

ALLOWING THE TAXPAYER OR THE TAXPAYER'S AFFILIATE 90 DAYS TO

SUBMIT AN APPLICATION FOR AN ALTERNATIVE INDIVIDUAL FILM,

PRODUCED BY THE TAXPAYER OR THE TAXPAYER'S AFFILIATE FOR THAT

TAX CREDIT. THE DEPARTMENT MAY APPROVE OR REJECT THE

APPLICATION.

* * *

SECTION 1777-D. LIMITATIONS.

(A) CAP.--

(1) THE AGGREGATE AMOUNT OF TAX CREDITS AWARDED IN A

FISCAL YEAR UNDER THIS SUBARTICLE MAY NOT EXCEED [$8,000,000]

$24,000,000.

20210HB1342PN3370 - 23 -

* * *

SECTION 12. SECTIONS L708-K(4), 1809-C(C)(2), 1813-C(A)

(1.1), 1817-C(A), 1805-F(C) AND 1908-B OF THE ACT ARE AMENDED TO

READ:

SECTION 1708-K. LIMITATIONS.

THE FOLLOWING LIMITATIONS SHALL APPLY TO THE TAX CREDITS:

* * *

(4) THE TOTAL AMOUNT OF ALL TAX CREDITS SHALL NOT EXCEED

[$1,500,000] $5,000,000 IN ANY ONE FISCAL YEAR.

* * *

SECTION 1809-C. REPORTS.

* * *

(2) [A PENALTY FOR A VIOLATION OF SUBSECTION (A) SHALL

BE IMPOSED, ASSESSED AND COLLECTED BY THE DEPARTMENT] THE

DEPARTMENT SHALL NOTIFY THE CONTRACTING AUTHORITY OF ALL

QUALIFIED BUSINESSES THAT VIOLATED SUBSECTION (A) PRIOR TO

DECEMBER 31 OF THE YEAR IN WHICH THE REPORT WAS TO BE FILED.

A PENALTY FOR A VIOLATION OF SUBSECTION (A) SHALL BE IMPOSED,

ASSESSED AND COLLECTED BY THE DEPARTMENT UNDER PROCEDURES SET

FORTH IN ARTICLE II. MONEY COLLECTED UNDER THIS PARAGRAPH

SHALL BE DEPOSITED IN THE GENERAL FUND.

* * *

SECTION 1813-C. RESTRICTIONS.

(A) UTILIZATION.--MONEY TRANSFERRED UNDER SECTION 1812-C MAY

ONLY BE UTILIZED FOR THE FOLLOWING:

* * *

(1.1) PAYMENT OF DEBT SERVICE ON BONDS ISSUED OR

REFINANCED TO ESTABLISH A REVOLVING [LOAN] FUND THAT WILL

20210HB1342PN3370 - 24 -

PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF A GRANT OR A LOAN

TO A QUALIFIED BUSINESS ACQUIRING PROPERTY FOR THE BUSINESS,

CONSTRUCTING A NEW FACILITY, RECONSTRUCTING OR RENOVATING AN

EXISTING FACILITY OR ACQUIRING NEW EQUIPMENT TO BE USED BY

THE QUALIFYING BUSINESS IN A ZONE.

* * *

SECTION 1817-C. CONFIDENTIALITY.

(A) SOLE USE.--A ZONE REPORT OR CERTIFICATION UNDER THIS

ARTICLE SHALL ONLY BE USED BY THE CONTRACTING AUTHORITY TO

VERIFY THE AMOUNT OF THE STATE TAX BASELINE AMOUNT CALCULATED

UNDER SECTION 1810-C [AND], THE STATE TAX CERTIFICATION UNDER

SECTION 1811-C AND THE AMOUNT ALLOCATED TO ANY USES SPECIFIED

UNDER SECTION 1813-C.

* * *

SECTION 1805-F. DUTIES.

* * *

[(C) TRANSFERS OF AMOUNTS.--IN A FISCAL YEAR IN WHICH A TAX

CREDIT IS CLAIMED UNDER THIS ARTICLE, THE STATE TREASURER SHALL,

PRIOR TO JUNE 30 OF THE FISCAL YEAR, DO ALL OF THE FOLLOWING:

(1) TRANSFER AN AMOUNT FROM THE GENERAL FUND EQUAL TO

THE AMOUNT OF PREMIUMS TAX CREDITS CLAIMED BY A FOREIGN FIRE

INSURANCE COMPANY AGAINST TAXES THAT OTHERWISE WOULD BE

DISTRIBUTED IN ACCORDANCE WITH CHAPTER 7 OF THE ACT OF

DECEMBER 18, 1984 (P.L.1005, NO.205), KNOWN AS THE MUNICIPAL

PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, TO THE FUND

AS DEFINED IN SECTION 702 OF THE MUNICIPAL PENSION PLAN

FUNDING STANDARD AND RECOVERY ACT.

(2) TRANSFER FROM THE GENERAL FUND AN AMOUNT EQUAL TO

THE AMOUNT OF A PREMIUMS TAX CREDIT CLAIMED BY A FOREIGN

CASUALTY INSURANCE COMPANY AGAINST TAXES THAT OTHERWISE WOULD

20210HB1342PN3370 - 25 -

BE DISTRIBUTED AND USED FOR POLICE PENSION, RETIREMENT OR

DISABILITY PURPOSES AS PROVIDED BY THE ACT OF MAY 12, 1943

(P.L.259, NO.120), REFERRED TO AS THE FOREIGN CASUALTY

INSURANCE PREMIUM TAX ALLOCATION LAW, FOR DISTRIBUTION IN

ACCORDANCE WITH THE FOREIGN CASUALTY INSURANCE PREMIUM TAX

ALLOCATION LAW.]

SECTION 1908-B. CONFIDENTIALITY.

NOTWITHSTANDING ANY LAW PROVIDING FOR THE CONFIDENTIALITY OF

TAX RECORDS, THE CONTRACTING AUTHORITY AND THE LOCAL TAXING

AUTHORITIES SHALL HAVE ACCESS TO ANY REPORTS AND CERTIFICATIONS

FILED UNDER THIS ARTICLE, AND THE CONTRACTING AUTHORITY SHALL

HAVE ACCESS TO ANY STATE OR LOCAL TAX INFORMATION FILED BY A

QUALIFIED BUSINESS IN THE NEIGHBORHOOD IMPROVEMENT ZONE SOLELY

FOR THE PURPOSE OF DOCUMENTING THE CERTIFICATIONS REQUIRED BY

THIS ARTICLE OR DETERMINING THE AMOUNT ALLOCATED TO ANY USES

SPECIFIED UNDER SECTION 1904-B(E)(1). ANY OTHER USE OF THE TAX

INFORMATION SHALL BE PROHIBITED AS PROVIDED UNDER LAW.

SECTION 13. SECTION 1912-D(D) OF THE ACT IS AMENDED AND THE

SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

SECTION 1912-D. EXTENSION FOR NEW JOB CREATION OR NEW CAPITAL

INVESTMENT.

* * *

(A.1) AFFILIATES.--IF AN AFFILIATE OF A QUALIFIED BUSINESS

WHOSE INDIVIDUAL OR JOINT EXTENSION APPLICATION UNDER SUBSECTION

(A) WAS APPROVED AND THE AFFILIATE LOCATES WITHIN AN EXTENDED

PARCEL BEFORE THE EXPIRATION OF THE CERTIFICATION ISSUED UNDER

SUBSECTION (B)(3), THE AFFILIATE IS ENTITLED TO THE TAX

EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SPECIFIED UNDER

THIS SECTION, PROVIDED THE AFFILIATE MEETS THE REQUIREMENTS OF

SECTION 307(A) OF THE KOZ ACT.

