AN ACT

 

1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in corporate net income tax, further providing
11for definitions, for imposition, for reports and payment and
12for consolidated reports; providing for mandatory combined
13reporting; and, in general provisions, further providing for
14underpayment of estimated tax.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

17Section 1. Section 401(3)1(a) and (b) and 2(a) and (5) of
18the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
19Code of 1971, amended or added December 23, 1983 (P.L.370, 
20No.90), July 1, 1985 (P.L.78, No.29), August 4, 1991 (P.L.97, 
21No.22), May 12, 1999 (P.L.26, No.4), June 22, 2001 (P.L.353, 
22No.23), June 29, 2002 (P.L.559, No.89), October 9, 2009 
23(P.L.451, No.48) and July 2, 2012 (P.L.751, No.85), are amended,

1clause (3)2 is amended by adding a phrase and the section is
2amended by adding clauses to read:

3Section 401. Definitions.--The following words, terms, and
4phrases, when used in this article, shall have the meaning
5ascribed to them in this section, except where the context
6clearly indicates a different meaning:

7* * *

8(3) "Taxable income." 1. (a) In case the entire business
9of the corporation is transacted within this Commonwealth, for
10any taxable year which begins on or after January 1, 1971,
11taxable income for the calendar year or fiscal year as returned
12to and ascertained by the Federal Government, or in the case of
13a corporation participating in the filing of consolidated
14returns to the Federal Government or that is not required to 
15file a return with the Federal Government, the taxable income
16which would have been returned to and ascertained by the Federal
17Government if separate returns had been made to the Federal
18Government for the current and prior taxable years, subject,
19however, to any correction thereof, for fraud, evasion, or error
20as finally ascertained by the Federal Government.

21(b) Additional deductions shall be allowed from taxable
22income on account of any dividends received from any other
23corporation but only to the extent that such dividends are
24included in taxable income as returned to and ascertained by the
25Federal Government. For tax years beginning on or after January
261, 1991, additional deductions shall only be allowed for amounts
27included, under section 78 of the Internal Revenue Code of 1986
28(Public Law 99-514, 26 U.S.C. § 78), in taxable income returned
29to and ascertained by the Federal Government and for the amount
30of any dividends received from a foreign corporation included in

1taxable income to the extent such dividends would be deductible
2in arriving at Federal taxable income if received from a
3domestic corporation. For taxable years beginning after December 
431, 2018, if not otherwise allowed as a deduction, an additional 
5deduction is allowed for all dividends paid by one to another of 
6the included corporations of a unitary business to the extent 
7those dividends are included in business income of a corporation 
8that is required to determine its business income pursuant to 
9paragraph (1) of phrase (e) of subclause (2).

10* * *

112. In case the entire business of any corporation, other
12than a corporation engaged in doing business as a regulated
13investment company as defined by the Internal Revenue Code of
141986, is not transacted within this Commonwealth, the tax
15imposed by this article shall be based upon such portion of the
16taxable income of such corporation for the fiscal or calendar
17year, as defined in subclause 1 hereof, and may be determined as
18follows:

19(a) Division of Income.

20(1) As used in this definition, unless the context otherwise
21requires:

22(A) "Business income" means income arising from transactions
23and activity in the regular course of the taxpayer's trade or
24business and includes income from tangible and intangible
25property if either the acquisition, the management or the
26disposition of the property constitutes an integral part of the
27taxpayer's regular trade or business operations. The term
28includes all income which is apportionable under the
29Constitution of the United States.

30(B) "Commercial domicile" means the principal place from

1which the trade or business of the taxpayer is directed or
2managed.

3(C) "Compensation" means wages, salaries, commissions and
4any other form of remuneration paid to employes for personal
5services.

6(D) "Nonbusiness income" means all income other than
7business income. The term does not include income which is
8apportionable under the Constitution of the United States.

9(E) "Sales" means all gross receipts of the taxpayer not
10allocated under this definition other than dividends received,
11interest on United States, state or political subdivision
12obligations and gross receipts heretofore or hereafter received
13from the sale, redemption, maturity or exchange of securities,
14except those held by the taxpayer primarily for sale to
15customers in the ordinary course of its trade or business.

16(F) "State" means any state of the United States, the
17District of Columbia, the Commonwealth of Puerto Rico, any
18territory or possession of the United States, and any foreign
19country or political subdivision thereof.

20(G) "This state" means the Commonwealth of Pennsylvania or,
21in the case of application of this definition to the
22apportionment and allocation of income for local tax purposes,
23the subdivision or local taxing district in which the relevant
24tax return is filed.

25(2) Any taxpayer having income from business activity which
26is taxable both within and without this State other than
27activity as a corporation whose allocation and apportionment of
28income is specifically provided for in section 401(3)2(b)(c) and
29(d) shall allocate and apportion taxable income as provided in
30this definition.

1(3) For purposes of allocation and apportionment of income
2under this definition, a taxpayer is taxable in another state if
3in that state the taxpayer is subject to a net income tax, a
4franchise tax measured by net income, a franchise tax for the
5privilege of doing business, or a corporate stock tax or if that
6state has jurisdiction to subject the taxpayer to a net income
7tax regardless of whether, in fact, the state does or does not.

8(4) Rents and royalties from real or tangible personal
9property, gains, interest, patent or copyright royalties, to the
10extent that they constitute nonbusiness income, shall be
11allocated as provided in paragraphs (5) through (8).

12(5) (A) Net rents and royalties from real property located
13in this State are allocable to this State.

14(B) Net rents and royalties from tangible personal property
15are allocable to this State if and to the extent that the
16property is utilized in this State, or in their entirety if the
17taxpayer's commercial domicile is in this State and the taxpayer
18is not organized under the laws of or taxable in the state in
19which the property is utilized.

20(C) The extent of utilization of tangible personal property
21in a state is determined by multiplying the rents and royalties
22by a fraction, the numerator of which is the number of days of
23physical location of the property in the state during the rental
24or royalty period in the taxable year and the denominator of
25which is the number of days of physical location of the property
26everywhere during all rental or royalty periods in the taxable
27year. If the physical location of the property during the rental
28or royalty period is unknown or unascertainable by the taxpayer,
29tangible personal property is utilized in the state in which the
30property was located at the time the rental or royalty payer

1obtained possession.

2(6) (A) Gains and losses from sales or other disposition of
3real property located in this State are allocable to this State.

