An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for an advanced clean manufacturing project and further providing for definitions.

PRIOR PRINTER'S NO. 1951 PRINTER'S NO. 2625
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1556
Session of
2025
INTRODUCED BY FIEDLER, KRAJEWSKI, INGLIS, WEBSTER, HILL-EVANS,
FREEMAN, SCHLOSSBERG, CIRESI, SANCHEZ, WAXMAN, MERSKI,
RIVERA, McNEILL, CEPEDA-FREYTIZ, D. WILLIAMS, DEASY, GUZMAN,
NEILSON, CURRY, GREEN AND BOYD, JUNE 16, 2025
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, NOVEMBER 19, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in Pennsylvania Economic Development for a
Growing Economy (PA EDGE) tax credits, providing for an
advanced clean manufacturing project and further providing
for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Article XVII-L of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a subarticle to read:
SUBARTICLE E.3
ADVANCED CLEAN MANUFACTURING PROJECT
Section 1790-L. Definitions.
The following words and phrases when used in this subarticle
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advanced clean manufacturing project facility." A facility
located in this Commonwealth that is owned and operated by a
qualified taxpayer and where clean steel, clean aluminum, clean
cement, clean glass, CLEAN IRON, electric grid modernization
equipment, energy-efficient heat pumps, energy-efficient
turbines or hydrogen electrolyzers are produced.
"ADVANCED CLEAN MANUFACTURING TAX CREDIT" OR "CREDIT." A TAX
CREDIT FOR WHICH THE DEPARTMENT HAS EXECUTED AN ADVANCED CLEAN
MANUFACTURING TAX CREDIT COMMITMENT LETTER UNDER SECTION 1790.5-
L.
"CLEAN IRON." IRON PRODUCED USING METHODS THAT REDUCE
GREENHOUSE GAS EMISSIONS BY AT LEAST 75% COMPARED TO STANDARD
FOSSIL-BASED PRODUCTION METHODS.
"Clean steel, clean aluminum, clean cement or clean glass."
Steel produced WITHOUT COAL OR FOSSIL-FUEL-BASED IRON INPUTS
using recycled scrap or direct reduced iron, or aluminum
produced using recycled aluminum or inert anodes, or cement
produced using low-carbon precursors OR WITH A CLINKER-TO-CEMENT
RATIO UNDER 0.67 , or glass produced using recycled glass, which
is also produced using energy from:
(1) e lectric arc furnaces or other thermal energy
generation or storage systems powered by electricity derived
from renewable sources, AT LEAST 50% RENEWABLE SOURCES BY THE
EFFECTIVE DATE OF THIS DEFINITION AND 100% RENEWABLE SOURCES
BY 2035, THROUGH A POWER PURCHASE AGREEMENT OR ONSITE
GENERATION, including any type or category of facility in
Table 1 of Revenue Procedure 2025-14 published by the
Internal Revenue Service in 2025-7 Internal Revenue Bulletin
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770-771 or any successor table published in the Internal
Revenue Bulletin, or a source defined as a Tier I alternative
energy source under the act of November 30, 2004 (P.L.1672,
No.213), known as the Alternative Energy Portfolio Standards
Act, or any source defined similarly under a successor
standard;
(2) hydrogen produced through a process IN DIRECT
REDUCED IRON OR NOVEL REDUCTION FACILITIES that results in a
life cycle greenhouse gas emissions rate of less than 4
kilograms of CO2e per kilogram of hydrogen, as described
under 26 CFR 1.45V-1(a)(13) (relating to credit for
production of clean hydrogen); or
(3) any other production process such that the carbon
dioxide emissions generated during the process of producing
steel is at least 75% below the national industry average, as
determined by the secretary. PRODUCTION PROCESS IS NO GREATER
THAN THE 25TH PERCENTILE FOR THE INDUSTRY NATIONALLY, AS
DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.
"Credit." The qualified advanced clean manufacturing tax
credit established under this subarticle.
"Department." The Department of Revenue of the Commonwealth.
"DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT." THE
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE
COMMONWEALTH.
"DEPARTMENT OF ENVIRONMENTAL PROTECTION." THE DEPARTMENT OF
ENVIRONMENTAL PROTECTION OF THE COMMONWEALTH.
"Electric grid modernization equipment." The term includes:
(1) Distribution transformers, as defined under 42
U.S.C. § 6291(35) (relating to definitions).
(2) Batteries, including thermal batteries, battery
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energy storage systems, fuel cells or any technology defined
as "energy storage technology" in 26 U.S.C. § 48E(c)(2)
(relating to clean electricity investment credit), including
26 CFR 1.48E-2(g)(6) (relating to qualified investments in
qualified facilities and EST for purposes of section 48E).
(3) ELECTRICAL STEEL.
"ELECTRICAL STEEL." SPECIALTY STEEL SUITABLE FOR SPECIALIZED
USES IN THE CORES OF ELECTROMAGNETIC DEVICES, DISTRIBUTION
TRANSFORMERS OR ELECTRIC GENERATORS, DUE TO ITS MAGNETIC
PROPERTIES. THE TERM SHALL INCLUDE AMORPHOUS STEEL.
"Energy-efficient heat pumps." Any electric or natural gas
heat pump which meets or exceeds the highest efficiency tier,
not including any advanced tier, established by the Consortium
for Energy Efficiency which is in effect as of the beginning of
the calendar year in which the qualified advanced clean
manufacturing project commences construction.
"Energy-efficient turbines." A turbine designed for use in a
combined-cycle power plant and capable of achieving a combined-
cycle efficiency of at least 65%, or a turbine designed for use
in a hydroelectric facility and capable of achieving an
efficiency of at least 90% , USING ANY COMMONLY ACCEPTED INDUSTRY
MEASUREMENT OF TURBINE EFFICIENCY .
"Hydrogen electrolyzer." An industrial, commercial or
utility-scale device, apparatus or system that produces gaseous
hydrogen by performing electrolysis.
"PASS-THROUGH ENTITY." A PARTNERSHIP AS DEFINED IN SECTION
301(N.0) OR A PENNSYLVANIA S CORPORATION AS DEFINED IN SECTION
301(N.1).
"PHASE CHANGE MATERIAL CEILING TILE." A CEILING TILE OR
PANEL DESIGNED FOR USE IN BUILDING INTERIORS THAT INCORPORATES
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ONE OR MORE PHASE CHANGE MATERIALS INTENDED TO ABSORB, STORE AND
RELEASE THERMAL ENERGY AS THE MATERIAL CHANGES PHASE BETWEEN
SOLID AND LIQUID OR OTHER PHYSICAL STATES, FOR THE PURPOSE OF
MODERATING INDOOR TEMPERATURE FLUCTUATIONS AND IMPROVING ENERGY
EFFICIENCY.
"Qualified advanced clean manufacturing project." PROJECT" OR
"PROJECT." A project FOR WHICH A COMMITMENT LETTER HAS BEEN
EXECUTED UNDER SECTION 1790.5-L, which either:
(1) Re-equips, expands or establishes an industrial or
manufacturing facility for the production of:
(i) clean steel, clean aluminum, clean cement or
clean glass;
(ii) electric grid modernization equipment; or
(iii) energy-efficient heat pumps, energy-efficient
turbines or hydrogen electrolyzers . ;
(IV) CLEAN IRON; OR
(V) PHASE CHANGE MATERIAL CEILING TILES.
(2) Otherwise re-equips an industrial or manufacturing
facility for the production of clean steel, clean aluminum,
clean cement or , clean glass OR CLEAN IRON, with equipment
designed to reduce greenhouse gas emissions at the facility
by at least 75% 50% .
