1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in personal income tax, further providing for
11classes of income.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 303 of the act of March 4, 1971 (P.L.6, 
15No.2), known as the Tax Reform Code of 1971, is amended by
16adding a subsection to read:

17Section 303. Classes of Income.--* * *

18(a.8) An amount paid for qualified adoption expenses under
19section 23 of the Internal Revenue Code of 1986 (Public Law 99-
20514, 26 U.S.C. § 23) shall be deductible from taxable income on
21the annual income tax return. The amount paid for qualified

1adoption expenses allowable under this subsection shall be
2subject to an annual limitation not to exceed fifty per cent of
3the credit allowed under section 23 of the Internal Revenue Code
4of 1986. The deduction shall not result in taxable income being
5less than zero and any unused portion of the deduction may be
6carried forward for the next succeeding five years.

7* * *

8Section 2. This act shall take effect in 60 days.