PRINTER'S NO. 357
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
385
Session of
2021
INTRODUCED BY DUNBAR, ROTHMAN, BROOKS, CIRESI, SCHLEGEL CULVER,
GLEIM, GREINER, GROVE, HILL-EVANS, KNOWLES, MIHALEK, MILLARD,
E. NELSON, PICKETT, PISCIOTTANO, ROWE, RYAN, SMITH, STAATS,
STAMBAUGH, STRUZZI, WARREN, WHEELAND, MERCURI AND SANKEY,
FEBRUARY 3, 2021
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 3, 2021
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.7) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a paragraph to read:
Section 303. Classes of Income.--* * *
(a.7) The following apply:
* * *
(5) As follows:
(i) A forgiveness of indebtedness for an amount of a covered
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loan granted under any of the following shall not be subject to
tax under this article:
(A) Section 1106 of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136, 134 Stat. 281).
(B) Section 9, DIVISION N, TITLE II, Subtitle B, section 276
of the Consolidated Appropriation Act, 2021 (Public Law 116-
260) (relating to clarification of tax treatment of forgiveness
of covered loans).
(C) Section 9, DIVISION N, TITLE III (relating to CONTINUING
THE PAYCHECK PROTECTION PROGRAM AND OTHER SMALL BUSINESS
SUPPORT) of the Consolidated Appropriation Act, 2021 (Public Law
116-260).
(ii) The exclusion provided under this paragraph shall apply
to a forgiveness of indebtedness for an amount of a covered loan
granted after March 27, 2020.
* * *
Section 2. The addition of section 303(a.7)(5) shall apply
to taxable years beginning after December 31, 2019.
Section 3. This act shall take effect immediately.
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