"Qualified production costs." Expenditures made by a
qualified taxpayer that are directly attributable to the
production of clean steel, clean aluminum, clean cement, clean
glass, CLEAN IRON, electric grid modernization equipment,
energy-efficient heat pumps, energy-efficient turbines or
hydrogen electrolyzers, OR DIRECTLY ATTRIBUTABLE TO THE
PRODUCTION OF CLEAN STEEL, CLEAN ALUMINUM, CLEAN CEMENT, CLEAN
GLASS OR CLEAN IRON, AT A FACILITY RE-EQUIPPED WITH EQUIPMENT
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DESIGNED TO REDUCE GREENHOUSE GAS EMISSIONS AT THE FACILITY BY
AT LEAST 50%, including, but not limited to, capital investment,
operating costs, labor and raw materials, tangible property used
as an integral part of the qualified advanced clean
manufacturing project facility or any other tangible property
necessary for re-equipping, expanding or establishing a
qualified advanced clean manufacturing project faci lity. The
term includes a pilot or commercial demonstration project's
start-up expenditures under 26 U.S.C. § 195 (relating to start-
up expenditures) and costs, including operational costs,
associated with the construction, fabrication or building of a
PILOT OR pre-commercial production line.
"QUALIFIED TAX LIABILITY." A TAX OWED BY A QUALIFIED
TAXPAYER UNDER ARTICLE III, IV, VII, VIII OR XV, EXCLUDING ANY
TAX WITHHELD BY AN EMPLOYER UNDER ARTICLE III.
"Qualified taxpayer." An entity subject to tax under Article
III, IV or VI , VII, VIII OR XV that owns or operates a qualified
advanced clean manufacturing project facility located in this
Commonwealth. THE TERM INCLUDES A PASS-THROUGH ENTITY.
"Secretary." The Secretary of Environmental Protection of
the Commonwealth.
Section 1790.1-L. Qualified advanced clean manufacturing tax
credit.
For purposes of this subarticle, the qualified advanced clean
manufacturing tax credit for any taxable year shall be an amount
equal to 30% of the qualified production costs for the taxable
year with respect to any qualified advanced clean manufacturing
project of the taxpayer.
Section 1790.2-L. Tax credit authorized.
A qualified taxpayer shall be allowed a credit against the
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tax imposed under Article III, IV or VI QUALIFIED TAXPAYER'S
QUALIFIED TAX LIABILITY for qualified production costs incurred
in a taxable year. A QUALIFIED TAXPAYER MAY APPLY THE ADVANCED
CLEAN MANUFACTURING TAX CREDIT TO NOT MORE THAN 20% OF THE
QUALIFIED TAXPAYER'S QUALIFIED TAX LIABILITY.
Section 1790.3-L. Credit amount.
The credit shall be equal to 30% of a qualified taxpayer's
qualified production costs, not to exceed $10,000,000 $5,000,000
per taxable year.
Section 1790.4-L. Qualified advanced clean manufacturing tax
credit program.
(a) Program.--Not later than 180 days after the effective
date of this section, the secretary DEPARTMENT , in consultation
with the Department of Community and Economic Development and
the department DEPARTMENT OF ENVIRONMENTAL PROTECTION , shall
establish a qualified advanced clean manufacturing tax credit
program to consider and award certifications of credit APPROVE
COMMITMENT LETTERS for qualified production costs eligible for
credits under this subarticle to qualified taxpayers. The
secretary DEPARTMENT OF ENVIRONMENTAL PROTECTION shall, not
later than 120 days following the effective date of this
section, set procedures for calculating and verifying greenhouse
gas emission reductions of a qualified advanced clean
manufacturing project . FOR THE PURPOSES OF DETERMINING THAT A
QUALIFIED PROJECT FACILITY HAS RE-EQUIPPED AN INDUSTRIAL OR
MANUFACTURING FACILITY FOR THE PRODUCTION OF CLEAN STEEL, CLEAN
ALUMINUM, CLEAN CEMENT, CLEAN GLASS OR CLEAN IRON, WITH
EQUIPMENT DESIGNED TO REDUCE GREENHOUSE GAS EMISSIONS AT THE
FACILITY BY AT LEAST 50%.