20210HB1342PN3370 - 26 -

* * *

(D) EXPIRATION.--THE FOLLOWING APPLY:

(1) ALL CONTINUATIONS SHALL EXPIRE NO LATER THAN 10

YEARS FOLLOWING THE EFFECTIVE DATE OF CERTIFICATION BY THE

DEPARTMENT.

(2) IF THE QUALIFIED BUSINESS THAT IS A SOLE APPLICANT

REMOVES ITSELF FROM THE [CONTINUED] EXTENDED PARCEL OR PARCEL

PRIOR TO THE EXPIRATION OF THE [CONTINUATION, THE

CONTINUATION] EXTENSION AND NO AFFILIATE REMAINS WITHIN THE

CONTINUED PARCEL, THE EXTENSION SHALL EXPIRE UPON THE DATE OF

DEPARTURE OF THAT QUALIFIED BUSINESS. IF ONE OR MORE

AFFILIATES REMAIN WITHIN THE EXTENDED PARCEL, THE EXTENSION

SHALL EXPIRE UPON THE DATE OF DEPARTURE OF THE LAST REMAINING

AFFILIATE OR UPON THE EXPIRATION OF THE EXTENSION DATE,

WHICHEVER OCCURS FIRST.

(3) IF TWO OR MORE QUALIFIED BUSINESSES SUBMITTED AN

APPLICATION UNDER SUBSECTION (A) AS JOINT APPLICANTS[, THIS

SUBSECTION SHALL APPLY ONLY IF ALL THE QUALIFIED BUSINESSES

THAT WERE THE JOINT APPLICANTS REMOVE THEMSELVES FROM THE

PARCEL PRIOR TO THE EXPIRATION OF THE CONTINUATION. IN THAT

CASE, THE CONTINUATION] AND ALL THE JOINT APPLICANTS REMOVE

THEMSELVES FROM THE PARCEL PRIOR TO THE EXPIRATION OF THE

EXTENSION AND NO AFFILIATE OF A JOINT APPLICANT IS LOCATED ON

OR REMAINS WITHIN THE EXTENDED PARCEL, THE EXTENSION SHALL

EXPIRE UPON THE DATE OF DEPARTURE OF THE LAST QUALIFIED

BUSINESS. IF ONE OR MORE AFFILIATES REMAIN, THE EXTENSION

SHALL EXPIRE UPON THE DEPARTURE DATE OF THE LAST REMAINING

AFFILIATE OR UPON THE EXPIRATION OF THE EXTENSION DATE,

WHICHEVER OCCURS FIRST.

* * *

20210HB1342PN3370 - 27 -

(F) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING

WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS

SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"AFFILIATE." A PERSON WHO DIRECTLY OR INDIRECTLY:

(1) OWNS OR CONTROLS ANOTHER PERSON;

(2) IS OWNED OR CONTROLLED BY ANOTHER PERSON; OR

(3) IS UNDER COMMON OWNERSHIP OR CONTROL WITH ANOTHER

PERSON.

"PERSON." AS DEFINED UNDER 1 PA.C.S. § 1991 (RELATING TO

DEFINITIONS).

SECTION 14. SECTION 1921-D(D)(1) AND (3) OF THE ACT, AMENDED

JUNE 30, 2021 (P.L.124, NO.25), ARE AMENDED TO READ:

SECTION 1921-D. ADDITIONAL KEYSTONE OPPORTUNITY EXPANSION

ZONES.

* * *

(D) APPLICATION.--

(1) IN ORDER TO RECEIVE A DESIGNATION UNDER THIS

SECTION, THE DEPARTMENT MUST RECEIVE AN APPLICATION FROM A

POLITICAL SUBDIVISION OR ITS DESIGNEE NO LATER THAN OCTOBER

1, [2022] 2023. THE APPLICATION MUST CONTAIN THE INFORMATION

REQUIRED UNDER SECTION 302(A)(1), (2)(I) AND (IX), (5) AND

(6) OF THE KOZ ACT.

* * *

(3) THE DEPARTMENT SHALL ACT ON AN APPLICATION FOR A

DESIGNATION UNDER SECTION 302(A)(1) OF THE KOZ ACT BY

DECEMBER 31, [2022] 2023.

* * *

SECTION 15. THE ACT IS AMENDED BY ADDING ARTICLES TO READ:

ARTICLE XIX-H

AIRPORT LAND DEVELOPMENT ZONES

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SECTION 1901-H. 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:

"AFFILIATE." AS FOLLOWS:

(1) AN ENTITY WHICH IS PART OF THE SAME AFFILIATED GROUP

AS DEFINED IN SECTION 1504(A) OF THE INTERNAL REVENUE CODE OF

1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1504(A)), AS AN AIRPORT

LAND DEVELOPMENT ZONE EMPLOYER; OR

(2) AN ENTITY THAT WOULD BE PART OF THE SAME AFFILIATED

GROUP EXCEPT THAT THE ENTITY OR THE AIRPORT LAND DEVELOPMENT

ZONE EMPLOYER IS NOT A CORPORATION.

"AIRPORT." A COMMERCIAL SERVICE AIRPORT OR A NONCOMMERCIAL

SERVICE AIRPORT.

"AIRPORT LAND DEVELOPMENT ZONE." AS FOLLOWS:

(1) AN AREA OF NO MORE THAN 300 ACRES, CONSISTING OF

PARCELS OF REAL PROPERTY THAT ARE OWNED BY A COMMERCIAL

SERVICE AIRPORT OR LEASED UNDER PARAGRAPH (3), WITH, AS OF

DECEMBER 31, 2021, NO PERMANENT VERTICAL STRUCTURES AFFIXED

OR BUILDINGS WITH BUSINESSES LOCATED IN THE STRUCTURES. THE

TOTAL ACRES FOR ALL COMMERCIAL SERVICE AIRPORTS IN THE

PROGRAM MAY NOT EXCEED 2,000 ACRES.

(2) AN AREA OF NO MORE THAN 50 ACRES, CONSISTING OF

PARCELS OF REAL PROPERTY THAT ARE OWNED BY A NONCOMMERCIAL

SERVICE AIRPORT OR LEASED UNDER PARAGRAPH (3), WITH, AS OF

DECEMBER 31, 2021, NO PERMANENT VERTICAL STRUCTURES AFFIXED

OR VACANT BUILDINGS WITH BUSINESSES LOCATED IN THE

STRUCTURES. THE TOTAL ACRES FOR ALL NONCOMMERCIAL SERVICE

AIRPORTS IN THE PROGRAM MAY NOT EXCEED 2,000 ACRES.

(3) A PARCEL OF REAL PROPERTY IN THE ZONE MAY BE LEASED

20210HB1342PN3370 - 29 -

OR GROUND LEASED TO A THIRD PARTY WHILE CONTINUING TO BE

OWNED BY A COMMERCIAL SERVICE AIRPORT OR A NONCOMMERCIAL

SERVICE AIRPORT FOR THE DURATION OF THE PROGRAM.

"AIRPORT LAND DEVELOPMENT ZONE EMPLOYER." A PERSON OR ENTITY

SUBJECT TO THE TAXES IMPOSED UNDER ARTICLE III, IV, VII, VIII OR

XV WHO EMPLOYS AT LEAST ONE EMPLOYEE IN AN AIRPORT LAND

DEVELOPMENT ZONE. THE TERM SHALL INCLUDE A PASS-THROUGH ENTITY.

