Bill Text: PA HB738 | 2009-2010 | Regular Session | Introduced

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Bill Title: In personal income tax, further providing for classes of income.

Spectrum: Slight Partisan Bill (Republican 25-9)

Status: (Introduced - Dead) 2009-03-05 - Referred to FINANCE [HB738 Detail]

Download: Pennsylvania-2009-HB738-Introduced.html

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PRINTER'S NO. 824
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 738 Session of2009
INTRODUCED BY BENNINGHOFF, BEYER, CALTAGIRONE, CAUSER, CREIGHTON, CUTLER, EVERETT, FLECK, GEIST, GINGRICH, GODSHALL, HALUSKA, HORNAMAN, HUTCHINSON, KILLION, LONGIETTI, MELIO, MILLER, MURT, MUSTIO, PICKETT, PYLE, QUINN, REICHLEY, SCAVELLO, SIPTROTH, STEVENSON, STURLA, SWANGER, VULAKOVICH AND YOUNGBLOOD, MARCH 5, 2009
REFERRED TO COMMITTEE ON FINANCE, MARCH 5, 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," 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 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 subsection to read:
Section 303. Classes of Income.--* * *
(a.8) The following shall apply:
(1) The purchase price at retail or use of a geothermal
energy system by an individual purchaser for nonbusiness use
shall be deductible on the annual personal income tax return,
provided that the product has been certified as in compliance
with and qualifies as an Energy Star product pursuant to the
Environmental Protection Agency and the Department of Energy,
Energy Star Program and bears the Energy Star label. The amount
of the allowable deduction shall be ten per cent of the
aggregate purchase price at retail or use of geothermal energy
system in the taxable year, not to exceed two thousand five
hundred dollars ($2,500). The deduction under this paragraph
does not include the leasing, rental, repair or servicing of a
geothermal energy system. For the purposes of this paragraph,
"geothermal energy system" is equipment that uses the thermal
energy of the ground or groundwater as the heat source and heat
sink for residential space heating or cooling functions only, or
both, consisting of one or more factory-made assemblies that
normally include an indoor conditioning coil with air moving
means, compressor and refrigerant to fluid a heat exchanger,
that provides a part or all of the domestic water heating
through the use of a desuperheater, integrated demand water
heater or a separately installed compressor that provides demand
water heating, including all equipment and connections from the
point at which the ground heat exchanger enters the house,
except for indoor equipment that was installed by someone not
representing the manufacturer or manufacturer's representative.
Geothermal heat pumps included in this paragraph must, at a
minimum, contain an Energy Star rating of: Energy Efficiency
Ratio (EER) 14.1, Coefficient of Performance (COP) 3.3 for
Closed Loop Systems, Energy Efficiency Ratio (EER) 16.2
Coefficient of Performance (COP) 3.6 for Open Loop Systems and
Energy Efficiency Ratio (EER) 15 Coefficient of Performance
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(COP) 3.5 for Direct Expansion Systems.
(2) This subsection shall apply to taxable years beginning
after December 31, 2009, through the first taxable year
beginning after December 31, 2018. The department in conjunction
with the Department of Environmental Protection shall offer a
review by December 31, 2010, of this subsection showing the
fiscal impact and offering an evaluation of the program to the
General Assembly.
(3) The department shall promulgate regulations it deems
necessary to implement the provisions of this subsection and
shall cooperate with the Department of Environmental Protection
in ensuring adherence to any energy and environmental standards
or criteria associated with this subsection.
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Section 2. This act shall take effect immediately.
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