(b) Application.--The application for a credit under this
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subarticle shall include documentation verifying the taxpayer's
status as a qualified taxpayer and the amount of qualified
production costs incurred.
(B) APPLICATION.--THE DEPARTMENT SHALL DEVELOP AN
APPLICATION FOR A COMMITMENT LETTER UNDER THIS SUBARTICLE TO BE
POSTED ON ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE. THE
APPLICATION SHALL INCLUDE DOCUMENTATION VERIFYING THE
APPLICANT'S ELIGIBILITY TO BECOME A QUALIFIED TAXPAYER AND THE
AMOUNT OF QUALIFIED PRODUCTION COSTS TO BE INCLUDED, AS WELL AS
SUCH OTHER INFORMATION AS DEEMED NECESSARY BY THE DEPARTMENT TO
ESTABLISH APPROVAL CRITERIA FOR A COMMITMENT LETTER.
(c) Annual cap.--The total amount of tax credits awarded
under this subarticle shall not exceed $50,000,000 $25,000,000
in any fiscal year.
(D) ADDITIONAL PROGRAM.--IF THE DEPARTMENT DETERMINES THAT
CREDITS UNDER THIS SECTION ARE AVAILABLE FOR REDISTRIBUTION
UNDER SECTION 1790.8-L, THE DEPARTMENT MAY AUTHORIZE AN
ADDITIONAL APPLICATION PERIOD FOR COMMITMENT LETTERS FOR THE
ADVANCED CLEAN MANUFACTURING TAX CREDIT.
Section 1790.5-L. Certification.
(a) Application period.--Each applicant for certification
under this section shall submit an application containing
information the secretary may require during the two-year period
beginning on the date the secretary establishes the program
under section 1790.4-L(a).
(b) Deadline for certification.--Each applicant for
certification shall have one year from the date of acceptance by
the secretary of the application to provide to the secretary
evidence that the requirements of the certification have been
met.
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(c) Period of issuance.--An applicant which receives a
certification shall have three years from the date of issuance
of the certification to place the project in service. If the
project is not placed in service by the end of the time period,
the certification shall no longer be valid.
(d) Criteria.--In determining which qualified advanced clean
manufacturing projects to certify under this section, the
secretary shall take into consideration only the projects that
have a reasonable expectation of commercial viability and:
(1) will provide the greatest direct and indirect job
creation within the Commonwealth during the credit period;
(2) will provide the greatest net impact in avoiding or
reducing air pollutants or anthropogenic emissions of
greenhouse gases;
(3) have the greatest potential for technological
innovation and commercial deployment;
(4) have the lowest levelized cost of generated or
stored energy, or of measured reduction in energy consumption
or greenhouse gas emissions based on costs of the full supply
chain; and
(5) have the shortest project time from certification to
completion.
Section 1790.6-L. Carry forward.
If a qualified taxpayer does not utilize the entire amount of
the credit in the year in which it is approved, the unused
portion may be carried forward for a period not to exceed five
taxable years.
SECTION 1790.5-L. CERTIFICATION.
(A) APPLICATION PERIOD.--AN APPLICANT FOR A COMMITMENT
LETTER UNDER THIS SUBARTICLE MUST SUBMIT AN APPLICATION
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CONTAINING INFORMATION THE DEPARTMENT MAY REQUIRE, IN
CONSULTATION WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC
DEVELOPMENT AND THE DEPARTMENT OF ENVIRONMENTAL PROTECTION. IF
THE DEPARTMENT APPROVES THE TAXPAYER'S APPLICATION FOR A
COMMITMENT LETTER, THE DEPARTMENT AND THE TAXPAYER SHALL EXECUTE
A COMMITMENT LETTER CONTAINING THE FOLLOWING:
(1) A DETAILED DESCRIPTION OF THE PROJECT.
(2) THE MINIMUM NUMBER OF JOBS ANTICIPATED TO BE CREATED
AT THE PROJECT SITE OR SITES.