THE TERM SHALL NOT INCLUDE AN EMPLOYER ENGAGED IN CONSTRUCTION

IMPROVEMENTS IN AN AIRPORT LAND DEVELOPMENT ZONE.

"AIRPORT LAND DEVELOPMENT ZONE PLAN." THE DOCUMENT SUBMITTED

TO THE DEPARTMENT THAT DETAILS THE PARCELS INCLUDED IN THE

AIRPORT LAND DEVELOPMENT ZONE BY AN AIRPORT. THE PLAN SHALL

INCLUDE THE FOLLOWING:

(1) A LEGAL DESCRIPTION, IDENTIFICATION NUMBER AND

ACREAGE OF EACH PARCEL INCLUDED IN THE ZONE.

(2) CERTIFICATION BY AN AIRPORT THAT ANY BUILDING IN THE

ZONE WAS VACANT AND ANY PARCEL IN THE ZONE HAD NO PERMANENT,

VERTICAL STRUCTURES AFFIXED TO THE PARCEL ON OR AFTER

DECEMBER 31, 2021.

(3) A MAP AND DIAGRAM OF EACH PARCEL INCLUDED IN THE

PLAN.

"COMMERCIAL SERVICE AIRPORT." A PUBLICLY OWNED AIRPORT WITH

AT LEAST 2,500 ANNUAL ENPLANEMENTS AND SCHEDULED AIR CARRIER

SERVICE. THE TERM INCLUDES A PUBLIC USE AIRPORT IN A COUNTY OF

THE FOURTH CLASS WITH A POPULATION OF BETWEEN 140,000 AND

148,000 PEOPLE UNDER THE 2020 DECENNIAL CENSUS.

"DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC

DEVELOPMENT OF THE COMMONWEALTH.

"EMPLOYEE." AN INDIVIDUAL WHO MEETS ALL OF THE FOLLOWING:

(1) IS EMPLOYED IN THIS COMMONWEALTH BY AN AIRPORT LAND

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DEVELOPMENT ZONE EMPLOYER OR ITS PREDECESSOR AFTER THE

EFFECTIVE DATE OF THIS SECTION.

(2) IS EMPLOYED FOR AT LEAST 35 HOURS PER WEEK BY AN

AIRPORT LAND DEVELOPMENT ZONE EMPLOYER.

(3) SPENDS AT LEAST 90% OF THE INDIVIDUAL'S WORKING TIME

FOR THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER AT THE AIRPORT

LAND DEVELOPMENT ZONE LOCATION.

"FULL-TIME EQUIVALENT EMPLOYEE." AS FOLLOWS:

(1) THE WHOLE NUMBER OF EMPLOYEES, ROUNDED DOWN, THAT

EQUALS THE SUM OF:

(I) THE TOTAL PAID HOURS, INCLUDING PAID TIME OFF

AND FAMILY LEAVE UNDER THE FAMILY AND MEDICAL LEAVE ACT

OF 1993 (PUBLIC LAW 103-3, 29 U.S.C. § 2601 ET SEQ.), OF

ALL OF AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S

EMPLOYEES CLASSIFIED AS NONEXEMPT DURING THE AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER'S TAX YEAR DIVIDED BY 2,000;

AND

(II) A TOTAL NUMBER ARRIVED AT BY ADDING, FOR EACH

AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S EMPLOYEES

CLASSIFIED AS EXEMPT SCHEDULED TO WORK AT LEAST 35 HOURS

PER WEEK, THE FRACTION EQUAL TO THE PORTION OF THE YEAR

THE EXEMPT EMPLOYEE WAS PAID BY THE AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER. WHETHER AN EMPLOYEE SHALL BE

CLASSIFIED AS EXEMPT OR NONEXEMPT SHALL BE DETERMINED

UNDER THE FAIR LABOR STANDARDS ACT OF 1938 (52 STAT.

1060, 29 U.S.C. § 201 ET SEQ.).

(2) THE CALCULATION UNDER PARAGRAPH (1) SHALL EXCLUDE

EMPLOYEES PREVIOUSLY EMPLOYED BY AN AFFILIATE AND EMPLOYEES

PREVIOUSLY EMPLOYED BY THE AIRPORT LAND DEVELOPMENT ZONE

EMPLOYER OUTSIDE OF AN AIRPORT LAND DEVELOPMENT ZONE.

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"NONCOMMERCIAL SERVICE AIRPORT." AN AIRPORT THAT IS PUBLICLY

OR PRIVATELY OWNED, OPEN TO THE PUBLIC, WITH LESS THAN 2,500

ANNUAL ENPLANEMENTS AND WITHOUT SCHEDULED AIR CARRIER SERVICE.

"PASS-THROUGH ENTITY." A PARTNERSHIP AS DEFINED IN SECTION

301(N.0) OR A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION

301(N.1).

"PLAN." AN AIRPORT LAND DEVELOPMENT ZONE PLAN.

"PROGRAM." THE AIRPORT LAND DEVELOPMENT ZONE PROGRAM

ESTABLISHED UNDER SECTION 1902-H.

"QUALIFIED TAX LIABILITY." A TAX OWED BY AN AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER ATTRIBUTABLE TO A BUSINESS ACTIVITY

CONDUCTED WITHIN AN AIRPORT LAND DEVELOPMENT ZONE FOR A TAX YEAR

UNDER ARTICLE III, IV, VII, VIII OR XV, EXCLUDING ANY TAX

WITHHELD BY AN EMPLOYER UNDER ARTICLE III.

"ZONE." AN AIRPORT LAND DEVELOPMENT ZONE.

SECTION 1902-H. AIRPORT LAND DEVELOPMENT ZONE PROGRAM.

THE AIRPORT LAND DEVELOPMENT ZONE PROGRAM IS ESTABLISHED TO

ENCOURAGE AND PROMOTE THE CREATION OF NEW JOBS ON LAND AND

BUILDINGS OWNED BY AIRPORTS WITHIN THIS COMMONWEALTH, WHILE

ACCELERATING ECONOMIC ACTIVITY AT AND AROUND AIRPORTS ON

UNDEVELOPED LAND OR VACANT BUILDINGS OWNED BY AIRPORTS THAT CAN

PROVIDE NEW REVENUE SOURCES FOR AIRPORTS.

SECTION 1903-H. APPLICATION AND PLAN.

(A) APPLICATION.--WITHIN FOUR MONTHS OF THE EFFECTIVE DATE

OF THIS SECTION, THE DEPARTMENT SHALL PUBLISH GUIDELINES AND AN

APPLICATION FOR AIRPORTS.

(B) FILING PLAN.--THE DEPARTMENT SHALL BEGIN ACCEPTING PLANS

FROM EACH AIRPORT 30 DAYS AFTER THE DEPARTMENT PUBLISHES THE

GUIDELINES AND APPLICATION.

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AN AIRPORT UNDER SUBSECTION (B), THE DEPARTMENT SHALL HAVE 60

CALENDAR DAYS TO REVIEW THE PLAN FOR APPROPRIATENESS AND

CONFORMITY. IF THE PROPOSED PLAN CONFORMS WITH THIS ARTICLE, THE

DEPARTMENT SHALL APPROVE THE PLAN. IF THE PROPOSED PLAN DOES NOT

CONFORM, THE DEPARTMENT SHALL NOTIFY THE APPLICANT IN WRITING.

