HB 2340 — 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.

PRINTER'S NO.   3132

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2340
                                               Session of
                                                 2026

     INTRODUCED BY TIBURCIO, SAMUELSON, DEASY, MATZIE, McNEILL, HILL-
        EVANS, GUZMAN, SCHWEYER, VENKAT, GAYDOS, SCHLOSSBERG,
        DAVIDSON, FREEMAN, SANCHEZ, MALAGARI, MUSTELLO, STAATS,
        FRITZ, KRUEGER, CEPEDA-FREYTIZ AND BOYD, APRIL 2, 2026

     REFERRED TO COMMITTEE ON FINANCE, APRIL 2, 2026


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in malt beverage tax, further providing for
11      limited tax credits.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 2010(b) and (e) of the act of March 4,
15   1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
16   amended and the section is amended by adding subsections to
17   read:
18      Section 2010.    Limited Tax Credits.--* * *
19      (b)   As used in this section:
20      "Amounts paid."    The phrase means (i) amounts actually paid,
21   or (ii) at the taxpayer's election, amounts promised to be paid
 1   under firm purchase contracts actually executed during any
 2   calendar year falling within the effective period of this
 3   section: Provided, however, That there shall be no duplication
 4   of "amounts paid" under this definition.
 5      "Effective period."    The period from January 1, 1974, to
 6   December 31, 2008, and the period after June 30, 2017,
 7   inclusive.
 8      "Purchaser."    A person who purchases a tax credit from a
 9   taxpayer.
10      "Qualifying capital expenditures."    Amounts paid by a
11   taxpayer during the effective period of this section for the
12   purchase of items of plant, machinery or equipment for use by
13   the taxpayer within this Commonwealth in the manufacture and
14   sale of malt or brewed beverages: Provided, however, That the
15   total amount of qualifying capital expenditures made by a
16   taxpayer within a single calendar year shall not exceed two
17   hundred thousand dollars ($200,000).
18      "Secretary."    The Secretary of Revenue of the Commonwealth of
19   Pennsylvania where not otherwise qualified.
20      "Taxpayer."    A manufacturer of malt or brewed beverages
21   claiming a tax credit or credits under this section.
22      * * *
23      (e)   Upon receipt from a taxpayer of a certificate from the
24   secretary issued under subsection (c), the Secretary of Revenue
25   shall grant a tax credit or credits in the amount certified
26   against any tax due under this article in the calendar year in
27   which the expenditures were incurred or against any tax becoming
28   due from the taxpayer under this article in the following
29   [three] five calendar years. No credit shall be allowed against
30   any tax due for any taxable period ending after December 31,

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 1   2008, and beginning before July 1, 2017.
 2      * * *
 3      (h)   (1)   A taxpayer, upon application to and approval by the
 4   department, may sell or assign, in whole or in part, a tax
 5   credit granted under this section. A tax credit may only be sold
 6   or assigned to a taxpayer under this article.
 7      (2)   The department may issue guidelines for the approval of
 8   applications under this subsection.
 9      (3)   Before approval, the department must verify that the
10   taxpayer has filed all required State tax reports and returns
11   for all applicable tax years and paid any outstanding balances
12   as determined through settlement, assessment or determination.
13      (4)   The department shall settle, assess or determine the
14   taxpayer's tax liability within ninety days of receiving all
15   required final returns or reports in accordance with section
16   806.1(a)(5) of the act of April 9, 1929 (P.L.343, No.176), known
17   as "The Fiscal Code."
18      (i)   (1)   The purchaser of all or part of a tax credit shall
19   immediately claim the credit in the taxable year in which the
20   purchase or assignment occurs.
21      (2)   The tax credit may only be applied to the purchaser's
22   tax liability under this article and may not exceed fifty per
23   cent of the purchaser's tax liability for that taxable year.
24      (3)   A purchaser who is also a taxpayer may claim the
25   purchased tax credit in addition to the total amount of
26   qualifying capital expenditure the purchaser claims subject to
27   the provisions of this section.
28      (4)   The purchaser may not carry forward, carry back or
29   obtain a refund of the tax credit.
30      (5)   The purchaser may not sell or assign a purchased tax

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1   credit.
2      (6)    The purchaser shall notify the department of the seller
3   or assignor of the tax credit in compliance with specified
4   procedures.
5      Section 2.   This act shall take effect in 60 days.




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