HOUSE AMENDED
PRIOR PRINTER'S NOS. 2094, 2362, 2387, PRINTER'S NO. 2438
2362
No. 1478 Session of 2002
INTRODUCED BY D. WHITE, WOZNIAK, TARTAGLIONE, ERICKSON,
KUKOVICH, LAVALLE, PUNT, COSTA, BOSCOLA, A. WILLIAMS, O'PAKE,
DENT, TOMLINSON, STACK, STOUT, WAUGH, CONTI, SCARNATI,
C. WILLIAMS, WENGER, MOWERY, ORIE, SCHWARTZ, KITCHEN, GERLACH
AND KASUNIC, JUNE 17, 2002
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, NOVEMBER 26, 2002
AN ACT
1 Amending the act of October 6, 1998 (P.L.705, No.92), entitled,
2 as amended, "An act providing for the creation of keystone
3 opportunity zones and keystone opportunity expansion zones to
4 foster economic opportunities in this Commonwealth, to
5 facilitate economic development, stimulate industrial,
6 commercial and residential improvements and prevent physical
7 and infrastructure deterioration of geographic areas within
8 this Commonwealth; authorizing expenditures; providing tax
9 exemptions, tax deductions, tax abatements and tax credits;
10 creating additional obligations of the Commonwealth and local
11 governmental units; and prescribing powers and duties of
12 certain State and local departments, agencies and officials,"
13 further providing for keystone opportunity zones, for <--
14 keystone opportunity expansion zones, for application, for
15 review, for criteria for authorization of keystone
16 opportunity zone, for qualified businesses, for tax credit
17 determination and for expiration of act. FURTHER PROVIDING <--
18 FOR DEFINITIONS, FOR KEYSTONE OPPORTUNITY ZONES AND FOR
19 KEYSTONE OPPORTUNITY EXPANSION ZONES; PROVIDING FOR KEYSTONE
20 OPPORTUNITY IMPROVEMENT ZONES; FURTHER PROVIDING FOR
21 APPLICATIONS, FOR REVIEW, FOR CRITERIA AND FOR QUALIFIED
22 BUSINESSES; PROVIDING FOR DECERTIFICATION; AND FURTHER
23 PROVIDING FOR SALES AND USE TAX, FOR PERSONAL INCOME TAX, FOR
24 RESIDENCY, FOR CORPORATE NET INCOME TAX, FOR CAPITAL STOCK
25 FRANCHISE TAX, FOR TAXES ON FINANCIAL INSTITUTIONS, FOR JOB
26 TAX CREDITS, FOR JOB CREATION TAX CREDITS, FOR REAL PROPERTY
27 TAX, FOR LOCAL INCOME AND PRIVILEGE TAX, FOR MERCANTILE
28 LICENSES, FOR LOCAL SALES AND USE TAX, FOR RECAPTURE, FOR
1 CODE COMPLIANCE, FOR APPLICATIONS, FOR STATE TAX CREDITS AND
2 FOR EXPIRATION.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Sections 301, 301.1, 302, 303, 304(c), 307(b), <--
6 518(e), 519(e) and 1309 of the act of October 6, 1998 (P.L.705,
7 No.92), known as the Keystone Opportunity Zone and Keystone
8 Opportunity Expansion Zone Act, amended or added December 20,
9 2000 (P.L.841, No.119), are amended to read:
10 Section 301. Keystone opportunity zones.
11 (a) Establishment.--There is hereby established within the
12 department a program providing for keystone opportunity zones. A
13 keystone opportunity zone shall be comprised of deteriorated
14 property and shall not exceed a total of 5,000 acres.
15 (b) Zone authorization.--The department shall authorize not
16 more than 12 keystone opportunity zones in this Commonwealth.
17 Persons and businesses within an authorized keystone opportunity
18 zone that are qualified under this act shall be entitled to all
19 tax exemptions, deductions, abatements or credits set forth in
20 this act for a period not to exceed 15 years beginning January
21 1, 1999, or at the time the qualified person or business begins
22 active conduct of its trade or business, whichever occurs later,
23 and ending on or before December 31, [2013] 2028.
24 (c) Subzone designation.--The department may designate not
25 more than 12 subzones in each keystone opportunity zone. The
26 total number of subzone acres in a keystone opportunity zone
27 shall not exceed 5,000 acres in the aggregate.
28 (d) Authorization for local tax exemption.--Every political
29 subdivision within which a proposed subzone is located, whether
30 in whole or in part, is hereby authorized to provide tax
20020S1478B2438 - 2 -
1 exemptions, deductions, abatements or credits to persons and
2 businesses qualified under this act. The political subdivision
3 shall agree to provide exemptions, deductions, abatements or
4 credits from all local taxes set forth in this act in order to
5 qualify to be designated a subzone. Except as provided in
6 section 303(e), the exemptions, deductions, abatements or
7 credits shall be effective January 1, 1999, if designation of a
8 subzone within the political subdivision is granted by the
9 department. The exemptions, deductions, abatements or credits
10 shall be binding upon the political subdivision for the duration
11 of the subzone designation.
12 (e) Authorization to extend the duration of a keystone
13 opportunity zone or subzone.--A subzone of a keystone
14 opportunity zone may request to extend its designation as a
15 subzone for a period of three years. [A subzone that is part of
16 a keystone opportunity zone that will expire on December 31,
17 2008, may extend its designation as a subzone to December 31,
18 2010, or to December 31, 2013.] The request to extend a subzone
19 designation shall be made on a subzone-by-subzone basis. A
20 qualified political subdivision having an approved subzone
21 within its jurisdiction and seeking to extend the subzone
22 designation shall pass the required ordinances, resolutions or
23 other required action of the qualified political subdivision for
24 the necessary exemptions, deductions, abatements or credits
25 pursuant to this act [for the period beginning after December
26 31, 2008, or December 31, 2010, as the case may be,] and shall
27 submit copies of the ordinance, resolution or other action to
28 the department [by June 30, 2001]. The department may grant the
29 request to extend provided all the proper binding ordinances,
30 resolutions or other governing documents are passed by all
20020S1478B2438 - 3 -
1 qualified political subdivisions within the subzone extending
2 the necessary exemptions, deductions, abatements and credits to
3 the entire subzone to December 31, [2010, or December 31, 2013]
4 2028; however, no entity shall have more than 15 years of tax
5 relief under this act. The department [shall approve or deny the
6 request for extension of duration of a subzone by July 31, 2001,
7 and] shall provide written notice, irrespective of whether
8 approved or denied, to each qualified political subdivision,
9 resident and qualified business affected. Upon approval of a
10 request for extension of duration of a subzone, the exemptions,
11 deductions, abatements or credits shall be binding upon the
12 qualified political subdivision as provided in subsection (d).
13 (f) Authorization to alter boundaries of keystone
14 opportunity zone.--
15 (1) A qualified political subdivision having an approved
16 subzone within its jurisdiction may apply to the department
17 to alter the geographic boundaries of the keystone
18 opportunity zone within which the political subdivision is
19 located. If more than one political subdivision would be
20 affected by the boundary alteration, then the application
21 must be made jointly by the affected political subdivisions.
22 The application shall contain:
23 (i) The information required under section 302(a).
24 (ii) Evidence that each owner of real estate within
25 the affected area approves of the boundary alteration.
26 The term "owner of real estate" includes the record owner
27 of real estate, the holder of an option either to
28 purchase real estate or to enter into a ground lease of
29 real estate and a tenant under a ground lease of real
30 estate.
20020S1478B2438 - 4 -
1 (2) The department may approve the request for
2 alteration of the keystone opportunity zone boundaries if:
3 (i) The request meets the criteria for authorization
4 under section 304.
5 (ii) The total number of acres within the keystone
6 opportunity zone as it is proposed to be altered does not
7 differ from the total number of acres within that
8 keystone opportunity zone as originally approved.
9 (3) The department shall provide written notice of its
10 determination to the applicant or joint applicants.
11 (4) Upon approval of a request for alteration of
12 keystone opportunity zone boundaries, the exemptions,
13 deductions, abatements or credits shall be binding upon a
14 political subdivision as provided in subsection (d).
15 (g) Applicability.--
16 (1) A political subdivision's authority to retract its
17 previous provision of tax exemptions, deductions, abatements
18 or credits to persons or businesses qualified under this act
19 shall not apply to any portion of a subzone as to which:
20 (i) any qualified business has commenced operations
21 in such portion of the subzone; or
22 (ii) any prospective person or company having an
23 interest in the property located in the subzone or
24 portion of the subzone has incurred expenditures in
25 respect of the development of the property in an amount
26 equal to at least $250,000 in reliance upon the property
27 having the benefits of tax exemptions, deductions,
28 abatements or credits.
29 (2) For purposes of this subsection, a person or company
30 having an interest in the property includes persons having
20020S1478B2438 - 5 -
1 title to or a leasehold interest in all or a portion of the
2 property or having an option to acquire title to or a
3 leasehold interest in all or a portion of the property.
4 Section 301.1. Keystone opportunity expansion zones.
5 (a) Establishment.--There is hereby established within the
6 department a program providing for keystone opportunity
7 expansion zones. A keystone opportunity expansion zone shall be
8 comprised of deteriorated property and shall not exceed a total
9 of [1,500] 3,000 acres.
10 (b) Authorization.--The department shall authorize not more
11 than 12 keystone opportunity expansion zones in this
12 Commonwealth. Persons and businesses within an authorized
13 keystone opportunity expansion zone that are qualified under
14 this act shall be entitled to all tax exemptions, deductions,
15 abatements or credits set forth in this act for a period of [ten
16 or 13] 15 years beginning January 1, 2001, or at the time the
17 qualified person or business begins active conduct of its trade
18 or business, whichever occurs later, and ending on [December 31,
19 2010, or December 31, 2013] or before December 31, 2028.
20 (c) Expansion subzone designation.--[The]
21 (1) Except as set forth in paragraph (2), the department
22 may designate not more than eight expansion subzones in a
23 keystone opportunity expansion zone. The total number of
24 expansion subzone acres in a keystone opportunity expansion
25 zone under this paragraph shall not exceed 1,500 acres in the
26 aggregate.
27 (2) The department may designate not more than eight
28 additional expansion subzones in a keystone opportunity
29 expansion zone. The total number of expansion subzone acres
30 in a keystone opportunity expansion zone under this paragraph
20020S1478B2438 - 6 -
1 shall not exceed 1,500 acres in the aggregate.
2 (d) Authorization for local tax exemption.--Every political
3 subdivision within which a proposed expansion subzone is
4 located, whether in whole or in part, is hereby authorized to
5 provide tax exemptions, deductions, abatements or credits to
6 persons and businesses qualified under this act for a period
7 ending December 31, [2010, or December31, 2013] 2028; however,
8 no entity shall have more than 15 years of tax relief under this
9 act. The exemption period shall be uniform within each expansion
10 subzone. The political subdivision shall agree to provide
11 exemptions, deductions, abatements or credits from all local
12 taxes set forth in this act in order to qualify to be designated
13 an expansion subzone. The exemptions, deductions, abatements or
14 credits shall be effective January 1, 2001, or January 1, 2003,
15 for expansion subzones under subsection (c)(2), if designation
16 of an expansion subzone within the political subdivision is
17 granted by the department. The exemptions, deductions,
18 abatements or credits shall be binding upon the political
19 subdivision for the duration of the expansion subzone
20 designation.
21 Section 302. Application.
22 (a) Initial application.--One or more political
23 subdivisions, or a designee of one or more political
24 subdivisions, may apply to the department to designate
25 deteriorated property within the political subdivision or
26 portions thereof a subzone or expansion subzone. The application
27 shall contain the following:
28 (1) The geographic area of the proposed keystone
29 opportunity zone or proposed keystone opportunity expansion
30 zone. The geographic area shall be located within the
20020S1478B2438 - 7 -
1 boundaries of the participating political subdivision and
2 shall not contain more than 5,000 acres in the case of a
3 keystone opportunity zone or [1,500] 3,000 acres in the case
4 of a keystone opportunity expansion zone.
5 (2) An opportunity plan that shall include the
6 following:
7 (i) A detailed map of the proposed keystone
8 opportunity zone or proposed keystone opportunity
9 expansion zone, including geographic boundaries, total
10 area and present use and conditions of the land and
11 structures of the proposed keystone opportunity zone or
12 proposed keystone opportunity expansion zone.
13 (ii) Evidence of support from and participation of
14 local government, school districts and other educational
15 institutions, business groups, community organizations
16 and the public.
17 (iii) A proposal to increase economic opportunity,
18 reduce crime, improve education, facilitate
19 infrastructure improvement, reduce the local regulating
20 burden and identify potential jobs and job training
21 opportunities and which states whether or not the zone is
22 located in an area which has tax revenue dedicated to the
23 payment of debt.
24 (iv) A description of the current social, economic
25 and demographic characteristics of the proposed keystone
26 opportunity zone or proposed keystone opportunity
27 expansion zone and anticipated improvements in education,
28 health, human services, public safety and employment that
29 will result from keystone opportunity zone or keystone
30 opportunity expansion zone designation.
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1 (v) A description of anticipated activity in the
2 proposed keystone opportunity zone or proposed keystone
3 opportunity expansion zone, including, but not limited
4 to, industrial use, industrial site reuse, commercial or
5 retail use and residential use.
6 (vi) Evidence of potential private and public
7 investment in the proposed keystone opportunity zone or
8 proposed keystone opportunity expansion zone.
9 (vii) The role of the proposed keystone opportunity
10 zone or proposed keystone opportunity expansion zone in
11 regional economic and community development.
12 (viii) Plans to utilize existing resources for the
13 administration of the proposed keystone opportunity zone
14 or proposed keystone opportunity expansion zone.
15 (ix) Any other information deemed appropriate by the
16 department.
17 (3) A report on youth at risk to include issues relating
18 to health, welfare and education.
19 (4) The duration of the proposed subzones or proposed
20 expansion subzones. [The duration of a subzone may not exceed
21 15 years. The duration of an expansion subzone may not exceed
22 13 years.]
23 (5) A formal, binding ordinance or resolution passed by
24 every political subdivision in which the proposed subzone or
25 proposed expansion subzone is located that specifically
26 provides for all local tax exemptions, deductions, abatements
27 or credits for persons and businesses set forth in this act.
28 (6) Evidence that the proposed keystone opportunity zone
29 or proposed keystone opportunity expansion zone meets the
30 required criteria under section 304.
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1 (b) Participation limitation.--A political subdivision shall
2 not be a part of more than one proposed keystone opportunity
3 zone [or proposed keystone opportunity expansion zone]. A
4 political subdivision shall not be part of more than two
5 proposed keystone opportunity expansion zones. A proposed
6 expansion subzone may not overlap the boundaries of a subzone.
7 (c) Application limitation.--A political subdivision may
8 submit [only one application] no more than two applications to
9 the department for authorization as [a] keystone opportunity
10 [zone] zones. A political subdivision may submit only one
11 application to the department for authorization as a keystone
12 opportunity expansion zone.
13 Section 303. Review.
14 (a) Action of department.--The department, in consultation
15 with the Department of Revenue, shall review all completed
16 applications submitted under this act. An application for
17 authorization as a keystone opportunity zone and designation of
18 subzones shall be received by the department on or before
19 September 30, 1998, in order to be considered by the department.
20 An application for authorization as a keystone opportunity
21 expansion zone and designation of expansion subzones under
22 section 301.1(c)(1) shall be received by the department on or
23 before February 28, 2001, in order to be considered by the
24 department. An application for designation of expansion subzones
25 under section 301.1(c)(2) shall be received by the department on
26 or before July 1, 2003, in order to be considered by the
27 department.
28 (b) Process.--The department shall authorize up to 12
29 keystone opportunity zones from applications meeting the
30 criteria in section 304 based upon need and likelihood of
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1 success. The department shall authorize up to 12 keystone
2 opportunity expansion zones from applications meeting the
3 criteria in section 304 based upon need and likelihood of
4 success. Additionally, the department shall not alter the
5 geographic boundaries of a subzone or expansion subzone or the
6 duration of a subzone or expansion subzone described in an
7 application.
8 (c) Authorizations.--The department shall authorize all
9 keystone opportunity zones by November 30, 1998. The department
10 shall authorize all keystone opportunity expansion zones by
11 March 30, 2001.
12 (d) Effective date of designation.--The designation of a
13 subzone under this act shall take effect on January 1, 1999. The
14 designation of an expansion subzone under [this act] section
15 301.1(c)(1) shall take effect on January 1, 2001. The
16 designation of an expansion subzone under section 301.1(c)(2)
17 shall take effect January 1, 2004.
18 (e) Extension.--The department may extend the deadline for
19 the receipt of applications for keystone opportunity zones until
20 December 31, 1998, if all 12 zones have not been authorized and
21 the extension is necessary to allow eligible political
22 subdivisions to apply. The department shall authorize additional
23 keystone opportunity zones under this subsection by February 28,
24 1999. The authorization shall take effect January 1, 1999, or if
25 the authorization occurs after January 1, 1999, that subsequent
26 authorization shall for all purposes be retroactive to January
27 1, 1999. The keystone opportunity zone authorization shall end
28 as provided in section 301(b).
29 Section 304. Criteria for authorization of keystone opportunity
30 zone.
20020S1478B2438 - 11 -
1 * * *
2 (c) Tax exemption ordinances.--An area shall not be
3 authorized as a keystone opportunity zone or a keystone
4 opportunity expansion zone unless, as a part of the application,
5 each political subdivision in which the proposed subzone or
6 proposed expansion subzone is to be located adopts and provides
7 a copy of an ordinance, resolution or other required action from
8 the governing body of each political subdivision that exempts or
9 provides deductions, abatements or credits to qualified persons
10 and qualified businesses from local taxes upon designation of
11 the area as a subzone or expansion subzone. All appropriate
12 ordinances and resolutions shall be effective on or before
13 January 1, 1999, if designation as a subzone is granted. All
14 appropriate ordinances and resolutions shall be effective on
15 January 1, 2001, or January 1, 2003, as the case may be, if
16 designation as an expansion subzone is granted. The resolution,
17 ordinance or other required action shall be binding and
18 nonrevocable on the qualified political subdivisions for the
19 duration of the opportunity plan.
20 * * *
21 Section 307. Qualified businesses.
22 * * *
23 (b) Relocation.--Any business that relocates from outside a
24 subzone or expansion subzone into a subzone or expansion subzone
25 shall not receive any of the exemptions, deductions, abatements
26 or credits set forth in this act unless that business either:
27 (1) increases full-time employment by at least 20% in
28 the first full year of operation within the subzone or
29 expansion subzone; or
30 (2) makes, or has its landlord make, a capital
20020S1478B2438 - 12 -
1 investment in the property located within a subzone or
2 expansion subzone equivalent to 10% of the gross revenues [of
3 that business] attributable to the operations of the business
4 at the location from which it relocated into the subzone or
5 expansion subzone in the immediately preceding calendar or
6 fiscal year.
7 The department, in consultation with the Department of Revenue,
8 may waive or modify the requirements of this subsection, as
9 appropriate.
10 Section 518. Keystone opportunity zone job tax credit or
11 keystone opportunity expansion zone job tax
12 credit.
13 * * *
14 (e) Credit determinations.--The keystone opportunity zone
15 job tax credit or keystone opportunity expansion zone job tax
16 credit shall be determined by multiplying the monthly average of
17 all full-time jobs by the allowance. The allowance for purposes
18 of the keystone opportunity zone job tax credit or keystone
19 opportunity expansion zone job tax credit for taxable years
20 beginning within the dates set forth shall be as follows:
21 January 1, 2001, to
22 December 31, 2001 $500 per job
23 January 1, 2002, to
24 December 31, 2002 $750 per job
25 January 1, 2003, to
26 December 31, 2003 $1,000 per job
27 January 1, 2004, to
28 [December 31, 2004 $1,250 per job
29 January 1, 2005, to
30 December 31, 2005 $1,250 per job
20020S1478B2438 - 13 -
1 January 1, 2006, to
2 December 31, 2006 $1,250 per job
3 January 1, 2007, to
4 December 31, 2007 $1,250 per job
5 January 1, 2008, to
6 December 31, 2008 $1,250 per job
7 January 1, 2009, to
8 December 31, 2009 $1,250 per job
9 January 1, 2010, to
10 December 31, 2010 $1,250 per job
11 January 1, 2011, to
12 December 31, 2011 $1,250 per job
13 January 1, 2012, to
14 December 31, 2012 $1,250 per job
15 January 1, 2013, to
16 December 31, 2013 $1,250 per job]
17 December 31, 2028 $1,250 per job
18 per year
19 * * *
20 Section 519. Keystone opportunity zone job creation tax credit
21 or keystone opportunity expansion zone job
22 creation tax credit.
