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A05814
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2497
Session of
2020
INTRODUCED BY DUNBAR, PEIFER, GREINER AND RYAN, MAY 12, 2020
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, MAY 19, 2020
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303(a.7)(2)(i) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is
amended by adding a clause to read:
Section 303. Classes of Income.--* * *
(a.7) The following apply:
(2) (i) The following shall not be subject to tax under
this article:
* * *
(E) A forgiveness of indebtedness granted under SECTION
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1106(B) OF the Federal Coronavirus Aid, Relief, and Economic
Security Act (Public Law 116-136, 134 Stat. 281) for a loan
which is guaranteed under section 7(a) of the Small Business Act
(Public Law 85-536, 15 U.S.C. ยง 636(a)) and issued to assist
with maintaining payroll costs during the period beginning after
February 29, 2020, and ending before July 1, 2020, by an
authorized lender. The amount of forgiveness under this clause
must not exceed the amount approved by the authorized lender
that issued the loan .
* * *
Section 1. Section 303(a.7) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a paragraph to read:
Section 303. Classes of Income.--* * *
(a.7) The following apply:
* * *
(5) (i) A forgiveness of indebtedness for an amount of a
covered loan granted under section 1106 of the Federal
Coronavirus Aid, Relief, and Economic Security Act (Public Law
116-136, 134 Stat. 281) shall not be subject to tax under this
article. The amount of forgiveness under this subparagraph must
not exceed the amount determined by the authorized lender that
issued the covered loan.
(ii) No deduction is allowed under this article for an
expense that is otherwise deductible if the payment of the
expense results in forgiveness of a covered loan under section
1106 of the Federal Coronavirus Aid, Relief, and Economic
Security Act, which forgiveness is not subject to taxation under
subparagraph (i).
* * *
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Section 2. This act shall take effect immediately.
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