THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY PIPPY, FOLMER, WONDERLING, WAUGH, EARLL, SCARNATI, BROWNE, ORIE, LOGAN, EICHELBERGER AND BOSCOLA, FEBRUARY 19, 2009

REFERRED TO FINANCE, FEBRUARY 19, 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, defining "disaster

losses"; and providing for classes of income.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 301 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, amended July 7,

2005 (P.L.149, No.40), 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:

* * *

(x)  "Disaster loss" means any loss sustained by the

operation of a business, profession or other activity during the

taxable year and not compensated for by insurance or otherwise

that is attributable to a disaster occurring in an area of this

Commonwealth subsequently determined by the President of the

United States to warrant assistance by the Federal Government

under The Robert T. Stafford Disaster Relief and Emergency

Assistance Act (Public Law 93-288, 88 Stat. 143) and is 

deductible under section 165 of the Internal Revenue Code of

1986.

Section 2.  Section 303 of the act is amended by adding a

subsection to read:

Section 303.  Classes of Income.--* * *

(a.8)  A disaster loss may be used to offset income from the

classes of income set forth in subsection (a) regardless of the

class of income in which the disaster loss is incurred.

* * *

Section 3.  This act shall apply to taxable years beginning

after December 31, 2008.

Section 4.  This act shall take effect immediately.