Bill Text: PA HB2583 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for a brownfield job creation program.

Spectrum: Moderate Partisan Bill (Democrat 45-5)

Status: (Introduced - Dead) 2010-06-16 - Referred to FINANCE [HB2583 Detail]

Download: Pennsylvania-2009-HB2583-Introduced.html

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PRINTER'S NO. 3922
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2583 Session of2010
INTRODUCED BY DERMODY, TURZAI, MURPHY, BISHOP, BOYLE, MELIO, BRENNAN, SOLOBAY, McGEEHAN, W. KELLER, MATZIE, GERGELY, HARKINS, SANTONI, FAIRCHILD, M. O'BRIEN, K. SMITH, THOMAS, YUDICHAK, FREEMAN, READSHAW, STABACK, DePASQUALE, D. COSTA, DEASY, KOTIK, LONGIETTI, SIPTROTH, GOODMAN, PASHINSKI, MANN, HARHAI, CALTAGIRONE, M. SMITH, HALUSKA, CARROLL, BRIGGS, JOSEPHS, GIBBONS, YOUNGBLOOD, HANNA, MAHONEY, BELFANTI, REICHLEY, DALEY, HORNAMAN, DeLUCA, GEIST, FRANKEL AND BRADFORD, JUNE 16, 2010
REFERRED TO COMMITTEE ON FINANCE, JUNE 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 a brownfield job creation program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XIX-B
BROWNFIELD JOB CREATION PROGRAM
Section 1901-B. Scope of article.
This article relates to the brownfield job creation program.
Section 1902-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Brownfield." A parcel of real property that meets all of
the following:
(1) On July 1, 2010, was within a special industrial
area, as described in section 305(a) of the act of May 19,
1995 (P.L.4, No.2), known as the Land Recycling and
Environmental Remediation Standards Act, for which the
Department of Environmental Protection has executed a special
industrial area consent order and agreement, as provided
under section 502(a) of the Land Recycling and Environmental
Remediation Standards Act.
(2) On July 1, 2010, had no permanent vertical
structures affixed to it.
"Brownfield employer." A person or entity subject to the
taxes imposed by Article II, III, IV, VI, VII, VIII, IX, X or
XV, who employs one or more employees at a brownfield. The term
shall include a pass-through entity.
"Employee." An individual who is employed by a brownfield
employer at a brownfield.
"Full-time equivalent employee." The whole number of
employees, rounded down, that equals the sum of:
(1) 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 the
brownfield employer's employees classified as nonexempt
during the brownfield employer's tax year divided by 2000;
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and
(2) a total number arrived at by adding, for each
brownfield employer's employee 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
brownfield 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.).
"Pass-through entity." A Pennsylvania S corporation,
partnership, limited partnership, limited liability company,
business trust or other unincorporated entity that for Federal
income tax purposes is taxable as a partnership. The term shall
include a pass-through owner.
"Pass-through owner." A shareholder of a Pennsylvania S
corporation, a partner of a partnership or a limited
partnership, a member of a limited liability company, a
beneficial owner of a business trust, or the owner of any other
unincorporated entity each of which, for Federal income tax
purposes, is taxable as a partnership.
"Qualified tax liability." Any tax owed by a brownfield
employer under Article II, III, IV, VI, VII, VIII, IX or XV for
a tax year.
Section 1903-B. Brownfield job creation tax credit.
(a) Tax credit.--A brownfield employer shall be entitled to
claim a tax credit against its qualified tax liability and, as
provided under subsection (d), against taxes it is required to
withhold under section 316.
(b) Availability.--The tax credit shall not be available to
a brownfield employer if the brownfield employer, after January
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1, 1990, intentionally or negligently caused or contributed to,
in any material respect, a level of regulated substance above
the cleanup standards in the act of May 19, 1995 (P.L.4, No.2),
known as the Land Recycling and Environmental Remediation
Standards Act, on, in or under the brownfield at which an
employee described under subsection (c) is employed.
(c) Amount.--The amount of the tax credit a brownfield
employer may claim against its qualified tax liability in any
tax year shall be equal to $3,500 for each full-time equivalent
employee of the brownfield employer during the tax year.
(d) Excess tax credits.--Any tax credit allowed under
subsection (c) in excess of the brownfield employer's qualified
tax liability for any tax year may, at the election of the
brownfield employer, be applied as a credit against taxes it is
required to withhold under section 316 for the following year on
a weekly, biweekly or monthly basis depending on the brownfield
employer's payroll period and when withholding taxes are
remitted. Any tax credit under this subsection is not considered
income to the brownfield employer. The amount of withholding
taxes under this subsection that a brownfield employer claims a
tax credit against shall be treated as an amount withheld under
section 316 and shall be allowed to the recipient of the
compensation as a credit against the tax imposed on him under
section 312.
(e) Claim.--A brownfield employer may claim the tax credit
allowed under subsection (c) or (d) for a period of up to ten
consecutive tax years during the 15-year period beginning
January 1, 2011, and ending December 31, 2025. The tax credit
that a brownfield employer may use in a tax year may not exceed
the amount of the brownfield employer's qualified tax liability
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plus the taxes it is required to withhold under section 316. A
brownfield employer may carry forward for up to ten years any
tax credit originally claimed under this section during the 15-
year period that it is unable to use in the year the tax credit
is first available. The ten-year carryforward period may extend
into tax years beginning after December 31, 2025. Tax credit
carryforwards may be used by a brownfield employer on a first-
in-first-out basis.
(f) Dual-claim prohibited.--In a given year, a brownfield
employer may only claim 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.
(g) Unused tax credit.--If a pass-through entity has any
unused tax credit under this section, it may allocate all or a
portion of the tax credit to its pass-through owners. If the
pass-through owner is unable to use the tax credit in the year
it is first available, the pass-through owner may carry forward
the tax credit for up to ten years and apply the tax credit
carryforward on a first-in-first-out basis. The ten-year carry
forward period may extend into tax years beginning after
December 31, 2025.
(h) Transfer.--Any tax credit or tax credit carryforward
that a brownfield employer is entitled to claim or use may be
transferred and continued by any transferee of all or
substantially all of the assets of the brownfield employer.
Section 2. This act shall take effect January 1, 2011, or
immediately, whichever is later.
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