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) The following apply:

19(1) Except as set forth in paragraph (2), for a tax year 
20beginning after December 31, 2013, a taxpayer may offset a gain 
21within one class of income with a loss occurring within another 
22class of income.

1(2) A gain or loss under subsection (a)(7) shall be limited
2solely to the class of income under subsection (a)(7). A loss
3under subsection (a)(7) may not be used to offset a gain in any
4other class of income.

5(3) Notwithstanding 1 Pa.C.S. § 1937(a) (relating to
6references to statutes and regulations), this subsection shall
7not affect a change in any of the following provisions as they
8exist on June 30, 2013:

9(i) The definitions of "earned income" and "net profits" in
10section 501 of the act of December 31, 1965 (P.L.1257, No.511),
11known as "The Local Tax Enabling Act."

12(ii) The definition of "personal income" in section 302 of
13the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known
14as the "Taxpayer Relief Act."

15* * *

16Section 2. This act shall take effect immediately.