PRINTER'S NO. 2316
No. 1550 Session of 2002
INTRODUCED BY DENT, M. WHITE, LAVALLE, COSTA, ERICKSON,
SCARNATI, TARTAGLIONE, WENGER, MUSTO, BOSCOLA, CONTI,
LEMMOND, MURPHY, RHOADES, MADIGAN, C. WILLIAMS, ARMSTRONG,
SCHWARTZ, KITCHEN, WAUGH, TOMLINSON, BODACK AND WOZNIAK,
OCTOBER 15, 2002
REFERRED TO FINANCE, OCTOBER 15, 2002
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for tax credits for redevelopment or
11 investment of a brownfield.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 1902-A of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
16 by adding definitions to read:
17 Section 1902-A. Definitions.--The following words, terms and
18 phrases, when used in this article, shall have the meanings
19 ascribed to them in this section, except where the context
20 clearly indicates a different meaning:
21 "Brownfield." A parcel of real property or a portion of that
1 parcel that has an active potential for redevelopment and has
2 been remediated pursuant to applicable cleanup standards as
3 evidenced by written confirmation from the Department of
4 Environmental Protection.
5 "Brownfield investor." Any person or entity authorized to do
6 business in this Commonwealth and subject to taxes imposed by
7 Article III, IV, VI, VII, VII-A, VIII, VIII-A, IX, X or XV of
8 this act.
9 * * *
10 "Infrastructure investment." Investment designated by the
11 Secretary of Community and Economic Development in the
12 demolition, construction, restoration, alteration, renovation or
13 improvement of land or buildings on brownfields or the addition
14 of machinery, equipment and fixtures to brownfields.
15 * * *
16 "Keystone opportunity zone." A keystone opportunity zone or
17 a keystone opportunity expansion zone established under the act
18 of October 6, 1998 (P.L.705, No.92), known as the "Keystone
19 Opportunity Zone and Keystone Opportunity Expansion Zone Act."
20 * * *
21 Section 2. Section 1903-A of the act, added June 16, 1994
22 (P.L.279, No.48), is amended to read:
23 Section 1903-A. Public Policy.--It is hereby declared to be
24 public policy of this Commonwealth to [encourage]:
25 (1) Encourage investment by business firms in offering
26 neighborhood assistance and providing job training, education,
27 crime prevention and community services, to encourage
28 contributions by business firms to neighborhood organizations
29 which offer and provide such assistance and services and to
30 promote qualified investments made by private companies to
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1 rehabilitate, expand or improve buildings or land which promote
2 community economic development and which occur in portions of
3 impoverished areas which have been designated as enterprise or
4 keystone opportunity zones.
5 (2) Promote redevelopment of brownfields by encouraging
6 investments to improve the infrastructure of these sites.
7 Section 3. Section 1906-A of the act, amended May 7, 1997
8 (P.L.85, No.7), is amended to read:
9 Section 1906-A. Decision in Writing.--The decision of the
10 secretary to approve or disapprove a proposal pursuant to
11 section 1904-A or 1907-A of this act shall be in writing, and,
12 if it approves the proposal, it shall state the maximum credit
13 allowable to the business firm or the brownfield investor. A
14 copy of the decision of the secretary shall be transmitted to
15 the Governor and to the Secretary of Revenue.
16 Section 4. The act is amended by adding sections to read:
17 Section 1907-A. Brownfield Infrastructure Tax Credit.--(a)
18 Any brownfield investor which makes infrastructure investment to
19 a brownfield shall receive a tax credit as provided in section
20 1908-A if the secretary annually approves the proposal of such
21 brownfield investor. The proposal shall set forth the
22 infrastructure work to be conducted, the brownfield selected,
23 the estimated amount to be invested in the brownfield and the
24 plans for implementing the proposed infrastructure work.
25 (b) The credit is not available to any brownfield investor
26 if the brownfield investor, after January 1, 1990, intentionally
27 or negligently caused or contributed to, in any material
28 respect, a level of a regulated substance above the cleanup
29 standards in the act of May 19, 1995 (P.L.4, No.2), known as the
30 "Land Recycling and Environmental Remediation Standards Act,"
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1 on, in or under the brownfield.
2 (c) The secretary shall promulgate rules and regulations
3 designating the types of infrastructure investment that qualify
4 for a tax credit and the methods for approval or disapproval of
5 proposals by brownfield investors.
6 (d) The secretary shall provide a listing of all proposals
7 received and their disposition in each fiscal year to the
8 General Assembly by October 1 of the following fiscal year.
9 Section 1908-A. Grant of Brownfield Infrastructure Tax
10 Credit.--The Department of Revenue shall grant a brownfield
11 infrastructure tax credit against any tax due under Article III,
12 IV, VI, VII, VII-A, VIII, VIII-A, IX, X or XV of this act, or
13 any tax substituted in lieu thereof in an amount which shall not
14 exceed fifty per cent of the total amount invested during the
15 taxable year by the brownfield investor in infrastructure
16 investments approved pursuant to section 1907-A of this act
17 except that a tax credit of up to seventy per cent of the total
18 amount of infrastructure investment during the taxable year by a
19 brownfield investor may be allowed where activities fall within
20 the scope of special program priorities as defined with the
21 approval of the Governor in regulations promulgated by the
22 secretary or if the investment activity and proposed work meets
23 the requirements of the strategic plan for development of the
24 governmental entity in which the brownfield is located.
