Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB509

Introduced
3/17/23  

Caption

In entertainment production tax credit, further providing for carryover, carryback and assignment of credit.

Impact

The legislation is poised to impact state tax policy significantly by refining the manner in which entertainment production tax credits are handled. By restricting the carryback and assignment of credits, the bill aims to ensure that taxpayers can only use credits against current tax liabilities without the ability to transfer them or receive refunds. This change is expected to incentivize more productions within Pennsylvania while providing a clearer framework for how these credits are utilized, potentially increasing state revenue as more productions take advantage of available incentives.

Summary

House Bill 509 seeks to amend the Tax Reform Code of Pennsylvania, specifically targeting the provisions related to the entertainment production tax credit. The bill modifies the rules governing the carryover, carryback, and assignment of tax credits, aiming to streamline the incentives available to taxpayers engaged in entertainment production activities. The adjustments outlined in the bill clarify the processes for transferring tax credits, explicitly stating that taxpayers are not entitled to carry back, obtain refunds, sell, or assign portions of unused tax credits granted under this section of the code.

Sentiment

General sentiment surrounding HB 509 seems supportive among lawmakers engaged in promoting the entertainment industry in Pennsylvania. Advocates argue that by solidifying the tax credit structure, the bill would enhance the attractiveness of the state for film and television productions, thus fostering local economic growth. Conversely, there may be some concerns voiced regarding the limitations imposed on credit transferability, suggesting that this could restrict certain businesses from maximizing their tax advantages.

Contention

While the bill's intent is largely positive in promoting the entertainment industry, critics may argue that restricting the sale or assignment of credits could deter smaller producers or new entrants who would benefit from flexibility in credit management. The debate will likely center on the balance between maintaining robust state revenues through clear tax regulations and providing sufficient incentives for a burgeoning sector that relies on flexible financial frameworks to compete effectively.

Companion Bills

No companion bills found.

Previously Filed As

PA HB1547

In entertainment production tax credit, further providing for carryover, carryback and assignment of credit, for limitations and for pass-through entity.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA SB191

In tax credit and tax benefit administration, further providing for definitions; in research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.

PA SB334

In research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.

PA HB2402

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, further providing for definitions and for application and approval of tax credit, providing for sustainable aviation fuel and further providing for definitions.

PA HB2565

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing and for Pennsylvania Milk Processing and providing for Reliable Energy Investment Tax Credit and for Pennsylvania Milk Processing; in Regional Clean Hydrogen Hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA HB500

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing, providing for Reliable Energy Investment Tax Credit, repealing provisions relating to Pennsylvania milk processing and providing for Pennsylvania milk processing; in regional clean hydrogen hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for geothermal energy and for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA SB500

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing, providing for Reliable Energy Investment Tax Credit, repealing provisions relating to Pennsylvania milk processing and providing for Pennsylvania milk processing; in regional clean hydrogen hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for geothermal energy and for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA HB2358

In historic preservation incentive tax credit, further providing for tax credit certificates.

PA HB1400

In entertainment production tax credit, further providing for credit for qualified film production expenses and for penalty.

Similar Bills

No similar bills found.