PRINTER'S NO. 2079
No. 1387 Session of 2008
INTRODUCED BY VANCE, CORMAN, REGOLA, EICHELBERGER, BROWNE,
PILEGGI, SCARNATI, MADIGAN, RAFFERTY, FOLMER, KASUNIC, ORIE,
ERICKSON, PIPPY, WAUGH, BAKER, RHOADES, GORDNER, EARLL,
WONDERLING, GREENLEAF AND BRUBAKER, MAY 23, 2008
REFERRED TO FINANCE, MAY 23, 2008
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," further providing for classes of income for
11 purposes of the personal income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 303(a.3) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, added June
16 29, 2002 (P.L.559, No.89), is amended to read:
17 Section 303. Classes of Income.--* * *
18 (a.3) The cost of property commonly referred to as Section
19 179 Property may be treated as a deductible expense only to the
20 extent allowable under the version of section 179 of the
21 Internal Revenue Code in effect at the time the property is
1 placed in service [or under section 179 of the Internal Revenue
2 Code of 1986 (26 U.S.C. § 179), whichever is earlier]. The limit
3 on Section 179 Property which may be treated as deductible shall
4 be fifty thousand dollars ($50,000). The basis of Section 179
5 Property shall be reduced, but not below zero, for costs treated
6 as a deductible expense. The amount of the reduction shall be
7 the amount deducted on a return and not disallowed, regardless
8 of whether the deduction results in a reduction of income.
9 * * *
10 Section 2. This act shall apply to property placed in
11 service after December 31, 2008.
12 Section 3. This act shall take effect in 60 days.
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