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§ 8782-D. Pennsylvania live events industry COVID-19 emergency assistance

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: July 1, 2021

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 XVII-D. Entertainment Production Tax Credit (Refs & Annos)
Subarticle E. Entertainment Economic Enhancement Program (Refs & Annos)
Effective: July 1, 2021
72 P.S. § 8782-D
§ 8782-D. Pennsylvania live events industry COVID-19 emergency assistance
Currentness
(a) Intent.--It is the intent of the General Assembly to assist the Pennsylvania live events industry which has been severely impacted by the COVID-19 virus by providing a temporary procedure to further encourage live event performers to purchase Pennsylvania products and services while safely entertaining residents of this Commonwealth.
(b) Application.--For fiscal years beginning July 1, 2021, and ending June 30, 2023, and notwithstanding section 1773-D,1 a taxpayer may apply to the department for a tax credit related to a streaming performance under this section. The application shall be on the form required by the department.
(c) Review and approval.--
(1) The department shall establish application periods not to exceed 10 days on a bimonthly basis. All applications received during an application period shall be reviewed and evaluated by the department based on the following criteria:
(i) The anticipated number of rehearsal days in a qualified rehearsal facility.
(ii) The anticipated number of streaming performances.
(iii) The anticipated amount of Pennsylvania rehearsal and tour expenses.
(iv) The anticipated amount of the concert tour equipment expenses which are or will be purchased or rented from companies located and maintaining a place of business in this Commonwealth and which will be used for the rehearsal and streaming performances.
(v) The anticipated amount of the concert tour equipment expenses which are not or will not be purchased or rented from companies located and maintaining a place of business in this Commonwealth and which will be used for the rehearsal and streaming performances.
(vi) The anticipated number of days spent in Commonwealth hotels.
(vii) Other criteria that the department deems appropriate to ensure maximum employment opportunities and entertainment benefits for the residents of this Commonwealth.
(2) The department may approve the taxpayer for a tax credit upon determining all of the following:
(i) That the taxpayer has paid the applicable application fee, not to exceed $300.
(ii) That the taxpayer has met or will meet all of the following:
(A) Has or will rehearse at a qualified rehearsal facility for a minimum of seven days.
(B) Has or will perform at least one streaming performance at a qualified rehearsal facility.
(C) Has incurred or will incur Pennsylvania rehearsal and tour expenses in an amount of at least $300,000 from companies located and maintaining a place of business in this Commonwealth.
(D) Has or will purchase or rent concert tour equipment to be delivered to a qualified rehearsal facility in an amount of at least $225,000 from companies located and maintaining a place of business in this Commonwealth.
(E) Has or will purchase or rent at least 70% of the concert tour equipment to be used for the rehearsal and any streaming performances from companies located and maintaining a place of business in this Commonwealth.
(F) Maintains a place of business in this Commonwealth or employs a representative for the period beginning with the start date and ending with the award of tax certificates under this section.
(d) Contract.--If the department approves the taxpayer's application under subsection (c)(2), the department and the taxpayer shall enter into a contract containing the following:
(1) The start date or the expected start date.
(2) With respect to a contract entered into prior to completion of a streaming performance, a commitment by the taxpayer to hold at least one streaming performance at a qualified rehearsal facility.
(3) With respect to a contract entered into prior to completion of a streaming performance, a commitment by the taxpayer to incur the Pennsylvania rehearsal and tour expenses as itemized.
(4) Any other information the department deems appropriate.
(e) Certificate.--Upon execution of the contract required by subsection (d), the department shall award the taxpayer a tax credit and issue the recipient a tax credit certificate.
(f) Limitations.--
(1) A taxpayer may not be awarded more than 25% of Pennsylvania rehearsal and tour expenses the taxpayer incurred or will incur for a tour.
(2) A taxpayer may not be awarded more than $250,000 of tax credits for a tour.
(g) Cap.--Any award of tax credits made under this section shall count against and reduce the total amount of tax credits that the department may award under section 1777-D(a)2 for qualified rehearsal and tour expenses incurred or to be incurred related to a tour in that fiscal year.

Credits

1971, March 4, P.L. 6, No. 2, art. XVII-D, § 1782-D, added 2021, June 30, P.L. 124, No. 25, § 19, effective July 1, 2021.

Footnotes

1
72 P.S. § 8773-D.
2
72 P.S. § 8777-D.
72 P.S. § 8782-D, PA ST 72 P.S. § 8782-D
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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