PRINTER'S NO. 1204
No. 1029 Session of 2003
INTRODUCED BY LEACH, STETLER, BARRAR, BUNT, FABRIZIO, FRANKEL,
FREEMAN, GEIST, HARHAI, HUTCHINSON, LEVDANSKY, MANN,
MARKOSEK, SAINATO, SAMUELSON, SOLOBAY, STURLA, SURRA,
WASHINGTON, YUDICHAK AND REICHLEY, APRIL 2, 2003
REFERRED TO COMMITTEE ON FINANCE, APRIL 2, 2003
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further providing for the time period of and
11 limitation on technology tax credits.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 1707-B of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 June 29, 2002 (P.L.559, No.89), is amended to read:
17 Section 1707-B. Time Limitations.--A taxpayer is not
18 entitled to a research and development tax credit for
19 Pennsylvania qualified research and development expenses
20 incurred in taxable years ending after December 31, [2006] 2010.
21 The termination date in section 41(h) of the Internal Revenue
1 Code of 1986 (Public Law 99-514, 26 U.S.C. § 41(h)) does not
2 apply to a taxpayer who is eligible for the research and
3 development tax credit under this article for the taxable year
4 in which the Pennsylvania qualified research and development
5 expense is incurred.
6 Section 2. Section 1709-B(a) of the act, added May 7, 1997
7 (P.L.85, No.7), is amended to read:
8 Section 1709-B. Limitation on Credits.--(a) The total
9 amount of credits approved by the department shall not exceed
10 [fifteen million dollars ($15,000,000)] sixty million dollars
11 ($60,000,000) in any fiscal year. Of that amount, [three million
12 dollars ($3,000,000)] twelve million dollars ($12,000,000) shall
13 be allocated exclusively for small businesses. However, if the
14 total amounts allocated to either the group of applicants
15 exclusive of small businesses or the group of small business
16 applicants is not approved in any fiscal year, the unused
17 portion will become available for use by the other group of
18 qualifying taxpayers.
19 * * *
20 Section 3. This act shall apply to the tax years beginning
21 after December 31, 2003.
22 Section 4. This act shall take effect immediately.
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