4(B) Gains and losses from sales or other disposition of
5tangible personal property are allocable to this State if the
6property had a situs in this State at the time of the sale, or
7the taxpayer's commercial domicile is in this State and the
8taxpayer is not taxable in the state in which the property had a
9situs.

10(C) Gains and losses from sales or other disposition of
11intangible personal property are allocable to this State if the
12taxpayer's commercial domicile is in this State.

13(7) Interest is allocable to this State if the taxpayer's
14commercial domicile is in this State.

15(8) (A) Patent and copyright royalties are allocable to
16this State if and to the extent that the patent or copyright is
17utilized by the payer in this State, or if and to the extent
18that the patent copyright is utilized by the payer in a state in
19which the taxpayer is not taxable and the taxpayer's commercial
20domicile is in this State.

21(B) A patent is utilized in a state to the extent that it is
22employed in production, fabrication, manufacturing, or other
23processing in the state or to the extent that a patented product
24is produced in the state. If the basis of receipts from patent
25royalties does not permit allocation to states or if the
26accounting procedures do not reflect states of utilization, the
27patent is utilized in the state in which the taxpayer's
28commercial domicile is located.

29(C) A copyright is utilized in a state to the extent that
30printing or other publication originates in the state. If the

1basis of receipts from copyright royalties does not permit
2allocation to states or if the accounting procedures do not
3reflect states of utilization, the copyright is utilized in the
4state in which the taxpayer's commercial domicile is located.

5(9) (A) Except as provided in subparagraph (B):

6(i) For taxable years beginning before January 1, 2007, all
7business income shall be apportioned to this State by
8multiplying the income by a fraction, the numerator of which is
9the property factor plus the payroll factor plus three times the
10sales factor and the denominator of which is five.

11(ii) For taxable years beginning after December 31, 2006,
12all business income shall be apportioned to this State by
13multiplying the income by a fraction, the numerator of which is
14the sum of fifteen times the property factor, fifteen times the
15payroll factor and seventy times the sales factor and the
16denominator of which is one hundred.

17(iii) For taxable years beginning after December 31, 2008,
18all business income shall be apportioned to this State by
19multiplying the income by a fraction, the numerator of which is
20the sum of eight and a half times the property factor, eight and
21a half times the payroll factor and eighty-three times the sales
22factor and the denominator of which is one hundred.

23(iv) For taxable years beginning after December 31, 2009,
24all business income shall be apportioned to this State by
25multiplying the income by a fraction, the numerator of which is
26the sum of five times the property factor, five times the
27payroll factor and ninety times the sales factor and the
28denominator of which is one hundred.

29(v) For taxable years beginning after December 31, 2012, all
30business income shall be apportioned to this State by

1multiplying the income by the sales factor.

2(B) For purposes of apportionment of the capital stock -
3franchise tax as provided in section 602 of Article VI of this
4act, the apportionment fraction shall be the property factor
5plus the payroll factor plus the sales factor as the numerator,
6and the denominator shall be three.

7(10) The property factor is a fraction, the numerator of
8which is the average value of the taxpayer's real and tangible
9personal property owned or rented and used in this State during
10the tax period and the denominator of which is the average value
11of all the taxpayer's real and tangible personal property owned
12or rented and used during the tax period but shall not include
13the security interest of any corporation as seller or lessor in
14personal property sold or leased under a conditional sale,
15bailment lease, chattel mortgage or other contract providing for
16the retention of a lien or title as security for the sales price
17of the property.

18(11) Property owned by the taxpayer is valued at its
19original cost. Property rented by the taxpayer is valued at
20eight times the net annual rental rate. Net annual rental rate
21is the annual rental rate paid by the taxpayer less any annual
22rental rate received by the taxpayer from subrentals.

23(12) The average value of property shall be determined by
24averaging the values at the beginning and ending of the tax
25period but the tax administrator may require the averaging of
26monthly values during the tax period if reasonably required to
27reflect properly the average value of the taxpayer's property.

28(13) The payroll factor is a fraction, the numerator of
29which is the total amount paid in this State during the tax
30period by the taxpayer for compensation and the denominator of

1which is the total compensation paid everywhere during the tax
2period.

3(14) Compensation is paid in this State if:

4(A) The individual's service is performed entirely within
5the State;

6(B) The individual's service is performed both within and
7without this State, but the service performed without the State
8is incidental to the individual's service within this State; or

9(C) Some of the service is performed in this State and the
10base of operations or if there is no base of operations, the
11place from which the service is directed or controlled is in
12this State, or the base of operations or the place from which
13the service is directed or controlled is not in any state in
14which some part of the service is performed, but the
15individual's residence is in this State.

16(15) The sales factor is a fraction, the numerator of which
17is the total sales of the taxpayer in this State during the tax
18period, and the denominator of which is the total sales of the
19taxpayer everywhere during the tax period.

20(16) Sales of tangible personal property are in this State
21if the property is delivered or shipped to a purchaser, within
22this State regardless of the f.o.b. point or other conditions of
23the sale.

24(17) Sales, other than sales of tangible personal property
25and sales set forth under paragraphs (17.1) and (17.2), are in
26this State if:

27(A) The income-producing activity is performed in this
28State; or

29(B) The income-producing activity is performed both in and
30outside this State and a greater proportion of the income-


1producing activity is performed in this State than in any other
2state, based on costs of performance.

3(17.1) Sales of services are in this State if sales are
4derived from customers within this State. If part of the sales
5with respect to a specific contract or other agreement to
6perform services is derived from customers from within this
7State, sales are in this State in proportion to the sales
8derived from customers within this State to total sales with
9respect to that contract or agreement.

10(17.2) In order to determine sales in this State of any
11railroad, truck, bus, airline, pipeline, natural gas or water
12transportation company that is required to determine its
13business income under paragraph (1) of phrase (e) of this
14subclause, the company must convert the relevant fraction set
15forth under phrase (b), (c) or (d) of this subclause to gross
16receipts. Sales in this State are the result of multiplying
17total gross receipts from relevant transportation activities by
18the decimal equivalent of the relevant fraction set forth under
19phrase (b), (c) or (d) of this subclause.

