Section 1709-B. Limitation on Credits.--(a) The total amount of credits approved by the department shall not exceed sixty million dollars ($60,000,000) in any fiscal year. Of that amount, twelve million dollars ($12,000,000) shall be allocated exclusively for small businesses. However, if the total amounts allocated to either the group of applicants exclusive of small businesses or the group of small business applicants is not approved in any fiscal year, the unused portion will become available for use by the other group of qualifying taxpayers. ((a) amended July 8, 2022, P.L.513, No.53)
(b) If the total amount of research and development tax credits applied for by all taxpayers, exclusive of small businesses, exceeds the amount allocated for those credits, then the research and development tax credit to be received by each applicant shall be the product of the allocated amount multiplied by the quotient of the research and development tax credit applied for by the applicant divided by the total of all research and development credits applied for by all applicants, the algebraic equivalent of which is:
taxpayer's research and development tax credit=amount allocated for those credits X (research and development tax credit applied for by the applicant/total of all research and development tax credits applied for by all applicants).
(c) If the total amount of research and development tax credits applied for by all small business taxpayers exceeds the amount allocated for those credits, then the research and development tax credit to be received by each small business applicant shall be the product of the allocated amount multiplied by the quotient of the research and development tax credit applied for by the small business applicant divided by the total of all research and development credits applied for by all small business applicants, the algebraic equivalent of which is:
taxpayer's research and development tax credit=amount allocated for those credits X (research and development tax credit applied for by the small business/total of all research and development tax credits applied for by all small business applicants).
(1709-B added May 7, 1997, P.L.85, No.7)
Compiler's Note: Section 24(4)(iii) of Act 53 of 2022 provided that the amendment of section 1709-B shall apply to fiscal years beginning after June 30, 2022.
Compiler's Note: Section 33(15) of Act 46 of 2003, which amended subsection (a), provided that the amendment shall apply to credits awarded after December 31, 2003.