Section 820.519 - Keystone opportunity zone job creation tax credit, keystone opportunity improvement zone job creation tax credit or keystone opportunity expansion zone job creation tax credit(a) Credits.--For tax years that begin on or after January 1, 2001, a railroad, truck, bus or airline company, pipeline or natural gas company or water transportation company that is required to apportion income in accordance with section 401(3) 2(b), (c) or (d) of the Tax Reform Code of 1971 and is a qualified business under this act may apply to the Department of Revenue for a keystone opportunity zone job creation tax credit or keystone opportunity expansion zone job creation tax credit against the tax imposed by Article III, IV or VI of the Tax Reform Code of 1971. For tax years that begin on or after January 1, 2004, a railroad, truck, bus or airline company, pipeline or natural gas company or water transportation company that is required to apportion income in accordance withsection 401(3)2(b), (c) or (d) of the Tax Reform Code of 1971 and is a qualified business under this act may apply to the Department of Revenue for a keystone opportunity zone improvement job creation tax credit against the tax imposed by Article III, IV or VI of the Tax Reform Code of 1971. The credit shall be for all full-time jobs created within a subzone, improvement subzone or expansion subzone in the taxable year. The job must be held directly with the qualified business in the subzone, improvement subzone or expansion subzone in order for the qualified business to apply for the tax credit. The Department of Revenue shall prescribe the form and manner to obtain the credit.(b) Section not applicable to certain businesses or qualified businesses(1) A business 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) A business that has relocated pursuant to paragraph (1) and becomes a qualified business may apply for a keystone opportunity zone job creation tax credit, keystone opportunity improvement zone job creation tax credit or keystone opportunity expansion zone job creation 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 a qualified business if the average monthly employment for that qualified business has increased from the prior 12-month calendar year in the zone.(c) Application of credit.--A qualified business shall apply for a credit under this section by January 15 for the previous calendar year.(d) Apportionment.--The Department of Revenue shall apportion a keystone opportunity zone job creation tax credit, keystone opportunity improvement zone job creation tax credit or a keystone opportunity expansion zone job creation tax credit for a business 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 creation tax credit, keystone opportunity improvement zone job creation tax credit or keystone opportunity expansion zone job creation 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 creation tax credit, keystone opportunity improvement zone job creation tax credit or keystone opportunity expansion zone job creation 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 the qualified business of the amount of the qualified business's job creation tax credit approved.(g) Limitation on amount of credit.--The tax credit allowed under this section shall only be used to offset a tax liability incurred from subzone, improvement subzone or expansion subzone activities and shall not exceed 50% of the tax liability of a qualified business or person under Article III, IV or VI of the Tax Reform Code of 1971 for the tax year. The job creation tax credit may not carry back or forward to any other year.(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 creation tax credits, keystone opportunity improvement zone job creation tax credits and keystone opportunity expansion zone job creation tax credits applied for by all qualified businesses under this section exceeds $1,000,000, then the credit to be received by each qualified business shall be the product of $1,000,000 multiplied by the quotient of the credit applied for by the qualified business divided by the total of all credits applied for by all qualified businesses, the algebraic equivalent of which is: qualified business keystone opportunity zone job creation tax credit, keystone opportunity improvement zone job creation tax credit or keystone opportunity expansion zone job creation tax credit = $1,000,000 X (the amount of keystone opportunity zone job creation tax credit, keystone opportunity improvement zone job creation tax credit or keystone opportunity expansion zone job creation tax credit applied for by the qualified business/the sum of all keystone opportunity zone job creation tax credits, keystone opportunity improvement zone job creation tax credits and keystone opportunity expansion zone job creation tax credits applied for by all qualified businesses).
(j) Pass-through entities.--The keystone opportunity zone job creation tax credit, keystone opportunity improvement zone job creation tax credit and keystone opportunity expansion zone job creation tax credit provided for in this section shall apply to the following:(1) A partner or member of a partnership or association that qualifies under this section shall be entitled to a job creation tax credit in proportion to the partner's or member's share, whether or not distributed, of the income or gain received by the partnership or association for its taxable year.(2) A shareholder of a Pennsylvania S Corporation that qualifies under this section shall be entitled to a job creation tax credit in proportion to the shareholder's pro rata share, whether or not distributed, of the income or gain received by the corporation for its taxable year ending within or with the shareholder's taxable year.(3) No partnership, association or Pennsylvania S Corporation, or partner, member or shareholder, may claim any other tax benefit, expense or credit for the same keystone opportunity zone job creation tax credit, keystone opportunity improvement zone job creation tax credit or keystone opportunity expansion zone job creation tax credit.1998, Oct. 6, P.L. 705, No. 92, § 519, added 2000, Dec. 20, P.L. 841, No. 119, § 5, imd. effective. Amended 2002, Dec. 9, P.L. 1727, No. 217, § 6, imd. effective.