(3) THE LOCATION OF ALL PROJECT SITES.
(4) THE PERIOD IN WHICH THE QUALIFIED TAXPAYER MUST
PLACE THE PROJECT INTO SERVICE AND SUBMIT EVIDENCE OF
QUALIFIED PRODUCTION COSTS FOR THE ADVANCED CLEAN
MANUFACTURING TAX CREDIT. THE PERIOD MAY NOT EXCEED FOUR
YEARS FROM THE DATE THE COMMITMENT LETTER IS EXECUTED. IF THE
PROJECT IS NOT PLACED INTO SERVICE BY THE PERIOD SPECIFIED IN
THE COMMITMENT LETTER, THE COMMITMENT LETTER SHALL BE
RENDERED INVALID.
(5) A REQUIREMENT TO MAINTAIN TAX COMPLIANCE WITH THE
DEPARTMENT.
(6) THE PROJECTED AMOUNT OF QUALIFIED PRODUCTION COSTS
THE QUALIFIED TAXPAYER EXPECTS TO INCUR.
(7) ANY OTHER INFORMATION THE DEPARTMENT DEEMS
NECESSARY.
(B) CRITERIA.--IN DETERMINING WHICH APPLICANTS TO APPROVE
FOR A COMMITMENT LETTER UNDER THIS SECTION, THE DEPARTMENT SHALL
TAKE INTO CONSIDERATION ONLY THE PROJECTS THAT:
(1) HAVE A REASONABLE EXPECTATION OF COMMERCIAL
VIABILITY.
(2) WILL PROVIDE THE GREATEST DIRECT AND INDIRECT JOB
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CREATION WITHIN THIS COMMONWEALTH DURING THE CREDIT PERIOD.
(3) WILL PROVIDE THE GREATEST NET IMPACT IN AVOIDING OR
REDUCING AIR POLLUTANTS OR ANTHROPOGENIC EMISSIONS OF
GREENHOUSE GASES.
(4) HAVE THE GREATEST POTENTIAL FOR TECHNOLOGICAL
INNOVATION AND COMMERCIAL DEPLOYMENT.
(5) HAVE THE LOWEST LEVELIZED COST OF GENERATED OR
STORED ENERGY OR OF MEASURED REDUCTION IN ENERGY CONSUMPTION
OR GREENHOUSE GAS EMISSIONS BASED ON COSTS OF THE FULL SUPPLY
CHAIN.
(6) HAVE THE SHORTEST PROJECT TIME FROM CERTIFICATION TO
COMPLETION.
(C) EFFECT OF COMMITMENT LETT ER.--UPON EXECUTION OF THE
COMMITMENT LETTER, THE DEPARTMENT SHALL RESERVE ADVANCED CLEAN
MANUFACTURING TAX CREDITS FOR THE QUALIFIED TAXPAYER. THE
COMMITMENT LETTER SHALL DOCUMENT THE AVAILABILITY OF ADVANCED
CLEAN MANUFACTURING TAX CREDITS FOR THE QUALIFIED TAXPAYER
PENDING THE PROJECT'S PLACEMENT INTO SERVICE, THE PROJECT'S
ADHERENCE TO THE TERMS OF THE COMMITMENT LETTER AND THE
DEPARTMENT'S REVIEW AND APPROVAL OF QUALIFIED PRODUCTION COSTS.
(D) ISSUANCE OF CREDIT.--AFTER PLACING THE PROJECT INTO
SERVICE, THE QUALIFIED TAXPAYER SHALL PRESENT EVIDENCE OF
QUALIFIED PRODUCTION COSTS TO THE DEPARTMENT. UPON REVIEW AND
APPROVAL OF THE EVIDENCE PRESENTED BY THE QUALIFIED TAXPAYER,
THE DEPARTMENT SHALL ISSUE TO THE QUALIFIED TAXPAYER ADVANCED
CLEAN MANUFACTURING CREDITS.
SECTION 1790.5A-L. PASS-THROUGH ENTITY.
