PRINTER'S NO. 507
No. 456 Session of 1993
INTRODUCED BY COLAFELLA, RICHARDSON, VEON, STURLA, DENT, PESCI,
FAIRCHILD, DALEY, GIGLIOTTI, BAKER, STEELMAN, KASUNIC,
McCALL, GERLACH, PISTELLA, PLATTS, E. Z. TAYLOR AND JAMES,
MARCH 15, 1993
REFERRED TO COMMITTEE ON FINANCE, MARCH 15, 1993
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," providing for a credit against personal income
11 tax for home radon-reduction expenses.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Part VI of Article III of the act of March 4,
15 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is
16 amended by adding a section to read:
17 Section 314.1. Home Radon-Reduction Expenses.--(a) A
18 taxpayer shall be allowed a tax credit under this article for
19 qualified, radon-reduction expenditures with respect to an
20 eligible principal residence. For any dwelling unit, the
21 qualified radon-reduction expenditures are fifty per cent of the
1 radon-reduction expenditures made by the taxpayer during the
2 taxable year for the unit, not to exceed two thousand dollars
3 ($2,000).
4 (b) If a taxpayer received a credit in a prior year for the
5 same dwelling unit, the radon-reduction expenditure for a
6 taxable year shall be reduced by the amount of expenditures made
7 in prior years.
8 (c) A taxpayer may receive cumulative tax credits for
9 qualified radon-reduction expenditures made over multiple years
10 to the same eligible principal residence; however, the
11 cumulative credits shall not exceed a total of one thousand
12 dollars ($1,000).
13 (d) To qualify for the tax credit, a taxpayer must submit
14 the following:
15 (1) A report from the Environmental Protection Agency, the
16 Department of Environmental Resources or a radon testing
17 individual, firm or laboratory certified by the Department of
18 Environmental Resources which establishes the radon level
19 present in the eligible principal residence immediately prior to
20 the radon-reduction expenditures, and which verifies a reduction
21 of radon levels to below four picocuries per liter following the
22 expenditures.
23 (2) Documents showing all expenditures incurred by the
24 taxpayer.
25 (e) These provisions shall apply to amounts paid or incurred
26 after June 30, 1993, in taxable years ending after that date.
27 (f) As used in this section, the following words and phrases
28 shall have the meanings given to them in this subsection:
29 "Eligible principal residence." A dwelling unit located in
30 the Commonwealth which is used by the taxpayer as a principal
19930H0456B0507 - 2 -
1 residence and which has a radon level of four picocuries per
2 liter or more, as measured and documented by the Environmental
3 Protection Agency, the Department of Environmental Resources, or
4 a radon remediation company licensed by the Department of
5 Environmental Resources.
6 "Radon-reduction expenditures." Any expenditure made by the
7 taxpayer for items installed or alterations made to an eligible
8 principal residence for the predominant reason of reducing the
9 level of radon gas present in the residence. The items or
10 alterations must be reasonably expected to remain effective for
11 at least three years and meet the appropriateness, performance
12 and quality standards as established by regulation of the
13 Department of Environmental Resources. No tax credit shall be
14 allowed for any expenditures made prior to the establishment of
15 the Department of Environmental Resources regulation required by
16 this act.
17 "Tax credit." A reduction in tax liability equal to twenty-
18 five per cent of the qualified radon-reduction expenditures.
19 Section 2. The Department of Revenue and the Department of
20 Environmental Resources shall promulgate regulations to
21 implement the provisions of this act.
22 Section 3. This act shall take effect as follows:
23 (1) The addition of section 314.1 of the act shall take
24 effect June 30, 1993.
25 (2) The remainder of this act shall take effect
26 immediately.
A12L72WMB/19930H0456B0507 - 3 -