HB 2234 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in malt beverage tax, further providing for limited tax credits and providing for spent grain donation tax credit.

PRIOR PRINTER'S NO.

2927 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

3583 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

DAVIS, MADDEN, GOUGHNOUR, McNEILL, PROBST, SANCHEZ, RIVERA, KENYATTA, PASHINSKI, HOHENSTEIN, MAYES, CONKLIN, INGLIS,INGLIS AND CEPEDA- FREYTIZ, PARKER, MALAGARI, BOYD AND SAPPEY, FEBRUARY 20, 2026 ASREFERRED REPORTEDTO FROM COMMITTEE ON FINANCE, HOUSEFEBRUARY OF20, REPRESENTATIVES, AS AMENDED, JUNE 10, 2026 AN ACT Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposinggimposing taxes thereon;

conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities;

prescribing crimes, offenses andandations penalties," providing for spent grain donation tax credit.

IN <-- MALT BEVERAGE TAX, FURTHER PROVIDING FOR LIMITED TAX CREDITS AND PROVIDING FOR SPENT GRAIN DONATION TAX CREDIT.

The act of March 4, 1971 (P.L.6, No.2), known as <-- the Tax Reform Code of 1971, is amended by adding an article to read:

20260HB2234PN3583 - 2 - Section 2003-A.

20260HB2234PN2927 - 2 - (a) Application.-- (1) A qualified taxpayer may apply to the department for a tax credit against the tax imposed under Article XX.

(3) In the review of applications for tax credits, the department shall consult with the Liquor Control Board with respect to whether a facility qualifies as an eligible facility and to review the eligible facility's calculation of 20260HB2234PN3583 - 3 - the amount of spent grain byproduct donated.

20260HB2234PN2927 - 3 - (4) Prior to approving an application, the applicant must have:

(2) Each time the tax credit is carried over to a succeeding taxable year, the tax credit shall be reduced by the amount that was used as a credit during the immediately 20260HB2234PN3583 - 4 - preceding taxable year.

20260HB2234PN2927 - 4 - (3) The tax credit may be carried over and applied to succeeding taxable years for no more than seven taxable years following the first taxable year for which the taxpayer was entitled to claim the tax credit.

20260HB2234PN3583 - 5 - (1) The names of the qualified taxpayers utilizing the 20260HB2234PN2927 - 5 - tax credit as of the date of the report and the amount of tax credits approved for, utilized by or sold or assigned by a qualified taxpayer.

SECTIONSection 1.2.

SECTION 2010(B) AND (E) OF THE ACT OF MARCH 4, <-- 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE AMENDED AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

SECTION 2010.

LIMITED TAX CREDITS.--* * * (B) AS USED IN THIS SECTION:

"AMOUNTS PAID." THE PHRASE MEANS (I) AMOUNTS ACTUALLY PAID, OR (II) AT THE TAXPAYER'S ELECTION, AMOUNTS PROMISED TO BE PAID UNDER FIRM PURCHASE CONTRACTS ACTUALLY EXECUTED DURING ANY CALENDAR YEAR FALLING WITHIN THE EFFECTIVE PERIOD OF THIS SECTION:

PROVIDED, HOWEVER, THAT THERE SHALL BE NO DUPLICATION OF "AMOUNTS PAID" UNDER THIS DEFINITION.

"EFFECTIVE PERIOD." THE PERIOD FROM JANUARY 1, 1974, TO DECEMBER 31, 2008, AND THE PERIOD AFTER JUNE 30, 2017, INCLUSIVE.

"PURCHASER." A PERSON WHO PURCHASES A TAX CREDIT FROM A TAXPAYER.

"QUALIFYING CAPITAL EXPENDITURES." AMOUNTS PAID BY A TAXPAYER DURING THE EFFECTIVE PERIOD OF THIS SECTION FOR THE PURCHASE OF ITEMS OF PLANT, MACHINERY OR EQUIPMENT FOR USE BY 20260HB2234PN3583 - 6 - THE TAXPAYER WITHIN THIS COMMONWEALTH IN THE MANUFACTURE AND SALE OF MALT OR BREWED BEVERAGES:

PROVIDED, HOWEVER, THAT THE TOTAL AMOUNT OF QUALIFYING CAPITAL EXPENDITURES MADE BY A TAXPAYER WITHIN A SINGLE CALENDAR YEAR SHALL NOT EXCEED TWO HUNDRED THOUSAND DOLLARS ($200,000).

