HB 1547 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in entertainment production tax credit, further providing for carryover, carryback and assignment of credit, for limitations and for pass-through entity.

Bill Text

• Printer's No. PN1806 View text Current pdf

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The bill modifies the provisions regarding the sale and assignment of tax credits specifically for multifilm productions and adjusts the limitations on the aggregate tax credits awarded.

• Section 1714-D(e)(1)

  [A] → Except as provided under paragraph (5),

  This change clarifies the conditions under which a taxpayer can sell or assign tax credits, now explicitly mentioning an exception.

• Section 1714-D(e)(5)

  A taxpayer may not sell or assign, in whole or in part, a tax credit granted to the taxpayer under this subarticle for a multifilm production.

  This amendment restricts the sale or assignment of tax credits specifically for multifilm productions.

• Section 1716-D(a)

  Except for tax credits reissued under section 1716.1-D or tax credits issued for multifilm productions, in no case shall the aggregate amount of tax credits awarded in any fiscal year under this subarticle exceed $100,000,000.

  This change specifies that the cap on tax credits does not apply to credits awarded for multifilm productions.

• Section 1718-D(c)

  [A] → Except as provided under subsection (d),

  This amendment clarifies the terms under which shareholders, members, or partners can claim transferred tax credits.

• Section 1718-D(d)

  A shareholder, member or partner of a pass-through entity to whom a tax credit for a multifilm production is transferred under subsection (a) may carry forward the tax credit for no more than three taxable years following the first taxable year for which the taxpayer was entitled to claim the tax credit for the multifilm production.

  This change allows for the carryforward of tax credits for multifilm productions for a limited time, addressing how these credits can be utilized over multiple years.

Action History

1. June 29, 2023

   Referred to Finance

Sponsors

• Ben Waxman · Primary

Subjects