The following words and phrases when used in this subarticle shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Class 1 venue." A stadium, arena, other structure or on property owned by a municipality or an authority formed pursuant to Article XXV-A of the act of July 28, 1953 (P.L.723, No.230), known as the Second Class County Code, at which concerts are performed and which is all of the following:
(1) Located in a city of the first class or a county of the second class.(2) Is constructed in a manner in which the venue has a seating capacity of at least 14,000."Class 2 venue." A stadium, arena or other structure at which concerts are performed and which is all of the following:
(1) Located outside the geographic boundaries of a city of the first class or a county of the second class.(2) Is constructed in a manner in which the venue has a seating capacity of at least 6,000."Class 3 venue." A stadium, arena or other structure which is any of the following:
(1) Located within a neighborhood improvement zone, as defined in section 1902-B.(2) Owned by or affiliated with a State-related institution, as defined in 62 Pa.C.S. § 103 (relating to definitions).(3) Owned by the Commonwealth and affiliated with the State System of Higher Education."Concert." A live performance of music in the presence of individuals who view the performance.
"Concert tour equipment." Includes stage, set, scenery, design elements, automation, rigging, trusses, spot lights, lighting, sound equipment, video equipment, special effects, cases, communication devices, power distribution equipment, backline and other miscellaneous equipment or supplies used during a concert or rehearsal.
"Minimum rehearsal and tour requirements." During a tour, all of the following must occur:
(1) the purchase or rental of concert tour equipment delivered to a location in this Commonwealth, in an amount of at least $3,000,000, from companies located and maintaining a place of business in this Commonwealth for use on the tour;(2) a rehearsal at a qualified rehearsal facility for a minimum of 10 days;(3) at least one concert performed at a class 1 venue; and(4) at least one concert performed at a venue which is located in a municipality other than the municipality in which the class 1 venue under paragraph (3) is located."Pass-through entity." Any of the following:
(1) A partnership as defined in section 301(n.0).(2) A Pennsylvania S corporation as defined in section 301(n.1).(3) An unincorporated entity subject to section 307.21."Pennsylvania rehearsal and tour expenses." The sum of Pennsylvania rehearsal expenses and tour expenses.
"Pennsylvania rehearsal expense." A rehearsal expense which is incurred or will be incurred within this Commonwealth. The term includes:
(1) A payment made by a taxpayer to a person upon which withholding will be made on the payment by the taxpayer as required under Part VII of Article III.(2) Payment to a personal service corporation representing individual talent if the tax imposed by Article IV will be paid or accrued on the net income of the corporation for the taxable year.(3) Payment to a pass-through entity representing individual talent for which withholding will be made by the pass-through entity on the payment as required under Part VII or VII-A of Article III."Qualified rehearsal and tour expense." All Pennsylvania rehearsal and tour expenses if Pennsylvania rehearsal expenses comprise at least 60% of the total rehearsal expenses. The term shall not include more than $2,000,000 in the aggregate of compensation paid to individuals or payment made to entities representing an individual for services provided in the tour.
"Qualified rehearsal facility." A rehearsal facility which meets at least six of the following criteria:
(1) Has had a minimum of $8,000,000 invested in the rehearsal facility in land or structure, or a combination of land and structure.(2) Has a permanent grid system with a capacity of 1,000,000 pounds.(3) Has a built-in power supply system available at a minimum of 3,200 amps without the need for any supplemental generators.(4) Has a height from floor to permanent grid of a minimum of 80 feet.(5) Has at least two sliding or roll-up access doors with a minimum height of 14 feet.(6) Has a perimeter security system which includes 24hour, seven-days-a-week security cameras and the use of access control identification badges.(7) Has a service area with production offices, catering and dressing rooms with a minimum of 5,000 square feet.(8) Is located within one mile of a minimum of two companies which provide concert tour equipment for use on a tour."Qualified tax liability." The liability for taxes imposed under Article III, IV or VI. The term shall not include any tax withheld by an employer from an employee under Article III.
"Rehearsal." An event or series of events which occur in preparation for a tour prior to the start of the tour or during a tour when additional preparation may be needed.
"Rehearsal expense." All of the following when incurred or will be incurred during a rehearsal:
(1) Compensation paid to an individual employed in the rehearsal of the performance.(1.1) Payment to a personal service corporation representing individual talent.(1.2) Payment to a pass-through entity representing individual talent.(2) The costs of construction, operations, editing, photography, staging, lighting, wardrobe and accessories.(3) The cost of leasing vehicles.(4) The cost of transportation of people or concert tour equipment to or from a train station, bus depot, airport or other transportation facility or directly from a residence or business entity.(5) The cost of insurance coverage.(6) The cost of food and lodging.(7) The cost of purchase or rental of concert tour equipment.(8) The cost of renting a rehearsal facility.(9) The cost of emergency or medical support services required to conduct a rehearsal."Rehearsal facility." As follows:
(1) A facility primarily used for rehearsals which is all of the following:(i) Located within this Commonwealth.(ii) Has a minimum of 25,000 square feet of column-free, unobstructed floor space.(2) The term does not include a facility at which concerts are capable of being held."Start date." The date the first set of concert tour equipment arrives or is expected to arrive at a qualified rehearsal facility.
"Tax credit." The concert rehearsal and tour tax credit provided under this subarticle.
"Taxpayer." A concert tour promotion company, concert tour management company or other concert management company subject to tax under Article III, IV or VI. The term does not include contractors or subcontractors of a concert tour promotion company, concert tour management or other concert management company.
"Tour." A series of concerts performed by a musical performer in more than one location.
"Tour expense." As follows:
(1) Costs incurred or which will be incurred during a tour for venues located in this Commonwealth. The term includes all of the following:(i) A payment made by a taxpayer to a person upon which withholding will be made on the payment by the taxpayer as required under Part VII of Article III.(ii) The cost of transportation of people or concert touring equipment incurred while transporting to or from a train station, bus depot, airport or other transportation facility or while transporting directly from a residence or business entity, located in this Commonwealth or incurred for transportation provided by a company which is subject to the tax imposed under Article III or IV.(iii) The cost of leasing vehicles upon which the tax imposed by Article II will be paid or accrued.(iv) The cost of insurance coverage purchased through an insurance agent based in this Commonwealth.(v) The cost of purchasing or renting facilities and equipment from or through a resident of this Commonwealth or an entity subject to taxation in this Commonwealth.(vi) The cost of food and lodging incurred from a facility located in this Commonwealth.(vii) Expenses incurred in marketing or advertising a tour at venues located within this Commonwealth.(viii) The cost of merchandise purchased from a company located within this Commonwealth and used on the tour.(2) The term does not include development cost, including the writing of music or lyrics."Venue." A class 1, class 2 or class 3 venue.
Added by P.L. TBD 2016 No. 84, § 30, eff. 7/13/2016.