S0097B1275A02816       VDL:JSL 07/06/07    #90             A02816
                        AMENDMENTS TO SENATE BILL NO. 97
                                    Sponsor:  REPRESENTATIVE SURRA
                                           Printer's No. 1275

     1       Amend Title, page 1, line 22, by striking out "ENTITY." and
     2    inserting
     3               entities and powdered metallurgy parts.
     4       Amend Sec. 8, page 21, line 3, by striking out "A SECTION"
     5    and inserting
     6               sections
     7       Amend Sec. 8, page 21, by inserting between lines 23 and 24
     8       Section 3003.19.  Powdered Metallurgy Parts.--For purposes of
     9    defining the phrases "doing business in this Commonwealth,"
    10    "carrying on activities in this Commonwealth," "having capital
    11    or property employed or used in this Commonwealth" or "owning
    12    property in this Commonwealth" in sections 401 and 402 of
    13    Article IV and substantially similar phrases in section 601 of
    14    Article VI, and for determining activities which are not
    15    protected under the act of September 14, 1959 (Public Law 86-
    16    272, 15 U.S.C. § 381 et seq.), the following activities shall be
    17    excluded:
    18       (1)  Owning or leasing of intangible and tangible property,
    19    including dies, molds, tooling and related equipment, by a
    20    person who has contracted with an unaffiliated manufacturer of
    21    powder metallurgy products for manufacturing, provided that:
    22       (i)  the property is for use by the powder metallurgy product
    23    manufacturer;
    24       (ii)  the property is located at the Pennsylvania premises of
    25    the powder metallurgy product manufacturer; and
    26       (iii)  the products manufactured using such property are
    27    incorporated into products produced outside this Commonwealth by
    28    the owner or lessor of the property.
    29       (2)  Visits by a person's employes or agents to the premises
    30    in this Commonwealth of an unaffiliated powder metallurgy
    31    product manufacturer with whom the person has contracted for
    32    manufacturing in connection with the contract.
    33       (3)  Owning of manufactured powder metallurgy products and
    34    other items packaged therewith, by a person who has contracted
    35    with an unaffiliated powder metallurgy products manufacturer for
    36    manufacturing of products, on the premises of the unaffiliated
    37    powdered metallurgy products manufacturer prior to delivery of


     1    the property.

     2       Amend Sec. 10, page 22, by inserting between lines 6 and 7
     3           (3)  The addition of section 3003.19 of the act shall
     4       apply to:
     5               (i)  taxable years beginning after December 31, 2004;
     6           and
     7               (ii)  other taxable years which are not closed on the
     8           effective date of the addition of section 3003.19 of the
     9           act.

















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