(A) ELECTION.--IF A PASS-THROUGH ENTITY HAS ANY UNUSED
CREDITS UNDER THIS SUBARTICLE, THE ENTITY MAY ELECT IN WRITING,
ACCORDING TO PROCEDURES ESTABLISHED BY THE DEPARTMENT, TO
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TRANSFER ALL OR A PORTION OF THE CREDIT TO SHAREHOLDERS, MEMBERS
OR PARTNERS IN PROPORTION OR THE SHARE OF THE ENTITY'S
DISTRIBUTIVE INCOME TO WHICH THE SHAREHOLDER, MEMBER OR PARTNER
IS ENTITLED.
(B) PROHIBITION.--A PASS-THROUGH ENTITY AND A SHAREHOLDER,
MEMBER OR PARTNER OF A PASS-THROUGH ENTITY MAY NOT CLAIM THE
CREDIT UNDER SUBSECTION (A) FOR THE SAME NEW PROJECT.
(C) WHEN CREDIT TO BE CLAIMED.--A SHAREHOLDER, MEMBER OR
PARTNER OF A PASS-THROUGH ENTITY TO WHOM A CREDIT IS TRANSFERRED
UNDER SUBSECTION (A) SHALL IMMEDIATELY CLAIM THE CREDIT IN THE
TAXABLE YEAR IN WHICH THE TRANSFER IS MADE. THE SHAREHOLDER,
MEMBER OR PARTNER MAY NOT CARRY FORWARD, CARRY BACK OR OBTAIN A
REFUND OF THE CREDIT.
SECTION 1790.6-L. CARRY FORWARD, SALE OR ASSIGNMENT.
(A) PERMISSABLE CARRY FORWARD.--
(1) IF THE QUALIFIED TAXPAYER CANNOT USE THE ENTIRE
AMOUNT OF ADVANCED CLEAN MANUFACTURING TAX CREDITS FOR THE
TAXABLE YEAR IN WHICH THE ADVANCED CLEAN MANUFACTURING TAX
CREDITS ARE FIRST APPROVED, THE EXCESS MAY BE CARRIED OVER TO
SUCCEEDING TAXABLE YEARS AND USED AS A CREDIT AGAINST THE
QUALIFIED TAX LIABILITY FOR THE SUCCEEDING TAXABLE YEARS.
(2) EACH TIME THE ADVANCED CLEAN MANUFACTURING TAX
CREDIT IS CARRIED OVER TO A SUCCEEDING TAXABLE YEAR, THE
ADVANCED CLEAN MANUFACTURING TAX CREDIT SHALL BE REDUCED BY
THE AMOUNT OF THE ADVANCED CLEAN MANUFACTURING TAX CREDIT
USED DURING THE IMMEDIATELY PRECEDING TAXABLE YEAR.
(3) THE ADVANCED CLEAN MANUFACTURING TAX CREDIT MAY BE
CARRIED OVER AND APPLIED TO SUCCEEDING TAXABLE YEARS FOR NO
MORE THAN FIVE TAXABLE YEARS FOLLOWING THE FIRST TAXABLE YEAR
FOR WHICH THE QUALIFIED TAXPAYER WAS ENTITLED TO CLAIM THE
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CREDIT.
(B) SELLER AND ASSIGNOR PROVISIONS.--IN THE CASE OF SALE OR
ASSIGNMENT, THE FOLLOWING SHALL APPLY TO THE SELLER OR ASSIGNOR:
(1) A QUALIFIED TAXPAYER, UPON APPLICATION TO AND
APPROVAL BY THE DEPARTMENT, MAY SELL OR ASSIGN, IN WHOLE OR
IN PART, A CREDIT GRANTED TO THE TAXPAYER UNDER THIS
SUBARTICLE.
(2) BEFORE AN APPLICATION IS APPROVED, THE DEPARTMENT
MUST MAKE A FINDING THAT THE APPLICANT HAS FILED ALL REQUIRED
STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAXABLE
YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED AT
SETTLEMENT, ASSESSMENT OR DETERMINATION BY THE DEPARTMENT.
