THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M. SMITH, BRENNAN, CALTAGIRONE, CARROLL, D. COSTA, HARKINS, KORTZ, LONGIETTI, M. O'BRIEN, PAYTON, PETRARCA, PYLE, SCAVELLO, K. SMITH, STURLA, SWANGER, WAGNER, YOUNGBLOOD, FABRIZIO, BRIGGS AND BRADFORD, FEBRUARY 4, 2011

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 4, 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," authorizing the green roof tax credit.

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

GREEN ROOF TAX CREDIT

Section 1901-B.  Scope of article.

This article relates to green roof tax credits.

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:

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

"Eligible rooftop space."  The total space available to

support a green roof, as certified by a structural engineer.

"Green roof."  An addition to a roof that supports living

vegetation and includes a synthetic, high-quality waterproof

membrane, drainage layer, soil layer and lightweight medium

plants.

"Tax credit."  The green roof tax credit.

"Tax liability."  For a taxpayer who is an individual, taxes

imposed under Article III and for all other taxpayers, taxes

imposed under Articles III, IV and VI.

Section 1903-B.  Application.

A business or individual seeking a tax credit must file an

application with the department that includes the following:

(1)  The address location of the proposed green roof.

(2)  The total square footage of the rooftop.

(3)  The total square footage of the eligible rooftop

space.

(4)  The total square footage of the proposed green roof.

(5)  The total projected costs to construct the green

roof.

(6)  Proof that the applicant has received all required

permits and approvals to construct the green roof, after

first submitting to the local building code official the

plans for the green roof and a written analysis conducted by

a roof engineer that confirms and certifies the following:

(i)  The condition of the roof is satisfactory for

green roof construction.

(ii)  The structural capacity of the roof would

support the proposed green roof.

(iii)  There is appropriate and safe access to the

roof for maintenance purposes.

(iv)  The weight of the proposed green roof is

appropriate for the roof.

(v)  The plans include appropriate irrigation and

drainage measures.

Section 1904-B.  Commitment agreement.

The department shall approve an application for a tax credit

if it contains all of the required information. After approval,

the applicant must execute a commitment agreement with the

department setting forth the following:

(1)  The plans for the green roof, as approved by the

local building code official, which plans must provide for a

green roof covering at least 50% of the building's rooftop or

75% of eligible rooftop space.

(2)  The total projected costs for the construction of

the green roof.

(3)  The maximum tax credit the applicant may claim.

(4)  The applicant's commitment to maintain the green

roof for a period of five years after the date of its

completion and the applicant's acknowledgment that if the

taxpayer claims a tax credit and fails to incur the amount of

qualified construction or maintenance costs for a green roof

in that taxable year, the taxpayer shall repay to the

Commonwealth the amount of the tax credit claimed under this

article for the green roof.

Section 1905-B.  Certification and credit.

(a)  General rule.--After the applicant and the department

have executed a commitment agreement, and upon certifying to the

department the total costs actually incurred and proof of

completion of the green roof in accordance with the plans set

forth in the commitment agreement, the applicant may claim a

credit against the tax liability of the applicant equal to 25%

of all costs initially incurred to construct the green roof and

for maintenance in the years after.

(b)  Limitations.--

(1)  The amount of tax credits awarded to an individual

or business may not exceed $100,000 in any fiscal year.

(2)  The tax credit shall be applied against the

applicant's total tax liability subject to the tax credit for

the fiscal year during which the applicant certifies the

completion of the green roof.

(3)  Any unused credits may be carried forward until

fully used.

(4)  The credit is not a refundable credit.

(5)  The credit is nontransferable.

Section 1906-B.  Repayment of tax credits.

A business or individual that has received and taken the

credit must repay the credit to the Commonwealth if it fails to

maintain the green roof in accordance with the provisions of the

commitment agreement.

Section 2.  This act shall take effect in 60 days.