Bill Text: PA SB275 | 2011-2012 | Regular Session | Introduced

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Bill Title: In malt beverage tax, further providing for limited tax credits for small brewers.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-01-26 - Referred to FINANCE [SB275 Detail]

Download: Pennsylvania-2011-SB275-Introduced.html

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PRINTER'S NO. 251
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 275 Session of2011
INTRODUCED BY ALLOWAY, FONTANA, BREWSTER, SOLOBAY, RAFFERTY, SCARNATI, BOSCOLA, PIPPY, YUDICHAK, KASUNIC AND MENSCH, JANUARY 26, 2011
REFERRED TO FINANCE, JANUARY 26, 2011
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 malt beverage tax, further providing for
limited tax credits for small brewers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2010 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, amended December
23, 2003 (P.L.250, No.46), is amended to read:
Section 2010. [Limited] Tax Credits.--(a) The General
Assembly of the Commonwealth, conscious of the financial
pressures facing small brewers in Pennsylvania and the attendant
risk of business failure and loss of employment opportunity,
declares it public policy that renewal and improvement of small
brewers be encouraged and assisted by a [limited] tax subsidy to
be granted [during the period] as set forth in this section.
(b) As used in this section:
"Amounts paid." The phrase means (i) amounts actually paid,
or (ii) at the taxpayer's election, amounts promised to be paid
under firm purchase contracts actually executed during any
calendar year [falling within the effective period of this
section]: Provided, however, That there shall be no duplication
of "amounts paid" under this definition.
["Effective period." The period from January 1, 1974, to
December 31, 2008, inclusive.]
"Qualifying capital expenditures." Amounts paid by a
taxpayer [during the effective period of this section] for the
purchase of items of plant, machinery or equipment for use by
the taxpayer within this Commonwealth in the manufacture and
sale of malt or brewed beverages: Provided, however, That the
total amount of qualifying capital expenditures made by a
taxpayer within a single calendar year shall not exceed two
hundred thousand dollars ($200,000).
"Secretary." The Secretary of Revenue of the Commonwealth of
Pennsylvania where not otherwise qualified.
"Taxpayer." A manufacturer of malt or brewed beverages
claiming a tax credit or credits under this section and having
an annual production of malt or brewed beverages that does not
exceed one million five hundred thousand (1,500,000) barrels.
(c) A tax credit or credits shall be allowed for each
calendar year to a taxpayer, as hereinafter provided, not to
exceed in total amount the amount of qualifying capital
expenditures made by the taxpayer and certified by the
secretary.
(d) A taxpayer desiring to claim a tax credit or credits
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under this section shall, within one year of the date of the
original purchase of the qualifying capital expenditures, in
accordance with regulations promulgated by the secretary, report
annually to the secretary the nature, amounts and dates of
qualifying capital expenditures made by him and such other
information as the secretary shall require. If satisfied as to
the correctness of such a report, the secretary shall issue to
the taxpayer a certificate establishing the amount of qualifying
capital expenditures made by the taxpayer and included within
said report. The taxpayer shall also provide to the secretary
the number of employes, total production of malt or brewed
beverages and the amount of capital expenditures made by the
taxpayer at each location operated by the taxpayer or a parent
corporation, subsidiary, joint venture or affiliate. Also, the
taxpayer shall notify the secretary of any contract for
production held with another manufacturer. The secretary shall
file a report annually with the Chief Clerk of the House of
Representatives and with the Secretary of the Senate outlining
the employment, production, expenditures and tax credits
authorized under this section.
(e) Upon receipt from a taxpayer of a certificate from the
secretary issued under subsection (c), the Secretary of Revenue
shall grant a tax credit or credits in the amount certified
against any tax due under this article in the calendar year in
which the expenditures were incurred or against any tax becoming
due from the taxpayer under this article in the following three
calendar years. [No credit shall be allowed against any tax due
for any taxable period ending after December 31, 2008.]
Section 2. This act shall take effect July 1, 2011, or
immediately, whichever is later.
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