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        PRIOR PRINTER'S NOS. 441, 2809                PRINTER'S NO. 2849

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 377 Session of 2007


        INTRODUCED BY D. EVANS, BENNINGTON, BUXTON, CALTAGIRONE, CURRY,
           FREEMAN, GALLOWAY, LEVDANSKY, MARKOSEK, MYERS, PARKER,
           PRESTON, WALKO, WHEATLEY, PETRONE, WAGNER, KORTZ AND FRANKEL,
           FEBRUARY 13, 2007

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, NOVEMBER 14, 2007

                                     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 an alternative special tax provision
    11     for poverty.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The act of March 4, 1971 (P.L.6, No.2), known as
    15  the Tax Reform Code of 1971, is amended by adding a section to
    16  read:
    17     Section 304.1.  Alternative Special Tax Provision for
    18  Poverty.--(a)  Pursuant to section 2(b)(ii) of Article VIII of
    19  the Constitution of the Commonwealth of Pennsylvania, which
    20  provides for establishing as a class or classes of subjects of
    21  taxation the property or privileges of persons who, because of

     1  poverty, are determined to be in need of special tax provisions,
     2  the General Assembly hereby declares its intent and purpose to
     3  exercise its power pursuant to that section by enacting the
     4  alternative tax provisions of this section.
     5     (b)  Having determined that there are certain persons in this
     6  Commonwealth whose incomes are such that imposition of an income
     7  tax would deprive them and their dependents of bare necessities
     8  of life, and having determined that poverty is a relative
     9  concept inextricably joined with actual income and the number of
    10  people dependent upon such income, the General Assembly deems it
    11  to be a matter of public policy to provide special tax
    12  provisions for that class of persons to relieve their economic
    13  burden.
    14     (c)  For taxable years THE TAXABLE YEAR beginning after        <--
    15  December 31, 2007, an individual having one or more dependents
    16  may, in lieu of utilizing the special tax provisions for poverty
    17  in section 304, claim a refund equal to thirty FIFTEEN per cent   <--
    18  of the earned income credit allowable under section 32 of the
    19  Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §
    20  32), as amended.
    21     (D)  FOR TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 2008, AN   <--
    22  INDIVIDUAL HAVING ONE OR MORE DEPENDENTS MAY, IN LIEU OF
    23  UTILIZING THE SPECIAL TAX PROVISIONS FOR POVERTY IN SECTION 304,
    24  CLAIM A REFUND EQUAL TO THIRTY PER CENT OF THE EARNED INCOME
    25  CREDIT ALLOWABLE UNDER SECTION 32 OF THE INTERNAL REVENUE CODE
    26  OF 1986, AS AMENDED.
    27     Section 2.  This act shall take effect immediately.


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