20(18) If the allocation and apportionment provisions of this
21definition do not fairly represent the extent of the taxpayer's
22business activity in this State, the taxpayer may petition the
23Secretary of Revenue or the Secretary of Revenue may require, in
24respect to all or any part of the taxpayer's business activity:

25(A) Separate accounting;

26(B) The exclusion of any one or more of the factors;

27(C) The inclusion of one or more additional factors which
28will fairly represent the taxpayer's business activity in this
29State; or

30(D) The employment of any other method to effectuate an

1equitable allocation and apportionment of the taxpayer's income.
2In determining the fairness of any allocation or apportionment,
3the Secretary of Revenue may give consideration to the
4taxpayer's previous reporting and its consistency with the
5requested relief.

6* * *

7(e) Corporations That are Members of a Unitary Business.

8(1) Notwithstanding any contrary provisions of this article,
9for taxable years that begin after December 31, 2018, business
10income of a corporation that is a member of a unitary business
11that consists of two or more corporations, at least one of which
12does not transact its entire business in this State, is
13determined by combining the business income of either all
14corporations, other than as provided under this paragraph, that
15are water's-edge basis members or all corporations, other than
16as provided under this paragraph, that are worldwide members of
17the unitary business. Business income from an intercompany
18transaction between included corporations of a unitary business
19shall be deferred in the manner set forth under 26 CFR 1.1502-13
20(relating to intercompany transactions) in determining the
21business income of a corporation that is a member of that
22unitary business. Business income of the following corporations
23is not included in the determination of combined business
24income:

25(i) any corporation subject to taxation under Article VII,
26VIII, IX or XV;

27(ii) any corporation specified in the definition of
28"institution" in section 701.5 that would be subject to taxation
29under Article VII if it was located, as defined in section
30701.5, in this State;

1(iii) any corporation commonly known as a title insurance
2company that would be subject to taxation under Article VIII if
3it was incorporated in this State;

4(iv) any corporation specified as an insurance company,
5association or exchange in Article IX that would be subject to
6taxation under Article IX if its insurance business was
7transacted in this State;

8(v) any corporation specified in the definition of
9"institution" in section 1501 that would be subject to taxation
10under Article XV if it was located, as defined in section 1501,
11in this State; or

12(vi) any corporation that is a small corporation, as defined
13in section 301(s.2), or a qualified Subchapter S subsidiary, as
14defined in section 301(o.3).

15(2) Notwithstanding any contrary provisions of this article,
16all corporations that are required to compute business income
17under paragraph (1) are entitled to apportion the business
18income when one corporation of the same unitary business is
19entitled to apportion the business income. Notwithstanding any
20contrary provisions of this article, for taxable years that
21begin after December 31, 2018, the denominator of the
22apportionment fraction of a corporation that is required to
23compute its business income under paragraph (1) shall be
24computed on a combined basis for all included corporations of
25the unitary business. Gross receipts from an intercompany
26transaction between included corporations of a unitary business
27shall be eliminated unless the gross receipts are derived from
28transactions that are deferred in the manner set forth under 26
29CFR 1.1502-13 in computing the numerator and denominator of the
30apportionment fraction of a corporation that is required to

1compute its business income under paragraph (1). Gross receipts
2from transactions that had been deferred in the manner set forth
3under 26 CFR 1.1502-13 are included in a corporation's
4apportionment fraction during the same taxable year that it
5realizes business income that had been deferred due to the
6transaction. The apportionment fraction of the following
7corporations shall not be included in the determination of the
8combined apportionment fraction:

9(i) any corporation subject to taxation under Article VII,
10VIII, IX or XV;

11(ii) any corporation specified in the definition of
12"institution" in section 701.5 that would be subject to taxation
13under Article VII if it was located, as defined in section
14701.5, in this State;

15(iii) any corporation commonly known as a title insurance
16company that would be subject to taxation under Article VIII if
17it was incorporated in this State;

18(iv) any corporation specified as an insurance company,
19association or exchange in Article IX that would be subject to
20taxation under Article IX if its insurance business was
21transacted in this State;

22(v) any corporation specified in the definition of
23"institution" in section 1501 that would be subject to taxation
24under Article XV if it was located, as defined in section 1501,
25in this State;

26(vi) any corporation that is a small corporation, as defined
27in section 301(s.2), or a qualified Subchapter S subsidiary, as
28defined in section 301(o.3).

29(3) A corporation that is required to compute its business
30income under paragraph (1) shall apportion the combined business

1income by multiplying the combined business income by a fraction
2which is the combined apportionment fraction set forth under
3paragraph (2).

4(4) Nonbusiness income of a corporation that is required to
5compute business income under paragraph (1) shall be allocated
6as provided in paragraphs (5), (6), (7) and (8) of phrase (a) of
7subclause 2 of the definition of "taxable income."

8(5) Each corporation that is a member of a unitary business
9that consists of two or more corporation shall determine its tax
10liability based on its apportioned share of the combined
11business income of the unitary business plus its nonbusiness
12income or loss allocated to this State, minus its net loss
13deduction.

14(6) If any provision of this phrase operates so that an
15amount is added to or deducted from taxable income for a taxable
16year for any corporation of a unitary business that previously
17had been added to or deducted from taxable income of any
18corporation of the same unitary business, an appropriate
19adjustment shall be made for the taxable year in order to
20prevent double taxation or double deduction. If this adjustment
21is not made by the appropriate corporation of the unitary
22business, the Secretary of Revenue is authorized to make this
23adjustment.

24(7) The Secretary of Revenue shall have the authority and
25responsibility to make adjustments to insure that a corporation
26does not incur an unfair penalty nor realize an unfair benefit
27because it is required to compute its business income under
28paragraph (1). Fairness shall be measured by whether the
29corporation's income allocated and apportioned to this State
30fairly reflects the corporation's share of the unitary business

1conducted in this State in the taxable year.

2* * *

3(5) "Taxable year." [The] 1. Except as set forth in 
4subclause 2, the taxable year which the corporation, or any
5consolidated group with which the corporation participates in
6the filing of consolidated returns, actually uses in reporting
7taxable income to the Federal Government[.], or which the 
8corporation would have used in reporting taxable income to the 
9Federal Government had it been required to report its taxable 
10income to the Federal Government. With regard to the tax imposed
11by Article IV of this act (relating to the Corporate Net Income
12Tax), the terms "annual year," "fiscal year," "annual or fiscal
13year," "tax year" and "tax period" shall be the same as the
14corporation's taxable year, as defined in this [paragraph.]
15subclause or subclause 2.

