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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY PETRI, GABLER, DONATUCCI, EVERETT, GODSHALL, GROVE, O'NEILL, WATSON AND SIPTROTH, MAY 13, 2009 |
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| REFERRED TO COMMITTEE ON FINANCE, MAY 13, 2009 |
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| AN ACT |
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1 | Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An |
2 | act relating to tax reform and State taxation by codifying |
3 | and enumerating certain subjects of taxation and imposing |
4 | taxes thereon; providing procedures for the payment, |
5 | collection, administration and enforcement thereof; providing |
6 | for tax credits in certain cases; conferring powers and |
7 | imposing duties upon the Department of Revenue, certain |
8 | employers, fiduciaries, individuals, persons, corporations |
9 | and other entities; prescribing crimes, offenses and |
10 | penalties," further providing for limited tax credits. |
11 | The General Assembly of the Commonwealth of Pennsylvania |
12 | hereby enacts as follows: |
13 | Section 1. Section 2010 of the act of March 4, 1971 (P.L.6, |
14 | No.2), known as the Tax Reform Code of 1971, amended December |
15 | 23, 2003 (P.L.250, NO.46), is amended to read: |
16 | Section 2010. Limited Tax Credits.--(a) The General |
17 | Assembly of the Commonwealth, conscious of the financial |
18 | pressures facing small brewers in Pennsylvania and the attendant |
19 | risk of business failure and loss of employment opportunity, |
20 | declares it public policy that renewal and improvement of small |
21 | brewers be encouraged and assisted by a [limited] tax subsidy to |
22 | be granted [during the period] as set forth in this section. |
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1 | (b) As used in this section: |
2 | "Amounts paid." The phrase means (i) amounts actually paid, |
3 | or (ii) at the taxpayer's election, amounts promised to be paid |
4 | under firm purchase contracts actually executed during any |
5 | calendar year falling within the effective period of this |
6 | section: Provided, however, That there shall be no duplication |
7 | of "amounts paid" under this definition. |
8 | ["Effective period." The period from January 1, 1974, to |
9 | December 31, 2008, inclusive.] |
10 | "Qualifying capital expenditures." Amounts paid by a |
11 | taxpayer during the effective period of this section for the |
12 | purchase of items of plant, machinery or equipment for use by |
13 | the taxpayer within this Commonwealth in the manufacture and |
14 | sale of malt or brewed beverages: Provided, however, That the |
15 | total amount of qualifying capital expenditures made by a |
16 | taxpayer within a single calendar year shall not exceed two |
17 | hundred thousand dollars ($200,000). |
18 | "Secretary." The Secretary of Revenue of the Commonwealth of |
19 | Pennsylvania where not otherwise qualified. |
20 | "Taxpayer." A manufacturer of malt or brewed beverages |
21 | claiming a tax credit or credits under this section and having |
22 | an annual production of malt or brewed beverages that does not |
23 | exceed one million five hundred thousand (1,500,000) barrels. |
24 | (c) A tax credit or credits shall be allowed for each |
25 | calendar year to a taxpayer, as hereinafter provided, not to |
26 | exceed in total amount the amount of qualifying capital |
27 | expenditures made by the taxpayer and certified by the |
28 | secretary. |
29 | (d) A taxpayer desiring to claim a tax credit or credits |
30 | under this section shall, within one year of the date of the |
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1 | original purchase of the qualifying capital expenditures, in |
2 | accordance with regulations promulgated by the secretary, report |
3 | annually to the secretary the nature, amounts and dates of |
4 | qualifying capital expenditures made by him and such other |
5 | information as the secretary shall require. If satisfied as to |
6 | the correctness of such a report, the secretary shall issue to |
7 | the taxpayer a certificate establishing the amount of qualifying |
8 | capital expenditures made by the taxpayer and included within |
9 | said report. The taxpayer shall also provide to the secretary |
10 | the number of employes, total production of malt or brewed |
11 | beverages and the amount of capital expenditures made by the |
12 | taxpayer at each location operated by the taxpayer or a parent |
13 | corporation, subsidiary, joint venture or affiliate. Also, the |
14 | taxpayer shall notify the secretary of any contract for |
15 | production held with another manufacturer. The secretary shall |
16 | file a report annually with the Chief Clerk of the House of |
17 | Representatives and with the Secretary of the Senate outlining |
18 | the employment, production, expenditures and tax credits |
19 | authorized under this section. |
20 | (e) Upon receipt from a taxpayer of a certificate from the |
21 | secretary issued under subsection (c), the Secretary of Revenue |
22 | shall grant a tax credit or credits in the amount certified |
23 | against any tax due under this article in the calendar year in |
24 | which the expenditures were incurred or against any tax becoming |
25 | due from the taxpayer under this article in the following three |
26 | calendar years. No credit shall be allowed against any tax due |
27 | for any taxable period ending after December 31, 2008. |
28 | Section 2. This act shall take effect in 60 days. |
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