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A06472
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1056
Session of
2018
INTRODUCED BY BROOKS, GORDNER, MENSCH, RESCHENTHALER, FOLMER,
AUMENT, HUTCHINSON, VULAKOVICH, DiSANTO, KILLION, MARTIN,
VOGEL, WAGNER, YAW, BARTOLOTTA, BAKER, EICHELBERGER, BROWNE,
REGAN, WARD, LANGERHOLC AND McILHINNEY, FEBRUARY 22, 2018
REFERRED TO FINANCE, FEBRUARY 22, 2018
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 corporate net income tax, further providing
for definitions defining taxable income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 401(3)1(q) and (r) 401(3)1(r) and (s) of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971, are amended 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:
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(3) "Taxable income." 1. * * *
(q) [Notwithstanding] For qualified property acquired and
placed in service before September 28, 2017, notwithstanding
paragraph (a), taxable income shall include the amount of the
deduction for depreciation of qualified property claimed and
allowable under section 168(k) of the Internal Revenue Code of
1986 (26 U.S.C. § 168(k)).
(r) [Notwithstanding] For qualified property acquired and
(r) [Notwithstanding] The following apply:
(1) For property placed in service before September 28,
2017, notwithstanding paragraph (a), if a deduction for
depreciation of qualified property was included in taxable
income in accordance with paragraph (q), an additional deduction
for depreciation of the qualified property shall be allowed from
taxable income until the total amount included as taxable income
under paragraph (q) has been claimed. The additional deduction
shall be equal to the product of taking three sevenths of the
amount of the deduction for depreciation of the qualified
property allowable under section 167 of the Internal Revenue
Code of 1986 (26 U.S.C. § 167), not including the amount of the
deduction for depreciation of the qualified property claimed and
allowable under section 168(k) of the Internal Revenue Code of
1986 (26 U.S.C. § 168(k)), for the tax year.
(2) For property placed in service after September 27, 2017,
notwithstanding paragraph (a), if a deduction for depreciation
of qualified property was included in taxable income in
accordance with paragraph (q), an additional deduction for
depreciation of the qualified property shall be allowed from
taxable income until the total amount included as taxable income
under paragraph (q) has been claimed. The additional deduction
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shall be equal to the depreciation on the qualified property for
the taxable year as determined in accordance with sections 167
and 168 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 167
and 168) , except that section 168(k) of the Internal Revenue
Code of 1986 (26 U.S.C. § 168(k)) shall not apply .
(s) [With] The following apply:
(1) For property placed in service before September 28,
2017, an additional deduction shall be allowed from taxable
income in the earlier of the taxable year in which qualified
property is fully depreciated for Federal income tax purposes,
or is sold or otherwise disposed of by a taxpayer to the extent
the amount of depreciation claimed under section 168(k) of the
Internal Revenue Code of 1986 (26 U.S.C. § 168(k)), on the
qualified property and included in taxable income under
paragraph (q) has not been recovered through the additional
deductions provided under paragraph (r)(1).
(2) For property placed in service after September 27, 2017,
with respect to qualified property which is sold or otherwise
disposed of during a taxable year by a taxpayer and for which
depreciation was included as taxable income under paragraph (q),
an additional deduction shall be allowed from taxable income to
the extent the amount of depreciation claimed under section
168(k) of the Internal Revenue Code of 1986 (26 U.S.C. § 168(k))
on the qualified property has not been recovered through the
additional deductions provided by paragraph [(r)] (r)(2).
* * *
Section 2. The amendment of section 401(3)1(q) and (r)
401(3)1(r) and (s) of the act shall apply to tax years beginning
on or after January 1, 2017.
Section 3. This act shall take effect immediately.
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