PRINTER'S NO. 3923
No. 2622 Session of 2008
INTRODUCED BY DENLINGER, TURZAI, MAJOR, PHILLIPS, BAKER, BEYER,
BOYD, CAPPELLI, CAUSER, CLYMER, CREIGHTON, CUTLER, EVERETT,
FAIRCHILD, GEIST, GINGRICH, GOODMAN, HENNESSEY, HERSHEY,
HESS, HICKERNELL, HORNAMAN, KAUFFMAN, KING, KORTZ, KOTIK,
McILHATTAN, MILLARD, R. MILLER, MILNE, MOUL, MOYER, MURT,
PAYNE, PEIFER, PICKETT, PYLE, REED, REICHLEY, ROCK, ROHRER,
ROSS, SAYLOR, SIPTROTH, SONNEY, SWANGER, J. TAYLOR AND
YUDICHAK, JUNE 11, 2008
REFERRED TO COMMITTEE ON FINANCE, JUNE 11, 2008
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 providing for classes of income for
11 purposes of the personal income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 303(a.3) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, added June
16 29, 2002 (P.L.559, No.89), is amended to read:
17 Section 303. Classes of Income.--* * *
18 (a.3) The cost of property commonly referred to as Section
19 179 Property may be treated as a deductible expense only to the
1 extent allowable under the version of section 179 of the
2 Internal Revenue Code in effect at the time the property is
3 placed in service [or under section 179 of the Internal Revenue
4 Code of 1986 (26 U.S.C. § 179), whichever is earlier]. The basis
5 of Section 179 Property shall be reduced, but not below zero,
6 for costs treated as a deductible expense. The amount of the
7 reduction shall be the amount deducted on a return and not
8 disallowed, regardless of whether the deduction results in a
9 reduction of income.
10 * * *
11 Section 2. This act shall apply to property placed in
12 service after December 31, 2004.
13 Section 3. This act shall take effect July 1, 2008, or
14 immediately, whichever is later.
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