Bill Text: PA HB2128 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing, in personal income tax, for definitions and for classes of income and, in corporate net income tax, for definitions.

Spectrum: Partisan Bill (Republican 36-1)

Status: (Introduced - Dead) 2009-12-04 - Referred to FINANCE [HB2128 Detail]

Download: Pennsylvania-2009-HB2128-Introduced.html

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PRINTER'S NO. 2964
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2128 Session of2009
INTRODUCED BY TURZAI, BEAR, BENNINGHOFF, BOYD, CAUSER, CHRISTIANA, CLYMER, CREIGHTON, EVERETT, FLECK, GEIST, GINGRICH, GROVE, HENNESSEY, HESS, HORNAMAN, HUTCHINSON, KAUFFMAN, KRIEGER, MARSHALL, MARSICO, METCALFE, METZGAR, MILLER, MILNE, MURT, PHILLIPS, PICKETT, RAPP, REESE, REICHLEY, ROHRER, SCAVELLO, STEVENSON, TALLMAN, WATSON AND VULAKOVICH, DECEMBER 4, 2009
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 4, 2009
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," further providing, in personal income tax, for
definitions and for classes of income and, in corporate net
income tax, for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 301(l.2) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, added
December 3, 1993 (P.L.473, No.68), is amended and the section is
amended by adding a clause to read:
Section 301. Definitions.--Any reference in this article to
the Internal Revenue Code of 1986 shall mean the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.),
as amended to January 1, 1997, unless the reference contains the
phrase "as amended" and refers to no other date, in which case
the reference shall be to the Internal Revenue Code of 1986 as
it exists as of the time of application of this article. 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:
* * *
(l.2) "Intellectual property" means property that derives
from the work of the mind or intellect that has commercial
value, including copyrighted property such as literary or
artistic works, and ideational property, including patents,
appellations of origin, business methods and industrial
processes.
(l.3) "Investment company" includes any incorporated or
unincorporated enterprise registered with the Federal Securities
and Exchange Commission under the Investment Company Act of 1940
(54 Stat. 789, 15 U.S.C. § 80a-1 et seq.).
* * *
Section 2. Section 303(a)(4) of the act, added August 31,
1971 (P.L.362, No.93), is amended to read:
Section 303. Classes of Income.--(a) The classes of income
referred to above are as follows:
* * *
(4) Net gains or income derived from or in the form of
rents, royalties, patents and copyrights[.] except net gains or
income derived from or in the form of rents, royalties, patents
and copyrights derived from intellectual property.
* * *
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Section 3. Section 401(3)1 of the act is amended by adding a
paragraph 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:
* * *
(3) "Taxable Income." 1. * * *
(t) An additional deduction shall be allowed from taxable
income in the amount of any income derived from or in the form
of rents, royalties, patents and copyrights derived from
intellectual property. As used in this paragraph, "intellectual
property" shall be defined as provided in section 301.
* * *
Section 4. This act shall take effect immediately.
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