The following words and phrases when used in this part shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Affiliate.” An entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with another entity. For the purposes of this part, an entity is “controlled by” another entity if the controlling person holds, directly or indirectly, the majority voting or ownership interest in the controlled entity or has control over the day-to-day operations of the controlled entity by contract or by law.

“Business firm.” An entity authorized to do business in this Commonwealth and subject to taxes imposed under Article VII, VIII, IX or XV,¹ the tax under Article XVI of the act of May 17, 1921 (P.L. 682, No. 284),² known as The Insurance Company Law of 1921, or amounts imposed under section 212 of the act of May 17, 1921 (P.L. 789, No. 285),³ known as The Insurance Department Act of 1921.

“Closing date.” The date on which a rural growth fund has collected all of the amounts specified by section 1825-G.⁴

“Credit-eligible capital contribution.” An investment of cash by a business firm in a rural growth fund that equals the amount specified on a tax credit certificate issued by the department under section 1829-G.⁵ The investment shall purchase an equity interest in the rural growth fund or purchase, at par value or premium, a debt instrument that has a maturity date at least five years from the closing date.

“Department.” The Department of Community and Economic Development of the Commonwealth.

“Full-time equivalent employee.” The quotient obtained by dividing the total number of hours for which employees were compensated for employment over the preceding 12-month period by 2,080.

“Investment authority.” The amount stated on the notice issued under section 1824-G⁶ approving the rural growth fund.

“Jobs created.” Full-time equivalent employee positions that:

“Jobs retained.” Full-time equivalent employee positions that:

“Principal business operations.” The place or places where at least 60% of a rural business' employees work or where employees that are paid at least 60% of the business' payroll work. An out-of-State business that has agreed to relocate employees or an in-State business that has agreed to hire employees using the proceeds of a rural growth investment to establish principal business operations in a rural area in this Commonwealth shall be deemed to have the principal business operations in this new location if the business satisfies this definition within 180 days after receiving the rural growth investment, unless the department agrees to a later date.

“Qualified tax liability.” The liability for taxes imposed under Article VII, VIII, IX or XV, the tax under Article XVI of the act of May 17, 1921 (P.L. 682, No. 284), known as The Insurance Company Law of 1921, or amounts imposed under section 212 of the act of May 17, 1921 (P.L. 789, No. 285), known as The Insurance Department Act of 1921, and any other retaliatory tax imposed on a business firm in this Commonwealth.

“Rural area.” Either of the following:

“Rural business.” A business that, at the time of the initial rural growth investment in the business by a rural growth fund, meets the following conditions:

“Rural growth fund.” An entity approved by the department under section 1824-G.

“Rural growth investment.” A capital or equity investment in a rural business or any loan to a rural business with a stated maturity at least one year after the date of issuance. A secured loan or a revolving line of credit provided to a rural business is a rural growth investment only if the growth fund obtains an affidavit from the president or chief executive officer or equivalent position of the rural business attesting that the rural business sought and was denied similar financing from a commercial bank.

“State repayment amount.” The amount by which the rural growth fund's credit-eligible capital contributions exceed the product obtained by multiplying $30,000 by the aggregate number of jobs created and jobs retained reported in annual reports under section 1827-G(b).⁷

“Tax credit.” The Rural Jobs and Investment Tax Credit provided under this part.