PRINTER'S NO. 2023
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1436
Session of
2015
INTRODUCED BY GODSHALL, KOTIK, SAINATO, KILLION, SACCONE,
DUNBAR, QUIGLEY, MARSHALL, GROVE, HARHAI, SNYDER, LONGIETTI,
KORTZ, PICKETT, BARBIN, EVANKOVICH, COHEN, GIBBONS, EVERETT,
SCHLOSSBERG, KAUFFMAN, BURNS, MUSTIO, MATZIE, P. DALEY AND
SCHWEYER, JULY 6, 2015
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JULY 6, 2015
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in rates and distribution systems,
providing for computation of income tax expense for
ratemaking purposes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 1301.1. Computation of income tax expense for ratemaking
purposes.
If an expense or investment is allowed to be included in a
public utility's rates for ratemaking purposes, the related
income tax deductions and credits shall also be included in the
computation of current or deferred income tax expense to reduce
rates. If an expense or investment is not allowed to be included
in a public utility's rates, the related income tax deductions
and credits, including tax losses of the public utility's parent
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or affiliated companies, shall not be included in the
computation of income tax expense to reduce rates. The deferred
income taxes used to determine the rate base of a public utility
for ratemaking purposes shall be based solely on the tax
deductions and credits received by the public utility and shall
not include any deductions or credits generated by the expenses
or investments of a public utility's parent or any affiliated
entity. The income tax expense shall be computed using the
applicable statutory income tax rates.
Section 2. This act shall take effect in 60 days.
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