23 * * *
24 (e) Credit determinations.--The keystone opportunity zone
25 job tax credit or keystone opportunity expansion zone job tax
26 credit shall be determined by multiplying the monthly average of
27 all full-time jobs by the allowance. The allowance for purposes
28 of the keystone opportunity zone job tax credit or keystone
29 opportunity expansion zone job tax credit for taxable years
30 beginning within the dates set forth shall be as follows:
20020S1478B2438 - 14 -
1 January 1, 2001, to
2 December 31, 2001 $500 per job
3 January 1, 2002, to
4 December 31, 2002 $750 per job
5 January 1, 2003, to
6 December 31, 2003 $1,000 per job
7 January 1, 2004, to
8 [December 31, 2004 $1,250 per job
9 January 1, 2005, to
10 December 31, 2005 $1,250 per job
11 January 1, 2006, to
12 December 31, 2006 $1,250 per job
13 January 1, 2007, to
14 December 31, 2007 $1,250 per job
15 January 1, 2008, to
16 December 31, 2008 $1,250 per job
17 January 1, 2009, to
18 December 31, 2009 $1,250 per job
19 January 1, 2010, to
20 December 31, 2010 $1,250 per job
21 January 1, 2011, to
22 December 31, 2011 $1,250 per job
23 January 1, 2012, to
24 December 31, 2012 $1,250 per job
25 January 1, 2013, to
26 December 31, 2013 $1,250 per job]
27 December 31, 2028 $1,250 per job
28 per year
29 * * *
30 Section 1309. Expiration.
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1 This act and all benefits associated with this act shall
2 terminate December 31, [2013] 2028.
3 SECTION 1. SECTION 103 OF THE ACT OF OCTOBER 6, 1998 <--
4 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE AND
5 KEYSTONE OPPORTUNITY EXPANSION ZONE ACT, IS AMENDED BY ADDING A
6 DEFINITION TO READ:
7 SECTION 103. DEFINITIONS.
8 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
9 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
10 CONTEXT CLEARLY INDICATES OTHERWISE:
11 * * *
12 "IMPROVEMENT SUBZONE." A CLEARLY DEFINED GEOGRAPHIC AREA.
13 * * *
14 SECTION 2. SECTIONS 301 AND 301.1 OF THE ACT ARE AMENDED BY
15 ADDING SUBSECTIONS TO READ:
16 SECTION 301. KEYSTONE OPPORTUNITY ZONES.
17 * * *
18 (F) AUTHORIZATION TO ENHANCE EXISTING SUBZONES.--UNLESS AS A
19 RESULT OF A REQUEST THE LIMITATION ON SIZE ESTABLISHED IN
20 SUBSECTION (A) WOULD BE EXCEEDED, A SUBZONE OF A KEYSTONE
21 OPPORTUNITY ZONE MAY REQUEST TO ENHANCE ITS SIZE. THE REQUEST TO
22 ENHANCE A SUBZONE MUST BE MADE ON A SUBZONE-BY-SUBZONE BASIS. A
23 QUALIFIED POLITICAL SUBDIVISION HAVING AN APPROVED SUBZONE
24 WITHIN ITS JURISDICTION WHICH IS SEEKING TO ENHANCE ITS SIZE
25 MUST PASS THE REQUIRED ORDINANCES, RESOLUTIONS OR OTHER REQUIRED
26 ACTION OF THE QUALIFIED POLITICAL SUBDIVISION FOR THE NECESSARY
27 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS PURSUANT TO THIS
28 ACT FOR THE PERIOD BEGINNING ON THE DATE OF DESIGNATION AND
29 ENDING ON THE DATE THE SUBZONE EXPIRES AND MUST SUBMIT COPIES OF
30 THE ORDINANCE, RESOLUTION OR OTHER ACTION TO THE DEPARTMENT BY
20020S1478B2438 - 16 -
1 JUNE 1, 2003.
2 SECTION 301.1. KEYSTONE OPPORTUNITY EXPANSION ZONES.
3 * * *
4 (E) AUTHORIZATION TO ENHANCE EXISTING EXPANSION SUBZONES.--
5 UNLESS AS A RESULT OF A REQUEST THE LIMITATION ON SIZE
6 ESTABLISHED IN SUBSECTION (A) WOULD BE EXCEEDED, AN EXPANSION
7 SUBZONE OF A KEYSTONE OPPORTUNITY EXPANSION ZONE MAY REQUEST TO
8 ENHANCE ITS SIZE. THE REQUEST TO ENHANCE THE EXPANSION SUBZONE
9 MUST BE MADE ON A SUBZONE-BY-SUBZONE BASIS. A QUALIFIED
10 POLITICAL SUBDIVISION HAVING AN APPROVED EXPANSION SUBZONE
11 WITHIN ITS JURISDICTION WHICH IS SEEKING TO ENHANCE ITS SIZE
12 MUST PASS THE REQUIRED ORDINANCES, RESOLUTIONS OR OTHER REQUIRED
13 ACTION OF THE QUALIFIED POLITICAL SUBDIVISION FOR THE NECESSARY
14 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS PURSUANT TO THIS
15 ACT FOR THE PERIOD BEGINNING ON THE DATE OF DESIGNATION AND
16 ENDING ON THE DATE THE EXPANSION SUBZONE EXPIRES AND MUST SUBMIT
17 COPIES OF THE ORDINANCE, RESOLUTION OR OTHER ACTION TO THE
18 DEPARTMENT BY JUNE 1, 2003.
19 SECTION 3. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
20 SECTION 301.2. KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
21 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
22 DEPARTMENT A PROGRAM FOR KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
23 A KEYSTONE OPPORTUNITY IMPROVEMENT ZONE SHALL BE COMPRISED OF
24 IMPROVEMENT SUBZONES CONSISTING OF DETERIORATED PROPERTY
25 DESIGNATED BY THE GOVERNOR.
26 (B) PROPOSAL.--BY JANUARY 1, 2003 AND NOTWITHSTANDING ANY
27 DESIGNATION UNDER SECTIONS 301 AND 301.1, THE GOVERNOR MAY, BY
28 EXECUTIVE ORDER, DESIGNATE DETERIORATED PROPERTY IN THIS
29 COMMONWEALTH AS A PROPOSED IMPROVEMENT SUBZONE. THE EXECUTIVE
30 ORDER SHALL SPECIFY THE PERIOD OF TIME, NOT TO EXCEED 15 YEARS,
20020S1478B2438 - 17 -
1 FOR WHICH THE TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
2 PROVIDED BY THIS ACT MAY BE GRANTED. THE DEPARTMENT SHALL
3 IMMEDIATELY NOTIFY POLITICAL SUBDIVISIONS LOCATED WITHIN THE
4 AREA DESIGNATED.
5 (C) APPLICATION.--BY JUNE 1, 2003, A POLITICAL SUBDIVISION
6 MAY APPLY TO THE DEPARTMENT FOR APPROVAL OF THE DESIGNATION OF
7 THE DETERIORATED PROPERTY AS AN IMPROVEMENT SUBZONE FOR THE
8 PERIOD DESIGNATED UNDER SUBSECTION (B). THE APPLICATION MUST BE
9 ON A FORM PROVIDED BY THE DEPARTMENT AND MUST INCLUDE A COPY OF
10 AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM THE
11 GOVERNING BODY OF THE POLITICAL SUBDIVISION EXEMPTING OR
12 PROVIDING THE DEDUCTIONS, ABATEMENT OR CREDITS REQUIRED BY
13 CHAPTER 7 TO QUALIFIED PERSONS AND QUALIFIED BUSINESSES WITHIN
14 THE PROPOSED IMPROVEMENT SUBZONE. EXCEPT AS PROVIDED IN SECTION
15 309, ALL APPROPRIATE ORDINANCES AND RESOLUTIONS MUST BE
16 EFFECTIVE FOR THE PERIOD SPECIFIED IN THE EXECUTIVE ORDER, AND
17 MUST BE BINDING AND NONREVOCABLE ON THE POLITICAL SUBDIVISION.
18 (D) DESIGNATION.--IF ALL POLITICAL SUBDIVISIONS WITHIN A
19 PROPOSED IMPROVEMENT SUBZONE SUBMIT TIMELY COMPLETED
20 APPLICATIONS, THE DEPARTMENT SHALL APPROVE THE APPLICATIONS AND
21 DESIGNATE THE PROPERTY AS AN IMPROVEMENT SUBZONE. IF A PROPOSED
22 IMPROVEMENT SUBZONE IS AN EXISTING SUBZONE OR AN EXISTING
23 EXPANSION SUBZONE, FAILURE OF A POLITICAL SUBDIVISION TO SUBMIT
24 THE APPLICATION AS REQUIRED BY THIS SECTION SHALL NOT TERMINATE
25 THE EXISTING DESIGNATION AS EITHER A SUBZONE OR AN EXPANSION
26 SUBZONE. QUALIFIED PERSONS AND QUALIFIED BUSINESSES WITHIN THE
27 IMPROVEMENT SUBZONE SHALL BE ENTITLED TO THE STATE EXEMPTIONS,
28 DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN THIS ACT AND THE
29 LOCAL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET
30 FORTH IN THIS ACT, FOR THE PERIOD FOR WHICH THE IMPROVEMENT
20020S1478B2438 - 18 -
1 SUBZONE HAS BEEN DESIGNATED.
2 SECTION 4. SECTIONS 302, 303, 304 AND 307 OF THE ACT,
3 AMENDED DECEMBER 20, 2000 (P.L.841, NO.119), ARE AMENDED TO
4 READ:
5 SECTION 302. APPLICATION.
6 (A) INITIAL APPLICATION.--ONE OR MORE POLITICAL
7 SUBDIVISIONS, OR A DESIGNEE OF ONE OR MORE POLITICAL
8 SUBDIVISIONS, MAY APPLY TO THE DEPARTMENT TO DESIGNATE
9 DETERIORATED PROPERTY WITHIN THE POLITICAL SUBDIVISION OR
10 PORTIONS THEREOF A SUBZONE OR EXPANSION SUBZONE. THE APPLICATION
11 SHALL CONTAIN THE FOLLOWING:
12 (1) THE GEOGRAPHIC AREA OF THE PROPOSED KEYSTONE
13 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION
14 ZONE. THE GEOGRAPHIC AREA SHALL BE LOCATED WITHIN THE
15 BOUNDARIES OF THE PARTICIPATING POLITICAL SUBDIVISION AND
16 SHALL NOT CONTAIN MORE THAN 5,000 ACRES IN THE CASE OF A
17 KEYSTONE OPPORTUNITY ZONE OR 1,500 ACRES IN THE CASE OF A
18 KEYSTONE OPPORTUNITY EXPANSION ZONE.
19 (2) AN OPPORTUNITY PLAN THAT SHALL INCLUDE THE
20 FOLLOWING:
21 (I) A DETAILED MAP OF THE PROPOSED KEYSTONE
22 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
23 EXPANSION ZONE, INCLUDING GEOGRAPHIC BOUNDARIES, TOTAL
24 AREA AND PRESENT USE AND CONDITIONS OF THE LAND AND
25 STRUCTURES OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
26 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
27 (II) EVIDENCE OF SUPPORT FROM AND PARTICIPATION OF
28 LOCAL GOVERNMENT, SCHOOL DISTRICTS AND OTHER EDUCATIONAL
29 INSTITUTIONS, BUSINESS GROUPS, COMMUNITY ORGANIZATIONS
30 AND THE PUBLIC.
20020S1478B2438 - 19 -
1 (III) A PROPOSAL TO INCREASE ECONOMIC OPPORTUNITY,
2 REDUCE CRIME, IMPROVE EDUCATION, FACILITATE
3 INFRASTRUCTURE IMPROVEMENT, REDUCE THE LOCAL REGULATING
4 BURDEN AND IDENTIFY POTENTIAL JOBS AND JOB TRAINING
5 OPPORTUNITIES AND WHICH STATES WHETHER OR NOT THE ZONE IS
6 LOCATED IN AN AREA WHICH HAS TAX REVENUE DEDICATED TO THE
7 PAYMENT OF DEBT.
8 (IV) A DESCRIPTION OF THE CURRENT SOCIAL, ECONOMIC
9 AND DEMOGRAPHIC CHARACTERISTICS OF THE PROPOSED KEYSTONE
10 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
11 EXPANSION ZONE AND ANTICIPATED IMPROVEMENTS IN EDUCATION,
12 HEALTH, HUMAN SERVICES, PUBLIC SAFETY AND EMPLOYMENT THAT
13 WILL RESULT FROM KEYSTONE OPPORTUNITY ZONE OR KEYSTONE
14 OPPORTUNITY EXPANSION ZONE DESIGNATION.
15 (V) A DESCRIPTION OF ANTICIPATED ACTIVITY IN THE
16 PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE
17 OPPORTUNITY EXPANSION ZONE, INCLUDING, BUT NOT LIMITED
18 TO, INDUSTRIAL USE, INDUSTRIAL SITE REUSE, COMMERCIAL OR
19 RETAIL USE AND RESIDENTIAL USE.
20 (VI) EVIDENCE OF POTENTIAL PRIVATE AND PUBLIC
21 INVESTMENT IN THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
22 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
23 (VII) THE ROLE OF THE PROPOSED KEYSTONE OPPORTUNITY
24 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE IN
25 REGIONAL ECONOMIC AND COMMUNITY DEVELOPMENT.
26 (VIII) PLANS TO UTILIZE EXISTING RESOURCES FOR THE
27 ADMINISTRATION OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE
28 OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
29 (IX) ANY OTHER INFORMATION DEEMED APPROPRIATE BY THE
30 DEPARTMENT.
20020S1478B2438 - 20 -
1 (3) A REPORT ON YOUTH AT RISK TO INCLUDE ISSUES RELATING
2 TO HEALTH, WELFARE AND EDUCATION.
3 (4) THE DURATION OF THE PROPOSED SUBZONES OR PROPOSED
4 EXPANSION SUBZONES. THE DURATION OF A SUBZONE MAY NOT EXCEED
5 15 YEARS. THE DURATION OF AN EXPANSION SUBZONE MAY NOT EXCEED
6 13 YEARS.
7 (5) A FORMAL, BINDING ORDINANCE OR RESOLUTION PASSED BY
8 EVERY POLITICAL SUBDIVISION IN WHICH THE PROPOSED SUBZONE OR
9 PROPOSED EXPANSION SUBZONE IS LOCATED THAT SPECIFICALLY
10 PROVIDES FOR ALL LOCAL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS
11 OR CREDITS FOR PERSONS AND BUSINESSES SET FORTH IN THIS ACT.
12 (6) EVIDENCE THAT THE PROPOSED KEYSTONE OPPORTUNITY ZONE
13 OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE MEETS THE
14 REQUIRED CRITERIA UNDER SECTION 304.
15 (A.1) ENHANCEMENT APPLICATION.--ONE OR MORE POLITICAL
16 SUBDIVISIONS WITHIN AN EXISTING KEYSTONE OPPORTUNITY ZONE OR
17 KEYSTONE OPPORTUNITY EXPANSION ZONE, OR A DESIGNEE OF ONE OR
18 MORE POLITICAL SUBDIVISIONS WITHIN AN EXISTING KEYSTONE
19 OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE, MAY
20 APPLY TO THE DEPARTMENT TO DESIGNATE DETERIORATED PROPERTY
21 WITHIN THE POLITICAL SUBDIVISION OR PORTIONS OF THE POLITICAL
22 SUBDIVISION AS ENHANCEMENTS TO A SUBZONE OR AN EXPANSION
23 SUBZONE. THE APPLICATION MUST SATISFY THE REQUIREMENTS OF
24 SUBSECTION (A)(1), (2), (3), (5) AND (6).
25 (B) PARTICIPATION LIMITATION.--A POLITICAL SUBDIVISION SHALL
26 NOT BE A PART OF MORE THAN ONE PROPOSED KEYSTONE OPPORTUNITY
27 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE. A PROPOSED
28 EXPANSION SUBZONE MAY NOT OVERLAP THE BOUNDARIES OF A SUBZONE.
29 (C) APPLICATION LIMITATION.--A POLITICAL SUBDIVISION MAY
30 SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT FOR AUTHORIZATION
20020S1478B2438 - 21 -
1 AS A KEYSTONE OPPORTUNITY ZONE. A POLITICAL SUBDIVISION MAY
2 SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT FOR DESIGNATION OF
3 ENHANCEMENTS TO EXISTING KEYSTONE OPPORTUNITY ZONES AND KEYSTONE
4 OPPORTUNITY EXPANSION ZONES. IF A POLITICAL SUBDIVISION SEEKS TO
5 ENHANCE ITS EXISTING KEYSTONE OPPORTUNITY ZONE UNDER SECTION
6 301(F), OR ITS EXISTING KEYSTONE OPPORTUNITY EXPANSION ZONE
7 UNDER SECTION 301.1(E), AND THE GOVERNOR HAS DESIGNATED AN
8 IMPROVEMENT SUBZONE LOCATED WITHIN THE POLITICAL SUBDIVISION
9 UNDER SECTION 301.2(B), THE POLITICAL SUBDIVISION SHALL SUBMIT
10 ONE APPLICATION CONTAINING BOTH THE REQUEST REQUIRED BY SECTION
11 301(F) OR 301.1(E) AND THE APPLICATION REQUIRED BY SECTION
12 301.2(C).
13 SECTION 303. REVIEW.
14 (A) ACTION OF DEPARTMENT.--THE DEPARTMENT, IN CONSULTATION
15 WITH THE DEPARTMENT OF REVENUE, SHALL REVIEW ALL COMPLETED
16 APPLICATIONS SUBMITTED UNDER THIS ACT. AN APPLICATION FOR
17 AUTHORIZATION AS A KEYSTONE OPPORTUNITY ZONE AND DESIGNATION OF
18 SUBZONES SHALL BE RECEIVED BY THE DEPARTMENT ON OR BEFORE
19 SEPTEMBER 30, 1998, IN ORDER TO BE CONSIDERED BY THE DEPARTMENT.
20 AN APPLICATION FOR AUTHORIZATION AS A KEYSTONE OPPORTUNITY
21 EXPANSION ZONE AND DESIGNATION OF EXPANSION SUBZONES SHALL BE
22 RECEIVED BY THE DEPARTMENT ON OR BEFORE FEBRUARY 28, 2001, IN
23 ORDER TO BE CONSIDERED BY THE DEPARTMENT. AN APPLICATION FOR
24 ENHANCEMENT OF AN EXISTING KEYSTONE OPPORTUNITY ZONE OR OF AN
25 EXISTING KEYSTONE OPPORTUNITY EXPANSION ZONE MUST BE RECEIVED BY
26 THE DEPARTMENT ON OR BEFORE JUNE 1, 2003.
27 (B) PROCESS.--THE DEPARTMENT SHALL AUTHORIZE UP TO 12
28 KEYSTONE OPPORTUNITY ZONES FROM APPLICATIONS MEETING THE
29 CRITERIA IN SECTION 304 BASED UPON NEED AND LIKELIHOOD OF
30 SUCCESS. THE DEPARTMENT SHALL AUTHORIZE UP TO 12 KEYSTONE
20020S1478B2438 - 22 -
1 OPPORTUNITY EXPANSION ZONES FROM APPLICATIONS MEETING THE
2 CRITERIA IN SECTION 304 BASED UPON NEED AND LIKELIHOOD OF
3 SUCCESS. ADDITIONALLY, THE DEPARTMENT SHALL NOT ALTER THE
4 GEOGRAPHIC BOUNDARIES OF A SUBZONE OR EXPANSION SUBZONE OR THE
5 DURATION OF A SUBZONE OR EXPANSION SUBZONE DESCRIBED IN AN
6 APPLICATION. THE DEPARTMENT SHALL DESIGNATE ADDITIONAL
7 ENHANCEMENTS TO EXISTING KEYSTONE OPPORTUNITY ZONES AND KEYSTONE
8 OPPORTUNITY EXPANSION ZONES FROM APPLICATIONS MEETING THE
9 CRITERIA IN SECTION 304 BASED UPON NEED AND LIKELIHOOD OF
10 SUCCESS.
11 (C) AUTHORIZATIONS.--THE DEPARTMENT SHALL AUTHORIZE ALL
12 KEYSTONE OPPORTUNITY ZONES BY NOVEMBER 30, 1998. THE DEPARTMENT
13 SHALL AUTHORIZE ALL KEYSTONE OPPORTUNITY EXPANSION ZONES BY
14 MARCH 30, 2001. THE DEPARTMENT SHALL DESIGNATE ALL ENHANCEMENTS
15 TO EXISTING KEYSTONE OPPORTUNITY ZONES AND KEYSTONE OPPORTUNITY
16 EXPANSION ZONES BY OCTOBER 1, 2003.
17 (D) EFFECTIVE DATE OF DESIGNATION.--THE DESIGNATION OF A
18 SUBZONE UNDER THIS ACT SHALL TAKE EFFECT ON JANUARY 1, 1999. THE
19 DESIGNATION OF AN EXPANSION SUBZONE UNDER THIS ACT SHALL TAKE
20 EFFECT ON JANUARY 1, 2001. THE DESIGNATION OF ENHANCEMENTS TO
21 EXISTING KEYSTONE OPPORTUNITY ZONES AND KEYSTONE OPPORTUNITY
22 EXPANSION ZONES UNDER THIS ACT SHALL TAKE EFFECT JANUARY 1,
23 2004.
