Bill Text: PA HB2256 | 2009-2010 | Regular Session | Introduced

---

Bill Title: Providing for deer processor tax credit.

Spectrum: Slight Partisan Bill (Republican 29-13)

Status: (Introduced - Dead) 2010-02-16 - Referred to FINANCE [HB2256 Detail]

Download: Pennsylvania-2009-HB2256-Introduced.html

---

PRINTER'S NO. 3216
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2256 Session of2010
INTRODUCED BY PYLE, BAKER, BOBACK, BOYD, CREIGHTON, CUTLER, DALEY, ELLIS, EVERETT, GABLER, GEIST, GERGELY, GILLESPIE, GINGRICH, GOODMAN, GROVE, HARHART, HESS, HORNAMAN, KOTIK, KULA, LONGIETTI, MAJOR, METCALFE, METZGAR, MILLER, MOUL, MURT, PALLONE, PEIFER, RAPP, REESE, REICHLEY, SEIP, SIPTROTH, SONNEY, STABACK, STEVENSON, SWANGER, WANSACZ AND WHITE, FEBRUARY 16, 2010
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 16, 2010
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," providing for deer processor tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of 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 XVII-g
Deer PROCESSOR'S Tax Credit
Section 1701-G. Scope.
This article relates to a deer processor's tax credit.
Section 1702-G. 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:
"Accepting registered public charity." An institution which
meets the criteria under section 5 of the act of November 26,
1997 (P.L.508, No.55), known as the Institutions of Purely
Public Charity Act, and accepts venison as a means of feeding
the hungry.
"Department." The Department of Revenue of the Commonwealth.
"Pass-through entity." Any of the following:
(1) A partnership, limited partnership, limited
liability company, business trust or other unincorporated
entity that for Federal income tax purposes is taxable as a
partnership.
(2) A Pennsylvania S corporation.
"Qualified processing expense." The expense a processor
incurs as a result of processing a single deer, from which the
meat is being donated for the sole purpose of human consumption.
"Qualified tax liability." The liability for taxes imposed
under Article III, IV or VI. The term shall include the
liability for taxes imposed under Article III on a shareholder
of a pass-through entity.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Tax credit." The deer processor's tax credit authorized
under this article.
"Taxpayer." An entity subject to tax under Article III, IV
or VI. The term shall include the shareholder, owner or member
of a pass-through entity that receives a tax credit.
Section 1703-G. Credit for qualified processing expense.
20100HB2256PN3216 - 2 -
(a) Application.--A taxpayer may apply for a tax credit as
provided in this article when the taxpayer incurs a qualified
processing expense while donating the taxpayer's service to an
individual who wishes to donate all of the consumable venison
from a single deer to an accepting registered public charity. By
September 15, a taxpayer must submit an application to the
department for a qualified processing expense incurred in the
taxable year that ended in the prior calendar year.
(b) Accountability.--The qualifying processor must retain
for recordkeeping purposes each appropriate Pennsylvania Game
Commission numbered and issued ear tag that is affixed to each
deer being donated.
(c) Receipt.--A taxpayer that is qualified under subsection
(a) shall receive a tax credit for the taxable year in the
amount of $50 per deer processed. The maximum tax credit amount
which a taxpayer that is qualified under subsection (a) shall
receive may not exceed $2,500 for the taxable year.
(d) Notification.--By December 15 of the calendar year
following the close of the taxable year during which the
qualified processing expense was incurred, the department shall
notify the taxpayer of the amount of the taxpayer's tax credit
approved by the department.
Section 1704-G. Carryover, carryback, refund and assignment of
credit.
(a) General rule.--If the taxpayer 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
succeeding taxable years and used as a credit against the
qualified tax liability of the taxpayer for those taxable years.
Each time that the tax credit is carried over to a succeeding
20100HB2256PN3216 - 3 -
taxable year, it is to 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 fifteen taxable
years following the first taxable year for which the taxpayer
was entitled to claim the credit.
(b) Application.--A tax credit approved by the department
for qualified processing expense in a taxable year first shall
be applied against the taxpayer'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 subsection (a).
(c) No carryback or refund.--A taxpayer is not entitled to
carry back or obtain a refund of an unused tax credit.
Section 1705-G. Time limitations.
A taxpayer is not entitled to a tax credit for qualified
processing expenses incurred in taxable years ending after
December 31, 2014.
Section 1706-G. Limitation on credits.
(a) Total amount.--The total amount of tax credits approved
by the department shall not exceed $100,000 in any fiscal year.
(b) Allocation of credits.--Tax credits under this article
shall be provided on a first-come-first-served basis until all
annual available credits have been allocated.
Section 1707-G. Shareholder, owner or member pass-through.
(a) Application to Pennsylvania S corporations.--If a
Pennsylvania S corporation does not have an eligible tax
liability against which the tax credit may be applied, a
shareholder of the Pennsylvania S corporation is entitled to a
tax credit equal to the tax credit determined for the
20100HB2256PN3216 - 4 -
Pennsylvania S corporation for the taxable year multiplied by
the percentage of the Pennsylvania S corporation's distributive
income to which the shareholder is entitled.
(b) Other applications.--If a pass-through entity other than
a Pennsylvania S corporation does not have an eligible tax
liability against which the tax credit may be applied, an owner
or member of the pass-through entity is entitled to a tax credit
equal to the tax credit determined for the pass-through entity
for the taxable year multiplied by the percentage of the pass-
through entities' distributive income to which the owner or
member is entitled.
(c) Additional credit.--The credit provided under subsection
(a) or (b) is in addition to any tax credit to which a
shareholder, owner or member of a pass-through entity is
otherwise entitled under this article. However, a pass-through
entity and a shareholder, owner or member of a pass-through
entity may not claim a credit under this article for the same
qualified processing expense.
Section 1708-G. Termination.
The department shall not approve a tax credit under this
article for taxable years ending after December 31, 2014.
Section 1709-G. Regulations.
The secretary shall promulgate regulations necessary for the
implementation and administration of this article.
Section 2. This act shall apply to taxable years beginning
after December 31, 2009.
Section 3. This act shall take effect July 1, 2010, or
immediately, whichever is later.
20100HB2256PN3216 - 5 -