THE AIRPORT MAY REVISE THE PLAN TO MAKE THE PLAN CONFORM WITH

THIS ARTICLE. UPON RECEIPT OF THE REVISED PLAN, THE DEPARTMENT

SHALL HAVE 60 DAYS TO APPROVE THE REVISED PLAN.

(D) ACREAGE LIMIT.--IN THE EVENT THE AREA COVERED BY THE

AGGREGATE APPLICATIONS RECEIVED BY THE DEPARTMENT WOULD CAUSE

THE AREA COVERED UNDER THE PROGRAM TO EXCEED THE 2,000 ACRE ZONE

LIMIT, APPLICATIONS SHALL BE APPROVED BY THE DEPARTMENT IN THE

ORDER RECEIVED.

(E) NOTIFICATION.--WHEN A PLAN SUBMITTED BY AN AIRPORT UNDER

SUBSECTION (B) IS APPROVED, THE DEPARTMENT SHALL NOTIFY THE

DEPARTMENT OF REVENUE OF PARCELS INCLUDED IN THE ZONE WITHIN 60

DAYS OF APPROVAL.

(F) CHANGE.--AN AIRPORT MAY CHANGE THE APPROVED PLAN BY

SUBDIVIDING A PARCEL, CHANGING THE LEGAL DESCRIPTION OF A

PARCEL, MOVING THE ZONE DESIGNATION TO ANOTHER QUALIFYING PARCEL

OWNED BY AN AIRPORT OR MAKING PHYSICAL CHANGES TO A VACANT

BUILDING IN THE ZONE BY ADDING TO THE BUILDING'S SIZE OR

REDUCING THE BUILDING'S SIZE AFTER THE PLAN HAS BEEN APPROVED.

IF AN AIRPORT CHOOSES TO MAKE THE CHANGES, THE AIRPORT SHALL

NOTIFY THE DEPARTMENT AND THE DEPARTMENT OF REVENUE OF THE

CHANGES. THE DEPARTMENT SHALL ISSUE A DOCUMENT CONFIRMING THE

CHANGES TO THE AIRPORT'S ZONE.

SECTION 1904-H. AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT.

(A) TAX CREDIT.--AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER

MAY CLAIM A TAX CREDIT AGAINST A QUALIFIED TAX LIABILITY AS

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PROVIDED UNDER THIS ARTICLE.

(B) PROCESS.--

(1) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER SHALL

NOTIFY THE DEPARTMENT AND THE DEPARTMENT OF REVENUE OF THE

AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S QUALIFICATION FOR A

TAX CREDIT UNDER THIS SECTION BY FEBRUARY 15 FOR TAX CREDITS

EARNED DURING A TAXABLE YEAR ENDING IN THE PRIOR CALENDAR

YEAR.

(2) THE NOTIFICATION UNDER PARAGRAPH (1) SHALL CONTAIN

THE FOLLOWING:

(I) THE NAME, ADDRESS AND TAXPAYER IDENTIFICATION

NUMBER OF THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER.

(II) VERIFICATION THAT THE AIRPORT LAND DEVELOPMENT

ZONE EMPLOYER IS AN AIRPORT LAND DEVELOPMENT ZONE

EMPLOYER LOCATED IN AN AIRPORT LAND DEVELOPMENT ZONE.

(III) A FILE PREPARED FOR THE DEPARTMENT OF REVENUE

CONTAINING THE NAMES, ADDRESSES AND SOCIAL SECURITY

NUMBERS OF EACH EMPLOYEE FOR WHICH THE CREDIT IS CLAIMED.

(IV) A FILE PREPARED FOR THE DEPARTMENT OF REVENUE

CONTAINING VERIFICATION THAT EACH EMPLOYEE IDENTIFIED IN

SUBPARAGRAPH (III) SPENT AT LEAST 90% OF THE EMPLOYEE'S

WORKING TIME FOR THE AIRPORT LAND DEVELOPMENT ZONE

EMPLOYER AT THE EMPLOYER'S AIRPORT LAND DEVELOPMENT ZONE

LOCATION.

(V) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT

OR THE DEPARTMENT OF REVENUE.

(3) TO QUALIFY FOR THE CREDIT, THE DEPARTMENT OF REVENUE

MUST CERTIFY THAT THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER

IS CURRENT WITH ALL TAX LIABILITIES.

(4) BY MAY 15 OF EACH YEAR, THE DEPARTMENT SHALL SEND

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THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER WHO SUBMITTED THE

NOTIFICATION A CERTIFICATE OF THE AIRPORT LAND DEVELOPMENT

ZONE EMPLOYER'S QUALIFICATION FOR THE CREDIT. THE AIRPORT

LAND DEVELOPMENT ZONE EMPLOYER SHALL PRESENT THE CERTIFICATE

TO THE DEPARTMENT OF REVENUE WHEN FILING THE AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER'S RETURN CLAIMING THE CREDIT.

DEVELOPMENT ZONE EMPLOYER MAY EARN IN ANY TAX YEAR SHALL BE

EQUAL TO $2,100 FOR EACH FULL-TIME EQUIVALENT EMPLOYEE IN EXCESS

OF THE NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES EMPLOYED BY THE

AIRPORT LAND DEVELOPMENT ZONE EMPLOYER PRIOR TO JANUARY 1, 2021.

(D) APPLICATION OF TAX CREDITS.--AN AIRPORT LAND DEVELOPMENT

ZONE EMPLOYER MUST FIRST USE THE AIRPORT LAND DEVELOPMENT ZONE

EMPLOYER'S AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT AGAINST THE

AIRPORT LAND DEVELOPMENT ZONE EMPLOYER'S QUALIFIED TAX

LIABILITY.

(D.1) SALE OR ASSIGNMENT OF TAX CREDIT.--

(1) IF THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER IS

ENTITLED TO A CREDIT IN ANY YEAR THAT EXCEEDS THE AIRPORT

LAND DEVELOPMENT ZONE EMPLOYER'S QUALIFIED TAX LIABILITY FOR

THAT YEAR, UPON APPLICATION TO AND APPROVAL BY THE

DEPARTMENT, AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER THAT

HAS BEEN AWARDED A TAX CREDIT MAY SELL OR ASSIGN, IN WHOLE OR

IN PART, THE TAX CREDIT GRANTED TO THE AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER. THE APPLICATION MUST BE ON THE

FORM REQUIRED BY THE DEPARTMENT AND MUST INCLUDE OR

DEMONSTRATE ALL OF THE FOLLOWING:

(I) THE APPLICANT'S NAME AND ADDRESS.

(II) A COPY OF THE TAX CREDIT CERTIFICATE PREVIOUSLY

ISSUED BY THE DEPARTMENT.

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(III) A STATEMENT AS TO WHETHER ANY PART OF THE TAX

CREDIT HAS BEEN APPLIED TO TAX LIABILITY OF THE APPLICANT

AND THE AMOUNT SO APPLIED.

(IV) ANY OTHER INFORMATION REQUIRED BY THE

DEPARTMENT.

(V) BEFORE AN APPLICATION FOR SALE OR ASSIGNMENT IS

APPROVED, THE DEPARTMENT OF REVENUE MUST FIND 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.

(2) THE DEPARTMENT SHALL REVIEW THE APPLICATION AND, IF

ALL REQUIREMENTS HAVE BEEN MET, APPROVE THE APPLICATION AND

NOTIFY THE DEPARTMENT OF REVENUE.