24 (E) EXTENSION.--THE DEPARTMENT MAY EXTEND THE DEADLINE FOR
25 THE RECEIPT OF APPLICATIONS FOR KEYSTONE OPPORTUNITY ZONES UNTIL
26 DECEMBER 31, 1998, IF ALL 12 ZONES HAVE NOT BEEN AUTHORIZED AND
27 THE EXTENSION IS NECESSARY TO ALLOW ELIGIBLE POLITICAL
28 SUBDIVISIONS TO APPLY. THE DEPARTMENT SHALL AUTHORIZE ADDITIONAL
29 KEYSTONE OPPORTUNITY ZONES UNDER THIS SUBSECTION BY FEBRUARY 28,
30 1999. THE AUTHORIZATION SHALL TAKE EFFECT JANUARY 1, 1999, OR IF
20020S1478B2438 - 23 -
1 THE AUTHORIZATION OCCURS AFTER JANUARY 1, 1999, THAT SUBSEQUENT
2 AUTHORIZATION SHALL FOR ALL PURPOSES BE RETROACTIVE TO JANUARY
3 1, 1999. THE KEYSTONE OPPORTUNITY ZONE AUTHORIZATION SHALL END
4 AS PROVIDED IN SECTION 301(B).
5 SECTION 304. CRITERIA FOR AUTHORIZATION OF KEYSTONE OPPORTUNITY
6 ZONE.
7 (A) SPECIFIC CRITERIA.--IN ORDER TO QUALIFY FOR
8 AUTHORIZATION UNDER THIS ACT, THE PROPOSED KEYSTONE OPPORTUNITY
9 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE SHALL MEET
10 AT LEAST TWO OF THE FOLLOWING CRITERIA:
11 (1) AT LEAST 20% OF THE POPULATION IS BELOW THE POVERTY
12 LEVEL.
13 (2) THE UNEMPLOYMENT RATE IS 1.25 TIMES THE STATEWIDE
14 AVERAGE.
15 (3) AT LEAST 20% OF ALL REAL PROPERTY WITHIN A FIVE-MILE
16 RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE, PROPOSED
17 KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED SUBZONE OR
18 PROPOSED EXPANSION SUBZONE IN A NONURBAN AREA IS DETERIORATED
19 OR UNDERUTILIZED.
20 (4) AT LEAST 20% OF ALL REAL PROPERTY WITHIN A ONE-MILE
21 RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE, PROPOSED
22 KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED SUBZONE OR
23 PROPOSED EXPANSION SUBZONE IN AN URBAN AREA IS DETERIORATED
24 OR UNDERUTILIZED.
25 (5) AT LEAST 20% OF ALL OCCUPIED HOUSING WITHIN A TWO-
26 MILE RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE,
27 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED
28 SUBZONE OR PROPOSED EXPANSION SUBZONE IN A NONURBAN AREA IS
29 DETERIORATED.
30 (6) AT LEAST 20% OF ALL OCCUPIED HOUSING WITHIN A ONE-
20020S1478B2438 - 24 -
1 MILE RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE,
2 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED
3 SUBZONE OR PROPOSED EXPANSION SUBZONE IN AN URBAN AREA IS
4 DETERIORATED.
5 (7) IN AN URBAN AREA, THE MEDIAN FAMILY INCOME IS 80% OR
6 LESS OF THE URBAN MEDIAN FAMILY INCOME FOR THAT METROPOLITAN
7 STATISTICAL AREA.
8 (8) IN AN AREA OTHER THAN AN URBAN AREA, THE MEDIAN
9 FAMILY INCOME IS 80% OR LESS OF THE STATEWIDE NONURBAN MEDIAN
10 FAMILY INCOME.
11 (9) THE POPULATION LOSS EXCEEDS 10% IN AN AREA THAT
12 INCLUDES THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED
13 KEYSTONE OPPORTUNITY EXPANSION ZONE AND ITS SURROUNDING AREA
14 BUT IS NOT LARGER THAN THE COUNTY OR COUNTIES IN WHICH THE
15 PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE
16 OPPORTUNITY EXPANSION ZONE IS LOCATED, BASED ON CENSUS DATA
17 FOR THE PERIOD BETWEEN 1980 AND 1990 OR CENSUS ESTIMATES
18 SINCE 1990 ESTABLISHING A PATTERN OF POPULATION LOSS.
19 (10) THE POLITICAL SUBDIVISION IN WHICH THE PROPOSED
20 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
21 EXPANSION ZONE IS LOCATED HAS EXPERIENCED A SUDDEN AND/OR
22 SEVERE JOB LOSS.
23 (11) AT LEAST 33% OF THE REAL PROPERTY IN A PROPOSED
24 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
25 EXPANSION ZONE IN A NONURBAN AREA WOULD OTHERWISE REMAIN
26 UNDERDEVELOPED OR NONPERFORMING DUE TO PHYSICAL
27 CHARACTERISTICS OF THE REAL PROPERTY.
28 (12) THE AREA HAS SUBSTANTIAL REAL PROPERTY WITH
29 ADEQUATE INFRASTRUCTURE AND ENERGY TO SUPPORT NEW OR EXPANDED
30 DEVELOPMENT.
20020S1478B2438 - 25 -
1 (B) ADDITIONAL CRITERIA.--IN ADDITION TO THE REQUIRED
2 CRITERIA UNDER SUBSECTION (A), THE DEPARTMENT SHALL CONSIDER THE
3 FOLLOWING CRITERIA:
4 (1) EVIDENCE OF DISTRESS, INCLUDING, BUT NOT LIMITED TO,
5 UNEMPLOYMENT, PERCENTAGE OF POPULATION BELOW 80% OF THE STATE
6 MEDIAN INCOME, POVERTY RATE, DETERIORATED PROPERTY AND
7 ADVERSE ECONOMIC AND SOCIOECONOMIC CONDITIONS IN THE PROPOSED
8 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
9 EXPANSION ZONE.
10 (2) THE STRENGTH AND VIABILITY OF THE PROPOSED GOALS,
11 OBJECTIVES AND STRATEGIES IN THE OPPORTUNITY PLAN.
12 (3) WHETHER THE OPPORTUNITY PLAN IS CREATIVE AND
13 INNOVATIVE IN COMPARISON TO OTHER APPLICATIONS.
14 (4) LOCAL PUBLIC AND PRIVATE COMMITMENT TO THE
15 DEVELOPMENT OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
16 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE AND THE
17 POTENTIAL COOPERATION OF SURROUNDING COMMUNITIES.
18 (5) EXISTING RESOURCES AVAILABLE TO THE PROPOSED
19 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
20 EXPANSION ZONE.
21 (6) HOW KEYSTONE OPPORTUNITY ZONE OR KEYSTONE
22 OPPORTUNITY EXPANSION ZONE AUTHORIZATION OR ECONOMIC
23 REDEVELOPMENT RELATES TO OTHER CURRENT ECONOMIC AND COMMUNITY
24 DEVELOPMENT PROJECTS AND TO REGIONAL INITIATIVES OR PROGRAMS.
25 (7) HOW THE LOCAL REGULATORY BURDEN WILL BE EASED FOR
26 BUSINESSES OPERATING IN THE PROPOSED KEYSTONE OPPORTUNITY
27 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
28 (8) PROPOSALS TO IMPLEMENT EDUCATIONAL OPPORTUNITIES AND
29 IMPROVEMENTS.
30 (9) CRIME STATISTICS AND PROPOSALS TO IMPLEMENT LOCAL
20020S1478B2438 - 26 -
1 CRIME REDUCTION MEASURES.
2 (10) PROPOSALS TO ESTABLISH AND LINK JOB CREATION AND
3 JOB TRAINING.
4 (C) TAX EXEMPTION ORDINANCES.--AN AREA SHALL NOT BE
5 AUTHORIZED AS A KEYSTONE OPPORTUNITY ZONE OR A KEYSTONE
6 OPPORTUNITY EXPANSION ZONE UNLESS, AS A PART OF THE APPLICATION,
7 EACH POLITICAL SUBDIVISION IN WHICH THE PROPOSED SUBZONE OR
8 PROPOSED EXPANSION SUBZONE IS TO BE LOCATED ADOPTS AND PROVIDES
9 A COPY OF AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM
10 THE GOVERNING BODY OF EACH POLITICAL SUBDIVISION THAT EXEMPTS OR
11 PROVIDES DEDUCTIONS, ABATEMENTS OR CREDITS TO QUALIFIED PERSONS
12 AND QUALIFIED BUSINESSES FROM LOCAL TAXES UPON DESIGNATION OF
13 THE AREA AS A SUBZONE OR EXPANSION SUBZONE. ALL APPROPRIATE
14 ORDINANCES AND RESOLUTIONS SHALL BE EFFECTIVE ON OR BEFORE
15 JANUARY 1, 1999, IF DESIGNATION AS A SUBZONE IS GRANTED. ALL
16 APPROPRIATE ORDINANCES AND RESOLUTIONS SHALL BE EFFECTIVE ON
17 JANUARY 1, 2001, IF DESIGNATION AS AN EXPANSION SUBZONE IS
18 GRANTED. [THE] ALL APPROPRIATE ORDINANCES AND RESOLUTIONS SHALL
19 BE EFFECTIVE JANUARY 1, 2004, IF DESIGNATION OF ENHANCEMENTS TO
20 AN EXISTING KEYSTONE OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY
21 EXPANSION ZONE ARE GRANTED. EXCEPT AS PROVIDED IN SECTION 309,
22 THE RESOLUTION, ORDINANCE OR OTHER REQUIRED ACTION SHALL BE
23 BINDING AND NONREVOCABLE ON THE QUALIFIED POLITICAL SUBDIVISIONS
24 FOR THE DURATION OF THE OPPORTUNITY PLAN.
25 (D) URBAN AREAS.--THE DEPARTMENT SHALL PROMULGATE GUIDELINES
26 THAT INCLUDE THE DEFINITION OF "URBAN AREA" FOR THE PURPOSES OF
27 RECEIVING APPLICATIONS FOR AUTHORIZATION AS A KEYSTONE
28 OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE.
29 SECTION 307. QUALIFIED BUSINESSES.
30 (A) QUALIFICATIONS.--IN ORDER TO QUALIFY EACH YEAR FOR A TAX
20020S1478B2438 - 27 -
1 EXEMPTION, DEDUCTION, ABATEMENT OR CREDIT UNDER THIS ACT, A
2 BUSINESS SHALL OWN OR LEASE REAL PROPERTY IN A SUBZONE,
3 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE FROM WHICH THE BUSINESS
4 ACTIVELY CONDUCTS A TRADE, PROFESSION OR BUSINESS. THE QUALIFIED
5 BUSINESS SHALL RECEIVE CERTIFICATION FROM THE DEPARTMENT THAT
6 THE BUSINESS IS LOCATED, AND IS IN THE ACTIVE CONDUCT OF A
7 TRADE, PROFESSION OR BUSINESS, WITHIN THE SUBZONE, IMPROVEMENT
8 SUBZONE OR EXPANSION SUBZONE. THE BUSINESS SHALL OBTAIN ANNUAL
9 RENEWAL OF THE CERTIFICATION FROM THE DEPARTMENT TO CONTINUE TO
10 QUALIFY UNDER THIS SECTION.
11 (B) RELOCATION.--ANY BUSINESS THAT RELOCATES FROM OUTSIDE A
12 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE INTO A
13 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL NOT
14 RECEIVE ANY OF THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
15 SET FORTH IN THIS ACT UNLESS THAT BUSINESS EITHER:
16 (1) INCREASES FULL-TIME EMPLOYMENT BY AT LEAST 20% IN
17 THE FIRST FULL YEAR OF OPERATION WITHIN THE SUBZONE,
18 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE; OR
19 (2) MAKES A CAPITAL INVESTMENT IN THE PROPERTY LOCATED
20 WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
21 EQUIVALENT TO 10% OF THE GROSS REVENUES OF THAT BUSINESS IN
22 THE IMMEDIATELY PRECEDING CALENDAR OR FISCAL YEAR. THE
23 DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF REVENUE,
24 MAY WAIVE OR MODIFY THE REQUIREMENTS OF THIS SUBSECTION, AS
25 APPROPRIATE.
26 SECTION 5. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
27 SECTION 309. DECERTIFICATION.
28 (A) APPLICATION.--ONE OR MORE POLITICAL SUBDIVISIONS, OR A
29 DESIGNEE OF ONE OR MORE POLITICAL SUBDIVISIONS, MAY APPLY TO THE
30 DEPARTMENT TO DECERTIFY AND REMOVE THE DESIGNATION OF
20020S1478B2438 - 28 -
1 DETERIORATED PROPERTY AS PART OF A SUBZONE, IMPROVEMENT SUBZONE
2 OR EXPANSION SUBZONE. THE APPLICATION MUST CONTAIN ALL OF THE
3 FOLLOWING:
4 (1) AN IDENTIFICATION OF THE PROPERTY TO BE REMOVED.
