Regular Session 2017-2018 House Bill 2017 P.N. 2998

PRIOR PRINTER'S NO. 2898

PRINTER'S NO. 2998

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, HELM, LAWRENCE, STAATS, GILLEN,

WHEELAND, TOOHIL, FRITZ, FARRY AND MOUL, JANUARY 22, 2018

AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,

AS AMENDED, FEBRUARY 6, 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:

* * *

(3) "Taxable income." 1. * * *

(r) [Notwithstanding] (1) For assets PROPERTY 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 PROPERTY 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 ,

EXCEPT THAT section 168(k) of the Internal Revenue Code of 1986

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(26 U.S.C. § 168(k)) SHALL NOT APPLY .

(s) [With] (1) For assets PROPERTY placed in service prior

to 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 PROPERTY placed in service ON OR 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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