Pennsylvania § 3205 - Limitations.

§ 3205. Limitations.

(a) Cap.--

(1) The aggregate amount of tax credits awarded in a fiscal year under this chapter may not exceed $24,000,000.

(2) In a fiscal year, the department may, in the department's discretion, advance the award of tax credits for qualified rehearsal and tour expenses incurred or to be incurred equal to $2,000,000 of the tax credits available to be awarded in the succeeding fiscal year.

(3) If, in a fiscal year, the maximum amount of credits authorized by this subsection are not awarded by the department, the department may increase the total amount of tax credits that the department may award for qualified rehearsal and tour expenses incurred or to be incurred related to a tour in the immediately succeeding fiscal year by the amount that was not awarded in the preceding fiscal year.

(b) Advance award of credits.--The advance award of tax credits under subsection (a)(2) shall:

(1) count against the total amount of tax credits that the department may award for qualified rehearsal and tour expenses incurred or to be incurred related to a tour in the next succeeding fiscal year; and

(2) reduce the total amount of tax credits that the department may award for qualified rehearsal and tour expenses incurred or to be incurred related to a tour in the next succeeding fiscal year.

(c) Individual limitations.--

(1) A taxpayer may not be:

(i) Awarded more than $1,500,000 of tax credits for a tour if the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation is equal to or more than $2,500,000 but less than $3,500,000.

(ii) Awarded more than $2,250,000 of tax credits for a tour if the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation is equal to or more than $3,500,000 but less than $5,500,000.

(iii) Awarded more than $3,000,000 of tax credits for a tour if the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation is equal to or more than $5,500,000 but less than $7,500,000.

(iv) Awarded more than $3,500,000 of tax credits for a tour if the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation is equal to or more than $7,500,000 but less than $10,000,000.

(v) Awarded more than $4,250,000 of tax credits for a tour if the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation is equal to or more than $10,000,000 but less than $12,000,000.

(vi) Awarded more than $5,000,000 of tax credits for a tour if the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation is equal to or more than $12,000,000.

(2) Except as provided under paragraphs (4) and (5), the aggregate amount of tax credits awarded by the department under section 3203(e) (relating to procedure) to a taxpayer for a tour with concerts at two class 1 venues or a class 1 venue and a class 2 venue may not exceed 35% of the qualified rehearsal and tour expenses incurred or to be incurred.

(3) Except as provided under paragraphs (4) and (5), the aggregate amount of tax credits awarded by the department under section 3203(e) to a taxpayer for a tour with concerts at a class 1 venue and a class 3 venue may not exceed 40% of the qualified rehearsal and tour expenses incurred or to be incurred.

(4) In addition to the tax credits under paragraph (2) or (3), a taxpayer is eligible for a tax credit in the amount of 5% of the qualified rehearsal and tour expenses incurred or to be incurred by the taxpayer if the taxpayer holds concerts at a total of two or more class 2 venues or class 3 venues, or if a concert is held by a venue leased by or affiliated with a qualified charitable corporation.

(5) In determining the amount of tax credits to award a taxpayer, if the taxpayer's contribution to a qualified charitable corporation exceeds $325,000, the department, notwithstanding the limitation under paragraph (2) or (3), may award the taxpayer the maximum amount of the tax credits the taxpayer would have qualified to receive under paragraph (1) for the sum of the taxpayer's purchase or rental of concert tour equipment from companies located and maintaining a place of business in this Commonwealth for use on the tour and any contribution to a qualified charitable corporation.

(6) A contribution to a qualified charitable corporation used in determining a limit under paragraph (1) shall not be considered a contribution to a qualified charitable corporation under paragraph (5) for the purposes of determining the amount of an award.

(Nov. 24, 2025, P.L.311, No.51, eff. imd.)

2025 Amendment. Act 51 amended subsec. (c)(2), (3), (4) and (5) and added subsec. (c)(6). Section 7 of Act 51 provided that the amendment or addition of sections 3202, 3203(b)(2) and 3205(c)(2), (3), (4), (5) and (6) shall apply retroactively to January 1, 2025.