5 (2) A COPY OF AN AGREEMENT WHICH WAS SUPPORTED BY
6 CONSIDERATION IN WHICH EACH ENTITY WHICH POSSESSES AN
7 INTEREST IN THE REAL PROPERTY TO BE REMOVED, INCLUDING ANY
8 HOLDER OF AN OPTION EITHER TO PURCHASE THE REAL ESTATE OR TO
9 ENTER INTO A GROUND LEASE OF THE REAL ESTATE OR ANY OTHER
10 LEASEHOLD INTEREST IN THE REAL ESTATE, WAIVES THE PARTY'S
11 RIGHT TO ANY EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
12 GRANTED BY THIS ACT.
13 (3) A COPY OF A BINDING ORDINANCE, RESOLUTION OR OTHER
14 GOVERNING DOCUMENT PASSED BY THE POLITICAL SUBDIVISION
15 REMOVING ANY EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
16 GRANTED BY THIS ACT EFFECTIVE UPON DECERTIFICATION BY THE
17 DEPARTMENT.
18 (B) PROCESS.--THE DEPARTMENT MAY GRANT THE REQUEST TO
19 DECERTIFY AND REMOVE THE PROPERTY PROVIDED THAT COMPLETED
20 APPLICATIONS HAVE BEEN SUBMITTED BY ALL QUALIFIED POLITICAL
21 SUBDIVISIONS IN WHICH THE PROPERTY IS LOCATED.
22 SECTION 6. SECTIONS 501, 511, 512, 513, 515, 516, 517, 518,
23 519, 701, 702, 703, 704, 705, 902, 904, 907, 1103 AND 1309 OF
24 THE ACT, AMENDED OR ADDED DECEMBER 20, 2000 (P.L.841, NO.119),
25 ARE AMENDED TO READ:
26 SECTION 501. STATE TAXES.
27 (A) GENERAL RULE.--A PERSON WHO IS A RESIDENT OF A SUBZONE,
28 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, A QUALIFIED BUSINESS
29 OR A NONRESIDENT UNDER SECTION 513 SHALL RECEIVE THE EXEMPTIONS,
30 DEDUCTIONS, ABATEMENTS OR CREDITS AS PROVIDED IN THIS CHAPTER
20020S1478B2438 - 29 -
1 AND CHAPTER 7 FOR THE DURATION OF THE SUBZONE, IMPROVEMENT
2 SUBZONE OR EXPANSION SUBZONE DESIGNATION. EXEMPTIONS,
3 DEDUCTIONS, ABATEMENTS OR CREDITS SHALL EXPIRE ON THE DATE OF
4 EXPIRATION OF THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
5 SUBZONE DESIGNATION.
6 (B) CONSTRUCTION.--THE DEPARTMENT OF REVENUE SHALL
7 ADMINISTER, CONSTRUE AND ENFORCE THE PROVISIONS OF THIS CHAPTER
8 IN CONJUNCTION WITH ARTICLES II, III, IV, VI, VII, [VII-A,] IX
9 AND XV OF THE TAX REFORM CODE OF 1971.
10 SECTION 511. SALES AND USE TAX.
11 (A) EXEMPTION.--SALES AT RETAIL OF SERVICES OR TANGIBLE
12 PERSONAL PROPERTY, OTHER THAN MOTOR VEHICLES, TO A QUALIFIED
13 BUSINESS FOR THE EXCLUSIVE USE, CONSUMPTION AND UTILIZATION OF
14 THE TANGIBLE PERSONAL PROPERTY OR SERVICE BY THE QUALIFIED
15 BUSINESS AT ITS FACILITY LOCATED WITHIN A SUBZONE, IMPROVEMENT
16 SUBZONE OR EXPANSION SUBZONE ARE EXEMPT FROM THE SALES AND USE
17 TAX IMPOSED UNDER ARTICLE II OF THE TAX REFORM CODE OF 1971. NO
18 PERSON SHALL BE ALLOWED AN EXEMPTION FOR SALES CONDUCTED PRIOR
19 TO DESIGNATION OF THE REAL PROPERTY AS PART OF A SUBZONE OR
20 EXPANSION SUBZONE.
21 (B) CONSTRUCTION CONTRACTS.--FOR ANY CONSTRUCTION CONTRACT
22 PERFORMED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
23 SUBZONE, THE EXEMPTION PROVIDED IN SUBSECTION (A) SHALL ONLY
24 APPLY TO THE SALE AT RETAIL OR USE OF BUILDING MACHINERY AND
25 EQUIPMENT TO A QUALIFIED BUSINESS, OR TO A CONSTRUCTION
26 CONTRACTOR PURSUANT TO A CONSTRUCTION CONTRACT WITH A QUALIFIED
27 BUSINESS, FOR THE EXCLUSIVE USE, CONSUMPTION AND UTILIZATION BY
28 THE QUALIFIED BUSINESS AT ITS FACILITY IN A SUBZONE, IMPROVEMENT
29 SUBZONE OR EXPANSION SUBZONE. FOR THE PURPOSES OF THE SUBZONE,
30 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE EXEMPTION, BUILDING
20020S1478B2438 - 30 -
1 MACHINERY AND EQUIPMENT SHALL INCLUDE DISTRIBUTION EQUIPMENT
2 PURCHASED FOR THE EXCLUSIVE USE, CONSUMPTION AND UTILIZATION IN
3 A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE FACILITY.
4 SECTION 512. PERSONAL INCOME TAX.
5 (A) GENERAL RULE.--A PERSON SHALL BE ALLOWED AN EXEMPTION
6 FOR:
7 (1) COMPENSATION RECEIVED DURING THE TIME PERIOD WHEN
8 THE PERSON WAS A RESIDENT OF A SUBZONE, IMPROVEMENT SUBZONE
9 OR EXPANSION SUBZONE.
10 (2) NET INCOME FROM THE OPERATION OF A QUALIFIED
11 BUSINESS RECEIVED BY A RESIDENT OR NONRESIDENT OF A SUBZONE,
12 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE ATTRIBUTABLE TO
13 BUSINESS ACTIVITY CONDUCTED WITHIN A SUBZONE, IMPROVEMENT
14 SUBZONE OR EXPANSION SUBZONE, DETERMINED IN ACCORDANCE WITH
15 SECTION 515, EXCEPT THAT ANY BUSINESS THAT OPERATES BOTH
16 WITHIN AND OUTSIDE THIS COMMONWEALTH, BEFORE COMPUTING ITS
17 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE EXEMPTION,
18 SHALL FIRST DETERMINE ITS PENNSYLVANIA ACTIVITY OVER ITS
19 ACTIVITY EVERYWHERE BY APPLYING THE THREE-FACTOR
20 APPORTIONMENT FORMULA AS SET FORTH IN DEPARTMENT OF REVENUE
21 PERSONAL INCOME TAX REGULATIONS APPLICABLE TO INCOME
22 APPORTIONMENT IN CONNECTION WITH A BUSINESS, TRADE OR
23 PROFESSION CARRIED ON BOTH WITHIN AND OUTSIDE THIS
24 COMMONWEALTH.
25 (3) ALL OF THE FOLLOWING:
26 (I) NET GAINS OR INCOME, LESS NET LOSSES, DERIVED BY
27 A RESIDENT OR NONRESIDENT OF A SUBZONE, IMPROVEMENT
28 SUBZONE OR EXPANSION SUBZONE FROM THE SALE, EXCHANGE OR
29 OTHER DISPOSITION OF REAL OR TANGIBLE PERSONAL PROPERTY
30 LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
20020S1478B2438 - 31 -
1 SUBZONE AS DETERMINED IN ACCORDANCE WITH ACCEPTED
2 ACCOUNTING PRINCIPLES AND PRACTICES. THE EXEMPTION
3 PROVIDED IN THIS SUBPARAGRAPH SHALL NOT APPLY TO THE
4 SALE, EXCHANGE OR OTHER DISPOSITION OF ANY STOCK OF
5 GOODS, MERCHANDISE OR INVENTORY, OR ANY OPERATIONAL
6 ASSETS UNLESS THE TRANSFER IS IN CONNECTION WITH THE
7 SALE, EXCHANGE OR OTHER DISPOSITION OF ALL OF THE ASSETS
8 IN COMPLETE LIQUIDATION OF A QUALIFIED BUSINESS LOCATED
9 IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE.
10 THIS SUBPARAGRAPH SHALL APPLY TO INTANGIBLE PERSONAL
11 PROPERTY EMPLOYED IN A TRADE, PROFESSION OR BUSINESS IN A
12 SUBZONE OR EXPANSION SUBZONE BY A QUALIFIED BUSINESS, BUT
13 ONLY WHEN TRANSFERRED IN CONNECTION WITH A SALE, EXCHANGE
14 OR OTHER DISPOSITION OF ALL OF THE ASSETS IN COMPLETE
15 LIQUIDATION OF THE QUALIFIED BUSINESS IN THE SUBZONE,
16 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE.
17 (II) NET GAINS, LESS NET LOSSES, REALIZED BY A
18 RESIDENT OF A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
19 SUBZONE FROM THE SALE, EXCHANGE OR DISPOSITION OF
20 INTANGIBLE PERSONAL PROPERTY OR OBLIGATIONS ISSUED ON OR
21 AFTER FEBRUARY 1, 1994, BY THE COMMONWEALTH, A PUBLIC
22 AUTHORITY, COMMISSION, BOARD OR OTHER COMMONWEALTH
23 AGENCY, POLITICAL SUBDIVISION OR AUTHORITY CREATED BY A
24 POLITICAL SUBDIVISION OR BY THE FEDERAL GOVERNMENT AS
25 DETERMINED IN ACCORDANCE WITH ACCEPTED ACCOUNTING
26 PRINCIPLES AND PRACTICES.
27 (III) THE EXEMPTION FROM INCOME FOR GAIN OR LOSS
28 PROVIDED FOR IN SUBPARAGRAPHS (I) AND (II) SHALL BE
29 PRORATED BASED ON THE FOLLOWING:
30 (A) IN THE CASE OF GAINS, LESS NET LOSSES, IN
20020S1478B2438 - 32 -
1 SUBPARAGRAPH (I), THE PERCENTAGE OF TIME, BASED ON
2 CALENDAR DAYS, THE PROPERTY LOCATED IN A SUBZONE,
3 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE WAS HELD BY
4 A RESIDENT OR NONRESIDENT OF THE ZONE DURING THE TIME
5 PERIOD THE ZONE WAS IN EFFECT IN RELATION TO THE
6 TOTAL TIME THE PROPERTY WAS HELD.
7 (B) IN THE CASE OF GAINS, LESS NET LOSSES, IN
8 SUBPARAGRAPH (II), THE PERCENTAGE OF TIME, BASED ON
9 CALENDAR DAYS, THE PROPERTY WAS HELD BY THE TAXPAYER
10 WHILE A RESIDENT OF A SUBZONE, IMPROVEMENT SUBZONE OR
11 EXPANSION SUBZONE IN RELATION TO THE TOTAL TIME THE
12 PROPERTY WAS HELD.
13 (4) NET GAINS OR INCOME DERIVED FROM OR IN THE FORM OF
14 RENTS RECEIVED BY A PERSON, WHETHER A RESIDENT OR NONRESIDENT
15 OF A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, TO
16 THE EXTENT THAT INCOME OR LOSS FROM THE RENTAL OF REAL OR
17 TANGIBLE PERSONAL PROPERTY IS ALLOCABLE TO A SUBZONE,
18 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE. FOR PURPOSES OF
19 CALCULATING THIS EXEMPTION:
20 (I) NET RENTS DERIVED FROM REAL OR TANGIBLE PERSONAL
21 PROPERTY LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR
22 EXPANSION SUBZONE ARE ALLOCABLE TO A SUBZONE, IMPROVEMENT
23 SUBZONE OR EXPANSION SUBZONE.
24 (II) IF THE TANGIBLE PERSONAL PROPERTY WAS USED BOTH
25 WITHIN AND WITHOUT THE SUBZONE, IMPROVEMENT SUBZONE OR
26 EXPANSION SUBZONE DURING THE TAXABLE YEAR, ONLY THE NET
27 INCOME ATTRIBUTABLE TO USE IN THE SUBZONE, IMPROVEMENT
28 SUBZONE OR EXPANSION SUBZONE IS EXEMPT. THE NET RENTAL
29 INCOME SHALL BE MULTIPLIED BY A FRACTION, THE NUMERATOR
30 OF WHICH IS THE NUMBER OF DAYS THE PROPERTY WAS USED IN
20020S1478B2438 - 33 -
1 THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE AND
2 THE DENOMINATOR WHICH IS THE TOTAL DAYS OF USE.
3 (5) DIVIDENDS RECEIVED DURING THE TIME THE PERSON WAS A
4 RESIDENT OF A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
5 SUBZONE.
6 (6) INTEREST RECEIVED DURING THE TIME PERIOD THE PERSON
7 WAS A RESIDENT OF A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
8 SUBZONE.
9 (7) THE PART OF THE INCOME OR GAINS RECEIVED BY AN
10 ESTATE OR TRUST FOR ITS TAXABLE YEAR ENDING WITHIN OR WITH
11 THE RESIDENT-BENEFICIARY'S TAXABLE YEAR WHICH, UNDER THE
12 GOVERNING INSTRUMENT AND APPLICABLE STATE LAW, IS REQUIRED TO
13 BE DISTRIBUTED CURRENTLY OR IS IN FACT PAID OR CREDITED TO
14 THE RESIDENT-BENEFICIARY AND WHICH WOULD HAVE BEEN EXEMPT
15 UNDER THIS ACT IF RECEIVED BY A RESIDENT-BENEFICIARY
16 DIRECTLY.
17 (A.1) EXEMPTION.--BEGINNING IN TAXABLE YEAR 1999, A PERSON
18 LOCATED IN A DESIGNATED SUBZONE SHALL BE ALLOWED AN EXEMPTION
19 UNDER SUBSECTION (A) FROM THE TAX IMPOSED BY ARTICLE III OF THE
20 TAX REFORM CODE OF 1971 FOR THE CLASSES OF INCOME SET FORTH IN
21 SUBSECTION (A). BEGINNING IN TAXABLE YEAR 2001, A PERSON LOCATED
22 IN A DESIGNATED EXPANSION SUBZONE SHALL BE ALLOWED AN EXEMPTION
23 UNDER SUBSECTION (A) FROM THE TAX IMPOSED BY ARTICLE III OF THE
24 TAX REFORM CODE OF 1971 FOR THE CLASSES OF INCOME SET FORTH IN
25 SUBSECTION (A). NO PERSON SHALL BE ALLOWED AN EXEMPTION FOR
26 ACTIVITIES CONDUCTED PRIOR TO DESIGNATION OF THE REAL PROPERTY
27 AS PART OF A SUBZONE OR EXPANSION SUBZONE.
28 (A.2) PASS-THROUGH ENTITIES.--THE EXEMPTIONS PROVIDED FOR IN
29 SUBSECTION (A)(2), (3)(I) AND (4) SHALL APPLY TO ALL OF THE
30 FOLLOWING:
20020S1478B2438 - 34 -
1 (1) THE INCOME OR GAIN OF A PARTNERSHIP OR ASSOCIATION.
2 THE PARTNER OR MEMBER SHALL BE ENTITLED TO THE EXEMPTIONS
3 UNDER THIS SECTION FOR THE PARTNER'S OR MEMBER'S SHARE,
4 WHETHER OR NOT DISTRIBUTED, OF THE INCOME OR GAIN RECEIVED BY
5 THE PARTNERSHIP OR ASSOCIATION FOR ITS TAXABLE YEAR.
6 (2) THE INCOME OR GAIN OF A PENNSYLVANIA S CORPORATION.
7 THE SHAREHOLDER SHALL BE ENTITLED TO THE EXEMPTIONS UNDER
8 THIS SECTION FOR THE SHAREHOLDER'S PRO RATA SHARE, WHETHER OR
9 NOT DISTRIBUTED, OF THE INCOME OR GAIN RECEIVED BY THE
10 CORPORATION FOR ITS TAXABLE YEAR ENDING WITHIN OR WITH THE
11 SHAREHOLDER'S TAXABLE YEAR.
12 (B) LIMITATION.--A PARTNERSHIP, ASSOCIATION, SUBCHAPTER S
13 CORPORATION, RESIDENT OR NONRESIDENT MAY NOT APPLY AN EXEMPTION
14 FROM INCOME UNDER THIS ACT FOR ANY CLASS OF INCOME AGAINST ANY
15 OTHER CLASSES OF INCOME OR GAIN. A PARTNERSHIP, ASSOCIATION,
16 SUBCHAPTER S CORPORATION, RESIDENT OR NONRESIDENT MAY NOT CARRY
17 BACK OR CARRY FORWARD ANY EXEMPTION UNDER THIS ACT FROM YEAR TO
18 YEAR. THE CREDIT ALLOWED UNDER THIS SECTION SHALL NOT EXCEED THE
19 TAX LIABILITY OF THE TAXPAYER UNDER ARTICLE III OF THE TAX
20 REFORM CODE OF 1971 FOR THE TAX YEAR.
21 (C) SECTION NOT APPLICABLE TO CERTAIN ENTITIES.--ANY PORTION
22 OF NET INCOME OR GAIN THAT IS ATTRIBUTABLE TO OPERATION OF A
23 RAILROAD, TRUCK, BUS OR AIRLINE COMPANY, PIPELINE OR NATURAL GAS
24 COMPANY, WATER TRANSPORTATION COMPANY OR ENTITY WHICH WOULD
25 QUALIFY AS A REGULATED INVESTMENT COMPANY UNDER ARTICLE IV OF
26 THE TAX REFORM CODE OF 1971 OR WOULD QUALIFY AS A HOLDING
27 COMPANY UNDER ARTICLE VI OF THE TAX REFORM CODE OF 1971 SHALL
28 NOT BE USED TO CALCULATE AN EXEMPTION UNDER THIS SECTION. THIS
29 SUBSECTION SHALL NOT APPLY TO THE EXEMPTION FROM TAX PROVIDED IN
30 SUBSECTION (A)(5).
20020S1478B2438 - 35 -
1 SECTION 513. RESIDENCY CONSIDERATIONS.
2 IF A PERSON COMPLETES THE RESIDENCY REQUIREMENTS UNDER
3 SECTION 306 OR IF A NONRESIDENT REALIZES INCOME ATTRIBUTABLE TO
4 BUSINESS ACTIVITY OR PROPERTY WITHIN A SUBZONE, IMPROVEMENT
5 SUBZONE OR EXPANSION SUBZONE ON OR BEFORE THE END OF THE TAX
6 YEAR, THE PERSON MAY CLAIM THE EXEMPTIONS FROM INCOME FOR THE
7 ITEMS SET FORTH IN SECTION 512 FOR THAT PORTION OF THE TAX YEAR
8 THAT THE PERSON WAS A RESIDENT OR FOR THAT PORTION OF THE TAX
9 YEAR DURING WHICH THE AREA IS DESIGNATED AS A SUBZONE,
10 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE.
11 SECTION 515. CORPORATE NET INCOME TAX.
12 (A) CREDITS.--FOR THE TAX YEARS THAT BEGIN ON OR AFTER
13 JANUARY 1, 1999, A CORPORATION THAT IS A QUALIFIED BUSINESS
14 UNDER THIS ACT MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY
15 ARTICLE IV OF THE TAX REFORM CODE OF 1971 FOR TAX LIABILITY
16 ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN THE SUBZONE
17 IN THE TAXABLE YEAR. FOR THE TAX YEARS THAT BEGIN ON OR AFTER
18 JANUARY 1, 2001, A CORPORATION THAT IS A QUALIFIED BUSINESS
19 UNDER THIS ACT MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY
20 ARTICLE IV OF THE TAX REFORM CODE OF 1971 FOR TAX LIABILITY
21 ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN THE EXPANSION
22 SUBZONE IN THE TAXABLE YEAR. FOR TAX YEARS THAT BEGIN ON OR
23 AFTER JANUARY 1, 2004, A CORPORATION WHICH IS A QUALIFIED
24 BUSINESS UNDER THIS ACT MAY CLAIM A CREDIT AGAINST THE TAX
25 IMPOSED BY ARTICLE IV OF THE TAX REFORM CODE OF 1971 FOR TAX
26 LIABILITY ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN THE
27 IMPROVEMENT SUBZONE IN THE TAXABLE YEAR. NO CREDIT MAY BE
28 CLAIMED FOR ACTIVITIES CONDUCTED PRIOR TO DESIGNATION OF THE
29 REAL PROPERTY AS PART OF A SUBZONE OR EXPANSION SUBZONE. THE
30 BUSINESS ACTIVITY MUST BE CONDUCTED DIRECTLY BY A CORPORATION IN
20020S1478B2438 - 36 -
1 THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE IN ORDER
2 FOR THE CORPORATION TO CLAIM THE TAX CREDIT.
3 (B) TAX LIABILITY DETERMINATIONS.--THE CORPORATE TAX
4 LIABILITY ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN A
5 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL BE
6 DETERMINED BY MULTIPLYING THE CORPORATION'S TAXABLE INCOME THAT
7 IS ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN THE
8 SUBZONE OR EXPANSION SUBZONE BY THE RATE OF TAX IMPOSED UNDER
9 ARTICLE IV OF THE TAX REFORM CODE OF 1971 FOR THE TAXABLE YEAR.
10 (C) DETERMINATIONS OF ATTRIBUTABLE TAX LIABILITY.--TAX
11 LIABILITY ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN A
12 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL BE
13 COMPUTED, CONSTRUED, ADMINISTERED AND ENFORCED IN CONFORMITY
14 WITH ARTICLE IV OF THE TAX REFORM CODE OF 1971 AND WITH SPECIFIC
15 REFERENCE TO THE FOLLOWING:
16 (1) IF THE ENTIRE BUSINESS OF THE CORPORATION IN THIS
17 COMMONWEALTH IS TRANSACTED WHOLLY WITHIN THE SUBZONE,
18 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, THE TAXABLE INCOME
19 ATTRIBUTABLE TO BUSINESS ACTIVITY WITHIN A SUBZONE,
20 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL CONSIST OF THE
21 PENNSYLVANIA TAXABLE INCOME AS DETERMINED UNDER ARTICLE IV OF
22 THE TAX REFORM CODE OF 1971.
23 (2) IF THE ENTIRE BUSINESS OF THE CORPORATION IN THIS
24 COMMONWEALTH IS NOT TRANSACTED WHOLLY WITHIN THE SUBZONE,
25 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, THE TAXABLE INCOME
26 OF A CORPORATION IN A SUBZONE, IMPROVEMENT SUBZONE OR
27 EXPANSION SUBZONE SHALL BE DETERMINED UPON SUCH PORTION OF
28 THE PENNSYLVANIA TAXABLE INCOME OF SUCH CORPORATION
29 ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN THE
30 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE AND
20020S1478B2438 - 37 -
1 APPORTIONED IN ACCORDANCE WITH SUBSECTION (D).
2 (D) INCOME APPORTIONMENT.--THE TAXABLE INCOME OF A
3 CORPORATION THAT IS A QUALIFIED BUSINESS SHALL BE APPORTIONED TO
4 THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE BY
5 MULTIPLYING THE PENNSYLVANIA TAXABLE INCOME BY A FRACTION, THE
6 NUMERATOR OF WHICH IS THE PROPERTY FACTOR PLUS THE PAYROLL
7 FACTOR PLUS THE SALES FACTOR AND THE DENOMINATOR OF WHICH IS
8 THREE, IN ACCORDANCE WITH THE FOLLOWING:
9 (1) THE PROPERTY FACTOR IS A FRACTION, THE NUMERATOR OF
10 WHICH IS THE AVERAGE VALUE OF THE TAXPAYER'S REAL AND
11 TANGIBLE PERSONAL PROPERTY OWNED OR RENTED AND USED IN THE
12 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE DURING THE
13 TAX PERIOD AND THE DENOMINATOR OF WHICH IS THE AVERAGE VALUE
14 OF ALL THE TAXPAYER'S REAL AND TANGIBLE PERSONAL PROPERTY
15 OWNED OR RENTED AND USED IN THIS COMMONWEALTH DURING THE TAX
16 PERIOD BUT SHALL NOT INCLUDE THE SECURITY INTEREST OF ANY
17 CORPORATION AS SELLER OR LESSOR IN PERSONAL PROPERTY SOLD OR
18 LEASED UNDER A CONDITIONAL SALE, BAILMENT LEASE, CHATTEL
19 MORTGAGE OR OTHER CONTRACT PROVIDING FOR THE RETENTION OF A
20 LIEN OR TITLE AS SECURITY FOR THE SALES PRICE OF THE
21 PROPERTY.
22 (2) (I) THE PAYROLL FACTOR IS A FRACTION, THE NUMERATOR
23 OF WHICH IS THE TOTAL AMOUNT PAID IN THE SUBZONE,
24 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE DURING THE TAX
25 PERIOD BY THE TAXPAYER FOR COMPENSATION AND THE
26 DENOMINATOR OF WHICH IS THE TOTAL COMPENSATION PAID IN
27 THIS COMMONWEALTH DURING THE TAX PERIOD.
28 (II) COMPENSATION IS PAID IN THE SUBZONE,
29 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE IF:
30 (A) THE PERSON'S SERVICE IS PERFORMED ENTIRELY
20020S1478B2438 - 38 -
1 WITHIN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
2 SUBZONE;
3 (B) THE PERSON'S SERVICE IS PERFORMED BOTH
4 WITHIN AND WITHOUT THE SUBZONE, IMPROVEMENT SUBZONE
5 OR EXPANSION SUBZONE, BUT THE SERVICE PERFORMED
6 WITHOUT THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
7 SUBZONE IS INCIDENTAL TO THE PERSON'S SERVICE WITHIN
8 THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
9 SUBZONE; OR
10 (C) SOME OF THE SERVICE IS PERFORMED IN THE
11 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE AND
12 THE BASE OF OPERATIONS OR, IF THERE IS NO BASE OF
13 OPERATIONS, THE PLACE FROM WHICH THE SERVICE IS
14 DIRECTED OR CONTROLLED IS IN THE SUBZONE, IMPROVEMENT
15 SUBZONE OR EXPANSION SUBZONE, OR THE BASE OF
16 OPERATIONS OR THE PLACE FROM WHICH THE SERVICE IS
17 DIRECTED OR CONTROLLED IS NOT IN ANY LOCATION IN
18 WHICH SOME PART OF THE SERVICE IS PERFORMED, BUT THE
19 PERSON'S RESIDENCE IS IN THE SUBZONE, IMPROVEMENT
20 SUBZONE OR EXPANSION SUBZONE.
21 (3) THE SALES FACTOR IS A FRACTION, THE NUMERATOR OF
22 WHICH IS THE TOTAL SALES OF THE TAXPAYER IN THE SUBZONE,
23 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE DURING THE TAX
24 PERIOD AND THE DENOMINATOR OF WHICH IS THE TOTAL SALES OF THE
25 TAXPAYER IN THIS COMMONWEALTH DURING THE TAX PERIOD.
26 (I) SALES OF TANGIBLE PERSONAL PROPERTY ARE IN THE
27 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE IF THE
28 PROPERTY IS DELIVERED OR SHIPPED TO A PURCHASER WITHIN
29 THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
30 REGARDLESS OF THE F.O.B. POINT OR OTHER CONDITIONS OF THE
20020S1478B2438 - 39 -
1 SALE.
2 (II) SALES OTHER THAN SALES OF TANGIBLE PERSONAL
3 PROPERTY ARE IN THE SUBZONE, IMPROVEMENT SUBZONE OR
4 EXPANSION SUBZONE IF:
5 (A) THE INCOME-PRODUCING ACTIVITY IS PERFORMED
6 IN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
7 SUBZONE; OR
8 (B) THE INCOME-PRODUCING ACTIVITY IS PERFORMED
9 BOTH WITHIN AND WITHOUT THE SUBZONE, IMPROVEMENT
10 SUBZONE OR EXPANSION SUBZONE AND A GREATER PROPORTION
11 OF THE INCOME-PRODUCING ACTIVITY IS PERFORMED IN THE
12 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
13 THAN IN ANY OTHER LOCATION, BASED ON COSTS OF
14 PERFORMANCE.
15 (E) COMPUTATION.--A CORPORATION SHALL COMPUTE ITS
16 COMMONWEALTH TAXABLE INCOME IN CONFORMITY WITH ARTICLE IV OF THE
17 TAX REFORM CODE OF 1971 WITH NO ADJUSTMENTS OR SUBTRACTIONS FOR
18 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE TAXABLE
19 INCOME.
20 (F) LIMITATION ON AMOUNT OF CREDIT.--THE CREDIT ALLOWED
21 UNDER THIS SECTION SHALL NOT EXCEED THE TAX LIABILITY OF THE
22 TAXPAYER UNDER ARTICLE IV OF THE TAX REFORM CODE OF 1971 FOR THE
23 TAX YEAR.
24 (G) SECTION NOT APPLICABLE TO CERTAIN BUSINESSES.--ANY
25 PORTION OF THE TAXPAYER'S TAXABLE INCOME THAT IS ATTRIBUTABLE TO
26 THE OPERATION OF A RAILROAD, TRUCK, BUS OR AIRLINE COMPANY,
27 PIPELINE OR NATURAL GAS COMPANY, WATER TRANSPORTATION COMPANY, A
28 CORPORATION THAT QUALIFIES AS A REGULATED INVESTMENT COMPANY
29 UNDER ARTICLE IV OF THE TAX REFORM CODE OF 1971 OR HOLDING
30 COMPANY AS DEFINED IN ARTICLE VI OF THE TAX REFORM CODE OF 1971
20020S1478B2438 - 40 -
1 SHALL NOT BE USED TO CALCULATE A CREDIT UNDER THIS SECTION.
2 SECTION 516. CAPITAL STOCK FRANCHISE TAX.
3 (A) CREDITS.--FOR TAX YEARS THAT BEGIN ON OR AFTER JANUARY
4 1, 1999, A CORPORATION THAT IS A QUALIFIED BUSINESS UNDER THIS
5 ACT MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY ARTICLE VI OF
6 THE TAX REFORM CODE OF 1971 FOR TAX LIABILITY ATTRIBUTABLE TO
7 THE CAPITAL EMPLOYED WITHIN THE SUBZONE IN THE TAXABLE YEAR. FOR
8 TAX YEARS THAT BEGIN ON OR AFTER JANUARY 1, 2001, A CORPORATION
9 THAT IS A QUALIFIED BUSINESS UNDER THIS ACT MAY CLAIM A CREDIT
10 AGAINST THE TAX IMPOSED BY ARTICLE VI OF THE TAX REFORM CODE OF
11 1971 FOR TAX LIABILITY ATTRIBUTABLE TO THE CAPITAL EMPLOYED
12 WITHIN THE EXPANSION SUBZONE IN THE TAXABLE YEAR. FOR TAX YEARS
13 THAT BEGIN ON OR AFTER JANUARY 1, 2004, A CORPORATION WHICH IS A
14 QUALIFIED BUSINESS UNDER THIS ACT MAY CLAIM A CREDIT AGAINST THE
15 TAX IMPOSED BY ARTICLE VI OF THE TAX REFORM CODE OF 1971 FOR TAX
16 LIABILITY ATTRIBUTABLE TO THE CAPITAL EMPLOYED WITHIN THE
17 IMPROVEMENT SUBZONE IN THE TAXABLE YEAR. NO CREDIT MAY BE
18 CLAIMED FOR CAPITAL EMPLOYED PRIOR TO DESIGNATION OF THE REAL
19 PROPERTY AS PART OF A SUBZONE OR EXPANSION SUBZONE. THE BUSINESS
20 ACTIVITY MUST BE CONDUCTED DIRECTLY BY A CORPORATION IN THE
21 SUBZONE OR EXPANSION SUBZONE IN ORDER FOR THE CORPORATION TO
22 CLAIM THE TAX CREDIT.
23 (B) TAX LIABILITY.--THE CORPORATION'S TAX LIABILITY
24 ATTRIBUTABLE TO CAPITAL EMPLOYED WITHIN A SUBZONE, IMPROVEMENT
25 SUBZONE OR EXPANSION SUBZONE SHALL BE DETERMINED BY MULTIPLYING
26 THE CORPORATION'S TAXABLE VALUE ATTRIBUTABLE TO CAPITAL EMPLOYED
27 WITHIN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE BY
28 THE RATE OF TAX IMPOSED UNDER ARTICLE VI OF THE TAX REFORM CODE
29 OF 1971 FOR THE TAXABLE YEAR. THE CORPORATION SHALL COMPUTE ITS
30 PENNSYLVANIA TAXABLE VALUE IN CONFORMITY WITH ARTICLE VI OF THE
20020S1478B2438 - 41 -
1 TAX REFORM CODE OF 1971 WITH NO ADJUSTMENTS OR SUBTRACTIONS FOR
2 THE CAPITAL EMPLOYED IN THE SUBZONE, IMPROVEMENT SUBZONE OR
3 EXPANSION SUBZONE.
4 (C) DETERMINATION OF ATTRIBUTABLE TAX LIABILITY.--THE
5 DETERMINATION OF THE CORPORATION'S TAXABLE VALUE ATTRIBUTABLE TO
6 THE CAPITAL EMPLOYED WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR
7 EXPANSION SUBZONE SHALL BE DETERMINED WITH SPECIFIC REFERENCE TO
8 THE FOLLOWING:
9 (1) IF THE ENTIRE BUSINESS OF THE CORPORATION IN THIS
10 COMMONWEALTH IS TRANSACTED WHOLLY WITHIN A SUBZONE,
11 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, THE TAXABLE VALUE
12 ATTRIBUTABLE TO THE CAPITAL EMPLOYED WITHIN A SUBZONE,
13 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL CONSIST OF THE
14 PENNSYLVANIA TAXABLE VALUE AS DETERMINED UNDER ARTICLE VI OF
15 THE TAX REFORM CODE OF 1971.
16 (2) IF THE ENTIRE BUSINESS OF THE CORPORATION IN THIS
17 COMMONWEALTH IS NOT WHOLLY TRANSACTED WITHIN A SUBZONE,
18 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, THE TAXABLE VALUE
19 OF A CORPORATION IN A SUBZONE, IMPROVEMENT SUBZONE OR
20 EXPANSION SUBZONE SHALL BE DETERMINED UPON SUCH PORTION OF
21 THE PENNSYLVANIA TAXABLE VALUE ATTRIBUTABLE TO THE CAPITAL
22 EMPLOYED WITHIN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
23 SUBZONE BY EMPLOYING THE APPORTIONMENT FACTORS SET FORTH IN
24 SECTION 515(D).
25 (E) LIMITATION ON AMOUNT OF CREDIT.--THE CREDIT ALLOWED
26 UNDER THIS SECTION SHALL NOT EXCEED THE TAX LIABILITY OF THE
27 TAXPAYER UNDER ARTICLE VI OF THE TAX REFORM CODE OF 1971 FOR THE
28 TAX YEAR.
29 (F) CREDIT NOT AVAILABLE.--ANY PORTION OF THE TAXPAYER'S TAX
30 LIABILITY THAT IS ATTRIBUTABLE TO THE CAPITAL EMPLOYED IN THE
20020S1478B2438 - 42 -
1 OPERATION OF A RAILROAD, TRUCK, BUS OR AIRLINE COMPANY, PIPELINE
2 OR NATURAL GAS COMPANY, WATER TRANSPORTATION COMPANY, A
3 CORPORATION THAT QUALIFIES AS A REGULATED INVESTMENT COMPANY
4 UNDER ARTICLE IV OF THE TAX REFORM CODE OF 1971 OR HOLDING
5 COMPANY AS DEFINED IN ARTICLE VI OF THE TAX REFORM CODE OF 1971
6 SHALL NOT BE USED TO CALCULATE A CREDIT UNDER THIS SECTION.
7 SECTION 517. BANK AND TRUST COMPANY SHARES TAX, ALTERNATIVE
8 BANK AND TRUST COMPANY SHARES TAX AND MUTUAL
9 THRIFT INSTITUTIONS TAX.
10 (A) CREDITS.--FOR TAX YEARS THAT BEGIN ON OR AFTER JANUARY
11 1, 2001, AN INSTITUTION THAT IS A QUALIFIED BUSINESS UNDER THIS
12 ACT MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY ARTICLE VII[,
13 VII-A] OR XV OF THE TAX REFORM CODE OF 1971 FOR TAX LIABILITY
14 ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN THE SUBZONE
15 OR EXPANSION SUBZONE IN THE TAXABLE YEAR. FOR TAX YEARS THAT
16 BEGIN ON OR AFTER JANUARY 1, 2004, AN INSTITUTION WHICH IS A
17 QUALIFIED BUSINESS UNDER THIS ACT MAY CLAIM A CREDIT AGAINST THE
18 TAX IMPOSED BY ARTICLE VII OR XV OF THE TAX REFORM CODE OF 1971
19 FOR TAX LIABILITY ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED
20 WITHIN AN IMPROVEMENT SUBZONE IN THE TAXABLE YEAR. NO CREDIT MAY
21 BE CLAIMED FOR BUSINESS ACTIVITY CONDUCTED PRIOR TO DESIGNATION
22 OF THE REAL PROPERTY AS PART OF A SUBZONE OR EXPANSION SUBZONE.
23 THE BUSINESS ACTIVITY MUST BE CONDUCTED DIRECTLY BY AN
24 INSTITUTION IN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
25 SUBZONE IN ORDER FOR THE INSTITUTION TO CLAIM THE TAX CREDIT.
26 (B) TAX LIABILITY.--THE INSTITUTION'S TAX LIABILITY
27 ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN A SUBZONE,
28 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL BE DETERMINED BY
29 MULTIPLYING THE TAXABLE AMOUNT OF ITS SHARES OR NET INCOME THAT
30 IS ATTRIBUTABLE TO BUSINESS ACTIVITY CONDUCTED WITHIN THE
20020S1478B2438 - 43 -
1 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE BY THE RATE OF
2 TAX IMPOSED UNDER ARTICLE VII[, VII-A] OR XV OF THE TAX REFORM
3 CODE OF 1971 FOR THE TAXABLE YEAR. THE INSTITUTION SHALL COMPUTE
4 THE PENNSYLVANIA TAXABLE AMOUNT OF ITS SHARES OR NET INCOME IN
5 CONFORMITY WITH ARTICLE VII[, VII-A] OR XV OF THE TAX REFORM
6 CODE OF 1971.
7 (C) DETERMINATION OF ATTRIBUTABLE TAXABLE LIABILITY.--THE
8 TAXABLE SHARES OR THE INCOME OF AN INSTITUTION THAT IS A
9 QUALIFIED BUSINESS SHALL BE APPORTIONED TO THE SUBZONE,
10 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE BY MULTIPLYING THE
11 PENNSYLVANIA TAXABLE SHARES OR INCOME BY A FRACTION, THE
12 NUMERATOR OF WHICH IS THE PAYROLL FACTOR PLUS THE RECEIPTS
13 FACTOR PLUS THE DEPOSITS FACTOR AND THE DENOMINATOR OF WHICH IS
14 THREE.
15 (1) THE PAYROLL FACTOR IS A FRACTION, THE NUMERATOR OF
16 WHICH IS THE TOTAL WAGES PAID IN A SUBZONE, IMPROVEMENT
17 SUBZONE OR EXPANSION SUBZONE DURING THE TAX PERIOD BY THE
18 TAXPAYER AND THE DENOMINATOR OF WHICH IS THE TOTAL WAGES PAID
19 IN THIS COMMONWEALTH DURING THE PERIOD. WAGES ARE PAID IN A
20 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE IF THEY ARE
21 PAID TO AN EMPLOYEE HAVING A REGULAR PRESENCE IN THE SUBZONE,
22 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE.
23 (2) THE RECEIPTS FACTOR IS A FRACTION, THE NUMERATOR OF
24 WHICH IS TOTAL RECEIPTS OF THE TAXPAYER IN A SUBZONE,
25 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE DURING THE TAX
26 PERIOD AND THE DENOMINATOR OF WHICH IS THE TOTAL RECEIPTS
27 LOCATED IN THIS COMMONWEALTH. RECEIPTS DO NOT INCLUDE
28 PRINCIPAL REPAYMENTS ON LOANS OR CREDIT, TRAVEL AND
29 ENTERTAINMENT CARDS. RECEIPTS FROM THE SALE OR DISPOSITION OF
30 INTANGIBLE AND TANGIBLE PROPERTY INCLUDE ONLY THE NET GAIN
20020S1478B2438 - 44 -
1 RECEIVED FROM THE SALE OR DISPOSITION. THE LOCATION OF
2 RECEIPTS SHALL BE DETERMINED AS FOLLOWS:
3 (I) RECEIPTS FROM LOANS PRIMARILY SECURED BY REAL
4 PROPERTY ARE LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR
5 EXPANSION SUBZONE IF THE PREDOMINANT PORTION OF THE REAL
6 PROPERTY IS LOCATED IN THE SUBZONE, IMPROVEMENT SUBZONE
7 OR EXPANSION SUBZONE AND THE APPLICATION AND NEGOTIATION
8 OR ADMINISTRATIVE RESPONSIBILITY OCCURS AT A QUALIFIED
9 BUSINESS.
10 (II) RECEIPTS FROM LOANS NOT PRIMARILY SECURED BY
11 REAL PROPERTY ARE LOCATED IN A SUBZONE, IMPROVEMENT
12 SUBZONE OR EXPANSION SUBZONE IF THE OBLIGOR, IN THE CASE
13 OF AN INDIVIDUAL, RESIDES IN A SUBZONE OR EXPANSION
14 SUBZONE OR, IN THE CASE OF A CORPORATION, IF THE
15 CORPORATION'S COMMERCIAL DOMICILE IS LOCATED IN A
16 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE AND THE
17 APPLICATION AND NEGOTIATION OR ADMINISTRATIVE
18 RESPONSIBILITY OCCURS AT A QUALIFIED BUSINESS.
19 (III) RECEIPTS FROM PERFORMANCE OF SERVICES ARE
20 LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
21 SUBZONE IF THE SERVICES ARE PERFORMED IN THE SUBZONE,
22 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE. IF SERVICES ARE
23 PERFORMED PARTLY WITHIN THE SUBZONE, IMPROVEMENT SUBZONE
24 OR EXPANSION SUBZONE AND PARTLY OUTSIDE THE SUBZONE,
25 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, THE SUBZONE,
26 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE RECEIPTS SHALL
27 BE THE RATIO THAT THE TIME SPENT IN PERFORMING THE
28 SERVICES IN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
29 SUBZONE BEARS TO THE TOTAL TIME SPENT IN PERFORMING THE
30 SERVICES IN THIS COMMONWEALTH. TIME SPENT IN PERFORMING
20020S1478B2438 - 45 -
1 SERVICES IN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
2 SUBZONE IS THE TIME SPENT BY EMPLOYEES HAVING A REGULAR
3 PRESENCE IN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
4 SUBZONE IN PERFORMING THE SERVICES.
5 (IV) RECEIPTS FROM LEASE TRANSACTIONS ARE LOCATED IN
6 A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE IF
7 THE LEASED PROPERTY IS LOCATED IN THE SUBZONE,
8 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE.