(3) THE PURCHASER OR ASSIGNEE OF ALL OR A PORTION OF AN

AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT UNDER THIS SECTION

SHALL CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE

PURCHASE OR ASSIGNMENT IS MADE. THE PURCHASER OR ASSIGNEE OF

A TAX CREDIT MAY USE THE TAX CREDIT AGAINST ANY TAX LIABILITY

OF THE PURCHASER OR ASSIGNEE UNDER ARTICLE III, IV, VII, VIII

OR XV, EXCLUDING ANY TAX WITHHELD BY AN EMPLOYER UNDER

ARTICLE III. THE AMOUNT OF THE TAX CREDIT USED MAY NOT EXCEED

75% OF THE PURCHASER'S OR ASSIGNEE'S TAX LIABILITY FOR THE

TAXABLE YEAR. THE PURCHASER OR ASSIGNEE MAY NOT CARRY OVER,

CARRY BACK, OBTAIN A REFUND OF OR ASSIGN THE AIRPORT LAND

DEVELOPMENT ZONE CREDIT. THE PURCHASER OR ASSIGNEE SHALL

NOTIFY THE DEPARTMENT AND THE DEPARTMENT OF REVENUE OF THE

SELLER OR ASSIGNOR OF THE AIRPORT LAND DEVELOPMENT ZONE TAX

CREDIT IN COMPLIANCE WITH PROCEDURES SPECIFIED BY THE

DEPARTMENT.

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(E) USE AND CARRYFORWARD.--

(1) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER MAY EARN

THE TAX CREDIT ALLOWED UNDER THIS ARTICLE IN ANY TAX YEAR

BEGINNING IN 2022 AND FOR A PERIOD OF UP TO 10 TAX YEARS

DURING THE 20-YEAR PERIOD BEGINNING JULY 1, 2022, AND ENDING

JUNE 30, 2041.

(2) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER MAY CARRY

FORWARD FOR UP TO 10 YEARS A TAX CREDIT EARNED UNDER THIS

ARTICLE:

(I) WHICH THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER

IS UNABLE TO USE; OR

(II) WHICH THE AIRPORT LAND DEVELOPMENT ZONE

EMPLOYER DOES NOT SELL OR ASSIGN.

(3) TAX CREDITS CARRIED FORWARD UNDER PARAGRAPH (2)

SHALL BE USED ON A FIRST-IN, FIRST-OUT BASIS.

(F) DUAL-USE PROHIBITED.--EACH YEAR, AN AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER MAY ONLY EARN TAX CREDITS UNDER

SUBSECTION (C) OR (D) OR UNDER THE ACT OF OCTOBER 6, 1998

(P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE,

KEYSTONE OPPORTUNITY EXPANSION ZONE AND KEYSTONE OPPORTUNITY

IMPROVEMENT ZONE ACT. AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER

MAY NOT CLAIM A CREDIT UNDER BOTH THIS SECTION AND ARTICLE

XVIII-B.

(G) PASS-THROUGH ENTITIES.--

(1) IF AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER IS A

PASS-THROUGH ENTITY AND HAS AN UNUSED TAX CREDIT UNDER

SUBSECTION (C), (D) OR (E), THE AIRPORT LAND DEVELOPMENT ZONE

EMPLOYER MAY ELECT IN WRITING, ACCORDING TO PROCEDURES

ESTABLISHED BY THE DEPARTMENT OF REVENUE, TO TRANSFER ALL OR

A PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS OR PARTNERS

20210HB1342PN3370 - 37 -

IN PROPORTION TO THE SHARE OF THE ENTITY'S DISTRIBUTIVE

INCOME TO WHICH THE SHAREHOLDER, MEMBER OR PARTNER IS

ENTITLED.

(2) AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER THAT IS A

PASS-THROUGH ENTITY AND A SHAREHOLDER, MEMBER OR PARTNER OF

THAT AIRPORT LAND DEVELOPMENT ZONE EMPLOYER MAY NOT BOTH

CLAIM THE AIRPORT LAND DEVELOPMENT ZONE TAX CREDIT EARNED BY

THE AIRPORT LAND DEVELOPMENT ZONE EMPLOYER FOR ANY TAX YEAR.

(3) A SHAREHOLDER, MEMBER OR PARTNER OF AN AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER THAT IS A PASS-THROUGH ENTITY TO

WHOM A CREDIT IS TRANSFERRED UNDER THIS SUBSECTION SHALL

IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE

TRANSFER IS MADE.

(H) TRANSFER.--A TAX CREDIT OR TAX CREDIT CARRYFORWARD THAT

AN AIRPORT LAND DEVELOPMENT ZONE EMPLOYER IS ENTITLED TO USE MAY

BE TRANSFERRED TO A SUCCESSOR ENTITY OF THE AIRPORT LAND

DEVELOPMENT ZONE EMPLOYER.

(I) PENALTIES.--THE FOLLOWING APPLY:

(1) A COMPANY WHICH RECEIVES AIRPORT LAND DEVELOPMENT

ZONE TAX CREDITS AND FAILS TO SUBSTANTIALLY MAINTAIN THE

OPERATIONS RELATED TO THE AIRPORT LAND DEVELOPMENT ZONE TAX

CREDITS IN THIS COMMONWEALTH FOR A PERIOD OF FIVE YEARS FROM

THE DATE THE COMPANY FIRST SUBMITS AN AIRPORT LAND

DEVELOPMENT ZONE TAX CREDIT CERTIFICATE TO THE DEPARTMENT OF

REVENUE SHALL BE REQUIRED TO REFUND TO THE COMMONWEALTH THE

TOTAL AMOUNT OF CREDITS GRANTED.

(2) THE DEPARTMENT MAY WAIVE THE PENALTY UNDER PARAGRAPH

(1) IF IT IS DETERMINED THAT A COMPANY'S OPERATIONS WERE NOT

MAINTAINED OR THE NEW JOBS WERE NOT CREATED BECAUSE OF

CIRCUMSTANCES BEYOND THE COMPANY'S CONTROL. CIRCUMSTANCES

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SHALL INCLUDE NATURAL DISASTERS, UNFORESEEN INDUSTRY TRENDS

OR A LOSS OF A MAJOR SUPPLIER OR MARKET.

ARTICLE XIX-I

PENNSYLVANIA CHILD AND DEPENDENT

CARE ENHANCEMENT PROGRAM

SECTION 1901-I. SCOPE OF ARTICLE.

THIS ARTICLE RELATES TO THE PENNSYLVANIA CHILD AND DEPENDENT

CARE ENHANCEMENT TAX CREDIT PROGRAM.

SECTION 1902-I. 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:

"APPLICABLE PERCENT." AS DEFINED IN SECTION 21(A)(2) OF THE

INTERNAL REVENUE CODE OF 1986 IN EFFECT FOR THE TAXABLE YEAR

BEGINNING AFTER DECEMBER 31, 2021, AND ENDING BEFORE JANUARY 1,

2023.

"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.

"EMPLOYMENT-RELATED EXPENSES." AS DEFINED IN SECTION 21(B)

(2) OF THE INTERNAL REVENUE CODE OF 1986.

"INTERNAL REVENUE CODE OF 1986." THE INTERNAL REVENUE CODE

OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1 ET SEQ.).

"QUALIFYING INDIVIDUAL." AS DEFINED IN SECTION 21(B)(1) OF

THE INTERNAL REVENUE CODE OF 1986.

"RESIDENT INDIVIDUAL." AS DEFINED IN SECTION 301.

"SECTION 21 OF THE INTERNAL REVENUE CODE OF 1986." SECTION

21 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26

U.S.C. § 21).

"TAXPAYER." A RESIDENT INDIVIDUAL SUBJECT TO THE TAX IMPOSED

UNDER ARTICLE III.

