THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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.

(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

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

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.