72 Pa. Stat. § 9010

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 9010 - Limited tax credits

(a) The General Assembly of the Commonwealth, conscious of the financial pressures facing small brewers in Pennsylvania and the attendant risk of business failure and loss of employment opportunity, declares it public policy that renewal and improvement of small brewers be encouraged and assisted by a limited tax subsidy to be granted during the period set forth in this section.

(b) As used in this section:

"Amounts paid." The phrase means (i) amounts actually paid, or (ii) at the taxpayer's election, amounts promised to be paid under firm purchase contracts actually executed during any calendar year falling within the effective period of this section: Provided, however, That there shall be no duplication of "amounts paid" under this definition.

"Effective period." The period from January 1, 1974, to December 31, 2008, and the period after June 30, 2017, inclusive.

"Qualifying capital expenditures." Amounts paid by a taxpayer during the effective period of this section for the purchase of items of plant, machinery or equipment for use by the taxpayer within this Commonwealth in the manufacture and sale of malt or brewed beverages: Provided, however, That the total amount of qualifying capital expenditures made by a taxpayer within a single calendar year shall not exceed two hundred thousand dollars ($200,000).

"Secretary." The Secretary of Revenue of the Commonwealth of Pennsylvania where not otherwise qualified.

"Taxpayer." A manufacturer of malt or brewed beverages claiming a tax credit or credits under this section .

(c) A tax credit or credits shall be allowed for each calendar year to a taxpayer, as hereinafter provided, not to exceed in total amount the amount of qualifying capital expenditures made by the taxpayer and certified by the secretary.

(d) A taxpayer desiring to claim a tax credit or credits under this section shall, within one year of the date of the original purchase of the qualifying capital expenditures, in accordance with regulations promulgated by the secretary, report annually to the secretary the nature, amounts and dates of qualifying capital expenditures made by him and such other information as the secretary shall require. If satisfied as to the correctness of such a report, the secretary shall issue to the taxpayer a certificate establishing the amount of qualifying capital expenditures made by the taxpayer and included within said report. The taxpayer shall also provide to the secretary the number of employes, total production of malt or brewed beverages and the amount of capital expenditures made by the taxpayer at each location operated by the taxpayer or a parent corporation, subsidiary, joint venture or affiliate. Also, the taxpayer shall notify the secretary of any contract for production held with another manufacturer. The secretary shall file a report annually with the Chief Clerk of the House of Representatives and with the Secretary of the Senate outlining the employment, production, expenditures and tax credits authorized under this section.

(e) Upon receipt from a taxpayer of a certificate from the secretary issued under subsection (c), the Secretary of Revenue shall grant a tax credit or credits in the amount certified against any tax due under this article in the calendar year in which the expenditures were incurred or against any tax becoming due from the taxpayer under this article in the following three calendar years. No credit shall be allowed against any tax due for any taxable period ending after December 31, 2008, and beginning before July 1, 2017.

(f) The total amount of tax credits granted under this section shall not exceed five million dollars ($5,000,000) in any fiscal year.

(g) If the total amount of tax credits granted for all taxpayers exceeds the limitation on the amount of tax credits under this section in a fiscal year, the tax credit to be received by each applicant shall be determined as follows:

(1) Divide:

(i) the tax credit granted for the taxpayer; by

(ii) the total of all tax credits granted for all taxpayers.

(2) Multiply:

(i) the amount under subsection (f); by

(ii) the quotient under paragraph (1).

(3) The algebraic form of the calculation under this subsection is:

Taxpayer's tax credit = amount allocated for those tax credits X (tax credit granted to the taxpayer/total of all tax credits granted to all taxpayers).

72 P.S. § 9010

Amended by P.L. TBD 2016 No. 84, § 44, eff. 7/13/2016.

1971, March 4, P.L. 6, No. 2, § 2010, added 1989, Dec. 22, P.L. 775, No. 110, § 3, imd. effective. Amended 1994, June 16, P.L. 279, No. 48, § 31, effective 7/1/1994; 1995, June 30, P.L. 139, No. 21, § 15, effective 7/1/1995; 1999, May 12, P.L. 26, No. 4, § 25, imd. effective; 2000, May 24, P.L. 106, No. 23, § 14, imd. effective; 2003, Dec. 23, P.L. 250, No. 46, § 23, imd. effective.