Vote Smart's Synopsis:

Vote to pass a bill that establishes an energy and fertilizer manufacturing tax credit.

Highlights:

• Defines “department” as the Department of Revenue of the Commonwealth (Sec. 1).

• Defines “downstream company” as a company that uses chemical products or chemical compounds manufactured or processed by a qualified taxpayer as raw material in the company’s production process (Sec. 1).

• Defines “methane” as colorless, odorless flammable gas that is the product of biological decomposition of organic matter

• Defines “methanol” as toxic, colorless, flammable liquid alcohol, CH3OH, made by oxidizing methane (Sec. 1).

• Defines “qualified taxpayer” as a company that satisfies all of the following (Sec. 1):

• Purchases and uses Pennsylvania methane in the manufacture of petrochemicals or fertilizers at a facility in Pennsylvania that has been placed in service on or after the effective date of this act;

• Has made a capital investment of at least $1 billion in order to construct the facility and place the facility into service in this state; and

• Has created at least 1,000 full-time jobs during the construction phase in order to construct the facility and place it into service;

• Authorizes a qualified taxpayer to apply to the department for a tax credit under this act (Sec. 1).

• Specifies that the application must be submitted to the department by March 1 for tax credits claimed on behalf of qualified products purchased and used in the manufacturing of petrochemicals or fertilizers by the qualified taxpayer during the prior calendar year (Sec. 1).

• Authorizes the department to review and approve or disapprove the application by March 20 (Sec. 1).

• Specifies that in order to sell or assign a tax credit, a qualified taxpayer must file an application for the sale and assignment of the tax credit with the Department of Community and Economic Development (Sec. 1).

• Requires that in order to approve an application, the Department of Community and Economic Development must receive a finding from the department that meets the following standards, including (Sec. 1):

• Having filled all the required state tax reports and returns for all applicable taxable years; and

• Having paid any balance of state tax due as determined by assessment or determination by the department and not under timely appeal.

Full Bill Text