162. All corporations of a unitary business shall have a
17common taxable year for purposes of computing tax due under this
18article. The taxable year for the purposes shall be the common
19taxable year adopted, in a manner prescribed by the department,
20by all corporations of a unitary business. The common taxable
21year must be used by all corporations of that unitary business
22in the year of adoption and all future years unless otherwise
23permitted by the department.

24* * *

25(8) "Tax haven." A jurisdiction that at the beginning of a
26taxable year is a tax haven as identified by the Organization
27for Economic Co-operation and Development, plus the
28sovereignties of Bermuda, the Cayman Islands, the Bailiwick of
29Jersey and the Grand Duchy of Luxembourg.

30(9) "Unitary business." A single economic enterprise that

1is made up of separate parts of a single corporation, of a
2commonly controlled group of corporations, or both, that are
3sufficiently interdependent, integrated and interrelated through
4their activities so as to provide a synergy and mutual benefit
5that produces a sharing or exchange of value among them and a
6significant flow of value to the separate parts. A unitary
7business shall include only those parts and corporations which
8may be included as a unitary business under the Constitution of
9the United States.

10(10) "Water's-edge basis." A system of reporting that
11includes the business income and apportionment factor of certain
12corporations of a unitary business, described as follows:

131. The business income and apportionment factor of any
14member incorporated in the United States or formed under the
15laws of any state of the United States, the District of
16Columbia, any territory or possession of the United States or
17the Commonwealth of Puerto Rico.

182. The business income and apportionment factor of any
19member, regardless of the place incorporated or formed, if the
20average of its property, payroll and sales factors within the
21United States is twenty per cent or more.

223. The business income and apportionment factor of any 
23member which is a domestic international sales corporation as 
24described in sections 991, 992, 993 and 994 of the Internal 
25Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§ 991, 992, 
26993 and 994); a foreign sales corporation as described in former 
27sections 921, 922, 923, 924, 925, 926 and 927 of the Internal 
28Revenue Code of 1986 (formerly 26 U.S.C. §§ 921, 922, 923, 924, 
29925, 926 and 927); or any member which is an export trade 
30corporation, as described in sections 970 and 971 of the 

1Internal Revenue Code of 1986 (26 U.S.C. §§ 970 and 971).

24. Any member not described in subclauses 1, 2 and 3 shall
3include the portion of its business income derived from or
4attributable to sources within the United States, as determined
5under the Internal Revenue Code of 1986 without regard to
6Federal treaties, and its apportionment factor related thereto.

75. Any member that is a "controlled foreign corporation" as
8defined in section 957 of the Internal Revenue Code of 1986 (26 
9U.S.C. § 957), to the extent the business income of that member
10is income defined in section 952 of the Internal Revenue Code of
111986 (26 U.S.C. § 952), Subpart F income, not excluding lower-
12tier subsidiaries' distributions of the income which were
13previously taxed, determined without regard to Federal treaties,
14and the apportionment factor related to that income; any item of
15income received by a controlled foreign corporation and the
16apportionment factor related to the income shall be excluded if
17the corporation establishes to the satisfaction of the Secretary
18of Revenue that the income was subject to an effective rate of
19income tax imposed by a foreign country greater than ninety per
20cent of the maximum rate of tax specified in section 11 of the
21Internal Revenue Code of 1986 (26 U.S.C. § 11). The effective
22rate of income tax determination shall be based upon the
23methodology set forth under 26 CFR 1.954-1 (relating to foreign
24base company income).

256. The business income and apportionment factor of any
26member that is not described in subclause 1, 2, 3, 4 and 5 and
27that is doing business in a tax haven. The business income and
28apportionment factor of a corporation doing business in a tax
29haven shall be excluded if the corporation establishes to the
30satisfaction of the Secretary of Revenue that its income was

1subject to an effective rate of income tax imposed by a country
2greater than ninety per cent of the maximum rate of tax
3specified in section 11 of the Internal Revenue Code of 1986 (26 
4U.S.C. § 11).

5(11) "Commonly controlled group." For a corporation, the
6corporation is a member of a group of two or more corporations
7and more than fifty per cent of the voting stock of each member
8of the group is directly or indirectly owned by a common owner
9or by common owners, either corporate or noncorporate, or by one
10or more of the member corporations of the group.

11(12) "Separate company." A corporation that is not a member
12of a unitary business that consists of two or more corporations.

13(13) "Tax." Includes interest, penalties and additions to
14tax unless a more limited meaning is disclosed by the context.

15Section 2. Section 402(b) of the act, amended June 29, 2002 
16(P.L.559, No.89), is amended to read:

17Section 402. Imposition of Tax.--* * *

18(b) The annual rate of tax on corporate net income imposed
19by subsection (a) for taxable years beginning for the calendar
20year or fiscal year on or after the dates set forth shall be as
21follows:

22Taxable Year

Tax Rate

23[January 1, 1995, and each
24taxable year thereafter

 

9.99%]

25January 1, 1995, through taxable
26years ending December 31,
272014

 

 

9.99%

28January 1, 2015, to December 31,
292015

 

9.39%

30January 1, 2016, to December 31,

 

12016

 




8.79%

2January 1, 2017, to December 31,
32017

 

8.19%

4January 1, 2018, to December 31,
52018

 

7.59%

6January 1, 2019, to December 31,
72019, and each taxable year
8thereafter

 

 

6.99%

9* * *

10Section 3. Section 403 of the act is amended by adding
11subsections to read:

12Section 403. Reports and Payment of Tax.--* * *

13(a.1) The following apply:

14(1) Each corporation subject to tax under this article shall
15file an annual report in accordance with this section. Each
16corporation that is a member of a unitary business that consists
17of two or more corporations, unless excluded by the provisions
18of this article, shall file as part of a combined annual report.
19The corporations of the unitary business shall designate one
20member that is subject to tax under this article to file the
21combined annual report and to act as agent on behalf of all
22other corporations that are members of the unitary business.
23Each corporation that is a member of a unitary business shall be
24responsible for its tax liability under this article.

25(2) The oath or affirmation of the designated member's
26president, vice president or other principal officer, and of its
27treasurer or assistant treasurer shall constitute the oath or
28affirmation of each corporation that is a member of that unitary
29business.

30(3) The designated member shall transmit to the department

1upon a form prescribed by the department, an annual combined
2report under oath or affirmation of its president, vice
3president or other principal officer, and of its treasurer or
4assistant treasurer. The report shall set forth:

5(i) All corporations included in the unitary business.

