PRINTER'S NO. 2310
No. 1521 Session of 2008
INTRODUCED BY DINNIMAN, BOSCOLA, COSTA, FONTANA AND STOUT, JULY 7, 2008
REFERRED TO FINANCE, JULY 7, 2008
AN ACT 1 Amending Title 12 (Commerce and Trade) of the Pennsylvania 2 Consolidated Statutes, further providing for Keystone 3 Innovation Zone tax credits. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 3706(a) and (d) of Title 12 of the 7 Pennsylvania Consolidated Statutes are amended and the section 8 is amended by adding a subsection to read: 9 § 3706. Keystone innovation zone tax credits. 10 (a) Tax credit.--[A] Except as set forth in subsection 11 (a.1), a KIZ company may claim a tax credit equal to 50% of the 12 increase in the KIZ company's gross revenues in the immediately 13 preceding taxable year attributable to activities in the KIZ 14 over the KIZ company's gross revenues in the second preceding 15 taxable year attributable to its activities in the KIZ. A tax 16 credit for a KIZ company shall not exceed $100,000 annually. For 17 the purposes of the keystone innovation zone tax credit, the 18 term "gross revenues" may include grants received by the KIZ
1 company from any source whatsoever. 2 (a.1) Initial tax credits.-- 3 (1) In the first taxable year in which a KIZ company 4 operates within a KIZ, a KIZ company may claim a tax credit 5 equal to 25% of the increase in the KIZ company's gross 6 revenues in the immediately preceding taxable year over the 7 KIZ company's gross revenues in the second preceding taxable 8 year. A tax credit for a KIZ company shall not exceed 9 $100,000 annually. For the purposes of the keystone 10 innovation zone tax credit, the term "gross revenues" may 11 include grants received by the KIZ company from any source 12 whatsoever. 13 (2) In the second taxable year in which a KIZ company 14 operates within a KIZ, a KIZ company may claim a tax credit 15 equal to 50% of the increase in the KIZ company's gross 16 revenues in the immediately preceding taxable year over the 17 KIZ company's gross revenues in the second preceding taxable 18 year which (increase) is attributable to activities in the 19 KIZ. A tax credit for a KIZ company shall not exceed $100,000 20 annually. For the purposes of the keystone innovation zone 21 tax credit, the term "gross revenues" may include grants 22 received by the KIZ company from any source whatsoever. 23 * * * 24 (d) Application of tax credit and election.--[A] 25 (1) Except as set forth in paragraph (2), a tax credit 26 approved under this section must be first applied against the 27 KIZ company's tax liability under Article III, IV or VI of 28 the act of March 4, 1971 (P.L.6, No.2), known as the Tax 29 Reform Code of 1971, for the taxable year during which the 30 tax credit is approved. If the amount of tax liability owed 20080S1521B2310 - 2 -
1 by the KIZ company is less than the amount of the tax credit, 2 the KIZ company may elect to carry forward the amount of the 3 remaining tax credit for a period not to exceed four 4 additional taxable years and to apply the credit against tax 5 liability incurred during those tax years; or the KIZ company 6 may elect to sell or assign a portion of the tax credit in 7 accordance with the provisions of subsection (f). A KIZ 8 company may not carry back or obtain a refund of an unused 9 keystone innovation zone tax credit. 10 (2) A KIZ company that is approved for a tax credit 11 under this section may elect not to apply the credit against 12 the KIZ company's tax liability as prescribed in this 13 subsection if the KIZ company submitted with its tax credit 14 application a current tax lien certificate issued by the 15 department showing that the KIZ company has no unpaid tax 16 liability due to the Commonwealth or a political subdivision. 17 A KIZ company that submitted a current tax lien certificate 18 with its application and is awarded a credit under this 19 section may immediately sell or assign the tax credit under 20 subsection (f). 21 * * * 22 Section 2. This act shall take effect in 60 days. F16L12VDL/20080S1521B2310 - 3 -