SB 347 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for classes of income; and, in corporate net income tax, further providing for definitions.

HOUSE AMENDED PRIOR PRINTER'S NO.

350 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1717 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

WARD, BARTOLOTTA, BROOKS, DUSH, MARTIN, MASTRIANO, PHILLIPS-HILL, PITTMAN, SCAVELLO, STEFANOSTEFANO, VOGEL AND VOGEL,AUMENT, MARCH 10, 2021ILL,2021 PITTMAN,AS REFERREDREPORTED TOFROM COMMITTEE ON FINANCE, MARCHHOUSE 10,OF 2021REPRESENTATIVES, AS AMENDED, JUNE 7, 2022 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 imposingimposingg taxes thereon;

conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations penalties,"and inother personalentities; income tax, further providing for classes of income.

prescribing crimes, offenses and penalties," in personal income tax, further providing for classes of income;

AND, IN CORPORATE NET INCOME TAX, FURTHER <-- PROVIDING FOR DEFINITIONS.

* * * SectionSECTION 2.

TheSECTION amendment401(3)1 ofOF sectionTHE 303(a.5)ACT ofIS theAMENDED actBY shallADDING applyA to<-- taxPARAGRAPH yearsTO beginningREAD: after December 31, 2020.

SectionSECTION 3.401.

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.

* * * (B.2) AN ADDITIONAL DEDUCTION SHALL BE ALLOWED FROM TAXABLE INCOME OF A MEDICAL MARIJUANA ORGANIZATION FOR THE AMOUNT OF ORDINARY AND NECESSARY EXPENSES THAT WERE PAID OR INCURRED BY THE MEDICAL MARIJUANA ORGANIZATION DURING THE TAXABLE YEAR WHICH ARE ORDINARILY DEDUCTIBLE FOR FEDERAL INCOME TAX PURPOSES UNDER SECTION 162 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99- 514, 26 U.S.C.

§ 162) IF THE ADDITIONAL DEDUCTION FOR ORDINARY AND NECESSARY EXPENSES PAID OR INCURRED BY THE MEDICAL MARIJUANA ORGANIZATION WAS NOT TAKEN FOR FEDERAL INCOME TAX PURPOSES FOR THE TAXABLE YEAR.

AS USED IN THIS PARAGRAPH, THE TERM "MEDICAL MARIJUANA ORGANIZATION" SHALL BE AS DEFINED IN SECTION 103 OF THE ACT OF APRIL 17, 2016 (P.L.84, NO.16), KNOWN AS THE "MEDICAL MARIJUANA ACT." * * * Section 2.

The amendment <-- SECTION 3.

THIS ACT SHALL APPLY AS FOLLOWS:

<-- (1) THE AMENDMENT of section 303(a.5) of the act shall apply to tax years beginning after December 31, 2020.

(2) THE ADDITION OF SECTION 401(3)1(B.2) OF THE ACT <-- SHALL APPLY TO TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 2022.

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