H0385B0357A04123 AJB:CMD 04/25/22 #90 A04123
AMENDMENTS TO HOUSE BILL NO. 385
Sponsor: REPRESENTATIVE SAYLOR
Printer's No. 357
Amend Bill, page 1, line 11, by inserting after "income"
; and making a related repeal
Amend Bill, page 1, lines 14 through 16, by striking out all
of said lines and inserting
Section 1. Section 303(a.7) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding paragraphs and the section is amended by adding a
subsection to read:
Amend Bill, page 1, line 21; page 2, lines 1 through 18; by
striking out all of said lines on said pages and inserting
(i) The classes of income under this section shall not
include any amount which is excluded from Federal gross income
under sections 276 and 278(a) of the COVID-Related Tax Relief
Act of 2020, enacted as Subtitle B of Title II of Division N of
the Consolidated Appropriations Act, 2021 (Public Law 116-260,
134 Stat. 1182).
(ii) No deduction may be disallowed for an expense that is
otherwise deductible if the payment of the expense results in
forgiveness of a covered loan under subparagraph (i).
(6) The classes of income under this section shall not
include a payment received by an individual from the United
States under section 2201 of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136, 134 Stat. 281) or
sections 272 and 273 of the Consolidated Appropriations Act,
2021.
* * *
(a.11) The requirements of section 1031 of the Internal
Revenue Code of 1986 (26 U.S.C. ยง 1031) in effect on the
effective date of this subsection shall be applicable.
* * *
Section 2. This act shall apply as follows:
(1) The addition of section 303(a.7)(5) of the act shall
apply to the taxable year in which a loan under section
303(a.7)(5)(i) of the act was forgiven.
(2) The addition of section 303(a.7)(6) of the act shall
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apply to a taxable year in which a payment under section
303(a.7)(6) of the act is received.
(3) The addition of section 303(a.11) of the act shall
apply to transactions occurring in tax years beginning after
December 31, 2021.
Section 3. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of
section 303(a.7)(5) and (6) of the act.
(2) Section 104-A of the act of April 9, 1929 (P.L.343,
No.176), known as The Fiscal Code, is repealed.
Section 4. The addition of section 303(a.7)(5) and (6) of
the act are a continuation of section 104-A of the act of April
9, 1929 (P.L.343, No.176), known as The Fiscal Code. Except as
otherwise provided in section 303(a.7)(5) and (6) of the act,
all activities initiated under section 104-A of The Fiscal Code
shall continue and remain in full force and effect and may be
completed under section 303(a.7)(5) and (6) of the act. Orders,
regulations, rules and decisions which were made under section
104-A of The Fiscal Code and which are in effect on the
effective date of section 3(2) of this act shall remain in full
force and effect until revoked, vacated or modified under
section 303(a.7)(5) and (6) of the act. Contracts, obligations
and collective bargaining agreements entered into under the
section 104-A of The Fiscal Code are not affected nor impaired
by the repeal of section 104-A of The Fiscal Code.
Amend Bill, page 2, line 19, by striking out "3" and
inserting
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