Section 820.518 - Keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or keystone opportunity expansion zone job tax credit(a) Credits.-- For tax years that begin on or after January 1, 2001, an insurance company that is a qualified business under this act may apply to the Department of Revenue for a job tax credit against the tax imposed by Article IX of the Tax Reform Code of 1971 for all full-time jobs within a subzone or expansion subzone in the taxable year. For tax years that begin on or after January 1, 2004, an insurance company that is a qualified business under this act may apply to the Department of Revenue for a job tax credit against the tax imposed by Article IX of the Tax Reform Code of 1971 for all full-time jobs within an improvement subzone in the taxable year. The job must be held directly with an insurance company in the subzone, improvement subzone or expansion subzone in order for the insurance company to apply for the tax credit. The Department of Revenue will prescribe the form and manner to obtain the credit.(b) Section not applicable to certain insurance companies.(1) An insurance company that relocates from a location in a political subdivision in this Commonwealth that is not in a subzone, improvement subzone or expansion subzone to a location in a subzone, improvement subzone or expansion subzone may not apply for a credit for an existing job that is transferred, discontinued or lost in this Commonwealth which is attributable to the relocation.(2) An insurance company that has relocated pursuant to paragraph (1) may apply for a keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or keystone opportunity expansion zone job tax credit for a new full-time job that is created in the subzone, improvement subzone or expansion subzone. A new full-time job is created with an insurance company if the average monthly employment for that insurance company has increased from the prior 12-month calendar year in the subzone, improvement subzone or expansion subzone.(c) Application of credit.--An insurance company shall apply for a credit by January 15 for the previous calendar year.(d) Apportionment.--The Department of Revenue shall apportion a keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or a keystone opportunity expansion zone job tax credit for an insurance company that is a qualified business that has not operated in a subzone, improvement subzone or expansion subzone for a full fiscal year.(e) Credit determinations.--The keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or keystone opportunity expansion zone job tax credit shall be determined by multiplying the monthly average of all full-time jobs by the allowance. The allowance for purposes of the keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or keystone opportunity expansion zone job tax credit for taxable years beginning within the dates set forth shall be as follows: | January 1, 2001, to | |
| December 31, 2001 | $500 per job |
| January 1, 2002, to | |
| December 31, 2002 | $750 per job |
| January 1, 2003, to | |
| December 31, 2003 | $1,000 per job |
| January 1, 2004, to | |
| December 31, 2004 | $1,250 per job |
| January 1, 2005, to | |
| December 31, 2005 | $1,250 per job |
| January 1, 2006, to | |
| December 31, 2006 | $1,250 per job |
| January 1, 2007, to | |
| December 31, 2007 | $1,250 per job |
| January 1, 2008, to | |
| December 31, 2008 | $1,250 per job |
| January 1, 2009, to | |
| December 31, 2009 | $1,250 per job |
| January 1, 2010, to | |
| December 31, 2010 | $1,250 per job |
| January 1, 2011, to | |
| December 31, 2011 | $1,250 per job |
| January 1, 2012, to | |
| December 31, 2012 | $1,250 per job |
| January 1, 2013, to | |
| December 31, 2013 | $1,250 per job |
| January 1, 2014, to | |
| December 31, 2014 | $1,250 per job |
| January 1, 2015, to | |
| December 31, 2015 | $1,250 per job |
| January 1, 2016, to | |
| December 31, 2016 | $1,250 per job |
| January 1, 2017, to | |
| December 31, 2017 | $1,250 per job |
| January 1, 2018, to | |
| December 31, 2018 | $1,250 per job |
(f) Notification of credit.--By March 15, the Department of Revenue shall notify an insurance company of the amount of the insurance company's tax credit approved.(g) Limitation on amount of credit.--The tax credit allowed under this section shall not exceed 50% of the tax liability of the insurance company under Article IX of the Tax Reform Code of 1971 for the tax year. An insurance company may not carry back or forward any credit received under this section.(h) Allocation.--The total amount of credits approved by the Department of Revenue under this section shall not exceed $1,000,000 annually. If the credits exceed the $1,000,000 cap in a given year, the credits will be allocated on a pro rata basis.(i) Calculation of allocation.--If the total amount of keystone opportunity zone job tax credits, keystone opportunity improvement zone job tax credit and keystone opportunity expansion zone job tax credits applied for by all insurance companies under this section exceeds $1,000,000, then the credit to be received by each insurance company shall be the product of $1,000,000 multiplied by the quotient of the credit applied for by the insurance company divided by the total of all credits applied for by all insurance companies, the algebraic equivalent of which is: insurance company's keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or keystone opportunity expansion zone job tax credit = $1,000,000 X (the amount of keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or keystone opportunity expansion zone job tax credit applied for by the insurance company/the sum of all keystone opportunity zone job tax credits, keystone opportunity improvement zone job tax credits and keystone opportunity expansion zone job tax credits applied for by all insurance companies).
(j) Partnership arrangements.--The jobs tax credit provided for under this section may be allocated to an insurance company that is a partner in such partnership that is also a qualified business in proportion to the full-time jobs within a subzone, improvement subzone or expansion subzone that are provided to such insurance company by the partnership. However, a partnership and a partner of that partnership may not claim any other tax benefit, expense or credit for the same keystone opportunity zone job tax credit, keystone opportunity improvement zone job tax credit or keystone opportunity expansion zone job tax credit.(k) Relief from additional retaliatory tax.--The tax credit taken by an insurance company under this section shall not be included in determining liability for retaliatory taxes imposed under section 212 of the act of May 17, 1921 (P.L. 789, No. 285), known as The Insurance Department Act of 1921.(l) Hold-harmless clause.--The tax credits allowed by this section shall not reduce the amounts which would otherwise be payable for firemen's relief pension or retirement purposes or for police pension retirement or disability purposes. The Department of Revenue shall transfer by June 30 of each fiscal year an amount equal to the tax credits taken under this section by foreign fire and casualty insurance companies from the General Fund to the Municipal Pension Aid Fund and the Fire Insurance Tax Fund, as appropriate.1998, Oct. 6, P.L. 705, No. 92, § 518, added 2000, Dec. 20, P.L. 841, No. 119, § 5, imd. effective. Amended 2002, Dec. 9, P.L. 1727, No. 217, § 6, imd. effective.