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§ 8714-D. Carryover, carryback and assignment of credit

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: August 27, 2019

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 B. Film Production (Refs & Annos)
Effective: August 27, 2019
72 P.S. § 8714-D
Formerly cited as PA ST 72 P.S. § 8705-D
§ 8714-D. Carryover, carryback and assignment of credit
Currentness
(a) General rule.--If the taxpayer cannot use the entire amount of the tax credit for the taxable year in which the tax credit is first approved, then the excess may be carried over to succeeding taxable years and used as a credit against the qualified tax liability of the 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. The tax credit provided by this subarticle may be carried over and applied to succeeding taxable years for no more than three taxable years following the first taxable year for which the taxpayer was entitled to claim the credit.
(b) Application.--A tax credit approved by the department in a taxable year first shall be applied against the taxpayer's qualified tax liability for the current taxable year as of the date on which the credit was approved before the tax credit can be applied against any tax liability under subsection (a).
(c) No carryback or refund.--A taxpayer is not entitled to carry back or obtain a refund of all or any portion of an unused tax credit granted to the taxpayer under this subarticle.
(d) (Reserved).
(e) Sale or assignment.--The following shall apply:
(1) A taxpayer, upon application to and approval by the department, may sell or assign, in whole or in part, a tax credit granted to the taxpayer under this subarticle.
(2) The department and the Department of Revenue shall jointly promulgate regulations for the approval of applications under this subsection.
(3) Before an application is approved, the Department of Revenue must make a finding that the applicant has filed all required State tax reports and returns for all applicable taxable years and paid any balance of State tax due as determined at settlement, assessment or determination by the Department of Revenue.
(4) Notwithstanding any other provision of law, the Department of Revenue shall settle, assess or determine the tax of an applicant under this subsection within 90 days of the filing of all required final returns or reports in accordance with section 806.1(a)(5) of the act of April 9, 1929 (P.L. 343, No. 176),1 known as The Fiscal Code.
(f) Purchasers and assignees.--Except as provided in subsections (g) and (h), the following apply:
(1) The purchaser or assignee of all or a portion of a tax credit under subsection (e) shall immediately claim the credit in the taxable year in which the purchase or assignment is made.
(2) The amount of the tax credit that a purchaser or assignee may use against any one qualified tax liability may not exceed 50% of such qualified tax liability for the taxable year.
(3) The purchaser or assignee may not carry forward, carry back or obtain a refund of or sell or assign the tax credit.
(4) The purchaser or assignee shall notify the Department of Revenue of the seller or assignor of the tax credit in compliance with procedures specified by the Department of Revenue.
(g) Limited carry forward of tax credits by a purchaser or assignee.--A purchaser or assignee may carry forward all or any unused portion of a tax credit purchased or assigned in:
(1) Calendar year 2010 against qualified tax liabilities incurred in taxable years 2011 and 2012.
(2) Calendar year 2013 against qualified tax liabilities incurred in taxable year 2014.
(3) Calendar year 2014 against qualified tax liabilities incurred in taxable year 2015.
(h) Full utilization of tax credits.--A tax credit awarded under this article may be sold or assigned to a purchaser or assignee included in the same Federal consolidated tax return as permitted under sections 1501 and 1502 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§ 1501 and 1502), filed by the taxpayer under subsection (a) to reduce or eliminate the qualified tax liability to the same extent allowable for the taxpayer under subsections (a), (b) and (c). Tax credits sold or assigned under this subsection are limited to the taxable year in which the purchase or assignment is made and may only be carried forward for the remainder of the carryforward period of the original credit.

Credits

1971, March 4, P.L. 6, No. 2, art. XVII-D, § 1705-D, added 2007, July 25, P.L. 373, No. 55, § 7, imd. effective. Amended 2012, July 2, P.L. 751, No. 85, § 16, imd. effective; 2013, July 9, P.L. 270, No. 52, § 28, imd. effective. Renumbered § 1714-D and amended 2016, July 13, P.L. 526, No. 84, § 26, imd. effective. Amended 2019, June 28, P.L. 50, No. 13, § 10.9, effective in 60 days [Aug. 27, 2019].

Footnotes

1
72 P.S. § 806.1.
72 P.S. § 8714-D, PA ST 72 P.S. § 8714-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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