Section 902.1. Credits for Assessments Paid.--(a) A member insurer that has paid assessments to the guaranty association shall be entitled to a credit as authorized by this section. The credit shall be equal to the amount by which the assessment paid to the guaranty association exceeds one per cent of the member insurer's assessment base. Except as provided in subsection (e), the credit authorized by this section shall be applied against the taxes due under this article in equal portions for each of the five calendar years following payment of the assessment. In the event a member insurer should cease doing business, all unused credits may be applied against its premium tax liability for the year it ceases doing business. A member insurer is not entitled to a refund of any unused credit.
(b) Any sums which are acquired by a member insurer from the guaranty association either by refund or by receipt of an offset which may be used against an assessment and which have been used in calculating a credit under subsection (a) shall reduce the amount of unused credits or shall be paid by such insurer to the Commonwealth, as the Department of Revenue may require. The guaranty association shall notify the department and the Insurance Commissioner that such sums have been acquired by the member insurer.
(c) No credit against premium tax liability shall be permitted to the extent that a member insurer's rates and premiums have been adjusted as permitted in section 1810 of the act of May 17, 1921 (P.L.682, No.284), known as "The Insurance Company Law of 1921."
(d) ((d) deleted by amendment July 8, 2022, P.L.513, No.53).
(e) Credits taken by an insurer under this section shall not be included in determining liability for retaliatory taxes imposed under section 212 of the act of May 17, 1921 (P.L.789, No.285), known as "The Insurance Department Act of 1921."
(902.1 amended June 22, 2001, P.L.353, No.23)
Compiler's Note: Section 24(4)(ii) of Act 53 of 2022 provided that the amendment of section 902.1(d) shall apply to fiscal years beginning after June 30, 2022.
Compiler's Note: Section 26(1)(ii) of Act 23 of 2001, which amended section 902.1, provided that the amendment shall apply to assessments paid after December 31, 1998. Section 26(3)(ii) of Act 23 provided that the amendment shall apply to taxes paid for calendar year 2000 and thereafter.
Compiler's Note: Section 19(4)(ii) of Act 23 of 2000, which added section 902.1, provided that section 902.1 shall apply to assessments paid after December 31, 1998. Section 19(5)(ii) of Act 23 provided that section 902.1 shall aplly to taxes paid for calendar year 2000 and thereafter.