PRINTER'S NO. 1579
No. 1330 Session of 1985
INTRODUCED BY COWELL, MURPHY, MANDERINO, CESSAR, TRELLO,
MARKOSEK, SEVENTY, MAYERNIK, ITKIN, KOSINSKI, FATTAH, WILSON,
PISTELLA, CAPPABIANCA, STEWART, DeLUCA, LEVDANSKY, VAN HORNE,
DeWEESE, PETRONE, PIEVSKY, SWEET, EVANS, PRESTON, KUKOVICH,
GAMBLE, MICHLOVIC, POTT, BOOK, BURD AND MILLER, JUNE 3, 1985
REFERRED TO COMMITTEE ON FINANCE, JUNE 3, 1985
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further defining "research and development" for
11 purposes of the capital stock franchise tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The definition of "research development" in
15 section 601(a) of the act of March 4, 1971 (P.L.6, No.2), known
16 as the Tax Reform Code of 1971, amended December 23, 1983
17 (P.L.360, No.89), is amended to read:
18 Section 601. Definitions and Reports.--(a) The following
19 words, terms and phrases when used in this Article VI shall have
20 the meaning ascribed to them in this section, except where the
21 context clearly indicates a different meaning:
1 * * *
2 "Research and development." The activities relating to the
3 discovery of new and the refinement of known substances,
4 products, processes, theories and ideas, but not including
5 activities directed primarily to the accumulation or analysis of
6 commercial, financial or mercantile data. The phrase includes
7 the production of computer software.
8 * * *
9 Section 2. This act shall take effect immediately.
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