HOUSE AMENDED
PRIOR PRINTER'S NO. 350
PRINTER'S NO. 1717
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
347
Session of
2021
INTRODUCED BY DiSANTO, J. WARD, HUTCHINSON, K. WARD, BARTOLOTTA,
BROOKS, DUSH, MARTIN, MASTRIANO, PHILLIPS-HILL, PITTMAN,
SCAVELLO, STEFANO, VOGEL AND AUMENT, MARCH 10, 2021
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 7, 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; AND, IN CORPORATE NET INCOME TAX, FURTHER
PROVIDING FOR DEFINITIONS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303(a.5) 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 303. Classes of Income.--* * *
(a.5) The requirements of [section] sections 1031 and 1035
of the Internal Revenue Code of 1986 (26 U.S.C. [§ 1035] §§ 1031
and 1035), as amended, shall be applicable.
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* * *
SECTION 2. SECTION 401(3)1 OF THE ACT IS AMENDED BY ADDING A
PARAGRAPH TO READ:
SECTION 401. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND
PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANING
ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
CLEARLY INDICATES A DIFFERENT MEANING:
* * *
(3) "TAXABLE INCOME." 1. * * *
(B.2) AN ADDITIONAL DEDUCTION SHALL BE ALLOWED FROM TAXABLE
INCOME OF A MEDICAL MARIJUANA ORGANIZATION FOR THE AMOUNT OF
ORDINARY AND NECESSARY EXPENSES THAT WERE PAID OR INCURRED BY
THE MEDICAL MARIJUANA ORGANIZATION DURING THE TAXABLE YEAR WHICH
ARE ORDINARILY DEDUCTIBLE FOR FEDERAL INCOME TAX PURPOSES UNDER
SECTION 162 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-
514, 26 U.S.C. § 162) IF THE ADDITIONAL DEDUCTION FOR ORDINARY
AND NECESSARY EXPENSES PAID OR INCURRED BY THE MEDICAL MARIJUANA
ORGANIZATION WAS NOT TAKEN FOR FEDERAL INCOME TAX PURPOSES FOR
THE TAXABLE YEAR. AS USED IN THIS PARAGRAPH, THE TERM "MEDICAL
MARIJUANA ORGANIZATION" SHALL BE AS DEFINED IN SECTION 103 OF
THE ACT OF APRIL 17, 2016 (P.L.84, NO.16), KNOWN AS THE "MEDICAL
MARIJUANA ACT."
* * *
Section 2. The amendment
SECTION 3. THIS ACT SHALL APPLY AS FOLLOWS:
(1) THE AMENDMENT of section 303(a.5) of the act shall
apply to tax years beginning after December 31, 2020.
(2) THE ADDITION OF SECTION 401(3)1(B.2) OF THE ACT
SHALL APPLY TO TAXABLE YEARS BEGINNING AFTER DECEMBER 31,
2022.
20210SB0347PN1717 - 2 -
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Section 3 4. This act shall take effect immediately.
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