H0377B2849A05040       MSP:DM  12/09/07    #90             A05040
                        AMENDMENTS TO HOUSE BILL NO. 377
                                    Sponsor:  REPRESENTATIVE REED
                                           Printer's No. 2849

     1       Amend Title, page 1, line 11, by removing the period after
     2    "poverty" and inserting
     3               and for apportionment of business income.
     4       Amend Bill, page 2, by inserting between lines 26 and 27
     5       Section 2.  Section 401(3)2(a)(9) of the act, amended July
     6    12, 2006 (P.L.1137, No.116), is amended to read:
     7       Section 401.  Definitions.--The following words, terms, and
     8    phrases, when used in this article, shall have the meaning
     9    ascribed to them in this section, except where the context
    10    clearly indicates a different meaning:
    11       * * *
    12       (3)  "Taxable income."  * * *
    13       2.  In case the entire business of any corporation, other
    14    than a corporation engaged in doing business as a regulated
    15    investment company as defined by the Internal Revenue Code of
    16    1986, is not transacted within this Commonwealth, the tax
    17    imposed by this article shall be based upon such portion of the
    18    taxable income of such corporation for the fiscal or calendar
    19    year, as defined in subclause 1 hereof, and may be determined as
    20    follows:
    21       (a)  Division of Income.
    22       * * *
    23       (9)  (A)  Except as provided in subparagraph (B):
    24       (i)  For taxable years beginning before January 1, 2007, all
    25    business income shall be apportioned to this State by
    26    multiplying the income by a fraction, the numerator of which is
    27    the property factor plus the payroll factor plus three times the
    28    sales factor and the denominator of which is five.

    29       (ii)  For taxable years beginning after December 31, 2006,
    30    and ending before January 1, 2008, all business income shall be
    31    apportioned to this State by multiplying the income by a
    32    fraction, the numerator of which is the sum of fifteen times the
    33    property factor, fifteen times the payroll factor and seventy
    34    times the sales factor and the denominator of which is one
    35    hundred.
    36       (iii)  For taxable years beginning after December 31, 2007,
    37    all business income shall be apportioned to this State by
    38    multiplying the income by the sales factor.
    39       (B)  For purposes of apportionment of the capital stock -
    40    franchise tax as provided in section 602 of Article VI of this

     1    act, the apportionment fraction shall be the property factor
     2    plus the payroll factor plus the sales factor as the numerator,
     3    and the denominator shall be three.
     4       * * *

     5       Amend Sec. 2, page 2, line 27, by striking out all of said
     6    line and inserting
     7       Section 3.  This act shall take effect as follows:
     8           (1)  The amendment of section 401(3)2(a)(9) of the act
     9       shall take effect July 1, 2008, or immediately, whichever is
    10       later.
    11           (2)  The remainder of this act shall take effect
    12       immediately.















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