Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 8909-E. Failure to make contribution of capital and reallocation

(a) Prohibition.--A tax credit certificate under section 1908-E   1 may not be issued to a qualified taxpayer who fails to comply with agency guidelines.

(b) Penalty.--After the agency issues a tax credit certificate, a qualified taxpayer who fails to contribute capital in accordance with the agreed upon schedule of payments, or other conditions as determined by the agency, shall be subject to a penalty equal to 10% of the amount of capital that remains unpaid and assessment of costs and fees by the agency.  The penalty shall be paid to the agency within 30 days after demand.  A qualified taxpayer who fails to make a contribution within the specified time period may be subject to Commonwealth debarment, forfeiture or liquidation of any pledged collateral or to such other actions as deemed appropriate by the agency.  All penalties, fees and costs shall be deposited into the fund to be used for the program.

(c) Reallocation.--The agency may, under guidelines promulgated by the agency, recapture and redeploy any defaulted capital.  The agency shall make the credit available to other qualified taxpayers with minimal delay and cost to the program.

(d) Avoidance of penalty.--The agency may allow a qualified taxpayer that fails to make a contribution of capital within the time specified to avoid a penalty by transferring the allocation of tax credits to another qualified taxpayer within 30 days after the due date of the defaulted installment.  Any transferee of an allocation of tax credits of a defaulting qualified taxpayer under this subsection shall be subject to all requirements of the agency and must agree to make the required contribution of capital within 30 days after the date of the transfer.