PRINTER'S NO. 1350
No. 1233 Session of 1993
INTRODUCED BY FARMER, ADOLPH, BROWN, NAILOR, ARMSTRONG, BAKER,
BARLEY, BUNT, CESSAR, CIVERA, CLYMER, L. I. COHEN, CORNELL,
DRUCE, DURHAM, EGOLF, FAIRCHILD, FLEAGLE, FLICK, GANNON,
GEIST, GERLACH, GLADECK, GODSHALL, HASAY, HECKLER, HENNESSEY,
HERMAN, HUTCHINSON, KENNEY, KING, LAUB, LEH, MARSICO,
O'BRIEN, PERZEL, PETTIT, PHILLIPS, PLATTS, RAYMOND, RYAN,
SAURMAN, SCHULER, SEMMEL, SERAFINI, B. SMITH, S. H. SMITH,
STAIRS, STRITTMATTER, J. TAYLOR, TOMLINSON, ULIANA, VANCE AND
M. N. WRIGHT, APRIL 19, 1993
REFERRED TO COMMITTEE ON FINANCE, APRIL 19, 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," excluding unreimbursed child and dependent care
11 expenses from compensation.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 303(a)(1) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 March 13, 1974 (P.L.179, No.32), is amended to read:
17 Section 303. Classes of Income.--(a) The classes of income
18 referred to above are as follows:
19 (1) Compensation. (i) All salaries, wages, commissions,
1 bonuses and incentive payments whether based on profits or
2 otherwise, fees, tips and similar remuneration received for
3 services rendered whether directly or through an agent and
4 whether in cash or in property except income derived from the
5 United States Government for active duty outside the
6 Commonwealth of Pennsylvania as a member of its armed forces.
7 (ii) Notwithstanding any other provision of this act,
8 unreimbursed child and dependent care expenses which are used in
9 calculating the Federal child and dependent care credit in
10 accordance with section 21 of the Internal Revenue Code of 1986
11 (Public Law 99-514, 26 U.S.C. § 1 et seq.) shall be excluded
12 from the definition of the term "compensation." The maximum
13 amount of child and dependent care expenses which are excludable
14 from compensation shall not exceed the amount specified in
15 section 21(c)(1) and (2) of the Internal Revenue Code of 1986.
16 (iii) Any taxpayer who may exclude from compensation child
17 and dependent care expenses in accordance with subclause (ii)
18 must submit a copy of the requisite Federal tax form on which
19 the child and dependent care expenses are claimed when filing
20 the State personal income tax return.
21 (iv) The department shall promulgate any necessary rules and
22 regulations in carrying out its duties as prescribed in
23 subclauses (ii) and (iii).
24 * * *
25 Section 2. This act shall apply to the tax year beginning
26 January 1, 1993, and each tax year thereafter.
27 Section 3. This act shall take effect immediately.
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