PRINTER'S NO. 595
No. 532 Session of 1997
INTRODUCED BY E. Z. TAYLOR, PETTIT, BROWN, GEORGE, SCHRODER,
DENT, FICHTER, GORDNER, BAKER, L. I. COHEN, WALKO, CURRY,
RUBLEY, EGOLF, ARMSTRONG, GIGLIOTTI, VAN HORNE, PLATTS,
STEIL, WAUGH, THOMAS, MAITLAND, C. WILLIAMS, SHANER, SANTONI,
SAINATO, SCRIMENTI, STEELMAN, TRICH, B. SMITH, LEDERER,
OLASZ, JAROLIN, TRELLO, BELARDI, COLAFELLA, ADOLPH, SATHER,
PETRARCA, GRUPPO, SURRA, KENNEY, GANNON, SAYLOR, FEESE,
McCALL, CAWLEY, MILLER, JOSEPHS, BUNT, DALLY, BENNINGHOFF,
BARD, LUCYK, NAILOR, PESCI, DeLUCA, TIGUE, YOUNGBLOOD, BEBKO-
JONES, HENNESSEY, ZUG, HERMAN, MICOZZIE, FLICK, HUTCHINSON,
STABACK, ROONEY, TRUE, CORNELL, EACHUS, BOSCOLA, BROWNE,
McNAUGHTON, LAUGHLIN, COY, ROBERTS AND SEMMEL,
FEBRUARY 12, 1997
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 12, 1997
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 an exclusion from the Pennsylvania
11 personal income tax of earnings expended for child care.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 303(a)(1) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 March 13, 1974 (P.L.179, No.32), is amended to read:
17 Section 303. Classes of Income.--(a) The classes of income
1 referred to above are as follows:
2 (1) Compensation. All salaries, wages, commissions, bonuses
3 and incentive payments whether based on profits or otherwise,
4 fees, tips and similar remuneration received for services
5 rendered whether directly or through an agent and whether in
6 cash or in property except income derived from the United States
7 Government for active duty outside the Commonwealth of
8 Pennsylvania as a member of its armed forces. Notwithstanding
9 the foregoing, an amount equal to any reasonable and necessary
10 expenses incurred by a person legally responsible for the care
11 of any children, for the care of those children during any
12 period of time the person is engaged in performing services in
13 connection with the person's employment, whether the care be in-
14 home or at any licensed Pennsylvania child care facility, shall
15 be excluded from income taxed as compensation.
16 * * *
17 Section 2. The Department of Revenue shall promulgate rules
18 and regulations to carry out the provisions of this act and
19 shall undertake to inform the public of this act.
20 Section 3. This act shall apply to tax years beginning on or
21 after January 1, 1999.
22 Section 4. This act shall take effect immediately.
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