THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY D. EVANS, TAYLOR, BRENNAN, BROWNLEE, COHEN, DALEY, DAVIS, FRANKEL, HARKINS, JOSEPHS, MAHONEY, MATZIE, MIRABITO, MURPHY, MYERS, M. O'BRIEN, PRESTON, READSHAW, SABATINA, SANTARSIERO, SANTONI, STABACK, WATERS, WHEATLEY, YOUNGBLOOD AND GOODMAN, FEBRUARY 22, 2012

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 22, 2012  

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 clean energy job creation 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 XVIII-E

CLEAN ENERGY JOB CREATION TAX CREDIT

Section 1801-E.  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:

"Clean energy job."  Employment in industries relating to the

field of renewable, alternative energies, including the

manufacture and operation of products used to generate

electricity and other forms of energy from alternative sources

that include hydrogen and fuel cell technology, landfill gas,

geothermal heating systems, solar heating systems, hydropower

systems, wind systems and biomass and biofuel systems.

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

"Job."

(1)  Employment of an indefinite duration of an

individual whose primary work activity is related directly to

the field of renewable, alternative energies and for which

the standard fringe benefits are paid by the taxpayer,

requiring a minimum of either:

(i)  Thirty-five hours of an employee's time per week

for the entire normal year of the taxpayer's operations,

which "normal year" must consist of at least 48 weeks.

(ii)  One thousand six hundred eighty hours per year.

(2)  The term does not include a position created when a

job function is shifted from an existing location in this

Commonwealth.

"Tax credit."  The Clean Energy Job Creation Tax Credit

established under this article.

Section 1802-E.  Tax credit.

(a)  Eligibility.--A taxpayer shall be eligible for a tax

credit for each new clean energy job created within this

Commonwealth by the taxpayer. The amount of the annual credit

for each new clean energy job shall be $500 for each annual

salary that is $50,000 or more. The credit shall be first

allowed for the taxable year in which the job has been filled

for at least one year and for each of the four succeeding

taxable years, provided the job is continuously filled during

the respective taxable year. Each taxpayer qualifying under this

section shall be allowed the credit for up to 350 clean energy

jobs.

(b)  Term.--To qualify for the tax credit provided in

subsection (a), a taxpayer shall demonstrate that the clean

energy job was created by the taxpayer and that the job was

continuously filled in this Commonwealth during the respective

taxable year.

(c)  Amount of credit and carryover.--The amount of the

credit shall not exceed the total tax liability of the taxpayer

for the applicable taxes under subsection (d) for the taxable

year in which the clean energy job was continuously filled. If

the amount of credit allowed exceeds the taxpayer's tax

liability for the taxable year, the amount that exceeds the tax

liability may be carried over for credit against the income

taxes of the taxpayer in the next five taxable years or until

the total amount of the tax credit has been taken, whichever is

sooner.

(d)  Applicable taxes.--A taxpayer may apply the tax credit

to 100% of the taxpayer's State corporate net income tax,

capital stock and franchise tax or the capital stock and

franchise tax of a shareholder of the taxpayer if the taxpayer

is a Pennsylvania S corporation, gross premiums tax, gross

receipts tax, bank and trust company shares tax, mutual thrift

institution tax, title insurance company shares tax, personal

income tax or the personal income tax of shareholders of a

Pennsylvania S corporation or any combination thereof.

Section 1803-E.  List of qualifying jobs.

The department, in consultation with the Department of

Community and Economic Development, shall develop a detailed

definition and list of jobs that qualify for the tax credit and

shall post them on its Internet website.

Section 1804-E.  Limitation.

A taxpayer shall not be allowed a tax credit under this

article for any clean energy job for which the taxpayer is

allowed a Federal tax credit for investments in manufacturing

facilities for clean energy technologies that would foster

investment and job creation in clean energy manufacturing.

Section 1805-E.  Construction.

Nothing in this article shall preclude a taxpayer who is

eligible for a tax credit under this article from qualifying  

for the benefits under 12 Pa.C.S. Ch. 37 (relating to keystone

innovation zones) or 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.

Section 1806-E.  Regulations.

The department shall promulgate regulations with regard to

application for and enforcement of this article, including, but

not limited to, acceptable forms and proof of jobs created.

Section 1807-E.  Applicability.

This article shall apply to taxable years beginning on or

after January 1, 2012, and ending before January 1, 2017.

Section 2.  This act shall take effect immediately.