(3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE
DEPARTMENT SHALL SETTLE, ASSESS OR DETERMINE THE TAX OF AN
APPLICANT UNDER THIS SUBSECTION NO LATER THAN 90 DAYS AFTER
FILING OF ALL REQUIRED FINAL RETURNS OR REPORTS IN ACCORDANCE
WITH SECTION 806.1(A)(5) OF THE ACT OF APRIL 9, 1929
(P.L.343, NO.176), KNOWN AS THE FISCAL CODE .
(C) PURCHASER AND ASSIGNEE PROVISIONS.--IN THE CASE OF SALE
AND ASSIGNMENT, THE FOLLOWING SHALL APPLY TO THE PURCHASER OR
ASSIGNEE:
(1) THE PURCHASER OR ASSIGNEE OF ALL OR A PORTION OF A
CREDIT UNDER THIS SUBARTICLE SHALL IMMEDIATELY CLAIM THE
CREDIT IN THE TAXABLE YEAR IN WHICH THE PURCHASE OR
ASSIGNMENT IS MADE.
(2) THE AMOUNT OF THE CREDIT THAT A PURCHASER OR
ASSIGNEE MAY USE AGAINST ANY ONE QUALIFIED TAX LIABILITY MAY
NOT EXCEED 20% OF SUCH QUALIFIED TAX LIABILITY FOR THE
TAXABLE YEAR.
(3) THE PURCHASER OR ASSIGNEE MAY NOT CARRY FORWARD,
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CARRY BACK OR OBTAIN A REFUND OF OR SELL OR ASSIGN THE
CREDIT.
Section 1790.7-L. Recapture.
If the department , IN CONSULTATION WITH THE DEPARTMENT OF
ENVIRONMENTAL PROTECTION, determines that a qualified taxpayer
has received the credit through fraud or misrepresentation, or
has failed to maintain APPLICABLE clean steel, clean aluminum,
clean cement or clean glass production standards OR CLEAN IRON
PRODUCTION STANDARDS, for two consecutive taxable years, the
credit shall be subject to recapture, along with applicable
interest and penalties.
Section 1790.8-L. Redistribution.
The secretary DEPARTMENT may reallocate credits awarded under
this section if the secretary DEPARTMENT determines that:
(1) there is an insufficient quantity of pending
qualifying applications for certification COMMITMENT LETTERS
under section 1790.5-L at the time of the review;
(2) any certification made COMMITMENT LETTER EXECUTED
under section 1790.5-L has been revoked under this subarticle
because the project subject to the certification has been
delayed as a result of third-party opposition or litigation
to the proposed project; or
(3) the credit has been recaptured under section 1790.7-
L.
Section 1790.9-L. Public disclosure.
The secretary DEPARTMENT shall, upon making a certification
under this section, publicly disclose the identity of an
applicant under section 1790.5-L and the amount of the credit
with respect to the applicant.
Section 1790.10-L. Expiration.
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No credits shall be approved under this subarticle for
taxable years beginning after December 31, 2035, unless
reauthorized by the General Assembly.
Section 2. Section 1791-L of the act is amended to read:
Section 1791-L. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Qualified project facility." Any of the following:
(1) A project facility as defined in section 1711-L.
(2) A project facility as defined in section 1731-L.
(3) A project facility as defined in section 1751-L.
(4) A project facility as defined in section 1771-L.
(5) An advanced clean manufacturing project facility as
defined in section 1790-L.
"Qualified tax credit recipient." Any of the following who
have been awarded a tax credit:
(1) A qualified taxpayer as defined in section 1711-L.
(2) A qualified taxpayer as defined in section 1731-L.
(3) A qualified taxpayer as defined in section 1751-L.
(4) A qualified taxpayer as defined in section 1771-L.
(5) A qualified taxpayer as defined in section 1790-L.
Section 3. This act shall take effect in 60 days.
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