PRINTER'S NO. 752
No. 687 Session of 1991
INTRODUCED BY COLAFELLA, TRELLO, LESCOVITZ, PESCI, HALUSKA,
NAILOR, PISTELLA, JOHNSON, BUNT, PETRARCA, LAUGHLIN, CIVERA,
E. Z. TAYLOR, BISHOP, TELEK AND STEELMAN, MARCH 12, 1991
REFERRED TO COMMITTEE ON FINANCE, MARCH 12, 1991
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 credit against personal income
11 tax for home radon-reduction expenses.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Part VI of Article III of the act of March 4,
15 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is
16 amended by adding a section to read:
17 Section 314.1. Home Radon-Reduction Expenses.--(a) A
18 taxpayer shall be allowed a tax credit under this article for
19 qualified, radon-reduction expenditures with respect to an
20 eligible principal residence. For any dwelling unit, the
21 qualified radon-reduction expenditures are fifty per cent of the
22 radon-reduction expenditures made by the taxpayer during the
1 taxable year for that unit, not to exceed two thousand dollars
2 ($2,000).
3 (b) If a taxpayer received a credit in a prior year for that
4 same dwelling unit, the radon-reduction expenditure for a
5 taxable year shall be reduced by the amount of expenditures made
6 in prior years.
7 (c) A taxpayer may receive cumulative tax credits for
8 qualified radon-reduction expenditures made over multiple years
9 to the same eligible principal residence, such cumulative
10 credits not to exceed a total of one thousand dollars ($1,000).
11 (d) To qualify for the tax credit, a taxpayer must submit
12 the following:
13 (1) A report from the Environmental Protection Agency, the
14 Department of Environmental Resources or a radon testing
15 individual, firm or laboratory certified by the Department of
16 Environmental Resources which establishes the radon level
17 present in the eligible principal residence immediately prior to
18 the radon-reduction expenditures, and which verifies a reduction
19 of radon levels to below four picocuries per liter following
20 such expenditures.
21 (2) Documents showing all expenditures incurred by the
22 taxpayer.
23 (e) These provisions shall apply to amounts paid or incurred
24 after June 30, 1991, in taxable years ending after that date.
25 (f) As used in this section, the following words and phrases
26 shall have the meanings given to them in this subsection:
27 "Eligible principal residence." A dwelling unit located in
28 the Commonwealth which is used by the taxpayer as his principal
29 residence and has a radon level of four picocuries per liter or
30 more, as measured and documented by the Environmental Protection
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1 Agency, the Department of Environmental Resources, or a radon
2 remediation company licensed by the Department of Environmental
3 Resources.
4 "Radon-reduction expenditures." Any expenditure made by the
5 taxpayer for items installed or alterations made to his eligible
6 principal residence for the predominate reason of reducing the
7 level of radon gas present in such residence. The items or
8 alterations must be reasonably expected to remain effective for
9 at least three years and meet the appropriateness, performance
10 and quality standards as established by regulation of the
11 Department of Environmental Resources. No tax credit shall be
12 allowed for any expenditures made prior to the establishment of
13 the Department of Environmental Resources regulation as required
14 by this act.
15 "Tax credit." A reduction in tax liability equal to twenty-
16 five per cent of the qualified radon-reduction expenditures.
17 Section 2. The Department of Revenue and the Department of
18 Environmental Resources shall promulgate regulations to
19 implement the provisions of this act.
20 Section 3. This act shall take effect as follows:
21 (1) The addition of section 314.1 of the act shall take
22 effect June 30, 1991.
23 (2) The remainder of this act shall take effect
24 immediately.
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