"TAX CREDIT." THE PENNSYLVANIA CHILD AND DEPENDENT CARE

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ENHANCEMENT TAX CREDIT PROVIDED FOR UNDER THIS ARTICLE.

"TAX LIABILITY." THE LIABILITY FOR TAXES IMPOSED UNDER

ARTICLE III, EXCLUDING ANY TAX WITHHELD BY AN EMPLOYER UNDER

ARTICLE III.

SECTION 1903-I. CREDIT FOR CHILD AND DEPENDENT CARE EMPLOYMENT-

RELATED EXPENSES.

(A) TAX CREDIT.--FOR TAXABLE YEARS BEGINNING AFTER DECEMBER

31, 2021, A TAXPAYER WHO RECEIVES A CREDIT UNDER SECTION 21 OF

THE INTERNAL REVENUE CODE OF 1986 MAY CLAIM A TAX CREDIT AGAINST

THE TAXPAYER'S TAX LIABILITY.

(B) AMOUNT OF TAX CREDIT.--THE AMOUNT OF THE TAX CREDIT

UNDER SUBSECTION (A) SHALL BE EQUAL TO 30% OF:

(1) THE ACTUAL AMOUNT OF EMPLOYMENT-RELATED EXPENSES

INCURRED BY THE TAXPAYER AND CLAIMED FOR THE FEDERAL TAX

CREDIT UNDER SECTION 21 OF THE INTERNAL REVENUE CODE OF 1986

DURING THE PRIOR TAXABLE YEAR, OR THE FOLLOWING, AS

APPLICABLE, WHICHEVER IS LESS:

(I) $3,000 FOR ONE QUALIFYING INDIVIDUAL WITH

RESPECT TO THE TAXPAYER; OR

(II) $6,000 FOR TWO OR MORE QUALIFYING INDIVIDUALS

WITH RESPECT TO THE TAXPAYER; MULTIPLIED BY

(2) THE APPLICABLE PERCENT, WITH RESPECT TO THE

TAXPAYER, IN EFFECT FOR THE TAXABLE YEAR BEGINNING AFTER

DECEMBER 31, 2021, AND ENDING BEFORE JANUARY 1, 2023.

CREDIT UNDER THIS SECTION ON A RETURN FILED UNDER SECTION 330.

(D) APPLICABILITY OF TAX CREDIT.--THE TAX CREDIT UNDER THIS

SECTION SHALL BE APPLIED AGAINST THE TAXPAYER'S TAX LIABILITY.

IF THE TAX CREDIT EXCEEDS THE TAXPAYER'S TAX LIABILITY, THE

DEPARTMENT MAY ISSUE A REFUND UNDER THE PROCEDURES SET FORTH IN

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SECTION 346.

SECTION 1904-I. PROHIBITIONS.

THE FOLLOWING APPLY:

(1) A TAXPAYER IS NOT ENTITLED TO CARRY OVER, CARRY BACK

OR SELL, ASSIGN OR TRANSFER A TAX CREDIT UNDER THIS ARTICLE.

(2) A TAXPAYER MAY NOT CLAIM A TAX CREDIT FOR THE SAME

EMPLOYMENT-RELATED EXPENSES USED TO CLAIM A TAX CREDIT ON A

RETURN FILED BY ANOTHER TAXPAYER.

SECTION 1905-I. APPLICATION OF INTERNAL REVENUE CODE OF 1986.

THE PROVISIONS OF SECTION 21 OF THE INTERNAL REVENUE CODE OF

1986 IN EFFECT AS OF THE EFFECTIVE DATE OF THIS SECTION AND ANY

FEDERAL REGULATIONS PROMULGATED REGARDING THOSE PROVISIONS SHALL

APPLY TO THE DEPARTMENT'S INTERPRETATION AND ADMINISTRATION OF

THE TAX CREDIT PROVIDED FOR UNDER THIS ARTICLE.

SECTION 1906-I. DEPARTMENTAL DUTIES.

THE DEPARTMENT SHALL PUBLISH GUIDELINES AND MAY PROMULGATE

REGULATIONS NECESSARY FOR THE IMPLEMENTATION AND ADMINISTRATION

OF THIS ARTICLE.

SECTION 1907-I. REPORT TO GENERAL ASSEMBLY.

(A) ANNUAL REPORT.--NO LATER THAN MARCH 1, 2024, AND EACH

MARCH 1 THEREAFTER, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE

GENERAL ASSEMBLY INDICATING THE EFFECTIVENESS OF THE TAX CREDIT

UNDER THIS ARTICLE.

(B) INFORMATION REQUIRED.--THE REPORT REQUIRED UNDER

SUBSECTION (A) SHALL INCLUDE, BUT NOT BE LIMITED TO, THE

FOLLOWING INFORMATION:

(1) THE NUMBER OF TAX CREDITS APPROVED UNDER THIS

ARTICLE.

(2) THE AMOUNT OF TAX CREDITS APPROVED UNDER THIS

ARTICLE.

20210HB1342PN3370 - 41 -

(3) THE AMOUNT OF TAX CREDITS CLAIMED UNDER THIS

ARTICLE.

(4) THE AMOUNT OF TAX CREDITS REFUNDED UNDER THIS

ARTICLE.

SECTION 15.1. SECTION 2111 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 2111. TRANSFERS NOT SUBJECT TO TAX.--(A) THE

TRANSFERS ENUMERATED IN THIS SECTION ARE NOT SUBJECT TO THE TAX

IMPOSED BY THIS ARTICLE.

* * *

(U) THE TRANSFER OF PERSONAL PROPERTY, WHETHER TANGIBLE OR

INTANGIBLE, THAT IS THE RESULT OF A DECEDENT MILITARY MEMBER.

(1) FOR PURPOSES OF THIS SUBSECTION, THE TERM "DECEDENT

MILITARY MEMBER" SHALL MEAN AN INDIVIDUAL WHO, WHILE SERVING IN

THE ARMED FORCES, A RESERVE COMPONENT OR THE NATIONAL GUARD OF

THE UNITED STATES, DIED AS A RESULT OF INJURY OR ILLNESS

RECEIVED WHILE ON ACTIVE DUTY, INCLUDING ACTIVE DUTY FOR

TRAINING.

(2) THE TERM SHALL INCLUDE BOTH FEDERAL AND STATE ACTIVE

DUTY AS EVIDENCED BY OFFICIAL ACTIVATION ORDER.

SECTION 16. SECTION 2301(E.1) OF THE ACT IS AMENDED TO READ:

SECTION 2301. PUBLIC TRANSPORTATION ASSISTANCE FUND.--* * *

(E.1) (1) THERE IS HEREBY IMPOSED ON EACH RENTAL OF A MOTOR

VEHICLE SUBJECT TO TAX UNDER ARTICLE II AND USED IN CARSHARING,

A PEER-TO-PEER CAR-SHARING PROGRAM OR CAR SHARING BY A SHARED

VEHICLE OWNER A FEE FOR EACH DAY OR PART OF A DAY COMPUTED

ACCORDING TO THE FOLLOWING SCHEDULE:

RENTAL INTERVAL FEE

LESS THAN 2 HOURS $0.25

2 TO 3 HOURS $0.50

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MORE THAN 3, BUT LESS

THAN [4] 6 HOURS $1.25

[4] 6 HOURS OR MORE $2.00

(2) FOR PURPOSES OF THIS SUBSECTION, THE TERM "CARSHARING"

SHALL MEAN A MEMBERSHIP-BASED SERVICE THAT PROVIDES AN

ALTERNATIVE TO PERSONAL CAR OWNERSHIP AND WHICH MEETS THE

FOLLOWING CONDITIONS:

(I) DOES NOT REQUIRE A TRIP-SPECIFIC WRITTEN AGREEMENT EACH

TIME A MEMBER RENTS A VEHICLE.

