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§ 8911-E. Carryover, carry back and assignment of credit

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: September 12, 2016

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 5. Tax Reform Code of 1971 (Refs & Annos)
Article XIX-E. Mixed-Use Development Tax Credit (Refs & Annos)
Effective: September 12, 2016
72 P.S. § 8911-E
§ 8911-E. Carryover, carry back and assignment of credit
Currentness
(a) General rule.--The agency, in consultation with the department, shall establish guidelines that include procedures for the carryover, assignment and transfer of credits and reports on utilization.
(b) Carryover.--If a qualified taxpayer cannot use the entire amount of the tax credit for the taxable year in which the tax credit is first approved, the excess credit may be carried over to subsequent taxable years and used as a credit against the qualified tax liability of the qualified taxpayer for those taxable years. Each time the tax credit is carried over to a succeeding taxable year, it shall be reduced by the amount that was used as a credit during the immediately preceding taxable year. In no event shall tax credits provided by this article be carried over and applied to succeeding taxable years more than seven taxable years following the first taxable year for which the qualified taxpayer was entitled to claim the credit.
(c) Application.--A tax credit received by the department in a taxable year shall first be applied against the qualified taxpayer's qualified tax liability for the current taxable year as of the date on which the credit was issued before any carried over tax credits can be applied against any qualified tax liability.
(d) No carry back or refund.--A qualified taxpayer may not carry back or obtain a refund of all or any portion of an unused tax credit granted to the qualified taxpayer under this article.
(e) Sale or assignment.--A qualified taxpayer, upon application and approval by the agency and in conformance with the agency's guidelines, may sell or assign, in whole or in part, a tax credit granted to the qualified taxpayer under this article.
(f) Purchasers and assignees.--The purchaser or assignee of all or a portion of a tax credit obtained under subsection (e) must be a qualified taxpayer and must immediately claim the credit in the taxable year in which the purchase or assignment is made. The purchaser or assignee may not carry over, carry back or obtain a refund or otherwise sell or assign the tax credit. The purchaser or assignee shall notify the agency of the utilization of the tax credit in compliance with procedures specified by the agency.
(g) Pass-through entity distributions.--The following shall apply:
(1) A pass-through entity may elect, in writing, according to procedures established by the agency, to transfer all or a portion of unused tax credits to shareholders, members or partners in proportion to the share of the entity's distributive income to which the shareholder, member or partner is entitled.
(2) A pass-through entity and a shareholder, member or partner of a pass-through entity shall not claim the credit under paragraph (1) for the same qualified expenditures.
(3) A shareholder, member or partner of a pass-through entity to whom a credit is transferred under paragraph (1) must claim the credit in the taxable year in which the transfer is made. The shareholder, member or partner may not carry over, carry back, obtain a refund of or sell or assign the credit.

Credits

1971, March 4, P.L. 6, No. 2, art. XIX-E, § 1911-E, added 2016, July 13, P.L. 526, No. 84, § 43, effective in 60 days [Sept. 12, 2016].
72 P.S. § 8911-E, PA ST 72 P.S. § 8911-E
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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