PRINTER'S NO. 14
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
30
Session of
2015
INTRODUCED BY GREENLEAF, BREWSTER, TEPLITZ, VOGEL, SCHWANK,
COSTA, VULAKOVICH, BOSCOLA, FOLMER, STEFANO AND RAFFERTY,
JANUARY 14, 2015
REFERRED TO FINANCE, JANUARY 14, 2015
AN ACT
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)(2) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
July 9, 2013 (P.L.270, No.52), is amended to read:
Section 303. Classes of Income.--(a) The classes of income
referred to above are as follows:
* * *
(2) Net profits. The net income from the operation of a
business, profession, or other activity, after provision for all
costs and expenses incurred in the conduct thereof, determined
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either on a cash or accrual basis in accordance with accepted
accounting principles and practices but without deduction of
taxes based on income. For purposes of calculating net income
under this paragraph, to the extent a taxpayer properly deducts
an amount under section 195(b)(1)(A) of the Internal Revenue
Code of 1986 (26 U.S.C. § 195(b)(1)(A)), as amended, and the
regulations promulgated under section 195(b)(1)(A) of the
Internal Revenue Code of 1986, the taxpayer shall be permitted a
deduction in equal amount in the same taxable year. A self-
employed taxpayer may exclude one-half of self-employment taxes
to the extent allowable under section 164(f) of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 164(f)).
* * *
Section 2. The amendment of section 303(a)(2) of the act
shall apply to taxable years beginning after December 31, 2014.
Section 3. This act shall take effect immediately.
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