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§ 8777-D. Limitations

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: July 8, 2022

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 8, 2022
72 P.S. § 8777-D
Formerly cited as PA ST 72 P.S. § 8736-DFormerly cited as PA ST 12 Pa.C.S.A. § 3307
§ 8777-D. Limitations
Currentness
(a) Cap.--
<Section 24(4)(ix) of Act 2022, July 8, P.L. 513, No. 53, provides that the amendment of subsec. (a)(1) of this section by that Act shall apply to fiscal years beginning after June 30, 2022.>
(1) The aggregate amount of tax credits awarded in a fiscal year under this subarticle may not exceed $24,000,000.
(2) In a fiscal year, the department may, in the department's discretion, advance the award of tax credits for qualified rehearsal and tour expenses incurred or to be incurred equal to $2,000,000 of the tax credits available to be awarded in the succeeding fiscal year.
(3) If, in a fiscal year, the maximum amount of credits authorized by this subsection are not awarded by the department, the department may increase the total amount of tax credits that the department may award for qualified rehearsal and tour expenses incurred or to be incurred related to a tour in the immediately succeeding fiscal year by the amount that was not awarded in the preceding fiscal year.
(b) Advance award of credits.--The advance award of tax credits under subsection (a)(2) shall:
(1) count against the total amount of tax credits that the department may award for qualified rehearsal and tour expenses incurred or to be incurred related to a tour in that next succeeding fiscal year; and
(2) reduce the total amount of tax credits that the department may award for qualified rehearsal and tour expenses incurred or to be incurred related to a tour in that next succeeding fiscal year.
(c) Individual limitations.--The following shall apply:
(1) If a taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on a tour is at least $3,000,000 but less than $4,000,000, the taxpayer may not be awarded more than $800,000 of tax credits for the tour.
(1.1) If a taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on a tour is at least $4,000,000 but less than $8,000,000, the taxpayer may not be awarded more than $1,250,000 of tax credits for the tour.
(1.2) If a taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on a tour is at least $8,000,000, the taxpayer may not be awarded more than $2,000,000 of tax credits for the tour.
(2) Except as provided under paragraph (5), the aggregate amount of tax credits awarded by the department under section 1773-D(e)1 to a taxpayer for a tour with concerts at two class 1 venues or a class 1 venue and a class 2 venue may not exceed 25% of the qualified rehearsal and tour expenses incurred or to be incurred.
(3) Except as provided under paragraph (5), the aggregate amount of tax credits awarded by the department under section 1773-D(e) to a taxpayer for a tour with concerts at a class 1 venue and a class 3 venue may not exceed 30% of the qualified rehearsal and tour expenses incurred or to be incurred.
(4) Except as provided under paragraph (5), the aggregate amount of tax credits awarded by the department under section 1773-D(e) to a taxpayer for a tour with concerts at a class 1 venue and a class 3 venue which does not serve alcohol may not exceed 35% of the qualified rehearsal and tour expenses incurred or to be incurred.
(5) In addition to the tax credits under paragraph (2), (3) or (4), a taxpayer is eligible for a tax credit in the amount of 5% of the qualified rehearsal and tour expenses incurred or to be incurred by the taxpayer if the taxpayer holds concerts at a total of two or more class 2 venues or class 3 venues.
(d) Qualified rehearsal facility.--To be considered a qualified rehearsal facility under this subarticle, the owner of a rehearsal facility shall provide evidence to the department to verify the development or facility specifications and capital improvement costs incurred for the rehearsal facility so that the threshold amounts set in the definition of qualified rehearsal facility under section 1772-D2 are satisfied, and, upon verification, the rehearsal facility shall be registered by the department officially as a qualified rehearsal facility.
(e) Waiver.--The department may make a determination that the financial benefit to this Commonwealth resulting from the direct investment in or payments made to Pennsylvania rehearsal and concert facilities outweighs the benefit of maintaining the 60% Pennsylvania rehearsal expenses requirement contained in the definition of qualified rehearsal and tour expense under section 1772-D. If the determination is made, the department may waive the requirement that 60% of a tour's aggregate rehearsal expenses be comprised of Pennsylvania rehearsal expenses.

Credits

1971, March 4, P.L. 6, No. 2, art. XVII-D, § 1777-D, added 2017, Oct. 30, P.L. 672, No. 43, § 35, imd. effective. Amended 2019, June 28, P.L. 50, No. 13, § 13, effective July 1, 2019; 2021, June 30, P.L. 124, No. 25, § 18, effective July 1, 2021; 2022, July 8, P.L. 513, No. 53, § 11, imd. effective.

Footnotes

1
72 P.S. § 8773-D.
2
72 P.S. § 8772-D.
72 P.S. § 8777-D, PA ST 72 P.S. § 8777-D
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document