PRIOR PRINTER'S NO. 1342
PRINTER'S NO. 2090
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY CORMAN, BRUBAKER, GORDNER, COSTA, ALLOWAY, BLAKE, BOSCOLA, BREWSTER, ERICKSON, FONTANA, GREENLEAF, LEACH, RAFFERTY, EARLL, MENSCH, SOLOBAY, TARTAGLIONE, TOMLINSON, VOGEL, M. WHITE, WOZNIAK, YAW AND YUDICHAK, JUNE 14, 2011
SENATOR BRUBAKER, FINANCE, AS AMENDED, APRIL 3, 2012
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in personal income tax, further providing for
classes of income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303(a.7) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, added July
6, 2006 (P.L.319, No.67), is amended to read:
Section 303. Classes of Income.--* * *
(a.7) The following shall apply:
(1) An amount paid as a contribution into a qualified
tuition program under Chapter 3 of the act of April 3, 1992
(P.L.28, No.11), known as the "Tuition Account Programs and
College Savings Bond Act," shall be deductible from taxable
income on the annual personal income tax return. The amount paid
as a contribution to a qualified tuition program allowable as a
deduction under this subsection shall be subject to an annual
limitation not to exceed the threshold for exclusion from gifts
as provided in section 2503(b) of the Internal Revenue Code of
1986, as amended, per designated beneficiary. The deduction
shall not result in taxable income being less than zero.
(2) (i) The following shall not be subject to tax under
(A) Any amount distributed from a qualified tuition program
that is excludable from tax under section 529(c)(3)(B) of the
Internal Revenue Code of 1986, as amended.
(B) Any rollover that is excludable from tax under section
529(c)(3)(C) of the Internal Revenue Code of 1986, as amended.
The exception under this clause does not apply to a rollover
from a qualified tuition program under Chapter 3 of the "Tuition
Account Programs and College Savings Bond Act."
(C) Undistributed earnings on a qualified tuition program.
(ii) A change in designated beneficiaries under section
529(c)(3)(C) of the Internal Revenue Code of 1986, as amended,
shall not constitute a taxable event under this article.
(3) Any amount distributed from a qualified tuition program
that is not described under paragraph (2) shall be taxable under
(4) For purposes of this subsection:
(i) The term "designated beneficiary" shall have the same
meaning as provided in section 529(e)(1) of the Internal Revenue
Code of 1986, as amended.
(ii) The term "qualified tuition program" shall have the
same meaning as provided in section 529(b)(1) of the Internal
Revenue Code of 1986, as amended.
* * *
Section 2. The amendment of section 303(a.7) of the act
shall not apply to contributions or rollovers made prior to the
effective date of this section.
Section 3. This act shall take effect as follows:
(1) Section 2 of this act shall take effect September 1,
2011, or immediately, whichever is later January 1, 2013.
(2) The remainder of this act shall take effect