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.

PRINTER'S NO. 3132
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2340
Session of
2026
INTRODUCED BY TIBURCIO, SAMUELSON, DEASY, MATZIE, McNEILL, HILL-
EVANS, GUZMAN, SCHWEYER, VENKAT, GAYDOS, SCHLOSSBERG,
DAVIDSON, FREEMAN, SANCHEZ, MALAGARI, MUSTELLO, STAATS,
FRITZ, KRUEGER, CEPEDA-FREYTIZ AND BOYD, APRIL 2, 2026
REFERRED TO COMMITTEE ON FINANCE, APRIL 2, 2026
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 malt beverage tax, further providing for
limited tax credits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2010(b) and (e) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended and the section is amended by adding subsections to
read:
Section 2010. Limited Tax Credits.--* * *
(b) As used in this section:
"Amounts paid." The phrase means (i) amounts actually paid,
or (ii) at the taxpayer's election, amounts promised to be paid
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under firm purchase contracts actually executed during any
calendar year falling within the effective period of this
section: Provided, however, That there shall be no duplication
of "amounts paid" under this definition.
"Effective period." The period from January 1, 1974, to
December 31, 2008, and the period after June 30, 2017,
inclusive.
"Purchaser." A person who purchases a tax credit from a
taxpayer.
"Qualifying capital expenditures." Amounts paid by a
taxpayer during the effective period of this section for the
purchase of items of plant, machinery or equipment for use by
the taxpayer within this Commonwealth in the manufacture and
sale of malt or brewed beverages: Provided, however, That the
total amount of qualifying capital expenditures made by a
taxpayer within a single calendar year shall not exceed two
hundred thousand dollars ($200,000).
"Secretary." The Secretary of Revenue of the Commonwealth of
Pennsylvania where not otherwise qualified.
"Taxpayer." A manufacturer of malt or brewed beverages
claiming a tax credit or credits under this section.
* * *
(e) Upon receipt from a taxpayer of a certificate from the
secretary issued under subsection (c), the Secretary of Revenue
shall grant a tax credit or credits in the amount certified
against any tax due under this article in the calendar year in
which the expenditures were incurred or against any tax becoming
due from the taxpayer under this article in the following
[three] five calendar years. No credit shall be allowed against
any tax due for any taxable period ending after December 31,
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2008, and beginning before July 1, 2017.
* * *
(h) (1) A taxpayer, upon application to and approval by the
department, may sell or assign, in whole or in part, a tax
credit granted under this section. A tax credit may only be sold
or assigned to a taxpayer under this article.
(2) The department may issue guidelines for the approval of
applications under this subsection.
(3) Before approval, the department must verify that the
taxpayer has filed all required State tax reports and returns
for all applicable tax years and paid any outstanding balances
as determined through settlement, assessment or determination.
(4) The department shall settle, assess or determine the
taxpayer's tax liability within ninety days of receiving 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."
(i) (1) The purchaser of all or part of a tax credit shall
immediately claim the credit in the taxable year in which the
purchase or assignment occurs.
(2) The tax credit may only be applied to the purchaser's
tax liability under this article and may not exceed fifty per
cent of the purchaser's tax liability for that taxable year.
(3) A purchaser who is also a taxpayer may claim the
purchased tax credit in addition to the total amount of
qualifying capital expenditure the purchaser claims subject to
the provisions of this section.
(4) The purchaser may not carry forward, carry back or
obtain a refund of the tax credit.
(5) The purchaser may not sell or assign a purchased tax
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credit.
(6) The purchaser shall notify the department of the seller
or assignor of the tax credit in compliance with specified
procedures.
Section 2. This act shall take effect in 60 days.
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