Section 8703-E - Resource Enhancement and Protection Tax Credit Program(a) Establishment.--The Resource Enhancement and Protection Tax Credit Program is established to encourage private investment in the implementation of best management practices on agricultural operations, the planting of riparian forest buffers and the remediation of legacy sediment.(b) Limits.--The following limits shall apply: (1) Except as set forth in paragraph (5), an eligible applicant may be granted a maximum of $250,000 in tax credits in any consecutive seven-year period, calculated from the date the tax credit is issued.(2) An agricultural operation may be granted a maximum of $250,000 in tax credits in any consecutive seven-year period, calculated from the date the tax credit is issued. (3) An eligible applicant may submit an application for a single project or multiple applications for multiple projects within the limits of this section. (4) There shall be no limit on the amount of tax credits that may be purchased from or be assigned from an eligible applicant. (5) Notwithstanding paragraph (1), there shall be no limit on the amount of tax credits granted to a sponsor under subsection (E), except the commission may establish annual aggregate limits on tax credits awarded to sponsors to ensure fair and equitable distribution of tax benefits to eligible applicants. (6) The credits for legacy sediment shall not be issued prior to July 1, 2008. Applications for legacy sediment remediation will not be accepted prior to July 1, 2008. (c) Carryover.--(1) If the eligible applicant cannot use the entire amount of the tax credit for the taxable year in which the tax credit is first granted, then the excess may be carried over to succeeding taxable years and used as a credit against the qualified tax liability of the eligible applicant for those taxable years. Each time that the tax credit is carried over to a succeeding taxable year, it is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The tax credit provided by this article may be carried over and applied to succeeding taxable years for no more than 15 taxable years following the first taxable year for which the eligible applicant was entitled to claim the credit.(2) A tax credit granted by the department shall be applied against the taxpayer's qualified tax liability for the current taxable year as of the date on which the credit was granted before the tax credit is applied against any tax liability under paragraph (1).(2.1) A tax credit granted under this article may be applied to the tax liability of the spouse of an eligible applicant if both the eligible applicant and the spouse report income on a joint income tax return.(3) A tax credit granted under this article shall not be carried back or refunded.(d) Sale or assignment of credit.--(1) An eligible applicant, upon application to and approval by the commission, may sell or assign, in whole or in part, a tax credit granted to the eligible applicant under this article if no claim for allowance of the credit is filed within one year from the date the credit is granted by the department under section 1708-E. The commission, in consultation with the department, shall establish guidelines for the approval of applications under this subsection.(2) The purchaser or assignee of a portion of a tax credit under this subsection shall immediately claim the credit in the taxable year in which the purchase or assignment is made. The amount of the credit that a purchaser or assignee may use against a qualified tax liability may not exceed 75% of the qualified tax liability for the taxable year. The purchaser or assignee may not carry over, carry back, obtain a refund of or sell or assign the tax credit. The purchaser or assignee shall notify the department of the seller or assignor of the tax credit in compliance with procedures specified by the department.(3) 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.(4) Notwithstanding any other provision of law, the department shall settle, assess or determine the tax of an applicant under this subsection within 90 days of the 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.(e) Sponsorship.-- An eligible applicant may be a sponsor by applying for a tax credit for a project authorized under section 1707-E if a written agreement between the eligible applicant and the owner of property on which the project will be completed is submitted to the commission, certifying that the property owner will comply with all the provisions of this article.(f) Tax credits for pass-through entities.--(1) If a pass-through entity has any unused tax credit under section 1704-E, it may elect in writing, according to procedures established by the department, to transfer all or a portion of the credit to shareholders, members or partners in proportion to the share of the entity's distributive income to which the shareholder, member or partner is entitled.(2) The credit provided under paragraph (1) is in addition to any tax credit to which the shareholder, member or partner is otherwise entitled under this article. However, a pass-through entity and its shareholders, members or partners shall not claim a tax credit under this article for the same project authorized under section 1707-E.(3) A shareholder, member or partner of a pass-through entity to whom credit is transferred under paragraph (1) 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, obtain a refund of or sell or assign the credit.Amended by P.L. TBD 2019 No. 13, § 13.2, eff. 7/1/2019.1971, March 4, P.L. 6, No. 2, art. XVII-E, § 1703-E, added 2007, July 25, P.L. 373, No. 55, §7, effective in 90 days [ 10/23/2007].