6(ii) All necessary data, both in the aggregate and for each
7corporation of the unitary business, that sets forth the
8determination of tax liability for each corporation of the
9unitary business.

10(iii) Any other information that the department may require.

11(a.2) The following apply:

12(1) Activities that evidence a significant flow of value
13among commonly controlled corporations shall include the
14following:

15(i) Assisting in the acquisition of equipment.

16(ii) Assisting with filling personnel needs.

17(iii) Lending funds or guaranteeing loans.

18(iv) Interplay in the area of corporate expansion.

19(v) Providing technical assistance.

20(vi) Supervising.

21(vii) Providing general operational guidance.

22(viii) Providing overall operational strategic advice.

23(ix) Common use of trade names and patents.

24(2) Significant flow of value must be more than the flow of
25funds arising out of passive investment and shall consist of
26more than periodic financial oversight.

27(a.3) The following apply:

28(1) With respect to a commonly controlled group of
29corporations, the presence of any of these factors creates a
30presumption of a unitary business:

1(i) Corporations engaged in the same type of business.

2(ii) Corporations engaged in different steps in a vertically
3structured enterprise.

4(iii) Strong centralized management of corporations.

5(2) A corporation newly formed by a corporation that is a
6member of a unitary business is rebuttably presumed to be a
7member of the unitary business.

8(3) A corporation that owns a controlling interest in two or
9more corporations of a unitary business is rebuttably presumed
10to be a member of the unitary business.

11(4) A corporation that permits one or more other
12corporations of a unitary business to substantially use its
13patents, trademarks, service marks, logo-types, trade secrets,
14copyrights or other proprietary assets or that is principally
15engaged in loaning money to one or more other corporations of a
16unitary business is rebuttably presumed to be a member of the
17unitary business. This presumption only applies to a commonly
18controlled group of corporations.

19(a.4) As far as applicable to a specific unitary business,
20unless there is a revision of applicable State law or unless a
21corporation is not included under the provisions of this
22article, there is a rebuttable presumption for all tax years
23that begin in years 2019 and 2020 that a unitary business of two
24or more corporations includes at least all corporations that are
25part of a unitary business under the law of any state of the
26United States in which the corporation files a tax report or tax
27return of combined net income for the same tax year.

28(a.5) Unless an election is made to use a worldwide basis of
29accounting, a corporation that is a member of a unitary business
30of two or more corporations must determine its business income

1and apportionment factor upon a water's-edge basis. This basis
2shall apply to all corporations of the unitary business. If an
3election is made to use a worldwide basis of accounting, all
4corporations of the unitary business must make the election,
5upon a form, prescribed, prepared and furnished by the
6department. This election shall bind all corporations of the
7unitary business for the period of time that the election
8remains in effect. An initial election is binding for a period
9of seven years. Subsequent elections shall be binding for a
10period of five years.

11* * *

12Section 4. Section 404 of the act is amended to read:

13Section 404. Consolidated Reports.--The department shall not
14permit any corporation owning or controlling, directly or
15indirectly, any of the voting capital stock of another
16corporation or of other corporations, subject to the provisions
17of this article, to make a consolidated report[, showing the
18combined net income].

19Section 4.1. The act is amended by adding an article to
20read:

21ARTICLE IV-A

22MANDATORY COMBINED REPORTING

23Section 401-A. Definitions.

24The following words and phrases when used in this article
25shall have the meanings given to them in this section unless the
26context clearly indicates otherwise:

27"Commonly controlled group." For a corporation, the
28corporation is a member of a group of two or more corporations
29and more than 50% of the voting stock of each member of the
30group is directly or indirectly owned by a common owner or by

1common owners, either corporate or noncorporate, or by one or
2more of the member corporations of the group.

3"Corporation." As defined in section 401.

4"Department." The Department of Revenue of the Commonwealth.

5"Secretary." The Secretary of Revenue of the Commonwealth.

6"Separate company." A corporation that is not a member of a
7unitary business that consists of two or more corporations.

8"Tax." Includes interest, penalties and additions to tax,
9unless a more limited meaning is disclosed by the context.

10"Tax haven." Any of the following:

11(1) A jurisdiction which, at the beginning of a taxable
12year, is a tax haven as identified by the Organization for
13Economic Co-operation and Development.

14(2) Bermuda.

15(3) The Cayman Islands.

16(4) The Bailiwick of Jersey.

17(5) The Grand Duchy of Luxembourg.

18"Unitary business." A single economic enterprise that is
19made up of separate parts of a single corporation, of a commonly
20controlled group of corporations, or both, which are
21sufficiently interdependent, integrated and interrelated through
22their activities so as to provide a synergy and mutual benefit
23that produces a sharing or exchange of value among them and a
24significant flow of value to the separate parts. The term
25includes only those parts and corporations which may be included
26as a unitary business under the Constitution of the United
27States.

28"Water's-edge basis." The system of reporting required under
29section 402-A.

30Section 402-A. Water's-edge basis.

1A unitary business shall report as follows:

2(1) The business income and apportionment factor of each
3member incorporated in the United States or formed under the
4laws of a state, the District of Columbia, a territory or
5possession of the United States or the Commonwealth of Puerto
6Rico.

7(2) The business income and apportionment factor of
8every member, regardless of the place incorporated or formed,
9if the average of the corporation's or unitary business's
10property, payroll and sales factors within the United States
11is at least 20%.

12(3) The business income and apportionment factor of each
13member which is:

14(i) a domestic international sales corporation, as
15described in sections 991, 992, 993 and 994 of the
16Internal Revenue Code of 1986 (Public Law 99-514, 26
17U.S.C. §§ 991, 992, 993 and 994);

18(ii) a foreign sales corporation as described in
19former sections 921, 922, 923, 924, 925, 926 and 927 of
20the Internal Revenue Code of 1986 (98 Stat. 985); or

21(iii) an export trade corporation, as described in
22sections 970 and 971 of the Internal Revenue Code of 1986
23(26 U.S.C. §§ 970 and 971).

24(4) For each member which is a "controlled foreign
25corporation," as defined in section 957 of the Internal
26Revenue Code of 1986 (26 U.S.C. § 957), to the extent the
27business income of that member is income defined in section
28952 of the Internal Revenue Code of 1986 (26 U.S.C. § 952),
29all of the following:

30(i) Subpart F income, not excluding lower-tier

1subsidiaries' distributions of the income which were
2previously taxed, determined without regard to a Federal
3treaty, and the apportionment factor related to that
4income.

