1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in personal income tax, further providing for
11imposition of income tax; and freezing certain funds for
12programs.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Section 302 of the act of March 4, 1971 (P.L.6,
16No.2), known as the Tax Reform Code of 1971, amended December
1723, 2003 (P.L.250, No.46), is amended to read:

18Section 302. Imposition of Tax.--(a) Every resident
19individual, estate or trust shall be subject to, and shall pay
20for the privilege of receiving each of the classes of income
21hereinafter enumerated in section 303, a tax upon each dollar of
22income received by that resident during that resident's taxable

1year at the rate [of three and seven hundredths per cent] as 
2prescribed under subsection (c).

3(b) Every nonresident individual, estate or trust shall be
4subject to, and shall pay for the privilege of receiving each of
5the classes of income hereinafter enumerated in section 303 from
6sources within this Commonwealth, a tax upon each dollar of
7income received by that nonresident during that nonresident's
8taxable year at the rate [of three and seven hundredths per
9cent] as prescribed under subsection (c).

10(c) The rate of tax to be imposed under this section shall
11be as follows:

12(1) For taxable years ending December 31, 2012, three and
13seven hundredths per cent.

14(2) For taxable years beginning after December 31, 2012, two
15and ninety-nine hundredths per cent.

16Section 2. Any State funds appropriated for the following
17programs under a general appropriation act in 2012, and not
18encumbered by the effective date of this section, may not be
19encumbered and shall remain in the General Fund to effectuate
20the amendment of section 302 of the act:

21(1) Opportunity Grant Program.

22(2) Infrastructure Development.

23(3) Community Conservation and Employment.

24(4) Infrastructure and Facilities Improvement Grant.

25(5) Economic Advancement.

26(6) Community and Regional Development.

27(7) World Trade PA.

28(8) Cultural Exhibitions and Expositions.

29(9) Base Realignment and Closure.

30(10) Workforce Leadership Grants.

1(11) Emergency Responders Resources and Training.

2(12) Family Savings Accounts.

3(13) Local Government Resources and Development.

4(14) Tourism - Accredited Zoos.

5(15) Community Revitalization.

6(16) Urban Development.

7(17) Community and Business Assistance.

8(18) Economic Growth and Development Assistance.

9(19) Community and Municipal Facilities Assistance.

10(20) Market Development.

11(21) Super Computer Center.

12(22) Infrastructure Technical Assistance.

13(23) Minority Business Development.

14(24) Fay Penn.

15(25) Tourist Product Development.

16(26) Manufacturing and Business Assistance.

17(27) PENNTAP.

18(28) Agile Manufacturing.

19(29) Powdered Metals.

20(30) Regional Development Initiatives.

21(31) Digital and Robotic Technology.

22(32) Cultural Activities.

23Section 3. This act shall take effect immediately.