25 Regulations establishing special program priorities are to be
26 promulgated during the first month of each fiscal year and at
27 such times during the year as the public interest dictates. Any
28 credit awarded to a brownfield investor shall not exceed five
29 hundred fifty thousand dollars ($550,000) annually. No tax
30 credit shall be granted to any bank, bank and trust company,
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1 insurance company, trust company, national bank, savings
2 association, mutual savings bank or building and loan
3 association for activities that are a part of its normal course
4 of business. Any tax credit not used in the period the
5 investment was made may be carried over for the next five
6 succeeding calendar or fiscal years until the full credit has
7 been allowed. The total amount of all tax credits allowed
8 pursuant to this act shall not exceed eighteen million dollars
9 ($18,000,000) in any one fiscal year.
10 Section 1909-A. Termination.--A brownfield investor is not
11 entitled to a brownfield infrastructure tax credit for the cost
12 of infrastructure investment incurred in taxable years ending
13 after December 31, 2005. The secretary shall not approve a
14 brownfield infrastructure tax credit under this article for
15 taxable years ending after December 31, 2005.
16 Section 5. The act is amended by adding an article to read:
17 Article XIX-B
18 BROWNFIELD REDEVELOPMENT TAX CREDIT
19 Section 1901-B. Short Title.--This article shall be known
20 and may be cited as the Brownfield Redevelopment Tax Credit Act.
21 Section 1902-B. Definitions.--The following words, terms and
22 phrases when used in this article shall have the meanings
23 ascribed to them in this section, except where the context
24 clearly indicates a different meaning:
25 "Brownfield." A parcel of real property, or a portion of
26 that parcel, that has an active potential for redevelopment and
27 that has been remediated pursuant to applicable cleanup
28 standards as evidenced by written confirmation from the
29 Department of Environmental Protection.
30 "Brownfield redeveloper." A person or entity subject to the
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1 taxes imposed by Article III, IV, VI, VII, VII-A, VIII, VIII-A,
2 IX, X or XV of this act, who owns, leases or invests in a
3 brownfield and proposes or has begun to redevelop the site.
4 "Brownfield redevelopment costs." Unreimbursed costs
5 designated by the secretary incurred in the demolition,
6 construction, restoration, alteration, renovation or improvement
7 of land or buildings on a brownfield or the addition of
8 machinery, equipment and fixtures to the brownfields. The term
9 shall also include the contribution of personal, real,
10 intangible or tangible property toward the redevelopment of a
11 brownfield.
12 "Secretary." The Secretary of Community and Economic
13 Development of the Commonwealth.
14 Section 1903-B. Brownfield Redevelopment Tax Credit.--(a)
15 Any brownfield redeveloper which incurs brownfield redevelopment
16 costs shall receive a tax credit as provided in section 1904-B
17 if the secretary annually approves the proposal of such
18 brownfield redeveloper. The proposal shall set forth the
19 redevelopment work to be conducted, the brownfield selected, the
20 estimated amount of costs to be incurred in the redevelopment
21 work and the plans for implementing the redevelopment work.
22 (b) The credit is not available to any brownfield
23 redeveloper if the brownfield redeveloper, after January 1,
24 1990, intentionally or negligently caused or contributed to, in
25 any material respect, a level of regulated substance above the
26 cleanup standards in the act of May 19, 1995 (P.L.4, No.2),
27 known as the "Land Recycling and Environmental Remediation
28 Standards Act," on, in or under the brownfield.
29 (c) The secretary shall promulgate rules and regulations
30 designating the types of redevelopment costs that qualify for a
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1 tax credit and the methods for approval or disapproval of
2 proposals by brownfield redevelopers.
3 (d) The secretary shall provide a listing of all proposals
4 received and their disposition in each fiscal year to the
5 General Assembly by October 1 of the following fiscal year.
6 Section 1904-B. Grant of Brownfield Redevelopment Tax
7 Credit.--The Department of Revenue shall grant a tax credit
8 against any tax due under Article III, IV, VI, VII, VII-A, VIII,
9 VIII-A, IX, X or XV of this act, or any tax substituted in lieu
10 thereof in an amount equal to ten per cent of the brownfield
11 redevelopment costs incurred by the brownfield redeveloper in
12 the tax year in redevelopment programs approved pursuant to
13 section 1903-B of this act except that the maximum tax credits
14 claimed by a brownfield redeveloper under this article for a
15 redevelopment brownfield shall not exceed one million dollars
16 ($1,000,000). No tax credit shall be granted to any bank, bank
17 and trust company, insurance company, trust company, national
18 bank, savings association, mutual savings bank or building and
19 loan association for activities that are a part of its normal
20 course of business. Any tax credit not used in the period the
21 brownfield redevelopment costs are incurred may be carried over
22 for the next five succeeding calendar or fiscal years until the
23 full credit has been allowed. The total amount of all tax
24 credits allowed pursuant to this act shall not exceed eighteen
25 million dollars ($18,000,000) in any one fiscal year.
26 Section 1905-B. Decision in Writing.--The decision of the
27 secretary to approve or disapprove a proposal pursuant to
28 section 1903-B of this act shall be in writing, and, if it
29 approves the proposal, it shall state the maximum credit
30 allowable to the business firm. A copy of the decision of the
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1 secretary shall be transmitted to the Governor and to the
2 Secretary of Revenue.
3 Section 1906-B. Termination.--A brownfield redeveloper is
4 not entitled to a brownfield redevelopment tax credit for the
5 costs of brownfield redevelopment in taxable years ending after
6 December 31, 2005. The secretary shall not approve a brownfield
7 redevelopment tax credit under this article for taxable years
8 ending after December 31, 2005.
9 Section 6. This act shall take effect in 60 days.
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