5(ii) Any item of income received by a controlled
6foreign corporation and the apportionment factor related
7to the income shall be excluded if the corporation
8establishes to the satisfaction of the secretary that the
9income was subject to an effective rate of income tax
10imposed by a foreign country greater than 90% of the
11maximum rate of tax specified in section 11 of the
12Internal Revenue Code of 1986 (26 U.S.C. § 11). The
13effective rate of income tax determination shall be based
14upon the methodology set forth under 26 CFR 1.954-1
15(relating to foreign base company income).

16(5) For each member which is not described in paragraph
17(1), (2) or (3):

18(i) the portion of its business income derived from
19or attributable to sources within the United States, as
20determined under the Internal Revenue Code of 1986,
21without regard to a Federal treaty; and

22(ii) its apportionment factor related to the portion
23of income under subparagraph (i).

24(6) For each member which is not described in paragraph
25(1), (2), (3) or (4) and which is doing business in a tax
26haven:

27(i) Except as set forth in subparagraph (ii), the
28business income and apportionment factor.

29(ii) If the member establishes to the satisfaction
30of the secretary that its income was subject to an

1effective rate of income tax imposed by a country greater
2than 90% of the maximum rate of tax specified in section
311 of the Internal Revenue Code of 1986 (26 U.S.C. § 11),
4subparagraph (i) shall not apply.

5Section 403-A. Corporate members of unitary businesses.

6(a) Scope.--This section applies to a corporation that is a
7member of a unitary business which consists of two or more
8corporations, at least one of which does not transact its entire
9business in this Commonwealth.

10(b) Returns.--For taxable years beginning after December 31,
112012, a corporation subject to this section shall, in addition
12to the tax return filed under Article IV, file a return in
13accordance with this section. For a taxable year which begins
14after December 31, 2013, and ends before January 1, 2015, the
15return filed under this subsection shall be for informational
16purposes only and shall not be subject to section 404-A(b) or
17(c).

18(c) Business income.--

19(1) For purposes of the return under subsection (b),
20business income of a corporation shall be computed, subject
21to paragraph (2) and subsections (d), (e) and (f), by
22combining the business income of:

23(i) each corporation required to report on a
24water's-edge basis; or

25(ii) each corporation that is a worldwide member of
26the unitary business.

27(2) The following shall apply:

28(i) Business income from an intercompany transaction
29between included corporations of a unitary business shall
30be deferred in the manner set forth under 26 CFR 1.1502-


113 (relating to intercompany transactions) in determining
2the business income of a corporation which is a member of
3that unitary business.

4(ii) Business income of the following corporations
5shall not be included in the determination of combined
6business income:

7(A) A corporation subject to taxation under
8Article VII, VIII, IX or XV.

9(B) An institution, as defined in section 701.5,
10that would be subject to taxation under Article VII
11if it was located, as defined in section 701.5, in
12this Commonwealth.

13(C) A corporation commonly known as a title
14insurance company that would be subject to taxation
15under Article VIII if it was incorporated in this
16Commonwealth.

17(D) A corporation specified as an insurance
18company, association or exchange in Article IX that
19would be subject to taxation under Article IX if its
20insurance business was transacted in this
21Commonwealth.

22(E) A mutual thrift institution, as defined in
23section 1501, that would be subject to taxation under
24Article XV if it was located, as defined in section
251501, in this Commonwealth.

26(F) A small corporation, as defined in section
27301(s.2).

28(G) A qualified Subchapter S subsidiary, as
29defined in section 301(o.3).

30(d) Apportionment.--Notwithstanding any provision of this

1act, a corporation computing business income under subsection
2(c) may apportion the business income when one corporation of
3the same unitary business is entitled to apportion the business
4income.

5(e) Apportionment fraction.--For a corporation computing
6business income under subsection (c), subject to subsection (f),
7the following apply:

8(1) Computation shall be as follows:

9(i) The denominator of the apportionment fraction
10shall be computed on a combined basis for all included
11corporations of the unitary business.

12(ii) Gross receipts from an intercompany transaction
13between included corporations of a unitary business shall
14be eliminated unless the gross receipts are derived from
15transactions that are deferred in the manner set forth
16under 26 CFR 1.1502-13, in computing the numerator and
17denominator of the apportionment fraction.

18(iii) Gross receipts from transactions which were
19deferred under 26 CFR 1.1502-13 shall be included in a
20corporation's apportionment fraction during the same
21taxable year in which it realizes business income which
22was deferred due to the transaction.

23(2) Apportionment shall be accomplished by multiplying:

24(i) the combined business income; by

25(ii) a fraction which is the combined apportionment
26fraction under paragraph (1).

27(f) Exclusions.--For purposes of subsection (e), the
28apportionment fraction of the following corporations shall not
29be included in the determination of the combined apportionment
30fraction:

1(1) A corporation subject to taxation under Article VII,
2VIII, IX or XV.

3(2) An institution, as defined in section 701.5, that
4would be subject to taxation under Article VII if it was
5located, as defined in section 701.5, in this Commonwealth.

6(3) A corporation commonly known as a title insurance
7company that would be subject to taxation under Article VIII
8if it was incorporated in this Commonwealth.

9(4) A corporation specified as an insurance company,
10association or exchange in Article IX that would be subject
11to taxation under Article IX if its insurance business was
12transacted in this Commonwealth.

13(5) A mutual thrift institution, as defined in section
141501, that would be subject to taxation under Article XV if
15it was located, as defined in section 1501, in this
16Commonwealth.

17(6) A small corporation, as defined in section 301(s.2).

18(7) A qualified Subchapter S subsidiary, as defined in
19section 301(o.3).

20(g) Nonbusiness income.--A corporation subject to this
21section shall allocate nonbusiness income as provided in section
22401(3)2(a)(5), (6), (7) and (8).

23Section 404-A. Surtax.

24(a) Estimated tax liability.--Each corporation that is
25required to submit a return under this article shall determine
26its estimated tax liability under this article based on its
27apportioned share of the combined business income of the unitary
28business plus its nonbusiness income or loss allocated to this
29State, minus its net loss deduction, multiplied by the tax rate
30applicable to the taxable year being reported in Article IV.

