72 Pa. Stat. § 8701-G

Current through Pa Acts 2024-53, 2024-56 through 2024-111

Section 8701-G - Scope

This article establishes a resource manufacturing tax credit.

The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Company." Any corporation, partnership, limited liability company, limited liability partnership, business trust, affiliate, unincorporated joint venture or other business entity, doing business within this Commonwealth.

"Department." The Department of Revenue of the Commonwealth.

"Downstream company." Includes a company that uses chemical products or chemical compounds manufactured or processed by a qualified taxpayer as a raw material in its production process in this Commonwealth.

"Ethane." A colorless, odorless gaseous alkane, C2H6, which occurs as a constituent of natural gas and is used as the raw material in the manufacturing of ethylene.

"Ethylene." An organic hydrocarbon compound with the formula C2H4 or H2C=CH2, that is derived from natural gas and petroleum.

"Gallon." A United States liquid gallon equal to a volume of 231 cubic inches and equal to 3.785411784 liters or 0.13368 cubic feet, where volumetric measurements made at ambient flowing conditions are typically adjusted for composition and to standard conditions using established industry standard practices.

"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.

"Qualified tax liability." The liability for taxes imposed under Articles III, IV, VI, VII, VIII, IX, XI and XV. The term does not include tax withheld under section 316.

"Qualified taxpayer." A company that satisfies all of the following:

(1) Purchases ethane for use in manufacturing ethylene at a facility in this Commonwealth which has been placed in service on or after the effective date of this article.

(2) Has made a capital investment of at least $1,000,000,000 in order to construct the facility and place it into service in this Commonwealth.

(3) Has created at least 2,500 full-time equivalent jobs during the construction phase in order to construct the facility and place it into service in this Commonwealth.

"Tax credit." The resource manufacturing tax credit provided under this article.

"Upstream company." Includes a company that is engaged in the exploration, development, production, processing, refining or transportation of natural gas, natural gas liquids or petroleum in this Commonwealth.

72 P.S. § 8701-G

Added by P.L. 751 2012 No. 85, § 19, eff. 7/2/2012.