72 Pa. Stat. § 8702-B
The following words and phrases, when used in this article, shall have the meanings given to them in this section, except where the context clearly indicates a different meaning:
"Department." The Department of Revenue of the Commonwealth.
"Gross receipts." Gross receipts for any taxable year shall consist only of gross receipts which are effectively connected with the conduct of a trade or business within this Commonwealth. The determination of whether gross receipts are effectively connected with the conduct of a trade or business within this Commonwealth shall be made by reference to the standard established in section 401(3)2(a)(16) and (17) of this act.
"Internal Revenue Code." The Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 1 et seq.).
"Pass-through entity." A partnership as defined in section 301 (n.0) or a Pennsylvania S corporation as defined insection 301(n.1).
"Pennsylvania base amount." Base amount as defined in section 41(c) of the Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 41(c) ), except that references to "qualified research expense" shall mean "Pennsylvania qualified research and development expense" and references to "qualified research" shall mean "Pennsylvania qualified research and development." References to "fixed base percentage" shall mean the percentage which the Pennsylvania qualified research and development expense for the four taxable years immediately preceding the taxable year in which the expense is incurred is to the gross receipts for such years. The fixed base percentage for a taxpayer who has fewer than four but at least one taxable year shall be determined in the same manner using the number of immediately preceding taxable years to arrive at the percentage.
"Pennsylvania qualified research and development." Qualified research and development as defined in section 41(d) of the Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 41(d) ) that is conducted in this Commonwealth.
"Pennsylvania qualified research and development expense." Qualified research expense as defined in section 41(b) of the Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 41(b) ) incurred for Pennsylvania qualified research and development.
"Qualified tax liability." The liability for taxes imposed under Article III , IV or VI of this act. The term shall not include any tax withheld by an employer from an employe under Article III.
"Research and development tax credit." The credit provided under this article.
"Secretary." The Secretary of Revenue of the Commonwealth.
"Small business." A for-profit corporation, limited liability company, partnership or proprietorship with net book value of assets totaling, at the beginning or end of the taxable year for which Pennsylvania qualified research and development expense is incurred, as reported on the balance sheet, less than five million dollars ($5,000,000).
"Taxpayer." An entity subject to tax under Article III, IV or VI of this act. The term shall include the shareholder of a Pennsylvania S corporation that receives a research and development tax credit.
72 P.S. § 8702-B