1(b) Surtax.--If, after determining its estimated tax
2liability under subsection (a), the corporation determines that
3its estimated tax liability calculated under subsection (a) is
4greater than the corporation's tax liability calculated under
5Article IV, the corporation shall pay a surtax to the department
6in an amount equal to the following:

7(1) For a taxable year which begins after December 31,
82013, and ends before January 1, 2015, 20% of the difference
9between the tax liability calculated under subsection (a) and
10the tax paid to the department for that taxable year as set
11forth in the return filed under Article IV.

12(2) For a taxable year which begins after December 31,
132014, and ends before January 1, 2016, 40% of the difference
14between the tax liability calculated under subsection (a) and
15the tax paid to the department for that taxable year as set
16forth in the return filed under Article IV.

17(3) For a taxable year which begins after December 31,
182015, and ends before January 1, 2017, 60% of the difference
19between the tax liability calculated under subsection (a) and
20the tax paid to the department for that taxable year as set
21forth in the return filed under Article IV.

22(4) For a taxable year which begins after December 31,
232016, and ends before January 1, 2018, 80% of the difference
24between the tax liability calculated under subsection (a) and
25the tax paid to the department for that taxable year as set
26forth in the return filed under Article IV.

27(5) For a taxable year which begins after December 31,
282017, and ends before January 1, 2019, 100% of the difference
29between the tax liability calculated under subsection (a) and
30the tax paid to the department for that taxable year as set

1forth in the return filed under Article IV.

2(c) Credit.--If, after determining its estimated tax
3liability under subsection (a), the corporation determines that
4its estimated tax liability calculated under subsection (a) is
5less than the corporation's tax liability calculated under
6Article IV, the corporation shall be entitled to a credit
7against the tax paid under Article IV in an amount equal to the
8difference between the two calculations.

9(d) Unitary business adjustment.--If any provision of this
10article operates so that an amount is added to or deducted from
11taxable income for a taxable year for any corporation of a
12unitary business that previously had been added to or deducted
13from taxable income of any corporation of the same unitary
14business, an appropriate adjustment shall be made for the
15taxable year in order to prevent double taxation or double
16deduction. If the adjustment is not made by the appropriate
17corporation of the unitary business, the secretary is authorized
18to make the adjustment.

19(e) Secretary.--The secretary shall have the duty to make
20adjustments to insure that a corporation does not incur an
21unfair penalty nor realize an unfair benefit because it is
22required to compute its business income under this article.
23Fairness shall be measured by whether the corporation's income
24allocated and apportioned to this Commonwealth fairly reflects
25the corporation's share of the unitary business conducted in
26this Commonwealth in the taxable year.

27Section 405-A. Common tax year.

28All corporations of a unitary business shall have a common
29taxable year for purposes of computing tax due under this
30article. The taxable year shall be the common taxable year

1adopted, in a manner prescribed by the department, by all
2corporations of a unitary business. The common taxable year must
3be used by all corporations of that unitary business in the year
4of adoption and all future years unless otherwise permitted by
5the department.

6Section 406-A. Reports and payment of surtax.

7(a) Designation.--The corporations of the unitary business
8shall designate one member that is subject to tax under Article
9IV to file the annual report and remit the surtax required under
10this article and to act as agent on behalf of all other
11corporations that are members of the unitary business. Each
12corporation that is a member of a unitary business shall be
13responsible for its tax liability under Article IV and the
14surtax under this article.

15(b) Oath or affirmation.--The oath or affirmation of the
16designated member's president, vice president or other principal
17officer, and of its treasurer or assistant treasurer shall
18constitute the oath or affirmation of each corporation that is a
19member of that unitary business.

20(c) Annual report.--The designated member shall transmit to
21the department upon a form prescribed by the department, an
22annual report under oath or affirmation of its president, vice
23president or other principal officer, and of its treasurer or
24assistant treasurer. The report shall set forth:

25(1) All corporations included in the unitary business.

26(2) All necessary data, both in the aggregate and for
27each corporation of the unitary business, that sets forth the
28determination of tax liability for each corporation of the
29unitary business.

30(3) Any other information that the department may

1require.

2(d) Activities.--

3(1) Activities that evidence a significant flow of value
4among commonly controlled corporations shall include the
5following:

6(i) Assisting in the acquisition of equipment.

7(ii) Assisting with filling personnel needs.

8(iii) Lending funds or guaranteeing loans.

9(iv) Interplay in the area of corporate expansion.

10(v) Providing technical assistance.

11(vi) Supervising.

12(vii) Providing general operational guidance.

13(viii) Providing overall operational strategic
14advice.

15(ix) Common use of trade names and patents.

16(2) Significant flow of value must be more than the flow
17of funds arising out of passive investment and must consist
18of more than periodic financial oversight.

19Section 407-A. Rebuttable presumptions for unitary business.

20(a) Commonly controlled group of corporations.--With respect
21to a commonly controlled group of corporations, the presence of
22any of these factors creates a presumption of a unitary
23business:

24(1) Corporations engaged in the same type of business.

25(2) Corporations engaged in different steps in a
26vertically structured enterprise.

27(3) Strong centralized management of corporations.

28(b) Newly formed corporation.--A corporation newly formed by
29a corporation that is a member of a unitary business shall be
30rebuttably presumed to be a member of the unitary business.

1(c) Controlling interest.--A corporation that owns a
2controlling interest in at least two corporations of a unitary
3business shall be rebuttably presumed to be a member of the
4unitary business.

5(d) Substantial use.--A corporation that permits at least
6one other corporation of a unitary business to substantially use
7its patents, trademarks, service marks, logo-types, trade
8secrets, copyrights or other proprietary assets or that is
9principally engaged in loaning money to at least one other
10corporation of a unitary business shall be rebuttably presumed
11to be a member of the unitary business. The presumption under
12this subsection shall only apply to a commonly controlled group
13of corporations.

14(e) Specific unitary business.--As far as applicable to a
15specific unitary business, unless there is a revision of
16applicable State law or unless a corporation is not included
17under the provisions of this article, there is a rebuttable
18presumption for all tax years that begin in years 2013 and 2014
19that a unitary business of at least two corporations includes at
20least all of the corporations that are part of a unitary
21business under the law of any state in which the corporation
22files a tax report or tax return of combined net income for the
23same tax year.

24Section 408-A. Election.

