THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M. SMITH, ADOLPH, BARRAR, BEAR, BELFANTI, BENNINGHOFF, BOYD, BRENNAN, CALTAGIRONE, D. COSTA, CREIGHTON, CUTLER, DeLUCA, DENLINGER, DONATUCCI, FLECK, FRANKEL, FREEMAN, GEIST, GROVE, HELM, HESS, JOSEPHS, KAUFFMAN, KORTZ, MANN, MELIO, MENSCH, MILLER, MILNE, MOUL, M. O'BRIEN, O'NEILL, PALLONE, PAYNE, PAYTON, PEIFER, PETRARCA, PETRI, PICKETT, PYLE, READSHAW, REICHLEY, SAMUELSON, SCAVELLO, SEIP, SIPTROTH, SWANGER, VULAKOVICH, WALKO, WHITE AND YOUNGBLOOD, FEBRUARY 13, 2009

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, FEBRUARY 13, 2009  

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 an Energy Star rated product

manufacturing tax credit.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Article XVIII-C heading of the act of March 4,

1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added

July 9, 2008 (P.L.922, No.66), is amended to read:

ARTICLE XVIII-C

[(Reserved)]

ENERGY STAR RATED PRODUCT

MANUFACTURING TAX CREDIT

Section 2.  The act is amended by adding sections to read:

Section 1801-C.  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:

"Energy Star rated product."  A product that has been

certified as in compliance with and qualifies as an Energy Star

product pursuant to the Environmental Protection Agency and the

Department of Energy, Energy Star Program and bears the Energy

Star label.

"Energy Star rated product tax credit" or "tax credit."  The

credit provided under this article.

"Department."  The Department of Revenue of the Commonwealth.

"Qualified tax liability."  The liability for taxes imposed

under Article III, IV, V or VI. The term does not include any

tax withheld by an employer from an employee under Article III.

"Taxpayer."  An entity subject to tax under Article III, IV,

V or VI.

Section 1802-C.  Eligible applicants.

A taxpayer that manufactures Energy Star rated products may

apply for the Energy Star rated product manufacturing tax credit

as provided under this article. By February 1 of each year, a

taxpayer must submit an application to the department for the

amount of costs identified under section 1803-C that were paid

in the taxable year that ended the prior calendar year.

Section 1803-C.  Award of tax credits.

A taxpayer that is qualified under section 1802-C may receive

an Energy Star rated product manufacturing tax credit for the

taxable year in an amount equal to 20% of the total amount of

all capital, operation and maintenance costs paid for

manufacturing Energy Star related products in the taxable year

to be applied against the taxpayer's qualified tax liability.

Section 1804-C.  Carryover and carryback of credit.

(a)  Carryover.--If the taxpayer cannot use the entire amount

of the Energy Star rated products manufacturing tax credit for

the taxable year in which the tax credit is first approved, the

excess may be carried over to 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 under this

article may be carried over and applied to succeeding taxable

years for no more than five taxable years following the first

taxable year for which the taxpayer was entitled to claim the

tax credit.

(b)  Application.--An Energy Star rated product manufacturing

tax credit approved by the department 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 tax

credit was approved before the tax credit is applied against any

tax liability under subsection (a).

(c)  Carryback.--A taxpayer is not entitled to carry back or

obtain a refund of an unused Energy Star rated product

manufacturing tax credit.

Section 1805-C.  Termination.

The department shall not approve an Energy Star rated product

manufacturing tax credit under this article for taxable years

ending after December 31, 2013.

Section 1806-C.  Regulations.

The department shall promulgate regulations necessary for the

implementation and administration of this article.

Section 3.  The addition of sections 1801-C, 1802-C, 1803-C,

1804-C, 1805-C and 1806-C of the act shall apply to tax years

beginning after December 31, 2009.

Section 4.  This act shall take effect immediately.