applying the three-factor apportionment formula as provided
in Department of Revenue personal income tax regulations
applicable to income apportionment in connection with a
business, trade or profession carried on both within and
outside this Commonwealth.
(2) Net gains or income, less net losses, derived by a
resident or nonresident of an affordable energy development
zone from the sale, exchange or other disposition of real or
tangible personal property used by a qualified business and
located in an affordable energy development zone and as
determined in accordance with accepted accounting principles
and practices. The exemption provided in this paragraph shall
not apply to the sale, exchange or other disposition of any
stock of goods, merchandise or inventory or any operational
assets unless the transfer is in connection with the sale,
exchange or other disposition of all of the assets in
complete liquidation of a qualified business located in N
affordable energy development zone. This paragraph shall
apply to intangible personal property employed in a trade,
profession or business in an affordable energy development
zone by a qualified business but only when transferred in
connection with a sale, exchange or other disposition of all
of the assets in complete liquidation of the qualified
business in the affordable energy development zone.
(3) In the case of gains, less net losses, in paragraph
(2), the exemption shall be prorated based on the percentage
of time, based on calendar days, the property located in an
affordable energy development zone was held by a resident or
nonresident of the affordable energy development zone during
the time period the affordable energy development zone was in
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