9 (V) RECEIPTS FROM INTEREST OR SERVICE CHARGES,
10 EXCLUDING MERCHANT DISCOUNTS, FROM CREDIT, TRAVEL AND
11 ENTERTAINMENT CARD RECEIVABLES AND CREDIT CARD HOLDERS'
12 FEES ARE LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR
13 EXPANSION SUBZONE IF THE CREDIT CARD HOLDER, IN THE CASE
14 OF AN INDIVIDUAL, RESIDES IN A SUBZONE, IMPROVEMENT
15 SUBZONE OR EXPANSION SUBZONE OR, IN THE CASE OF A
16 CORPORATION, IF THE CORPORATION'S COMMERCIAL DOMICILE IS
17 LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
18 SUBZONE.
19 (VI) RECEIPTS FROM INTEREST, DIVIDENDS AND NET GAINS
20 FROM THE SALE OR DISPOSITION OF INTANGIBLES, EXCLUSIVE OF
21 THOSE RECEIPTS DESCRIBED ELSEWHERE IN THIS PARAGRAPH, ARE
22 LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
23 SUBZONE IF THE INSTITUTION MAINTAINS A QUALIFIED BUSINESS
24 THAT TREATS SUCH INTANGIBLES AS ASSETS ON ITS BOOKS OR
25 RECORDS.
26 (VII) RECEIPTS FROM FEES OR CHARGES FROM THE
27 ISSUANCE OF TRAVELER'S CHECKS AND MONEY ORDERS ARE
28 LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
29 SUBZONE IF THE TRAVELER'S CHECKS OR MONEY ORDERS ARE
30 ISSUED IN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
20020S1478B2438 - 46 -
1 SUBZONE.
2 (VIII) RECEIPTS FROM SALES OF TANGIBLE PROPERTY ARE
3 LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
4 SUBZONE IF THE PROPERTY IS DELIVERED OR SHIPPED TO A
5 PURCHASER LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR
6 EXPANSION SUBZONE, REGARDLESS OF THE FREE ON BOARD POINT
7 OR OTHER CONDITIONS OF THE SALE.
8 (IX) RECEIPTS NOT SPECIFICALLY TREATED UNDER THIS
9 PARAGRAPH ARE LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE
10 OR EXPANSION SUBZONE IF THE GREATEST PORTION OF THE
11 INCOME-PRODUCING ACTIVITIES ARE PERFORMED IN THE SUBZONE,
12 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, BASED ON COSTS
13 OF PERFORMANCE.
14 (3) THE DEPOSITS FACTOR IS A FRACTION, THE NUMERATOR OF
15 WHICH IS THE AVERAGE VALUE OF DEPOSITS LOCATED IN A SUBZONE,
16 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE DURING THE TAXABLE
17 YEAR AND THE DENOMINATOR OF WHICH IS THE AVERAGE VALUE OF THE
18 TOTAL DEPOSITS IN THIS COMMONWEALTH DURING THE TAXABLE YEAR.
19 THE AVERAGE VALUE OF DEPOSITS IS TO BE COMPUTED ON A
20 QUARTERLY BASIS. DEPOSITS ARE LOCATED IN THE SUBZONE,
21 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE IF THE INSTITUTION
22 MAINTAINS A QUALIFIED BUSINESS THAT PROPERLY TREATS THE
23 DEPOSITS AS A LIABILITY ON ITS BOOKS OR RECORDS. A DEPOSIT IS
24 CONSIDERED TO BE PROPERLY TREATED AS A LIABILITY ON THE BOOKS
25 OR RECORDS OF A QUALIFIED BUSINESS IF:
26 (I) THE DEPOSIT ACCOUNT WAS OPENED OR TRANSFERRED TO
27 THE QUALIFIED BUSINESS BY OR AT THE DIRECTION OF THE
28 DEPOSITOR, REGARDLESS OF WHERE SUBSEQUENT DEPOSITS OR
29 WITHDRAWALS ARE MADE;
30 (II) THE EMPLOYEES REGULARLY CONNECTED WITH THE
20020S1478B2438 - 47 -
1 QUALIFIED BUSINESS ARE PRIMARILY RESPONSIBLE FOR
2 SERVICING THE DEPOSITOR'S GENERAL BANKING AND OTHER
3 FINANCIAL NEEDS; AND
4 (III) AT LEAST ONE OF THE FOLLOWING FACTORS OCCURS
5 AT THE QUALIFIED BUSINESS:
6 (A) THE DEPOSIT WAS SOLICITED BY AN EMPLOYEE
7 REGULARLY CONNECTED WITH THE QUALIFIED BUSINESS,
8 REGARDLESS OF WHERE THE DEPOSIT WAS ACTUALLY
9 SOLICITED.
10 (B) THE TERMS GOVERNING THE DEPOSIT WERE
11 NEGOTIATED BY EMPLOYEES REGULARLY CONNECTED WITH THE
12 QUALIFIED BUSINESS, REGARDLESS OF WHERE THE
13 NEGOTIATIONS WERE ACTUALLY CONDUCTED.
14 (C) THE ESSENTIAL RECORDS RELATING TO THE
15 DEPOSIT ARE PHYSICALLY LOCATED AT THE QUALIFIED
16 BUSINESS AND THE DEPOSIT IS SERVICED AT THE QUALIFIED
17 BUSINESS.
18 (D) LIMITATION ON AMOUNT OF CREDIT.--THE CREDIT ALLOWED
19 UNDER THIS SECTION SHALL NOT EXCEED 50% OF THE TAX LIABILITY OF
20 THE TAXPAYER UNDER ARTICLE VII[, VII-A] OR XV OF THE TAX REFORM
21 CODE OF 1971 FOR THE TAX YEAR.
22 SECTION 518. KEYSTONE OPPORTUNITY ZONE JOB TAX CREDIT, KEYSTONE
23 OPPORTUNITY IMPROVEMENT ZONE JOB TAX CREDIT OR
24 KEYSTONE OPPORTUNITY EXPANSION ZONE JOB TAX
25 CREDIT.
26 (A) CREDITS.--FOR TAX YEARS THAT BEGIN ON OR AFTER JANUARY
27 1, 2001, AN INSURANCE COMPANY THAT IS A QUALIFIED BUSINESS UNDER
28 THIS ACT MAY APPLY TO THE DEPARTMENT OF REVENUE FOR A JOB TAX
29 CREDIT AGAINST THE TAX IMPOSED BY ARTICLE IX OF THE TAX REFORM
30 CODE OF 1971 FOR ALL FULL-TIME JOBS WITHIN A SUBZONE OR
20020S1478B2438 - 48 -
1 EXPANSION SUBZONE IN THE TAXABLE YEAR. FOR TAX YEARS THAT BEGIN
2 ON OR AFTER JANUARY 1, 2004, AN INSURANCE COMPANY THAT IS A
3 QUALIFIED BUSINESS UNDER THIS ACT MAY APPLY TO THE DEPARTMENT OF
4 REVENUE FOR A JOB TAX CREDIT AGAINST THE TAX IMPOSED BY ARTICLE
5 IX OF THE TAX REFORM CODE OF 1971 FOR ALL FULL-TIME JOBS WITHIN
6 AN IMPROVEMENT SUBZONE IN THE TAXABLE YEAR. THE JOB MUST BE HELD
7 DIRECTLY WITH AN INSURANCE COMPANY IN THE SUBZONE, IMPROVEMENT
8 SUBZONE OR EXPANSION SUBZONE IN ORDER FOR THE INSURANCE COMPANY
9 TO APPLY FOR THE TAX CREDIT. THE DEPARTMENT OF REVENUE WILL
10 PRESCRIBE THE FORM AND MANNER TO OBTAIN THE CREDIT.
11 (B) SECTION NOT APPLICABLE TO CERTAIN INSURANCE COMPANIES.--
12 (1) AN INSURANCE COMPANY THAT RELOCATES FROM A LOCATION
13 IN A POLITICAL SUBDIVISION IN THIS COMMONWEALTH THAT IS NOT
14 IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE TO A
15 LOCATION IN A [KEYSTONE OPPORTUNITY ZONE OR KEYSTONE
16 OPPORTUNITY EXPANSION ZONE] SUBZONE, IMPROVEMENT SUBZONE OR
17 EXPANSION SUBZONE MAY NOT APPLY FOR A CREDIT FOR AN EXISTING
18 JOB THAT IS TRANSFERRED, DISCONTINUED OR LOST IN THIS
19 COMMONWEALTH WHICH IS ATTRIBUTABLE TO THE RELOCATION.
20 (2) AN INSURANCE COMPANY THAT HAS RELOCATED PURSUANT TO
21 PARAGRAPH (1) MAY APPLY FOR A KEYSTONE OPPORTUNITY ZONE JOB
22 TAX CREDIT, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB TAX
23 CREDIT OR KEYSTONE OPPORTUNITY EXPANSION ZONE JOB TAX CREDIT
24 FOR A NEW FULL-TIME JOB THAT IS CREATED IN THE SUBZONE,
25 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE. A NEW FULL-TIME JOB
26 IS CREATED WITH AN INSURANCE COMPANY IF THE AVERAGE MONTHLY
27 EMPLOYMENT FOR THAT INSURANCE COMPANY HAS INCREASED FROM THE
28 PRIOR 12-MONTH CALENDAR YEAR IN THE SUBZONE, IMPROVEMENT
29 SUBZONE OR EXPANSION SUBZONE.
30 (C) APPLICATION OF CREDIT.--AN INSURANCE COMPANY SHALL APPLY
20020S1478B2438 - 49 -
1 FOR A CREDIT BY JANUARY 15 FOR THE PREVIOUS CALENDAR YEAR.
2 (D) APPORTIONMENT.--THE DEPARTMENT OF REVENUE SHALL
3 APPORTION A KEYSTONE OPPORTUNITY ZONE JOB TAX CREDIT, KEYSTONE
4 OPPORTUNITY IMPROVEMENT ZONE JOB TAX CREDIT OR A KEYSTONE
5 OPPORTUNITY EXPANSION ZONE JOB TAX CREDIT FOR AN INSURANCE
6 COMPANY THAT IS A QUALIFIED BUSINESS THAT HAS NOT OPERATED IN A
7 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE FOR A FULL
8 FISCAL YEAR.
9 (E) CREDIT DETERMINATIONS.--THE KEYSTONE OPPORTUNITY ZONE
10 JOB TAX CREDIT, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB TAX
11 CREDIT OR KEYSTONE OPPORTUNITY EXPANSION ZONE JOB TAX CREDIT
12 SHALL BE DETERMINED BY MULTIPLYING THE MONTHLY AVERAGE OF ALL
13 FULL-TIME JOBS BY THE ALLOWANCE. THE ALLOWANCE FOR PURPOSES OF
14 THE KEYSTONE OPPORTUNITY ZONE JOB TAX CREDIT, KEYSTONE
15 OPPORTUNITY IMPROVEMENT ZONE JOB TAX CREDIT OR KEYSTONE
16 OPPORTUNITY EXPANSION ZONE JOB TAX CREDIT FOR TAXABLE YEARS
17 BEGINNING WITHIN THE DATES SET FORTH SHALL BE AS FOLLOWS:
18 JANUARY 1, 2001, TO
19 DECEMBER 31, 2001 $500 PER JOB
20 JANUARY 1, 2002, TO
21 DECEMBER 31, 2002 $750 PER JOB
22 JANUARY 1, 2003, TO
23 DECEMBER 31, 2003 $1,000 PER JOB
24 JANUARY 1, 2004, TO
25 DECEMBER 31, 2004 $1,250 PER JOB
26 JANUARY 1, 2005, TO
27 DECEMBER 31, 2005 $1,250 PER JOB
28 JANUARY 1, 2006, TO
29 DECEMBER 31, 2006 $1,250 PER JOB
30 JANUARY 1, 2007, TO
20020S1478B2438 - 50 -
1 DECEMBER 31, 2007 $1,250 PER JOB
2 JANUARY 1, 2008, TO
3 DECEMBER 31, 2008 $1,250 PER JOB
4 JANUARY 1, 2009, TO
5 DECEMBER 31, 2009 $1,250 PER JOB
6 JANUARY 1, 2010, TO
7 DECEMBER 31, 2010 $1,250 PER JOB
8 JANUARY 1, 2011, TO
9 DECEMBER 31, 2011 $1,250 PER JOB
10 JANUARY 1, 2012, TO
11 DECEMBER 31, 2012 $1,250 PER JOB
12 JANUARY 1, 2013, TO
13 DECEMBER 31, 2013 $1,250 PER JOB
14 JANUARY 1, 2014, TO
15 DECEMBER 31, 2014 $1,250 PER JOB
16 JANUARY 1, 2015, TO
17 DECEMBER 31, 2015 $1,250 PER JOB
18 JANUARY 1, 2016, TO
19 DECEMBER 31, 2016 $1,250 PER JOB
20 JANUARY 1, 2017, TO
21 DECEMBER 31, 2017 $1,250 PER JOB
22 JANUARY 1, 2018, TO
23 DECEMBER 31, 2018 $1,250 PER JOB
24 (F) NOTIFICATION OF CREDIT.--BY MARCH 15, THE DEPARTMENT OF
25 REVENUE SHALL NOTIFY AN INSURANCE COMPANY OF THE AMOUNT OF THE
26 INSURANCE COMPANY'S TAX CREDIT APPROVED.
27 (G) LIMITATION ON AMOUNT OF CREDIT.--THE TAX CREDIT ALLOWED
28 UNDER THIS SECTION3 SHALL NOT EXCEED 50% OF THE TAX LIABILITY OF
29 THE INSURANCE COMPANY UNDER ARTICLE IX OF THE TAX REFORM CODE OF
30 1971 FOR THE TAX YEAR. AN INSURANCE COMPANY MAY NOT CARRY BACK
20020S1478B2438 - 51 -
1 OR FORWARD ANY CREDIT RECEIVED UNDER THIS SECTION.
2 (H) ALLOCATION.--THE TOTAL AMOUNT OF CREDITS APPROVED BY THE
3 DEPARTMENT OF REVENUE UNDER THIS SECTION SHALL NOT EXCEED
4 $1,000,000 ANNUALLY. IF THE CREDITS EXCEED THE $1,000,000 CAP IN
5 A GIVEN YEAR, THE CREDITS WILL BE ALLOCATED ON A PRO RATA BASIS.
6 (I) CALCULATION OF ALLOCATION.--IF THE TOTAL AMOUNT OF
7 KEYSTONE OPPORTUNITY ZONE JOB TAX CREDITS, KEYSTONE OPPORTUNITY
8 IMPROVEMENT ZONE JOB TAX CREDIT AND KEYSTONE OPPORTUNITY
9 EXPANSION ZONE JOB TAX CREDITS APPLIED FOR BY ALL INSURANCE
10 COMPANIES UNDER THIS SECTION EXCEEDS $1,000,000, THEN THE CREDIT
11 TO BE RECEIVED BY EACH INSURANCE COMPANY SHALL BE THE PRODUCT OF
12 $1,000,000 MULTIPLIED BY THE QUOTIENT OF THE CREDIT APPLIED FOR
13 BY THE INSURANCE COMPANY DIVIDED BY THE TOTAL OF ALL CREDITS
14 APPLIED FOR BY ALL INSURANCE COMPANIES, THE ALGEBRAIC EQUIVALENT
15 OF WHICH IS:
16 INSURANCE COMPANY'S KEYSTONE OPPORTUNITY ZONE JOB TAX
17 CREDIT, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB TAX
18 CREDIT OR KEYSTONE OPPORTUNITY EXPANSION ZONE JOB TAX
19 CREDIT = $1,000,000 X (THE AMOUNT OF KEYSTONE OPPORTUNITY
20 ZONE JOB TAX CREDIT, KEYSTONE OPPORTUNITY IMPROVEMENT
21 ZONE JOB TAX CREDIT OR KEYSTONE OPPORTUNITY EXPANSION
22 ZONE JOB TAX CREDIT APPLIED FOR BY THE INSURANCE
23 COMPANY/THE SUM OF ALL KEYSTONE OPPORTUNITY ZONE JOB TAX
24 CREDITS, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB TAX
25 CREDIT AND KEYSTONE OPPORTUNITY EXPANSION ZONE JOB TAX
26 CREDITS APPLIED FOR BY ALL INSURANCE COMPANIES).
27 (J) PARTNERSHIP ARRANGEMENTS.--THE JOBS TAX CREDIT PROVIDED
28 FOR UNDER THIS SECTION MAY BE ALLOCATED TO AN INSURANCE COMPANY
29 THAT IS A PARTNER IN SUCH PARTNERSHIP THAT IS ALSO A QUALIFIED
30 BUSINESS IN PROPORTION TO THE FULL-TIME JOBS WITHIN A SUBZONE,
20020S1478B2438 - 52 -
1 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE THAT ARE PROVIDED TO
2 SUCH INSURANCE COMPANY BY THE PARTNERSHIP. HOWEVER, A
3 PARTNERSHIP AND A PARTNER OF THAT PARTNERSHIP MAY NOT CLAIM ANY
4 OTHER TAX BENEFIT, EXPENSE OR CREDIT FOR THE SAME KEYSTONE
5 OPPORTUNITY ZONE JOB TAX CREDIT, KEYSTONE OPPORTUNITY
6 IMPROVEMENT ZONE JOB TAX CREDIT OR KEYSTONE OPPORTUNITY
7 EXPANSION ZONE JOB TAX CREDIT.
8 (K) RELIEF FROM ADDITIONAL RETALIATORY TAX.--THE TAX CREDIT
9 TAKEN BY AN INSURANCE COMPANY UNDER THIS SECTION SHALL NOT BE
10 INCLUDED IN DETERMINING LIABILITY FOR RETALIATORY TAXES IMPOSED
11 UNDER SECTION 212 OF THE ACT OF MAY 17, 1921 (P.L.789, NO.285),
12 KNOWN AS THE INSURANCE DEPARTMENT ACT OF 1921.
13 (L) HOLD-HARMLESS CLAUSE.--THE TAX CREDITS ALLOWED BY THIS
14 SECTION SHALL NOT REDUCE THE AMOUNTS WHICH WOULD OTHERWISE BE
15 PAYABLE FOR FIREMEN'S RELIEF PENSION OR RETIREMENT PURPOSES OR
16 FOR POLICE PENSION RETIREMENT OR DISABILITY PURPOSES. THE
17 DEPARTMENT OF REVENUE SHALL TRANSFER BY JUNE 30 OF EACH FISCAL
18 YEAR AN AMOUNT EQUAL TO THE TAX CREDITS TAKEN UNDER THIS SECTION
19 BY FOREIGN FIRE AND CASUALTY INSURANCE COMPANIES FROM THE
20 GENERAL FUND TO THE MUNICIPAL PENSION AID FUND AND THE FIRE
21 INSURANCE TAX FUND, AS APPROPRIATE.
22 SECTION 519. KEYSTONE OPPORTUNITY ZONE JOB CREATION TAX CREDIT,
23 KEYSTONE OPPORTUNITY IMPROVEMENT ZONE
24 JOB CREATION TAX CREDIT OR KEYSTONE OPPORTUNITY
25 EXPANSION ZONE JOB CREATION TAX CREDIT.
26 (A) CREDITS.--FOR TAX YEARS THAT BEGIN ON OR AFTER JANUARY
27 1, 2001, A RAILROAD, TRUCK, BUS OR AIRLINE COMPANY, PIPELINE OR
28 NATURAL GAS COMPANY OR WATER TRANSPORTATION COMPANY THAT IS
29 REQUIRED TO APPORTION INCOME IN ACCORDANCE WITH SECTION
30 401(3)2(B), (C) OR (D) OF THE TAX REFORM CODE OF 1971 AND IS A
20020S1478B2438 - 53 -
1 QUALIFIED BUSINESS UNDER THIS ACT MAY APPLY TO THE DEPARTMENT OF
2 REVENUE FOR A KEYSTONE OPPORTUNITY ZONE JOB CREATION TAX CREDIT
3 OR KEYSTONE OPPORTUNITY EXPANSION ZONE JOB CREATION TAX CREDIT
4 AGAINST THE TAX IMPOSED BY ARTICLE III, IV OR VI OF THE TAX
5 REFORM CODE OF 1971. FOR TAX YEARS THAT BEGIN ON OR AFTER
