PRINTER'S NO. 1769
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1272
Session of
2024
INTRODUCED BY YAW, BREWSTER, CULVER, BROOKS, PENNYCUICK, DUSH,
BARTOLOTTA, ARGALL, STREET, AUMENT AND VOGEL, JUNE 25, 2024
REFERRED TO FINANCE, JUNE 25, 2024
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," in manufacturing and investment tax credit,
11 further providing for definitions relating to rural jobs and
12 investment tax credit, for rural growth funds, for claiming
13 the tax credit and for revocation of tax credit certificates.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The definitions of "closing date" and "rural
17 growth investment" in section 1822-G of the act of March 4, 1971
18 (P.L.6, No.2), known as the Tax Reform Code of 1971, are amended
19 and the section is amended by adding definitions to read:
20 Section 1822-G. Definitions.
21 The following words and phrases when used in this part shall
22 have the meanings given to them in this section unless the
23 context clearly indicates otherwise:
 1 * * *
2 "Closing date." [The]
3 (1) With respect to program one tax credit authority,
4 the date on which a rural growth fund has collected all of
5 the amounts specified by section 1825-G.
6 (2) With respect to program two tax credit authority,
7 either:
8 (i) the date on which a rural growth fund has
9 collected all of the amounts specified under 1825-G; or
10 (ii) investment authority reallocated under section
11 1826-G(b) or 1833-G(c).
12 * * *
13 "Program one tax credit authority." Investment authority
14 issued by the department before January 1, 2024.
15 "Program two tax credit authority." Investment authority
16 issued by the department on or after January 1, 2024.
17 * * *
18 "Rural growth investment." A capital or equity investment in
19 a rural business or any loan to a rural business with a stated
20 maturity at least one year after the date of issuance. A secured
21 loan or a revolving line of credit provided to a rural business
22 is a rural growth investment only if the growth fund obtains an
23 affidavit from the president or chief executive officer or
24 equivalent position of the rural business attesting that the
25 rural business sought and was denied similar financing from a
26 commercial bank. The term does not include any investment used
27 by a rural business or its affiliates to refinance a prior rural
28 growth investment made with program one tax credit authority.
29 * * *
30 Section 2. Sections 1824-G(f) and 1830-G(a) of the act are
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 1 amended to read:
2 Section 1824-G. Rural growth funds.
3 * * *
4 (f) Limitation.--The department may not approve more than
5 $50,000,000 in investment authority with respect to program one
6 tax credit authority and $50,000,000 in investment authority
7 with respect to program two tax credit authority under this
8 part.
9 Section 1830-G. Claiming the tax credit.
10 (a) Presentation.--
11 (1) Beginning July 1, 2020, with respect to program one
12 tax credit authority, upon presenting a tax credit
13 certificate to the Department of Revenue, a business firm may
14 claim a tax credit of up to 20% of the amount awarded under
15 section 1829-G for each of the taxable years that includes
16 the third, fourth, fifth, sixth and seventh anniversaries of
17 the closing date, exclusive of any tax credit amounts carried
18 over under section 1831-G(b).
19 (2) Beginning July 1, 2024, with respect to program two
20 tax credit authority, upon presenting a tax credit
21 certificate to the Department of Revenue, a business firm may
22 claim a tax credit of up to 20% of the amount awarded under
23 section 1829-G for each of the taxable years that includes
24 the third, fourth, fifth, sixth and seventh anniversaries of
25 the closing date, exclusive of any tax credit amounts carried
26 over under section 1831-G(b).
27 * * *
28 Section 3. Section 1833-G(a)(4) of the act is amended and
29 the section is amended by adding a subsection to read:
30 Section 1833-G. Revocation of tax credit certificates.
20240SB1272PN1769 - 3 -
 1 (a) Revocation.--The department shall revoke a tax credit
2 certificate awarded under section 1829-G if any of the following
3 occur with respect to a rural growth fund before the rural
4 growth fund exits the program under section 1834-G:
5 * * *
6 (4) The following apply:
7 (i) With respect to program one tax credit
8 authority, the rural growth fund invests more than 20% of
9 its investment authority, exclusive of receipts or
10 redeemed rural growth investments, in the same rural
11 business, including amounts invested in affiliates of the
12 rural business.
13 (ii) With respect to program two tax credit
14 authority, the rural growth fund invests more than
15 $5,000,000 of its investment authority, exclusive of
16 receipts or redeemed rural growth investments, in the
17 same rural business, including amounts invested in
18 affiliates of the rural business.
19 * * *
20 (d) Rural growth investment cap.--With respect to any one
21 rural business, the maximum amount of rural growth investments
22 made in that business, on a collective basis with all of its
23 affiliates that may be counted toward the satisfaction of
24 subsection (a), shall be $15,000,000, exclusive of receipts of
25 redeemed rural growth investments.
26 Section 4. This act shall take effect in 60 days.
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Statutes/Laws affected:
Printer's No. 1769: P.L.6, No.2