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House of Representatives
Session of 2023 - 2024 Regular Session


Posted: January 4, 2023 03:13 PM
From: Representative George Dunbar
To: All House members
Subject: Cost & Percent Depletion of Mines, Oil and Gas Wells, and other Natural Deposits
In the near future, I plan to reintroduce legislation that will align the Commonwealth’s Personal Income Tax (“PIT”) with the federal Internal Revenue Code for the purposes of calculating cost, and percent, depletion of mines, oil and gas wells, and other natural deposits.

Currently, Pennsylvania law does not provide this kind of depletion deduction for the PIT. While a regulation adopted in 2006 appears to provide for a cost depletion method for mines, oil and gas wells, other natural deposits, and timber, the documents required by the regulation make it unworkable for most taxpayers who otherwise would be able to take the deduction.

To promote consistency, my legislation would amend our state Tax Reform Code to provide for the cost, or percent, depletion of mines, oil and gas wells, and other natural deposits, in conformity with federal law. By addressing the underlying issue in this manner, I believe we will be providing much needed clarity and uniformity for hardworking Pennsylvania taxpayers who elect to deduct the depletion of these natural resources by either a cost or percent method.

I respectfully ask for your consideration in cosponsoring.

Introduced as HB81