PRINTER'S NO. 2898
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2017
Session of
2018
INTRODUCED BY RYAN, BLOOM, CORBIN, CORR, COX, CUTLER, DIAMOND,
DUNBAR, DUSH, EVERETT, GREINER, GROVE, A. HARRIS, PHILLIPS-
HILL, JAMES, JOZWIAK, KAUFER, KLUNK, KNOWLES, MAHER,
METCALFE, B. MILLER, MUSTIO, NELSON, PICKETT, QUIGLEY, RADER,
ROTHMAN, SCHEMEL, SIMMONS, TOPPER, WALSH, WARD, TURZAI,
BERNSTINE, GILLESPIE AND HELM, JANUARY 22, 2018
REFERRED TO COMMITTEE ON FINANCE, JANUARY 22, 2018
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," in corporate net income tax, further providing
for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 401(3)1(r) and (s) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
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(3) "Taxable income." 1. * * *
(r) [Notwithstanding] (1) For assets placed in service
prior to September 28, 2017, notwithstanding paragraph (a), if a
deduction for depreciation of qualified property was included in
taxable income in accordance with paragraph (q), an additional
deduction for depreciation of the qualified property shall be
allowed from taxable income until the total amount included as
taxable income under paragraph (q) has been claimed. The
additional deduction shall be equal to the product of taking
three sevenths of the amount of the deduction for depreciation
of the qualified property allowable under section 167 of the
Internal Revenue Code of 1986 (26 U.S.C. § 167), not including
the amount of the deduction for depreciation of the qualified
property claimed and allowable under section 168(k) of the
Internal Revenue Code of 1986 (26 U.S.C. § 168(k)), for the tax
year.
(2) For assets placed in service on or after September 28,
2017, notwithstanding paragraph (a), if a deduction for
depreciation of qualified property was included in taxable
income in accordance with paragraph (q), an additional deduction
for depreciation of the qualified property shall be allowed from
taxable income until the total amount included as taxable income
under paragraph (q) has been claimed. The additional deduction
shall be equal to the depreciation on the qualified property for
the taxable year as determined in accordance with sections 167
and 168 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 167
and 168) without regard to section 168(k) of the Internal
Revenue Code of 1986 (26 U.S.C. § 168(k)).
(s) [With] (1) For assets placed in service prior to
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September 28, 2017, an additional deduction shall be allowed
from taxable income in the earlier of the taxable year in which
qualified property is fully depreciated for Federal income tax
purposes, or is sold or otherwise disposed of by a taxpayer to
the extent the amount of depreciation claimed under section
168(k) of the Internal Revenue Code of 1986 (26 U.S.C. §
168(k)), on the qualified property and included in taxable
income under paragraph (q) has not been recovered through the
additional deductions provided under paragraph (r)(1).
(2) For assets placed in service after September 28, 2017,
with respect to qualified property which is sold or otherwise
disposed of during a taxable year by a taxpayer and for which
depreciation was included as taxable income under paragraph (q),
an additional deduction shall be allowed from taxable income to
the extent the amount of depreciation claimed under section
168(k) of the Internal Revenue Code of 1986 (26 U.S.C. § 168(k))
on the qualified property has not been recovered through the
additional deductions provided by paragraph [(r)] (r)(2).
* * *
Section 2. The amendment of section 401(3)1(r) and (s) of
the act shall apply to tax years beginning on or after January
1, 2017.
Section 3. This act shall take effect immediately.
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