(II) DOES NOT REQUIRE AN ATTENDANT TO BE PRESENT AT THE

BEGINNING OR END OF A RENTAL.

(III) OFFERS MEMBERS ACCESS TO A DISPERSED NETWORK OF SHARED

VEHICLES 24 HOURS PER DAY, 7 DAYS PER WEEK, 365 DAYS PER YEAR.

(IV) ALLOWS A VEHICLE TO BE RENTED ON A PER MINUTE, PER

HOUR, PER DAY, OR PER TRIP BASIS, AND AT PER MILE OR PER

KILOMETER RATES, WHICH TYPICALLY INCLUDE FUEL, INSURANCE AND

MAINTENANCE.

(3) FOR PURPOSES OF THIS SUBSECTION:

(I) THE TERM "PEER-TO-PEER CAR-SHARING PROGRAM" SHALL BE AS

DEFINED IN SECTION 201(QQQ).

(II) THE TERM "SHARED VEHICLE OWNER" SHALL BE AS DEFINED IN

SECTION 201(UUU).

SECTION 17. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 2502.1. GENERAL FUND DEPOSIT.

NOTWITHSTANDING 4 PA.C.S. § 13A62(C) (RELATING TO TABLE GAME

TAXES), BEGINNING ON JULY 1, 2022, THE TAX IMPOSED UNDER SECTION

2502 AND THE TAX IMPOSED UNDER 4 PA.C.S. § 13A62(A) SHALL BE

DEPOSITED INTO THE GENERAL FUND.

SECTION 18. THE DEFINITION OF "QUALIFICATION PERIOD" IN

SECTION 2901-D OF THE ACT IS AMENDED TO READ:

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SECTION 2901-D. 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:

* * *

"QUALIFICATION PERIOD." [AS] EXCEPT AS PROVIDED UNDER

SECTIONS 2931-D(D), 2935-D(B) AND 2937-D(C), AS FOLLOWS:

(1) WITH RESPECT TO THE OWNER OR OPERATOR OF A COMPUTER

DATA CENTER CERTIFIED UNDER THIS ARTICLE, A PERIOD OF TIME

BEGINNING ON THE DATE OF CERTIFICATION OF THE COMPUTER DATA

CENTER AND EXPIRING AT THE END OF THE FIFTEENTH FULL CALENDAR

YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE OWNER OR

OPERATOR FILED AN APPLICATION FOR CERTIFICATION.

(2) WITH RESPECT TO A QUALIFIED TENANT OF THE OWNER OR

OPERATOR OF A COMPUTER DATA CENTER CERTIFIED UNDER THIS

ARTICLE, A PERIOD OF TIME BEGINNING ON THE DATE THAT THE

QUALIFIED TENANT ENTERS INTO AN AGREEMENT CONCERNING THE USE

OR OCCUPANCY OF THE COMPUTER DATA CENTER AND EXPIRING AT THE

EARLIER OF THE EXPIRATION OF THE TERM OF THE AGREEMENT OR THE

END OF THE 10TH FULL CALENDAR YEAR FOLLOWING THE CALENDAR

YEAR IN WHICH THE QUALIFIED TENANT ENTERS INTO THE AGREEMENT.

* * *

SECTION 19. SECTION 2931-D OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 2931-D. SALES AND USE TAX EXEMPTION.

* * *

(D) DEFINITION.--AS USED IN THIS SECTION, THE TERM

"QUALIFICATION PERIOD" SHALL MEAN THE FOLLOWING:

(1) WITH RESPECT TO THE OWNER OR OPERATOR OF A COMPUTER

DATA CENTER CERTIFIED UNDER THIS ARTICLE, A PERIOD OF TIME

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BEGINNING ON THE DATE OF CERTIFICATION OF THE COMPUTER DATA

CENTER AND EXPIRING AT THE END OF THE 25TH FULL CALENDAR YEAR

FOLLOWING THE CALENDAR YEAR IN WHICH THE OWNER OR OPERATOR

FILED AN APPLICATION FOR CERTIFICATION.

(2) WITH RESPECT TO A QUALIFIED TENANT OF THE OWNER OR

OPERATOR OF A COMPUTER DATA CENTER CERTIFIED UNDER THIS

ARTICLE, A PERIOD OF TIME BEGINNING ON THE DATE THAT THE

QUALIFIED TENANT ENTERS INTO AN AGREEMENT CONCERNING THE USE

OR OCCUPANCY OF THE COMPUTER DATA CENTER AND EXPIRING AT THE

EARLIER OF THE EXPIRATION OF THE TERM OF THE AGREEMENT OR THE

END OF THE 10TH FULL CALENDER YEAR FOLLOWING THE CALENDAR

YEAR IN WHICH THE QUALIFIED TENANT ENTERS INTO THE AGREEMENT.

SECTION 20. SECTIONS 2935-D(B) AND 2937-D(C) OF THE ACT,

ADDED JUNE 30, 2021 (P.L.124, NO.25), ARE AMENDED TO READ:

SECTION 2935-D. ELIGIBILITY REQUIREMENTS.

* * *

(B) PRIOR APPLICATIONS.--A COMPUTER DATA CENTER THAT HAS MET

THE ELIGIBILITY REQUIREMENTS AS PRESCRIBED UNDER SECTION 2915-D

AND HAS, PRIOR TO JULY 1, 2021, BEEN CERTIFIED UNDER SECTION

2913-D SHALL BE DEEMED TO MEET THE CERTIFICATION REQUIREMENTS OF

THIS SECTION. THE CERTIFICATION SHALL NOT BE REVOKED, EXCEPT AS

PROVIDED UNDER SECTION 2917-D, AND SHALL REMAIN IN EFFECT FOR

THE REMAINDER OF THE QUALIFICATION PERIOD, AS DEFINED IN SECTION

2931-D(D).

* * *

SECTION 2937-D. REVOCATION OF CERTIFICATION.

* * *

SECTION, THE QUALIFICATION PERIOD, AS DEFINED IN SECTION 2931-

D(D), OF ANY OWNER OR OPERATOR OR QUALIFIED TENANT OF THE

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COMPUTER DATA CENTER SHALL EXPIRE AND THE DEPARTMENT MAY

RECAPTURE FROM THE OWNER OR OPERATOR OR QUALIFIED TENANT ALL OR

PART OF THE TAX EXEMPTION RECEIVED BY THE OWNER OR OPERATOR OR

QUALIFIED TENANT UNDER SECTION 2942-D. THE DEPARTMENT MAY GIVE

SPECIAL CONSIDERATION OR ALLOW A TEMPORARY EXEMPTION FROM

RECAPTURE OF THE TAX EXEMPTION IF THERE IS EXTRAORDINARY

HARDSHIP DUE TO FACTORS BEYOND THE CONTROL OF THE OWNER OR

OPERATOR OR QUALIFIED TENANT. THE DEPARTMENT MAY REQUIRE THE

OWNER OR OPERATOR OR QUALIFIED TENANT TO FILE APPROPRIATE

AMENDED TAX RETURNS IN ORDER TO REFLECT ANY RECAPTURE OF THE TAX

EXEMPTION.