"SECRETARY." THE SECRETARY OF REVENUE OF THE COMMONWEALTH OF PENNSYLVANIA WHERE NOT OTHERWISE QUALIFIED.

"TAXPAYER." A MANUFACTURER OF MALT OR BREWED BEVERAGES CLAIMING A TAX CREDIT OR CREDITS UNDER THIS SECTION.

* * * (E) UPON RECEIPT FROM A TAXPAYER OF A CERTIFICATE FROM THE SECRETARY ISSUED UNDER SUBSECTION (C), THE SECRETARY OF REVENUE SHALL GRANT A TAX CREDIT OR CREDITS IN THE AMOUNT CERTIFIED AGAINST ANY TAX DUE UNDER THIS ARTICLE IN THE CALENDAR YEAR IN WHICH THE EXPENDITURES WERE INCURRED OR AGAINST ANY TAX BECOMING DUE FROM THE TAXPAYER UNDER THIS ARTICLE IN THE FOLLOWING [THREE] FIVE CALENDAR YEARS.

NO CREDIT SHALL BE ALLOWED AGAINST ANY TAX DUE FOR ANY TAXABLE PERIOD ENDING AFTER DECEMBER 31, 2008, AND BEGINNING BEFORE JULY 1, 2017.

* * * (H) (1) A TAXPAYER, UPON APPLICATION TO AND APPROVAL BY THE DEPARTMENT, MAY SELL OR ASSIGN, IN WHOLE OR IN PART, A TAX CREDIT GRANTED UNDER THIS SECTION.

A TAX CREDIT MAY ONLY BE SOLD OR ASSIGNED TO A TAXPAYER UNDER THIS ARTICLE.

(2) THE DEPARTMENT MAY ISSUE GUIDELINES FOR THE APPROVAL OF APPLICATIONS UNDER THIS SUBSECTION.

(3) BEFORE APPROVAL, THE DEPARTMENT MUST VERIFY THAT THE TAXPAYER HAS FILED ALL REQUIRED STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAX YEARS AND PAID ANY OUTSTANDING BALANCES AS DETERMINED THROUGH SETTLEMENT, ASSESSMENT OR DETERMINATION.

20260HB2234PN3583 - 7 - (4) THE DEPARTMENT SHALL SETTLE, ASSESS OR DETERMINE THE TAXPAYER'S TAX LIABILITY WITHIN NINETY DAYS OF RECEIVING 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." (I) (1) THE PURCHASER OF ALL OR PART OF A TAX CREDIT SHALL IMMEDIATELY CLAIM THE CREDIT IN THE TAXABLE YEAR IN WHICH THE PURCHASE OR ASSIGNMENT OCCURS.

(2) THE TAX CREDIT MAY ONLY BE APPLIED TO THE PURCHASER'S TAX LIABILITY UNDER THIS ARTICLE AND MAY NOT EXCEED FIFTY PER CENT OF THE PURCHASER'S TAX LIABILITY FOR THAT TAXABLE YEAR.

(3) A PURCHASER WHO IS ALSO A TAXPAYER MAY CLAIM THE PURCHASED TAX CREDIT IN ADDITION TO THE TOTAL AMOUNT OF QUALIFYING CAPITAL EXPENDITURE THE PURCHASER CLAIMS SUBJECT TO THE PROVISIONS OF THIS SECTION.

(4) THE PURCHASER MAY NOT CARRY FORWARD, CARRY BACK OR OBTAIN A REFUND OF THE TAX CREDIT.

(5) THE PURCHASER MAY NOT SELL OR ASSIGN A PURCHASED TAX CREDIT.

(6) THE PURCHASER SHALL NOTIFY THE DEPARTMENT OF THE SELLER OR ASSIGNOR OF THE TAX CREDIT IN A MANNER PRESCRIBED BY THE DEPARTMENT.

SECTION 2.