6 JANUARY 1, 2004, A RAILROAD, TRUCK, BUS OR AIRLINE COMPANY,
7 PIPELINE OR NATURAL GAS COMPANY OR WATER TRANSPORTATION COMPANY
8 THAT IS REQUIRED TO APPORTION INCOME IN ACCORDANCE WITH SECTION
9 401(3)2(B), (C) OR (D) OF THE TAX REFORM CODE OF 1971 AND IS A
10 QUALIFIED BUSINESS UNDER THIS ACT MAY APPLY TO THE DEPARTMENT OF
11 REVENUE FOR A KEYSTONE OPPORTUNITY ZONE IMPROVEMENT JOB CREATION
12 TAX CREDIT AGAINST THE TAX IMPOSED BY ARTICLE III, IV OR VI OF
13 THE TAX REFORM CODE OF 1971. THE CREDIT SHALL BE FOR ALL FULL-
14 TIME JOBS CREATED WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR
15 EXPANSION SUBZONE IN THE TAXABLE YEAR. THE JOB MUST BE HELD
16 DIRECTLY WITH THE QUALIFIED BUSINESS IN THE SUBZONE, IMPROVEMENT
17 SUBZONE OR EXPANSION SUBZONE IN ORDER FOR THE QUALIFIED BUSINESS
18 TO APPLY FOR THE TAX CREDIT. THE DEPARTMENT OF REVENUE SHALL
19 PRESCRIBE THE FORM AND MANNER TO OBTAIN THE CREDIT.
20 (B) SECTION NOT APPLICABLE TO CERTAIN BUSINESSES OR
21 QUALIFIED BUSINESSES.--
22 (1) A BUSINESS THAT RELOCATES FROM A LOCATION IN A
23 POLITICAL SUBDIVISION IN THIS COMMONWEALTH THAT IS NOT IN A
24 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE TO A
25 LOCATION IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
26 SUBZONE MAY NOT APPLY FOR A CREDIT FOR AN EXISTING JOB THAT
27 IS TRANSFERRED, DISCONTINUED OR LOST IN THIS COMMONWEALTH
28 WHICH IS ATTRIBUTABLE TO THE RELOCATION.
29 (2) A BUSINESS THAT HAS RELOCATED PURSUANT TO PARAGRAPH
30 (1) AND BECOMES A QUALIFIED BUSINESS MAY APPLY FOR A KEYSTONE
20020S1478B2438 - 54 -
1 OPPORTUNITY ZONE JOB CREATION TAX CREDIT, KEYSTONE
2 OPPORTUNITY IMPROVEMENT ZONE JOB CREATION TAX CREDIT OR
3 KEYSTONE OPPORTUNITY EXPANSION ZONE JOB CREATION TAX CREDIT
4 FOR A NEW FULL-TIME JOB THAT IS CREATED IN THE SUBZONE,
5 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE. A NEW FULL-TIME JOB
6 IS CREATED WITH A QUALIFIED BUSINESS IF THE AVERAGE MONTHLY
7 EMPLOYMENT FOR THAT QUALIFIED BUSINESS HAS INCREASED FROM THE
8 PRIOR 12-MONTH CALENDAR YEAR IN THE ZONE.
9 (C) APPLICATION OF CREDIT.--A QUALIFIED BUSINESS SHALL APPLY
10 FOR A CREDIT UNDER THIS SECTION BY JANUARY 15 FOR THE PREVIOUS
11 CALENDAR YEAR.
12 (D) APPORTIONMENT.--THE DEPARTMENT OF REVENUE SHALL
13 APPORTION A KEYSTONE OPPORTUNITY ZONE JOB CREATION TAX CREDIT,
14 KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB CREATION TAX CREDIT OR
15 A KEYSTONE OPPORTUNITY EXPANSION ZONE JOB CREATION TAX CREDIT
16 FOR A BUSINESS THAT IS A QUALIFIED BUSINESS THAT HAS NOT
17 OPERATED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
18 FOR A FULL FISCAL YEAR.
19 (E) CREDIT DETERMINATIONS.--THE KEYSTONE OPPORTUNITY ZONE
20 JOB CREATION TAX CREDIT, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE
21 JOB CREATION TAX CREDIT OR KEYSTONE OPPORTUNITY EXPANSION ZONE
22 JOB CREATION TAX CREDIT SHALL BE DETERMINED BY MULTIPLYING THE
23 MONTHLY AVERAGE OF ALL FULL-TIME JOBS BY THE ALLOWANCE. THE
24 ALLOWANCE FOR PURPOSES OF THE KEYSTONE OPPORTUNITY ZONE JOB
25 CREATION TAX CREDIT, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB
26 CREATION TAX CREDIT OR KEYSTONE OPPORTUNITY EXPANSION ZONE
27 CREATION JOB TAX CREDIT FOR TAXABLE YEARS BEGINNING WITHIN THE
28 DATES SET FORTH SHALL BE AS FOLLOWS:
29 JANUARY 1, 2001, TO
30 DECEMBER 31, 2001 $500 PER JOB
20020S1478B2438 - 55 -
1 JANUARY 1, 2002, TO
2 DECEMBER 31, 2002 $750 PER JOB
3 JANUARY 1, 2003, TO
4 DECEMBER 31, 2003 $1,000 PER JOB
5 JANUARY 1, 2004, TO
6 DECEMBER 31, 2004 $1,250 PER JOB
7 JANUARY 1, 2005, TO
8 DECEMBER 31, 2005 $1,250 PER JOB
9 JANUARY 1, 2006, TO
10 DECEMBER 31, 2006 $1,250 PER JOB
11 JANUARY 1, 2007, TO
12 DECEMBER 31, 2007 $1,250 PER JOB
13 JANUARY 1, 2008, TO
14 DECEMBER 31, 2008 $1,250 PER JOB
15 JANUARY 1, 2009, TO
16 DECEMBER 31, 2009 $1,250 PER JOB
17 JANUARY 1, 2010, TO
18 DECEMBER 31, 2010 $1,250 PER JOB
19 JANUARY 1, 2011, TO
20 DECEMBER 31, 2011 $1,250 PER JOB
21 JANUARY 1, 2012, TO
22 DECEMBER 31, 2012 $1,250 PER JOB
23 JANUARY 1, 2013, TO
24 DECEMBER 31, 2013 $1,250 PER JOB
25 JANUARY 1, 2014, TO
26 DECEMBER 31, 2014 $1,250 PER JOB
27 JANUARY 1, 2015, TO
28 DECEMBER 31, 2015 $1,250 PER JOB
29 JANUARY 1, 2016, TO
30 DECEMBER 31, 2016 $1,250 PER JOB
20020S1478B2438 - 56 -
1 JANUARY 1, 2017, TO
2 DECEMBER 31, 2017 $1,250 PER JOB
3 JANUARY 1, 2018, TO
4 DECEMBER 31, 2018 $1,250 PER JOB
5 (F) NOTIFICATION OF CREDIT.--BY MARCH 15, THE DEPARTMENT OF
6 REVENUE SHALL NOTIFY THE QUALIFIED BUSINESS OF THE AMOUNT OF THE
7 QUALIFIED BUSINESS'S JOB CREATION TAX CREDIT APPROVED.
8 (G) LIMITATION ON AMOUNT OF CREDIT.--THE TAX CREDIT ALLOWED
9 UNDER THIS SECTION SHALL ONLY BE USED TO OFFSET A TAX LIABILITY
10 INCURRED FROM SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
11 ACTIVITIES AND SHALL NOT EXCEED 50% OF THE TAX LIABILITY OF A
12 QUALIFIED BUSINESS OR PERSON UNDER ARTICLE III, IV OR VI OF THE
13 TAX REFORM CODE OF 1971 FOR THE TAX YEAR. THE JOB CREATION TAX
14 CREDIT MAY NOT CARRY BACK OR FORWARD TO ANY OTHER YEAR.
15 (H) ALLOCATION.--THE TOTAL AMOUNT OF CREDITS APPROVED BY THE
16 DEPARTMENT OF REVENUE UNDER THIS SECTION SHALL NOT EXCEED
17 $1,000,000 ANNUALLY. IF THE CREDITS EXCEED THE $1,000,000 CAP IN
18 A GIVEN YEAR, THE CREDITS WILL BE ALLOCATED ON A PRO RATA BASIS.
19 (I) CALCULATION OF ALLOCATION.--IF THE TOTAL AMOUNT OF
20 KEYSTONE OPPORTUNITY ZONE JOB CREATION TAX CREDITS, KEYSTONE
21 OPPORTUNITY IMPROVEMENT ZONE JOB CREATION TAX CREDIT AND
22 KEYSTONE OPPORTUNITY EXPANSION ZONE JOB CREATION TAX CREDITS
23 APPLIED FOR BY ALL QUALIFIED BUSINESSES UNDER THIS SECTION
24 EXCEEDS $1,000,000, THEN THE CREDIT TO BE RECEIVED BY EACH
25 QUALIFIED BUSINESS SHALL BE THE PRODUCT OF $1,000,000 MULTIPLIED
26 BY THE QUOTIENT OF THE CREDIT APPLIED FOR BY THE QUALIFIED
27 BUSINESS DIVIDED BY THE TOTAL OF ALL CREDITS APPLIED FOR BY ALL
28 QUALIFIED BUSINESSES, THE ALGEBRAIC EQUIVALENT OF WHICH IS:
29 QUALIFIED BUSINESS KEYSTONE OPPORTUNITY ZONE JOB CREATION
30 TAX, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB CREATION
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1 TAX CREDIT OR KEYSTONE OPPORTUNITY EXPANSION ZONE JOB
2 CREATION TAX CREDIT = $1,000,000 X (THE AMOUNT OF
3 KEYSTONE OPPORTUNITY ZONE JOB CREATION TAX, KEYSTONE
4 OPPORTUNITY IMPROVEMENT ZONE JOB CREATION TAX CREDIT OR
5 KEYSTONE OPPORTUNITY EXPANSION ZONE JOB CREATION TAX
6 CREDIT APPLIED FOR BY THE QUALIFIED BUSINESS/THE SUM OF
7 ALL KEYSTONE OPPORTUNITY ZONE JOB CREATION TAX CREDITS,
8 KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB CREATION TAX
9 CREDITS AND KEYSTONE OPPORTUNITY EXPANSION ZONE JOB
10 CREATION TAX CREDITS APPLIED FOR BY ALL QUALIFIED
11 BUSINESSES).
12 (J) PASS-THROUGH ENTITIES.--THE KEYSTONE OPPORTUNITY ZONE
13 JOB CREATION TAX, KEYSTONE OPPORTUNITY IMPROVEMENT ZONE JOB
14 CREATION TAX CREDIT AND KEYSTONE OPPORTUNITY EXPANSION ZONE JOB
15 CREATION TAX CREDIT PROVIDED FOR IN THIS SECTION SHALL APPLY TO
16 THE FOLLOWING:
17 (1) A PARTNER OR MEMBER OF A PARTNERSHIP OR ASSOCIATION
18 THAT QUALIFIES UNDER THIS SECTION SHALL BE ENTITLED TO A JOB
19 CREATION TAX CREDIT IN PROPORTION TO THE PARTNER'S OR
20 MEMBER'S SHARE, WHETHER OR NOT DISTRIBUTED, OF THE INCOME OR
21 GAIN RECEIVED BY THE PARTNERSHIP OR ASSOCIATION FOR ITS
22 TAXABLE YEAR.
23 (2) A SHAREHOLDER OF A PENNSYLVANIA S CORPORATION THAT
24 QUALIFIES UNDER THIS SECTION SHALL BE ENTITLED TO A JOB
25 CREATION TAX CREDIT IN PROPORTION TO THE SHAREHOLDER'S PRO
26 RATA SHARE, WHETHER OR NOT DISTRIBUTED, OF THE INCOME OR GAIN
27 RECEIVED BY THE CORPORATION FOR ITS TAXABLE YEAR ENDING
28 WITHIN OR WITH THE SHAREHOLDER'S TAXABLE YEAR.
29 (3) NO PARTNERSHIP, ASSOCIATION OR PENNSYLVANIA S
30 CORPORATION, OR PARTNER, MEMBER OR SHAREHOLDER, MAY CLAIM ANY
20020S1478B2438 - 58 -
1 OTHER TAX BENEFIT, EXPENSE OR CREDIT FOR THE SAME KEYSTONE
2 OPPORTUNITY ZONE JOB CREATION TAX CREDIT, KEYSTONE
3 OPPORTUNITY IMPROVEMENT ZONE JOB CREATION TAX CREDIT OR
4 KEYSTONE OPPORTUNITY EXPANSION ZONE JOB CREATION TAX CREDIT.
5 SECTION 701. LOCAL TAXES.
6 (A) GENERAL RULE.--EVERY POLITICAL SUBDIVISION IN WHICH A
7 DESIGNATED SUBZONE IS LOCATED SHALL EXEMPT, DEDUCT, ABATE OR
8 CREDIT LOCAL TAXES IN ACCORDANCE WITH ORDINANCES AND RESOLUTIONS
9 ADOPTED UNDER SECTION 301(D) OR (F), AS IS APPLICABLE. FAILURE
10 TO EXEMPT, DEDUCT, ABATE OR CREDIT LOCAL TAXES SHALL RESULT IN
11 THE REVOCATION OF THE SUBZONE DESIGNATION.
12 (B) EXPANSION RULE.--EVERY POLITICAL SUBDIVISION IN WHICH A
13 DESIGNATED EXPANSION SUBZONE IS LOCATED SHALL EXEMPT, DEDUCT,
14 ABATE OR CREDIT LOCAL TAXES IN ACCORDANCE WITH ORDINANCES AND
15 RESOLUTIONS ADOPTED UNDER SECTION 301.1(D) OR (E), AS IS
16 APPLICABLE. FAILURE TO EXEMPT, DEDUCT, ABATE OR CREDIT LOCAL
17 TAXES SHALL RESULT IN THE REVOCATION OF THE EXPANSION SUBZONE
18 DESIGNATION.
19 (C) IMPROVEMENT RULE.--EVERY POLITICAL SUBDIVISION IN WHICH
20 A DESIGNATED IMPROVEMENT SUBZONE IS LOCATED SHALL EXEMPT,
21 DEDUCT, ABATE OR CREDIT LOCAL TAXES IN ACCORDANCE WITH
22 ORDINANCES AND RESOLUTIONS ADOPTED UNDER SECTION 301.2(D).
23 FAILURE TO EXEMPT, DEDUCT, ABATE OR CREDIT LOCAL TAXES SHALL
24 RESULT IN THE REVOCATION OF THE IMPROVEMENT SUBZONE DESIGNATION.
25 SECTION 702. REAL PROPERTY TAX.
26 (A) GENERAL RULE.--NOTWITHSTANDING THE ACT OF MAY 22, 1933
27 (P.L.853, NO.155), KNOWN AS THE GENERAL COUNTY ASSESSMENT LAW,
28 AND THE ACT OF MAY 21, 1943 (P.L.571, NO.254), KNOWN AS THE
29 FOURTH TO EIGHTH CLASS COUNTY ASSESSMENT LAW, EACH QUALIFIED
30 POLITICAL SUBDIVISION FOR TAXABLE YEARS BEGINNING ON OR AFTER
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1 JANUARY 1, 1999, SHALL BY ORDINANCE OR RESOLUTION ABATE 100% OF
2 THE REAL PROPERTY TAXATION ON THE ASSESSED VALUATION OF
3 DETERIORATED PROPERTY IN AN AREA DESIGNATED AS A SUBZONE WITHIN
4 THIS COMMONWEALTH. THE REAL PROPERTY TAX ABATEMENT PROVIDED FOR
5 IN THIS SECTION SHALL APPLY TO ALL REAL PROPERTY LOCATED IN A
6 SUBZONE, IRRESPECTIVE OF THE BUSINESS ACTIVITY, IF ANY, MADE OF
7 THE REALTY BY ITS OWNER, WHEN THIS ACT IS IN EFFECT. NO
8 ABATEMENT MAY BE PROVIDED TO DETERIORATED PROPERTY PRIOR TO
9 DESIGNATION OF THE DETERIORATED PROPERTY AS PART OF A SUBZONE.
10 (A.1) EXPANSION RULE.--NOTWITHSTANDING THE GENERAL COUNTY
11 ASSESSMENT LAW AND THE FOURTH TO EIGHTH CLASS COUNTY ASSESSMENT
12 LAW, EACH POLITICAL SUBDIVISION FOR TAXABLE YEARS BEGINNING ON
13 OR AFTER JANUARY 1, 2001, SHALL BY ORDINANCE OR RESOLUTION ABATE
14 100% OF THE REAL PROPERTY TAXATION ON THE ASSESSED VALUATION OF
15 DETERIORATED PROPERTY IN AN AREA DESIGNATED AS AN EXPANSION
16 SUBZONE WITHIN THIS COMMONWEALTH. THE REAL PROPERTY TAX
17 ABATEMENT PROVIDED FOR IN THIS SECTION SHALL APPLY TO ALL REAL
18 PROPERTY LOCATED IN AN EXPANSION SUBZONE, IRRESPECTIVE OF THE
19 BUSINESS ACTIVITY, IF ANY, MADE OF THE REALTY BY ITS OWNER, WHEN
20 THIS ACT IS IN EFFECT. NO ABATEMENT MAY BE PROVIDED TO
21 DETERIORATED PROPERTY PRIOR TO DESIGNATION OF THE DETERIORATED
22 PROPERTY AS PART OF AN EXPANSION SUBZONE.
23 (A.2) IMPROVEMENT RULE.--NOTWITHSTANDING THE GENERAL COUNTY
24 ASSESSMENT LAW, AND THE FOURTH TO EIGHTH CLASS COUNTY ASSESSMENT
25 LAW, EACH POLITICAL SUBDIVISION, FOR TAXABLE YEARS BEGINNING
26 AFTER DECEMBER 31, 2003, SHALL BY ORDINANCE OR RESOLUTION ABATE
27 100% OF THE REAL PROPERTY TAXATION ON THE ASSESSED VALUATION OF
28 DETERIORATED PROPERTY IN AN AREA DESIGNATED AS AN IMPROVEMENT
29 SUBZONE. THE REAL PROPERTY TAX ABATEMENT PROVIDED FOR IN THIS
30 SECTION SHALL APPLY TO ALL REAL PROPERTY LOCATED IN AN
20020S1478B2438 - 60 -
1 IMPROVEMENT SUBZONE, IRRESPECTIVE OF THE BUSINESS ACTIVITY MADE
2 OF THE REALTY BY ITS OWNER, WHEN THIS ACT IS IN EFFECT. NO
3 ABATEMENT MAY BE PROVIDED TO DETERIORATED PROPERTY PRIOR TO
4 DESIGNATION OF THE DETERIORATED PROPERTY AS PART OF AN
5 IMPROVEMENT SUBZONE.
6 (B) INVESTMENT IN LIEU OF TAX PAYMENT.--
7 (1) A QUALIFIED POLITICAL SUBDIVISION MAY REQUIRE A
8 RESIDENT OF DETERIORATED REAL PROPERTY TO INVEST UP TO 25% OF
9 ALL REAL PROPERTY TAXES WHICH WOULD HAVE BEEN DUE IF THE REAL
10 PROPERTY WAS NOT LOCATED IN A SUBZONE, IMPROVEMENT SUBZONE OR
11 EXPANSION SUBZONE IN IMPROVEMENTS TO THE REAL PROPERTY IN
12 ORDER FOR THE RESIDENTS TO BE QUALIFIED FOR EXEMPTIONS,
13 CREDITS AND ABATEMENTS UNDER THIS ACT.
14 (2) A QUALIFIED POLITICAL SUBDIVISION MAY REQUIRE A
15 NONRESIDENT OWNER OF DETERIORATED REAL PROPERTY WHO LEASES
16 THE REAL PROPERTY TO A PERSON FOR RESIDENTIAL USE TO INVEST
17 50% OF ALL REAL PROPERTY TAXES WHICH WOULD HAVE BEEN DUE IF
18 THE REAL PROPERTY WAS NOT LOCATED IN A SUBZONE, IMPROVEMENT
19 SUBZONE OR EXPANSION SUBZONE IN IMPROVEMENTS TO THE REAL
20 PROPERTY.
21 (D) ANNUAL REAL PROPERTY REPORT.--BY JANUARY 31 OF EACH
22 CALENDAR YEAR, A POLITICAL SUBDIVISION IN WHICH A SUBZONE,
23 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE IS LOCATED SHALL SUBMIT