* * *

SECTION 21. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 3003.25. ALLOCATION OF TAX CREDITS.--(A)

NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE AMOUNT OF

TAX CREDITS THAT MAY BE AWARDED FOR TAX CREDIT PROGRAMS

SPECIFIED UNDER THIS SUBSECTION SHALL REMAIN AT THE AMOUNT

ALLOCATED FOR FISCAL YEARS BEGINNING AFTER JUNE 30, 2022, AND

ENDING BEFORE JULY 1, 2025:

(1) ARTICLE XVII-B.

(2) SUBARTICLE B OF ARTICLE XVII-D.

(2.1) SUBARTICLE E OF ARTICLE XVII-D.

(3) ARTICLE XVII-K.

(B) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, THE

AMOUNT OF TAX CREDIT EARNED FOR EACH FULL-TIME EQUIVALENT

EMPLOYE UNDER ARTICLE XIX-H SHALL REMAIN AT THE AMOUNT SPECIFIED

UNDER SECTION 1904-H(C) FOR FISCAL YEARS BEGINNING AFTER JUNE

30, 2022, AND ENDING BEFORE JULY 1, 2025.

SECTION 22. REPEALS ARE AS FOLLOWS:

(1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER

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PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE ADDITION OF

SECTION 303(A.7)(5) AND (6) OF THE ACT.

(2) SECTION 104-A OF THE ACT OF APRIL 9, 1929 (P.L.343,

NO.176), KNOWN AS THE FISCAL CODE, IS REPEALED.

(3) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER

PARAGRAPH (4) IS NECESSARY TO EFFECTUATE THE ADDITION OF

SECTION 2502.1 OF THE ACT.

(4) 4 PA.C.S. § 13A62(C) IS REPEALED.

(5) THE DEFINITION OF "FUND" IN SECTION 702 OF THE ACT

OF DECEMBER 18, 1984 (P.L.1005, NO.205), KNOWN AS THE

MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, IS

REPEALED TO THE EXTENT IT IS INCONSISTENT WITH THE PROVISIONS

OF THIS ACT.

(6) SECTION 702 OF THE ACT OF DECEMBER 14, 1988

(P.L.1192, NO.147), KNOWN AS THE SPECIAL AD HOC MUNICIPAL

POLICE AND FIREFIGHTER POSTRETIREMENT ADJUSTMENT ACT, AND ALL

ACTS OR PARTS OF ACTS INCONSISTENT WITH THE AMENDMENT OF

SECTIONS 902, 902.1(D) AND 1805-F(C), ARE REPEALED TO THE

EXTENT THEY ARE INCONSISTENT WITH THE AMENDMENT OF SECTIONS

902, 902.1(D) AND 1805-F(C).

SECTION 23. THE ADDITION OF SECTION 303(A.7)(5) AND (6) OF

THE ACT ARE A CONTINUATION OF SECTION 104-A OF THE ACT OF APRIL

9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE. EXCEPT AS

PROVIDED IN SECTION 303(A.7)(5) AND (6) OF THE ACT, ALL

ACTIVITIES INITIATED UNDER SECTION 104-A OF THE FISCAL CODE

SHALL CONTINUE AND REMAIN IN FULL FORCE AND EFFECT AND MAY BE

COMPLETED UNDER SECTION 303(A.7)(5) AND (6) OF THE ACT. ORDERS,

REGULATIONS, RULES AND DECISIONS WHICH WERE MADE UNDER SECTION

104-A OF THE FISCAL CODE AND WHICH ARE IN EFFECT ON THE

EFFECTIVE DATE OF SECTION 303(A.7)(5) AND (6) OF THIS ACT SHALL

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REMAIN IN FULL FORCE AND EFFECT UNTIL REVOKED, VACATED OR

MODIFIED UNDER SECTION 303(A.7)(5) AND (6) OF THE ACT.

CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING AGREEMENTS

ENTERED INTO UNDER SECTION 104-A OF THE FISCAL CODE ARE NOT

AFFECTED NOR IMPAIRED BY THE REPEAL OF SECTION 104-A OF THE

FISCAL CODE.

SECTION 24. THE FOLLOWING SHALL APPLY:

(1) THE AMENDMENT OF SECTION 303(A.3) OF THE ACT SHALL

APPLY TO PROPERTY PLACED IN SERVICE IN TAX YEARS BEGINNING

AFTER DECEMBER 31, 2022.

(2) THE AMENDMENT OF SECTION 303(A.5) OF THE ACT SHALL

APPLY TO TRANSACTIONS OCCURRING IN TAX YEARS BEGINNING AFTER

DECEMBER 31, 2022.

(2.1) THE ADDITION OF SECTION 2111(U) OF THE ACT SHALL

APPLY TO INHERITANCE TAX IMPOSED AS TO A DECEDENT WHOSE DATE

OF DEATH IS AFTER THE EFFECTIVE DATE OF THIS SECTION.

(3) THE FOLLOWING SECTIONS SHALL APPLY TO TAXABLE YEARS

BEGINNING AFTER DECEMBER 31, 2022:

(I) THE AMENDMENT OR ADDITION OF SECTION 401(3)2(A)

(17) OF THE ACT.

(II) THE ADDITION OF SECTION 402(A)(5) AND (6) OF

THE ACT.

(4) THE FOLLOWING SECTIONS SHALL APPLY TO FISCAL YEARS

BEGINNING AFTER JUNE 30, 2022:

(I) THE AMENDMENT OF SECTION 902 OF THE ACT.

(II) THE AMENDMENT OF SECTION 902.1(D) OF THE ACT.

(III) THE AMENDMENT OF SECTION 1709-B OF THE ACT.

(IV) THE AMENDMENT OF SECTION 1711-D OF THE ACT.

(V) THE ADDITION OF SECTION 1712-D(B)(5.1) AND (7.2)

OF THE ACT.

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(VI) THE AMENDMENT OF SECTION 1712-D(B)(7.1) OF THE

ACT.

(VII) THE AMENDMENT OF SECTION 1716-D(A) OF THE ACT.

(VIII) THE AMENDMENT OF SECTION 1716.1-D(A)(4) OF

THE ACT.

(IX) THE AMENDMENT OF SECTION 1777-D(A)(1) OF THE

ACT.

(X) THE AMENDMENT OF SECTION 1708-K(4) OF THE ACT.

(XI) THE AMENDMENT OF SECTION 1809-C(C)(2) OF THE

ACT.

(XII) THE AMENDMENT OF SECTION 1813-C(A)(1.1) OF THE

ACT.

(XIII) THE AMENDMENT OF SECTION 1805-F(C) OF THE

ACT.

(XIV) THE ADDITION OF ARTICLE XIX-H OF THE ACT.

(XV) THE ADDITION OF ARTICLE XIX-I OF THE ACT.

(XVI) THE ADDITION OF SECTION 3003.25 OF THE ACT.

SECTION 25. THE ADDITION OF SECTION 2502.1 SHALL APPLY

RETROACTIVELY TO JULY 1, 2022.

SECTION 26. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:

(1) THE FOLLOWING SHALL TAKE EFFECT JANUARY 1, 2023:

(I) THE AMENDMENT OR ADDITION OF SECTION 201(B),

(I), (K), (N), (O), (P), (NNN), (OOO), (PPP), (QQQ),

(RRR), (SSS), (TTT) AND (UUU) OF THE ACT.

(II) THE AMENDMENT OF SECTIONS 208(A) AND 2301(E.1)

OF THE ACT.

(2) THE ADDITION OF SECTION 2111(U) OF THE ACT SHALL

TAKE EFFECT IN 60 DAYS.

(3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT

IMMEDIATELY.

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