Section 8904-H - Airport land development zone tax credit.(a) Tax credit.--An airport land development zone employer may claim a tax credit against a qualified tax liability as provided under this article.(b) Process.-- (1) An airport land development zone employer shall notify the department and the Department of Revenue of the airport land development zone employer's qualification for a tax credit under this section by February 15 for tax credits earned during a taxable year ending in the prior calendar year.(2) The notification under paragraph (1) shall contain the following:(i) The name, address and taxpayer identification number of the airport land development zone employer.(ii) Verification that the airport land development zone employer is an airport land development zone employer located in an airport land development zone.(iii) A file prepared for the Department of Revenue containing the names, addresses and Social Security numbers of each employee for which the credit is claimed.(iv) A file prepared for the Department of Revenue containing verification that each employee identified in subparagraph (iii) spent at least 90% of the employee's working time for the airport land development zone employer at the employer's airport land development zone location.(v) Any other information required by the department or the Department of Revenue.(3) To qualify for the credit, the Department of Revenue must certify that the airport land development zone employer is current with all tax liabilities.(4) By May 15 of each year, the department shall send the airport land development zone employer who submitted the notification a certificate of the airport land development zone employer's qualification for the credit. The airport land development zone employer shall present the certificate to the Department of Revenue when filing the airport land development zone employer's return claiming the credit.(c)Amount.--The amount of the tax credit an airport land development zone employer may earn in any tax year shall be equal to $2,100 for each full-time equivalent employee in excess of the number of full-time equivalent employees employed by the airport land development zone employer prior to January 1, 2021.(d) Application of tax credits.--An airport land development zone employer must first use the airport land development zone employer's airport land development zone tax credit against the airport land development zone employer's qualified tax liability.(d.1)Sale or assignment of tax credit.-- (1) If the airport land development zone employer is entitled to a credit in any year that exceeds the airport land development zone employer's qualified tax liability for that year, upon application to and approval by the department, an airport land development zone employer that has been awarded a tax credit may sell or assign, in whole or in part, the tax credit granted to the airport land development zone employer. The application must be on the form required by the department and must include or demonstrate all of the following:(i) The applicant's name and address.(ii) A copy of the tax credit certificate previously issued by the department.(iii) A statement as to whether any part of the tax credit has been applied to tax liability of the applicant and the amount so applied.(iv) Any other information required by the department.(v) Before an application for sale or assignment is approved, the Department of Revenue must find that the applicant has filed all required State tax reports and returns for all applicable taxable years and paid any balance of State tax due as determined at settlement, assessment or determination by the Department of Revenue.(2) The department shall review the application and, if all requirements have been met, approve the application and notify the Department of Revenue.(3) The purchaser or assignee of all or a portion of an airport land development zone tax credit under this section shall claim the credit in the taxable year in which the purchase or assignment is made. The purchaser or assignee of a tax credit may use the tax credit against any tax liability of the purchaser or assignee under Article III, IV, VII, VIII or XV, excluding any tax withheld by an employer under Article III. The amount of the tax credit used may not exceed 75% of the purchaser's or assignee's tax liability for the taxable year. The purchaser or assignee may not carry over, carry back, obtain a refund of or assign the airport land development zone credit. The purchaser or assignee shall notify the department and the Department of Revenue of the seller or assignor of the airport land development zone tax credit in compliance with procedures specified by the department.(e) Use and carryforward.-- (1) An airport land development zone employer may earn the tax credit allowed under this article in any tax year beginning in 2022 and for a period of up to 10 tax years during the 20-year period beginning July 1, 2022, and ending June 30, 2041.(2) An airport land development zone employer may carry forward for up to 10 years a tax credit earned under this article: (i) Which the airport land development zone employer is unable to use; or(ii) Which the airport land development zone employer does not sell or assign.(3) Tax credits carried forward under paragraph (2) shall be used on a first-in, first-out basis.(f)Dual-use prohibited.--Each year, an airport land development zone employer may only earn tax credits under subsection (c) or (d) or under the act of October 6, 1998 ( P.L. 705, No.92), known as the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act. An airport land development zone employer may not claim a credit under both this section and Article XVIII-B.(g) Pass-through entities.-- (1) If an airport land development zone employer is a pass-through entity and has an unused tax credit under subsection (c), (d) or (e), the airport land development zone employer may elect in writing, according to procedures established by the Department of Revenue, to transfer all or a portion of the credit to shareholders, members or partners in proportion to the share of the entity's distributive income to which the shareholder, member or partner is entitled.(2) An airport land development zone employer that is a pass-through entity and a shareholder, member or partner of that airport land development zone employer may not both claim the airport land development zone tax credit earned by the airport land development zone employer for any tax year.(3) A shareholder, member or partner of an airport land development zone employer that is a pass-through entity to whom a credit is transferred under this subsection shall immediately claim the credit in the taxable year in which the transfer is made.(h) Transfer.--A tax credit or tax credit carryforward that an airport land development zone employer is entitled to use may be transferred to a successor entity of the airport land development zone employer.(i) Penalties.--The following apply: (1) A company which receives airport land development zone tax credits and fails to substantially maintain the operations related to the airport land development zone tax credits in this Commonwealth for a period of five years from the date the company first submits an airport land development zone tax credit certificate to the Department of Revenue shall be required to refund to the Commonwealth the total amount of credits granted.(2) The department may waive the penalty under paragraph (1) if it is determined that a company's operations were not maintained or the new jobs were not created because of circumstances beyond the company's control. Circumstances shall include natural disasters, unforeseen industry trends or a loss of a major supplier or market.Added by P.L. TBD 2022 No. 53, § 15, eff. 7/8/2022.