THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BROWNE, ORIE, WAUGH, ERICKSON, FOLMER, RAFFERTY, ROBBINS, GORDNER, EARLL, BRUBAKER, PIPPY, MENSCH, FONTANA, KASUNIC AND YUDICHAK, FEBRUARY 4, 2011

REFERRED TO FINANCE, FEBRUARY 4, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," further providing for classes of income for

purposes of the personal income tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 303(a.3) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, added June

29, 2002 (P.L.559, No.89), is amended to read:

Section 303.  Classes of Income.--* * *

(a.3)  The cost of property commonly referred to as Section

179 Property may be treated as a deductible expense only to the

extent allowable under the version of section 179 of the

Internal Revenue Code in effect at the time the property is

placed in service [or under section 179 of the Internal Revenue

Code of 1986 (26 U.S.C. § 179), whichever is earlier]. The basis

of Section 179 Property shall be reduced, but not below zero,

for costs treated as a deductible expense. The amount of the

reduction shall be the amount deducted on a return and not

disallowed, regardless of whether the deduction results in a

reduction of income.

* * *

Section 2.  The amendment of section 303(a.3) of the act

shall apply to property placed in service after December 31,

2011.

Section 3.  This act shall take effect immediately.