PRIOR PRINTER'S NO. 1160
PRINTER'S NO. 2656
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
333
Session of
2021
INTRODUCED BY E. NELSON, COX, GROVE, KAUFFMAN, STAMBAUGH,
PICKETT, SMITH, GLEIM, STAATS, DUNBAR, R. MACKENZIE, THOMAS,
KEEFER, ROWE, WHEELAND, OBERLANDER, MERCURI AND RYAN,
APRIL 7, 2021
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JANUARY 25, 2022
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.3) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
to read:
SECTION 1. SECTION 303(A.3) OF THE ACT OF MARCH 4, 1971
(P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED
AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
Section 303. Classes of Income.--* * *
(a.3) The cost of property commonly referred to as Section
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179 Property may be treated as a deductible expense only to the
extent allowable under [the version of section 179 of the
Internal Revenue Code in effect at the time the property is
placed in service or under] section 179 of the Internal Revenue
Code of 1986 (26 U.S.C. § 179), [whichever is earlier] as
amended. The basis of Section 179 Property shall be reduced, but
not below zero, for costs treated as a deductible expense. The
amount of the reduction shall be the amount deducted on a return
and not disallowed, regardless of whether the deduction results
in a reduction of income.
* * *
[(A.3) THE COST OF PROPERTY COMMONLY REFERRED TO AS SECTION
179 PROPERTY MAY BE TREATED AS A DEDUCTIBLE EXPENSE ONLY TO THE
EXTENT ALLOWABLE UNDER THE VERSION OF SECTION 179 OF THE
INTERNAL REVENUE CODE IN EFFECT AT THE TIME THE PROPERTY IS
PLACED IN SERVICE OR UNDER SECTION 179 OF THE INTERNAL REVENUE
CODE OF 1986 (26 U.S.C. § 179), WHICHEVER IS EARLIER. THE BASIS
OF SECTION 179 PROPERTY SHALL BE REDUCED, BUT NOT BELOW ZERO,
FOR COSTS TREATED AS A DEDUCTIBLE EXPENSE. THE AMOUNT OF THE
REDUCTION SHALL BE THE AMOUNT DEDUCTED ON A RETURN AND NOT
DISALLOWED, REGARDLESS OF WHETHER THE DEDUCTION RESULTS IN A
REDUCTION OF INCOME.]
* * *
(A.11) THE COST OF PROPERTY COMMONLY REFERRED TO AS SECTION
179 PROPERTY MAY BE TREATED AS A DEDUCTIBLE EXPENSE ONLY TO THE
EXTENT ALLOWABLE UNDER SECTION 179 OF THE INTERNAL REVENUE CODE
OF 1986 (26 U.S.C. § 179) IN EFFECT ON THE EFFECTIVE DATE OF
THIS SUBSECTION. THE BASIS OF SECTION 179 PROPERTY SHALL BE
REDUCED, BUT NOT BELOW ZERO, FOR COSTS TREATED AS A DEDUCTIBLE
EXPENSE. THE AMOUNT OF THE REDUCTION SHALL BE THE AMOUNT
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DEDUCTED ON A RETURN AND NOT DISALLOWED, REGARDLESS OF WHETHER
THE DEDUCTION RESULTS IN A REDUCTION OF INCOME.
* * *
Section 2. The amendment of section 303(a.3) of the THIS act
shall apply to property placed in service in tax years beginning
after December 31, 2020.
Section 3. This act shall take effect immediately.
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