PRINTER'S NO. 2767
No. 2194 Session of 1995
INTRODUCED BY CIVERA, FARGO, SERAFINI, BROWNE AND BELFANTI,
NOVEMBER 1, 1995
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 1, 1995
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for a personal holding company tax
11 deduction.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 401(3)1(b) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 June 16, 1994 (P.L.279, No.48), is amended to read:
17 Section 401. Definitions.--The following words, terms, and
18 phrases, when used in this article, shall have the meaning
19 ascribed to them in this section, except where the context
20 clearly indicates a different meaning:
21 * * *
22 (3) "Taxable income." 1. * * *
1 (b) Additional deductions shall be allowed from taxable
2 income on account of any dividends received from any other
3 corporation but only to the extent that such dividends are
4 included in taxable income as returned to and ascertained by the
5 Federal Government. For tax years beginning on or after January
6 1, 1991, additional deductions shall only be allowed for amounts
7 included, under section 78 of the Internal Revenue Code of 1986
8 (Public Law 99-514, 26 U.S.C. § 78), in taxable income returned
9 to and ascertained by the Federal Government and for the amount
10 of any dividends received from a foreign corporation included in
11 taxable income to the extent such dividends would be deductible
12 in arriving at Federal taxable income if received from a
13 domestic corporation. For tax years beginning in 1996 and
14 thereafter, a personal holding company may deduct from taxable
15 income the first one hundred thousand dollars ($100,000) of
16 dividends received.
17 * * *
18 Section 2. This act shall take effect immediately.
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