HB 2340
An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in malt beverage tax, further providing for limited tax credits.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill amends Pennsylvania’s tax code to create limited tax credits for malt beverage manufacturers who make qualifying capital expenditures. These credits are available during specific periods and are subject to certain limitations, such as a maximum annual expenditure of $200,000. The bill also allows taxpayers to sell or assign tax credits to other parties, with specific rules governing the transfer and application of these credits.
Key provisions
- Establishes limited tax credits for malt beverage manufacturers.
- Defines ‘qualifying capital expenditures’ as investments in plant, machinery, or equipment used in the manufacture of malt or brewed beverages.
- Sets a maximum annual amount for qualifying capital expenditures at $200,000.
- Allows taxpayers to sell or assign tax credits to other taxpayers.
- Specifies rules for the purchase and application of tax credits by purchasers.
- Limits the amount of a purchased tax credit to 50% of the purchaser’s tax liability in a given year.
- Prohibits purchasers from carrying forward, carrying back, or receiving a refund of the tax credit.
- Requires purchasers to notify the Department of Revenue of the original seller or assignor.
Who is affected
- Manufacturers of malt and brewed beverages
- Taxpayers
- The Department of Revenue
- Potential purchasers of tax credits
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Daniel Deasy
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