24 TO THE DEPARTMENT A REPORT LISTING THE ADDRESS OF EACH REAL
25 PROPERTY DESIGNATED A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
26 SUBZONE AND ITS OWNER OF RECORD.
27 (E) INTEREST AND PENALTIES.--IF THE DEPARTMENT OR A
28 POLITICAL SUBDIVISION FINDS THAT A PERSON CLAIMED AN ABATEMENT
29 OF REAL PROPERTY TAX TO WHICH THE PERSON WAS NOT ENTITLED UNDER
30 THIS ACT, THE PERSON SHALL BE LIABLE FOR THE ABATED TAXES AND
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1 SUBJECT TO THE APPLICABLE INTEREST AND PENALTY PROVISIONS
2 PROVIDED BY LAW.
3 (F) CALCULATIONS FOR EDUCATION SUBSIDY FOR SCHOOL
4 DISTRICTS.--IN DETERMINING THE MARKET VALUE OF REAL PROPERTY IN
5 EACH SCHOOL DISTRICT, THE STATE TAX EQUALIZATION BOARD SHALL
6 EXCLUDE ANY INCREASE IN VALUE ABOVE THE BASE VALUE PRIOR TO THE
7 EFFECT OF THE ABATEMENT OF LOCAL TAXES TO THE EXTENT AND DURING
8 THE PERIOD OF TIME THAT REAL ESTATE TAX REVENUES ATTRIBUTABLE TO
9 SUCH INCREASED VALUE ARE NOT AVAILABLE TO THE SCHOOL DISTRICT
10 FOR GENERAL SCHOOL DISTRICT PURPOSES.
11 SECTION 703. LOCAL EARNED INCOME AND NET PROFITS TAXES;
12 BUSINESS PRIVILEGE TAXES.
13 (A) GENERAL EXEMPTION.--IF A POLITICAL SUBDIVISION HAS
14 ENACTED ANY TAX ON THE PRIVILEGE OF ENGAGING IN ANY BUSINESS OR
15 PROFESSION, MEASURED BY GROSS RECEIPTS OR ON A FLAT RATE BASIS,
16 EARNED INCOME OR NET PROFITS, AS DEFINED IN THE ACT OF DECEMBER
17 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING
18 ACT, IMPOSED WITHIN THE BOUNDARIES OF A SUBZONE, IMPROVEMENT
19 SUBZONE OR EXPANSION SUBZONE, THE QUALIFIED POLITICAL
20 SUBDIVISION SHALL EXEMPT FROM THE IMPOSITION OR OPERATION OF THE
21 LOCAL TAX ORDINANCES, STATUTES, REGULATIONS OR OTHERWISE:
22 (1) THE BUSINESS GROSS RECEIPTS FOR OPERATIONS CONDUCTED
23 BY A QUALIFIED BUSINESS WITHIN A SUBZONE, IMPROVEMENT SUBZONE
24 OR EXPANSION SUBZONE.
25 (2) THE EARNED INCOME RECEIVED BY A RESIDENT OF A
26 SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE.
27 (3) THE NET PROFITS OF A QUALIFIED BUSINESS ATTRIBUTABLE
28 TO BUSINESS ACTIVITY CONDUCTED WITHIN A SUBZONE, IMPROVEMENT
29 SUBZONE OR EXPANSION SUBZONE WHEN IMPOSED BY THE QUALIFIED
30 POLITICAL SUBDIVISION WHERE THAT QUALIFIED BUSINESS IS
20020S1478B2438 - 62 -
1 LOCATED.
2 NO EXEMPTION MAY BE GRANTED FOR OPERATIONS CONDUCTED, FOR EARNED
3 INCOME RECEIVED OR FOR ACTIVITIES CONDUCTED PRIOR TO DESIGNATION
4 OF THE REAL PROPERTY AS PART OF A SUBZONE OR EXPANSION SUBZONE.
5 (B) ADDITIONAL EXEMPTIONS.--
6 (1) PARAGRAPH (2) SHALL APPLY IF A QUALIFIED POLITICAL
7 SUBDIVISION HAS ENACTED A TAX ON THE PRIVILEGE OF ENGAGING IN
8 A PROFESSION OR BUSINESS, ON WAGES OR COMPENSATION, ON NET
9 PROFITS FROM THE OPERATION OF A BUSINESS OR PROFESSION OR
10 OTHER ACTIVITY OR ON THE OCCUPANCY OR USE OF REAL PROPERTY
11 PURSUANT TO ANY OF THE FOLLOWING:
12 (I) THE ACT OF AUGUST 5, 1932 (SP.SESS. P.L.45,
13 NO.45), REFERRED TO AS THE STERLING ACT.
14 (II) THE ACT OF MARCH 10, 1949 (P.L.30, NO.14),
15 KNOWN AS THE PUBLIC SCHOOL CODE OF 1949.
16 (III) THE ACT OF AUGUST 24, 1961 (P.L.1135, NO.508),
17 REFERRED TO AS THE FIRST CLASS A SCHOOL DISTRICT EARNED
18 INCOME TAX ACT.
19 (IV) THE ACT OF AUGUST 9, 1963 (P.L.640, NO.338),
20 ENTITLED "AN ACT EMPOWERING CITIES OF THE FIRST CLASS,
21 COTERMINOUS WITH SCHOOL DISTRICTS OF THE FIRST CLASS, TO
22 AUTHORIZE THE BOARDS OF PUBLIC EDUCATION OF SUCH SCHOOL
23 DISTRICTS TO IMPOSE CERTAIN ADDITIONAL TAXES FOR SCHOOL
24 DISTRICT PURPOSES, AND PROVIDING FOR THE LEVY, ASSESSMENT
25 AND COLLECTION OF SUCH TAXES.
26 (V) THE ACT OF MAY 30, 1984 (P.L.345, NO.69), KNOWN
27 AS THE FIRST CLASS CITY BUSINESS TAX REFORM ACT.
28 (VI) THE ACT OF JUNE 5, 1991 (P.L.9, NO.6), KNOWN AS
29 THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY
30 ACT FOR CITIES OF THE FIRST CLASS.
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1 (2) IF THERE IS AN ENACTMENT UNDER PARAGRAPH (1), THE
2 QUALIFIED POLITICAL SUBDIVISION SHALL PROVIDE AN EXEMPTION,
3 DEDUCTION, ABATEMENT OR CREDIT FROM THE IMPOSITION AND
4 OPERATION OF SUCH LOCAL TAX ORDINANCE OR RESOLUTION FOR ALL
5 OF THE FOLLOWING:
6 (I) THE PRIVILEGE OF ENGAGING IN A BUSINESS OR
7 PROFESSION WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR
8 EXPANSION SUBZONE BY A PERSON OR QUALIFIED BUSINESS,
9 WHETHER A RESIDENT OR NONRESIDENT OF THE SUBZONE,
10 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE.
11 (II) SALARIES, WAGES, COMMISSIONS, COMPENSATION OR
12 OTHER INCOME RECEIVED FOR SERVICES RENDERED OR WORK
13 PERFORMED BY A RESIDENT OF A SUBZONE, IMPROVEMENT SUBZONE
14 OR EXPANSION SUBZONE.
15 (III) THE GROSS OR NET INCOME OR GROSS OR NET
16 PROFITS REALIZED FROM THE OPERATION OF A QUALIFIED
17 BUSINESS TO THE EXTENT ATTRIBUTABLE TO BUSINESS ACTIVITY
18 CONDUCTED WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR
19 EXPANSION SUBZONE.
20 (IV) THE OCCUPANCY OR USE OF REAL PROPERTY LOCATED
21 WITHIN THE SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
22 SUBZONE.
23 (F) CALCULATION FOR EDUCATION SUBSIDY FOR SCHOOL DISTRICT.--
24 IN DETERMINING THE PERSONAL INCOME VALUATION OF A SCHOOL
25 DISTRICT, THE SECRETARY OF REVENUE SHALL EXCLUDE ANY INCREASE IN
26 THE VALUATION AS DEFINED IN SECTION 2501(9.1) OF THE ACT OF
27 MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE
28 OF 1949, ABOVE THE BASE VALUE PRIOR TO THE ABATEMENT OF LOCAL
29 TAXES IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
30 LOCATED WITHIN THE SCHOOL DISTRICT TO THE EXTENT AND DURING THE
20020S1478B2438 - 64 -
1 PERIOD OF TIME THAT PERSONAL INCOME REVENUES ATTRIBUTABLE TO THE
2 INCREASE IN THE PERSONAL INCOME VALUATION ARE NOT AVAILABLE TO
3 THE SCHOOL DISTRICT FOR GENERAL SCHOOL DISTRICT PURPOSES. NO
4 EXEMPTION UNDER THIS SECTION MAY BE GRANTED TO A PERSON OR
5 QUALIFIED BUSINESS PRIOR TO DESIGNATION OF THE REAL PROPERTY AS
6 PART OF A SUBZONE OR EXPANSION SUBZONE.
7 SECTION 704. MERCANTILE LICENSE TAX.
8 NO PERSON OR QUALIFIED BUSINESS IN A SUBZONE, IMPROVEMENT
9 SUBZONE OR EXPANSION SUBZONE SHALL BE REQUIRED TO PAY ANY FEE
10 AUTHORIZED PURSUANT TO A MERCANTILE LICENSE TAX IMPOSED UNDER
11 THE ACT OF JUNE 20, 1947 (P.L.745, NO.320), ENTITLED, AS
12 AMENDED, "AN ACT TO PROVIDE REVENUE FOR SCHOOL DISTRICTS OF THE
13 FIRST CLASS A BY IMPOSING A TEMPORARY MERCANTILE LICENSE TAX ON
14 PERSONS ENGAGING IN CERTAIN OCCUPATIONS AND BUSINESSES THEREIN;
15 PROVIDING FOR ITS LEVY AND COLLECTION; FOR THE ISSUANCE OF
16 MERCANTILE LICENSES UPON THE PAYMENT OF FEES THEREFOR;
17 CONFERRING AND IMPOSING POWERS AND DUTIES ON BOARDS OF PUBLIC
18 EDUCATION, RECEIVERS OF SCHOOL TAXES AND SCHOOL TREASURERS IN
19 SUCH DISTRICTS; SAVING CERTAIN ORDINANCES OF COUNCIL OF CERTAIN
20 CITIES, AND PROVIDING COMPENSATION FOR CERTAIN OFFICERS, AND
21 EMPLOYES AND IMPOSING PENALTIES."
22 SECTION 705. LOCAL SALES AND USE TAX.
23 (A) GENERAL RULE.--THE POLITICAL SUBDIVISION SHALL EXEMPT
24 SALES AT RETAIL OF SERVICES OR TANGIBLE PERSONAL PROPERTY,
25 EXCEPT MOTOR VEHICLES, TO A QUALIFIED BUSINESS FOR THE EXCLUSIVE
26 USE, CONSUMPTION AND UTILIZATION OF THE TANGIBLE PERSONAL
27 PROPERTY OR SERVICE BY THE QUALIFIED BUSINESS AT ITS FACILITY
28 LOCATED WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
29 SUBZONE FROM A CITY OR COUNTY TAX ON PURCHASE PRICE AUTHORIZED
30 UNDER ARTICLE XXXI-B OF THE ACT OF JULY 28, 1953 (P.L.723,
20020S1478B2438 - 65 -
1 NO.230), KNOWN AS THE SECOND CLASS COUNTY CODE, AS AMENDED, AND
2 THE ACT OF JUNE 5, 1991 (P.L.9, NO.6), KNOWN AS THE PENNSYLVANIA
3 INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE
4 FIRST CLASS, AS AMENDED. NO EXEMPTION MAY BE GRANTED FOR SALES
5 OCCURRING PRIOR TO DESIGNATION OF THE REAL PROPERTY AS PART OF A
6 SUBZONE OR EXPANSION SUBZONE.
7 (B) CONSTRUCTION CONTRACTS.--FOR ANY CONSTRUCTION CONTRACT
8 PERFORMED IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
9 SUBZONE, THE EXEMPTION PROVIDED IN SUBSECTION (A) SHALL ONLY
10 APPLY TO THE SALE AT RETAIL OR USE OF BUILDING MACHINERY AND
11 EQUIPMENT TO A QUALIFIED BUSINESS, OR TO A CONSTRUCTION
12 CONTRACTOR PURSUANT TO A CONSTRUCTION CONTRACT WITH A QUALIFIED
13 BUSINESS, FOR THE EXCLUSIVE USE, CONSUMPTION AND UTILIZATION BY
14 THE QUALIFIED BUSINESS AT ITS FACILITY IN A SUBZONE, IMPROVEMENT
15 SUBZONE OR EXPANSION SUBZONE. FOR THE PURPOSES OF THE SUBZONE,
16 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE EXEMPTION, BUILDING
17 MACHINERY AND EQUIPMENT SHALL INCLUDE DISTRIBUTION EQUIPMENT
18 PURCHASED FOR THE EXCLUSIVE USE, CONSUMPTION AND UTILIZATION IN
19 A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE FACILITY.
20 (C) DEFINITION.--SALES AT RETAIL OF TANGIBLE PERSONAL
21 PROPERTY AND SERVICES SHALL BE DEFINED IN ACCORDANCE WITH
22 ARTICLE II OF THE TAX REFORM CODE OF 1971.
23 SECTION 902. RECAPTURE.
24 (A) GENERAL RULE.--IF ANY QUALIFIED BUSINESS LOCATED WITHIN
25 A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE HAS RECEIVED
26 AN EXEMPTION, DEDUCTION, ABATEMENT OR CREDIT UNDER THIS ACT AND
27 SUBSEQUENTLY RELOCATES OUTSIDE OF THE ZONE WITHIN THE FIRST FIVE
28 YEARS OF LOCATING IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION
29 SUBZONE, THAT BUSINESS SHALL REFUND TO THE STATE AND POLITICAL
30 SUBDIVISION WHICH GRANTED THE EXEMPTION, DEDUCTION, ABATEMENT OR
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1 CREDIT RECEIVED IN ACCORDANCE WITH THE FOLLOWING:
2 (1) IF A QUALIFIED BUSINESS RELOCATES WITHIN THREE YEARS
3 FROM THE DATE OF FIRST LOCATING IN A SUBZONE, IMPROVEMENT
4 SUBZONE OR EXPANSION SUBZONE, 66% OF ALL THE EXEMPTIONS,
5 DEDUCTIONS, ABATEMENTS OR CREDITS ATTRIBUTED TO THAT
6 QUALIFIED BUSINESS'S PARTICIPATION IN THE SUBZONE,
7 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL BE REFUNDED TO
8 THE COMMONWEALTH AND THE POLITICAL SUBDIVISION.
9 (2) IF A QUALIFIED BUSINESS RELOCATES WITHIN THREE TO
10 FIVE YEARS FROM THE DATE OF FIRST LOCATING IN A SUBZONE,
11 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE, 33% OF ALL
12 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS ATTRIBUTED TO
13 THAT QUALIFIED BUSINESS'S PARTICIPATION IN THE SUBZONE,
14 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL BE REFUNDED TO
15 THE COMMONWEALTH AND THE POLITICAL SUBDIVISION.
16 (3) IF THE QUALIFIED BUSINESS WAS LOCATED WITHIN A
17 FACILITY OPERATED BY A NONPROFIT ORGANIZATION TO ASSIST IN
18 THE CREATION AND DEVELOPMENT OF A START-UP BUSINESS, NO
19 EXEMPTION, DEDUCTION, ABATEMENT OR CREDIT SHALL BE REFUNDED.
20 (B) WAIVER.--THE DEPARTMENT, IN CONSULTATION WITH THE
21 DEPARTMENT OF REVENUE AND THE POLITICAL SUBDIVISION, MAY WAIVE
22 OR MODIFY RECAPTURE REQUIREMENTS UNDER THIS SECTION IF THE
23 DEPARTMENT DETERMINES THAT THE BUSINESS RELOCATION WAS DUE TO
24 CIRCUMSTANCES BEYOND THE CONTROL OF THE BUSINESS, INCLUDING, BUT
25 NOT LIMITED TO:
26 (1) NATURAL DISASTER;
27 (2) UNFORESEEN INDUSTRY TRENDS; OR
28 (3) LOSS OF A MAJOR SUPPLIER OR MARKET.
29 SECTION 904. CODE COMPLIANCE.
30 (A) GENERAL RULE.--A PERSON OR QUALIFIED BUSINESS SHALL BE
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1 PRECLUDED FROM CLAIMING ANY EXEMPTION, DEDUCTION, ABATEMENT OR
2 CREDIT PROVIDED FOR IN THIS ACT IF THAT PERSON OR QUALIFIED
3 BUSINESS OWNS REAL PROPERTY IN A SUBZONE, IMPROVEMENT SUBZONE OR
4 EXPANSION SUBZONE AND THE REAL PROPERTY IS NOT IN COMPLIANCE
5 WITH ALL APPLICABLE STATE AND LOCAL ZONING, BUILDING AND HOUSING
6 LAWS, ORDINANCES OR CODES.
7 (B) OPPORTUNITY TO ACHIEVE COMPLIANCE.--THE PERSON OR
8 QUALIFIED BUSINESS WHO IS NOT IN COMPLIANCE UNDER SUBSECTION (A)
9 SHALL HAVE UNTIL DECEMBER 31 OF THE CALENDAR YEAR FOLLOWING
10 DESIGNATION OF THE REAL PROPERTY AS PART OF A SUBZONE,
11 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE TO BE IN COMPLIANCE IN
12 ORDER TO CLAIM ANY STATE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
13 CREDITS FOR THAT YEAR. IF FULL COMPLIANCE IS NOT ATTAINED BY
14 DECEMBER 31 OF THAT CALENDAR YEAR, THE PERSON OR QUALIFIED
15 BUSINESS IS PRECLUDED FROM CLAIMING ANY EXEMPTION, DEDUCTION OR
16 CREDIT FOR THAT CALENDAR YEAR, WHETHER OR NOT COMPLIANCE IS
17 ACHIEVED IN A SUBSEQUENT CALENDAR YEAR. THE POLITICAL
18 SUBDIVISION MAY EXTEND THE TIME PERIOD IN WHICH A PERSON OR
19 QUALIFIED BUSINESS MUST COME INTO COMPLIANCE WITH A LOCAL
20 ORDINANCE OR BUILDING CODE FOR A PERIOD NOT TO EXCEED ONE YEAR
21 IF THE POLITICAL SUBDIVISION DETERMINES THAT THE PERSON OR
22 QUALIFIED BUSINESS HAS MADE AND SHALL CONTINUE TO MAKE A GOOD
23 FAITH EFFORT TO COME INTO COMPLIANCE AND THAT AN EXTENSION WILL
24 ENABLE THE PERSON OR QUALIFIED BUSINESS TO ACHIEVE FULL
25 COMPLIANCE. QUALIFIED POLITICAL SUBDIVISIONS ARE REQUIRED TO
26 NOTIFY THE DEPARTMENT OF REVENUE IN WRITING OF ALL PERSONS OR
27 QUALIFIED BUSINESSES NOT IN COMPLIANCE WITH THIS SUBSECTION
28 WITHIN 30 DAYS FOLLOWING THE END OF EACH CALENDAR YEAR.
29 SECTION 907. APPLICATION TIME.
30 [A KEYSTONE OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY
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1 EXPANSION ZONE] AN APPLICANT MUST FILE [A KEYSTONE OPPORTUNITY
2 ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE] AN APPLICATION IN A
3 MANNER PRESCRIBED BY THE DEPARTMENT BY DECEMBER 31 OF EACH
4 CALENDAR YEAR FOR WHICH THE APPLICANT CLAIMS ANY EXEMPTION,
5 DEDUCTION, ABATEMENT OR CREDIT UNDER THIS ACT. NO EXEMPTION,
6 DEDUCTION, ABATEMENT OR CREDIT MAY BE CLAIMED OR RECEIVED FOR
7 THAT CALENDAR YEAR UNTIL APPROVAL HAS BEEN GRANTED BY THE
8 DEPARTMENT.
9 SECTION 1103. OTHER COMMONWEALTH TAX CREDITS.
10 A PERSON OR QUALIFIED BUSINESS THAT IS ENTITLED TO CLAIM AN
11 EXEMPTION, DEDUCTION, ABATEMENT OR CREDIT IN ACCORDANCE WITH THE
12 PROVISIONS OF THIS ACT SHALL NOT BE ENTITLED TO CLAIM OR
13 ACCUMULATE ANY OF THE FOLLOWING EXEMPTIONS, DEDUCTIONS,
14 ABATEMENTS OR CREDITS THAT IT MAY OTHERWISE HAVE QUALIFIED FOR
15 DUE TO ACTIVITY WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR
16 EXPANSION SUBZONE:
17 (1) TAX REFORM CODE OF 1971:
18 (I) ARTICLE XVII RELATING TO ECONOMIC REVITALIZATION
19 TAX CREDITS;
20 [(II) ARTICLE XVII-A RELATING TO EMPLOYMENT
21 INCENTIVE PAYMENTS;]
22 (III) ARTICLE XVII-B RELATING TO RESEARCH AND
23 DEVELOPMENT TAX CREDITS; OR
24 (IV) ARTICLE XIX-A RELATING TO NEIGHBORHOOD
25 ASSISTANCE AND ENTERPRISE ZONE TAX CREDITS;
26 (2) TAX CREDITS UNDER SECTION 109 OF THE ACT OF DECEMBER
27 19, 1996 (P.L.1478, NO.190), KNOWN AS THE WASTE TIRE
28 RECYCLING ACT;
29 (3) HOMEOWNERS MORTGAGE CREDITS;
30 (4) INSURANCE PREMIUMS TAX CREDITS; AND
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1 (5) JOB CREATION TAX CREDIT UNDER THE ACT OF JUNE 29,
2 1996 (P.L.434, NO.67), KNOWN AS THE JOB IMPROVEMENT ACT.
3 THE PERSON OR QUALIFIED BUSINESS MAY APPLY THE EXEMPTIONS,
4 DEDUCTIONS, ABATEMENTS OR CREDITS TO INCOME REALIZED FROM
5 ACTIVITY OR TRANSACTIONS OUTSIDE THE SUBZONE, IMPROVEMENT
6 SUBZONE OR EXPANSION SUBZONE, BUT ONLY FOR THE TAXABLE YEAR TO
7 WHICH THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS APPLY.
8 THE PROVISIONS OF THIS SECTION SHALL APPLY ONLY TO THE TAXES SET
9 FORTH IN CHAPTERS 5 AND 7.
10 SECTION 1309. EXPIRATION.
11 THIS ACT AND ALL BENEFITS ASSOCIATED WITH THIS ACT SHALL
12 TERMINATE DECEMBER 31, [2013] 2018.
13 Section 2 7. This act shall take effect immediately. <--
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