PRINTER'S NO. 2205
No. 1623 Session of 1990
INTRODUCED BY BRIGHTBILL, SALVATORE, SHUMAKER, JUBELIRER,
HELFRICK, ROCKS, BAKER, LEMMOND, REIBMAN AND RHOADES,
MAY 23, 1990
REFERRED TO FINANCE, MAY 23, 1990
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 a tax credit for manufacturing
11 consumption.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding an article to
16 read:
17 ARTICLE XXI
18 MANUFACTURING CONSUMPTION TAX CREDIT
19 Section 2101. Statement of Public Policy.--It is declared to
20 be public policy of this Commonwealth to encourage Pennsylvania
21 manufacturers to use postconsumer materials, recovered and used
22 within this Commonwealth, in manufacturing to complement the act
1 of July 28, 1988 (P.L.556, No.101), known as the Municipal Waste
2 Planning, Recycling and Waste Reduction Act. The General
3 Assembly has determined that the stated public policy can best
4 be achieved by providing for a consumption tax credit that would
5 offset a portion of a manufacturer's loss of purchasing the
6 following postconsumer materials for manufacturing: waste tires,
7 paper, used oil and plastics.
8 Section 2102. Definitions.--Subject to additional
9 definitions contained in subsequent provisions of this article
10 which are applicable to specific provisions of this article, the
11 following words and phrases when used in this article shall have
12 the meanings given to them in this section unless the context
13 clearly indicates otherwise:
14 "Corporation." As defined in section 401(1).
15 "Paper."
16 (1) Corrugated paper.
17 (2) High-grade office paper.
18 (3) Old newsprint.
19 (4) Mixed paper.
20 "Plastics." Organic synthetic or processed materials that
21 are mostly thermoplastic or thermosetting polymers of high
22 molecular weight and that can be molded, cast, extruded, drawn
23 or laminated into objects, films or filaments.
24 "Postconsumer material." A product generated by a business
25 or consumer which has served its intended end use and which has
26 been separated or diverted from solid waste for the purposes of
27 collection and recycling. The term does not include internally
28 generated scrap that is commonly returned to industrial or
29 manufacturing processes.
30 "Used oil." A petroleum-based or synthetic oil which is used
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1 in an internal combustion engine as an engine lubricant, or as a
2 product used for lubricating motor vehicle transmissions, gears
3 or axles which through use, storage or handling has become
4 unsuitable for its original purpose due to the presence of
5 chemical or physical impurities or loss of original properties.
6 "Waste tires." A tire no longer suitable for its intended
7 purpose because of wear, damage or defect.
8 Section 2103. Authorization of Credit.--A corporation
9 engaged in the field of manufacturing shall be eligible to
10 receive a tax credit, as provided in section 2104, against a tax
11 due under Article IV.
12 Section 2104. Calculation of Tax Credit.--The amount of the
13 tax credit available to a corporation which uses postconsumer
14 materials, recovered and used within this Commonwealth, in
15 manufacturing shall be calculated as fifty per cent of the
16 difference in price between the following postconsumer materials
17 and their respective competitive raw materials: waste tires,
18 paper, used oil and plastics. The varying credit amount shall be
19 established by the Secretary of Labor and Industry on a
20 quarterly basis, according to estimates of the price advantage
21 held by the competitive raw materials. In all cases, the
22 Secretary of Labor and Industry shall verify for the Secretary
23 of Revenue the estimates used in the determination of the price
24 advantage held by the competitive raw materials. The size of the
25 tax credit cannot be larger in any year than the corporation's
26 tax liability under Article IV.
27 Section 2105. Procedures.--Applications for tax credits must
28 be filed by January 31 for credits due during the immediately
29 previous tax year.
30 Section 2106. Expiration of Tax Credit.--This article shall
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1 expire on January 1, 1994.
2 Section 2. This act shall apply to tax years beginning after
3 January 1, 1990.
4 Section 3. This act shall take effect January 1, 1991.
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