25(a) Nonworldwide basis.--Unless an election is made to use a
26worldwide basis of accounting, a corporation that is a member of
27a unitary business of at least two corporations shall determine
28its business income and apportionment factor upon a water's-edge
29basis. The basis shall apply to all corporations of the unitary
30business.

1(b) Worldwide basis.--If an election is made to use a
2worldwide basis of accounting, all corporations of the unitary
3business must make the election, upon a form, prescribed,
4prepared and furnished by the department. The election shall
5bind all corporations of the unitary business for the period of
6time that the election remains in effect. An initial election
7shall be binding for a period of seven years. Subsequent
8elections shall be binding for a period of five years.

9Section 409-A. Expiration.

10This article shall expire January 1, 2020.

11Section 5. Section 3003.3(d) of the act, amended October 18, 
122006 (P.L.1149, No.119), is amended and the section is amended
13by adding subsections to read:

14Section 3003.3. Underpayment of Estimated Tax.--* * *

15(d) Notwithstanding the provisions of the preceding
16subsections, other than as set forth under subsection (d.1),
17interest with respect to any underpayment of any installment of
18estimated tax shall not be imposed if the total amount of all
19payments of estimated tax made on or before the last date
20prescribed for the payment of such installment equals or exceeds
21the amount which would have been required to be paid on or
22before such date if the estimated tax were an amount equal to
23the tax computed at the rates applicable to the taxable year,
24including any minimum tax imposed, but otherwise on the basis of
25the facts shown on the report of the taxpayer for, and the law
26applicable to, the safe harbor base year, adjusted for any
27changes to sections 401, 601, 602 and 1101 enacted for the
28taxable year, if a report showing a liability for tax was filed
29by the taxpayer for the safe harbor base year. If the total
30amount of all payments of estimated tax made on or before the

1last date prescribed for the payment of such installment does
2not equal or exceed the amount required to be paid per the
3preceding sentence, but such amount is paid after the date the
4installment was required to be paid, then the period of
5underpayment shall run from the date the installment was
6required to be paid to the date the amount required to be paid
7per the preceding sentence is paid. Provided, that if the total
8tax for the safe harbor base year exceeds the tax shown on such
9report by ten per cent or more, the total tax adjusted to
10reflect the current tax rate shall be used for purposes of this
11subsection. In the event that the total tax for the safe harbor
12base year exceeds the tax shown on the report by ten per cent or
13more, interest resulting from the utilization of such total tax
14in the application of the provisions of this subsection shall
15not be imposed if, within forty-five days of the mailing date of
16each assessment, payments are made such that the total amount of
17all payments of estimated tax equals or exceeds the amount which
18would have been required to be paid on or before such date if
19the estimated tax were an amount equal to the total tax adjusted
20to reflect the current tax rate. In any case in which the
21taxable year for which an underpayment of estimated tax may
22exist is a short taxable year, in determining the tax shown on
23the report or the total tax for the safe harbor base year, the
24tax will be reduced by multiplying it by the ratio of the number
25of installment payments made in the short taxable year to the
26number of installment payments required to be made for the full
27taxable year.

28(d.1) (1) Notwithstanding subsections (a), (b) and (c),
29interest with respect to any underpayment of any installment of
30estimated corporate net income tax for any tax year that begins

1in year 2019 or 2020 shall not be imposed if the total amount of
2all payments of estimated corporate net income tax made on or
3before the last date prescribed for the payment of the
4installment equals or exceeds the amount which would have been
5required to be paid on or before that date if the estimated tax
6were an amount equal to the tax shown on the report of the
7taxpayer for the safe harbor base year, if a report showing a
8liability for tax was filed by the taxpayer for the safe harbor
9base year.

10(2) If the total amount of all payments of estimated tax
11made on or before the last date prescribed for the payment of
12the installment does not equal or exceed the amount required to
13be paid under paragraph (1), but the amount is paid after the
14date the installment was required to be paid, the period of
15underpayment shall run from the date the installment was
16required to be paid to the date the amount required to be paid
17under paragraph (1) is paid.

18(3) If the total tax for the safe harbor base year exceeds
19the tax shown on the report by ten per cent or more, the total
20tax shall be used for purposes of this subsection. If the total
21tax for the safe harbor base year exceeds the tax shown on the
22report by ten per cent or more, interest resulting from the
23utilization of the total tax in the application of the
24provisions of this subsection shall not be imposed if, within
25forty-five days of the mailing date of a notice from the
26department increasing the total tax, payments are made such that
27the total amount of all payments of estimated tax equals or
28exceeds the amount which would have been required to be paid on
29or before the date if the estimated tax were an amount equal to
30the total tax.

1(4) If the taxable year for which an underpayment of
2estimated tax may exist is a short taxable year, in determining
3the tax shown on the report or the total tax for the safe harbor
4base year, the tax shall be reduced by multiplying it by the
5ratio of the number of installment payments made in the short
6taxable year to the number of installment payments required to
7be made for the full taxable year.

8(d.2) (1) If there is a substantial underpayment, as
9defined in subsection (a), of any installment of estimated
10corporate net income tax or estimated capital stock/franchise
11tax for any taxable year beginning in 2019 or 2020, there shall
12be imposed additional interest in an amount determined at one
13hundred twenty per cent of the annual rate as provided by law
14upon the entire underpayment for the period of the substantial
15underpayment.

16(2) The additional interest imposed under this subsection
17shall be in addition to any other interest imposed on
18underpayments under this section.

19Section 6. This act shall apply as follows:

20(1) The amendment or addition of the following
21provisions shall apply to taxable years beginning after
22December 31, 2012:

23(i) Section 402(b) of the act.

24(ii) Article IV-A of the act.

25(2) The amendment or addition of the following
26provisions shall apply to taxable years beginning after
27December 31, 2018:

28(i) Section 401(3)1(a) and (b) and 2(a) and (e),
29(5), (8), (9), (10), (11), (12) and (13) of the act.

30(ii) Section 403(a.1), (a.2), (a.3), (a.4) and (a.5)

1of the act.

2(iii) Section 404 of the act.

3(iv) Section 3003.3(d), (d.1) and (d.2) of the act.

4Section 7. This act shall take effect as follows:

5(1) The following provisions shall take effect
6immediately:

7(i) The amendment of section 402(b) of the act.

8(ii) The addition of Article IV-A of the act.

9(iii) Section 6 of this act.

10(iv) This section.

11(2) The remainder of this act shall take effect January
121, 2020.