§ 820.516. Capital stock franchise tax
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 73 P.S. Trade and CommerceEffective: February 14, 2012
Effective: February 14, 2012
73 P.S. § 820.516
§ 820.516. Capital stock franchise tax
(a) Credits.--For tax years that begin on or after January 1, 1999, a corporation that is a qualified business under this act may claim a credit against the tax imposed by Article VI of the Tax Reform Code of 19711 for tax liability attributable to the capital employed within the subzone in the taxable year. For tax years that begin on or after January 1, 2001, a corporation that is a qualified business under this act may claim a credit against the tax imposed by Article VI of the Tax Reform Code of 1971 for tax liability attributable to the capital employed within the expansion subzone in the taxable year. For tax years that begin on or after January 1, 2004, a corporation which is a qualified business under this act may claim a credit against the tax imposed by Article VI of the Tax Reform Code of 1971 for tax liability attributable to the capital employed within the improvement subzone in the taxable year. No credit may be claimed for capital employed prior to designation of the real property as part of a subzone or expansion subzone. The business activity must be conducted directly by a corporation in the subzone or expansion subzone in order for the corporation to claim the tax credit.
(b) Tax liability.--The corporation's tax liability attributable to capital employed within a subzone, improvement subzone or expansion subzone shall be determined by multiplying the corporation's taxable value attributable to capital employed within the subzone, improvement subzone or expansion subzone by the rate of tax imposed under Article VI of the Tax Reform Code of 1971 for the taxable year. The corporation shall compute its Pennsylvania taxable value in conformity with Article VI of the Tax Reform Code of 1971 with no adjustments or subtractions for the capital employed in the subzone, improvement subzone or expansion subzone.
(1) If the entire business of the corporation in this Commonwealth is transacted wholly within a subzone, improvement subzone or expansion subzone, the taxable value attributable to the capital employed within a subzone, improvement subzone or expansion subzone shall consist of the Pennsylvania taxable value as determined under Article VI of the Tax Reform Code of 1971.
(2) If the entire business of the corporation in this Commonwealth is not wholly transacted within a subzone, improvement subzone or expansion subzone, the taxable value of a corporation in a subzone, improvement subzone or expansion subzone shall be determined upon such portion of the Pennsylvania taxable value attributable to the capital employed within the subzone, improvement subzone or expansion subzone by employing the apportionment factors set forth in section 515(d).2
(i) Any of the following that are required to use special apportionment under Article IV of the Tax Reform Code of 19713 or would be required to use special apportionment under Article IV of the Tax Reform Code of 1971 if the taxpayer had income from business activity taxable both within and without this Commonwealth:
Credits
1998, Oct. 6, P.L. 705, No. 92, § 516, imd. effective. Amended 2000, Dec. 20, P.L. 841, No. 119, § 4, imd. effective; 2002, Dec. 9, P.L. 1727, No. 217, § 6, imd. effective; 2012, Feb. 14, P.L. 183, No. 16, § 3, imd. effective.
73 P.S. § 820.516, PA ST 73 P.S. § 820.516
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
| End of Document |