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.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 401(3)2(b) of the act of March 4, 1971
15(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16September 9, 1971 (P.L.437, No.105), is amended to read:

17Section 401. Definitions.--The following words, terms, and
18phrases, when used in this article, shall have the meaning
19ascribed to them in this section, except where the context
20clearly indicates a different meaning:

21* * *

22(3) "Taxable income." * * *

232. In case the entire business of any corporation, other

1than a corporation engaged in doing business as a regulated
2investment company as defined by the Internal Revenue Code of
31986, is not transacted within this Commonwealth, the tax
4imposed by this article shall be based upon such portion of the
5taxable income of such corporation for the fiscal or calendar
6year, as defined in subclause 1 hereof, and may be determined as
7follows:

8* * *

9(b) Railroad, Truck, Bus [or], Airline or Qualified Air 
10Freight Forwarding Companies.

11(1) All business income of railroad, truck, bus [or],
12airline and qualified air freight forwarding companies shall be
13apportioned to this Commonwealth by multiplying the income by a
14fraction, the numerator of which is the taxpayer's total revenue
15miles within this Commonwealth during the tax period and the
16denominator of which is the total revenue miles of the taxpayer
17everywhere during the tax period. For purposes of this paragraph
18revenue mile shall mean the average receipts derived from the
19transportation by the taxpayer of persons or property one mile.
20Where revenue miles are derived from the transportation of both
21persons and property, the revenue mile fractions attributable to
22each such class of transportation shall be computed separately,
23and the average of the two fractions, weighted in accordance
24with the ratio of total receipts from each such class of
25transportation everywhere to total receipts from both such
26classes of transportation everywhere, shall be used in
27apportioning income to this Commonwealth.

28(2) Nonbusiness income of railroad, truck, bus [or], airline
29and qualified air freight forwarding companies shall be
30allocated as provided in paragraphs (5) through (8) of phrase

1(a) of subclause 2 of the definition of taxable income.

2(3) As used in this phrase, "qualified air freight
3forwarding company" shall mean a company that:

4(i) is engaged in the air freight forwarding business;

5(ii) primarily uses an airline with which it has common
6ownership and control; and

7(iii) will use the revenue miles of the airline under
8subparagraph (ii).

9* * *

10Section 2. The amendment of section 401(3)2(b) of the act 
11shall apply to taxable years beginning after December 31, 2013.

12Section 3. This act shall take effect immediately.