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," further providing for classes of income; and 
11providing for applicability of Federal law.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 303 of the act of March 4, 1971 (P.L.6, 
15No.2), known as the Tax Reform Code of 1971, is amended by 
16adding a subsection to read:

17Section 303. Classes of Income.--* * *

18(a.8) The requirements of section 1033 of the Internal 
19Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1033), as 
20amended, shall be applicable.

21* * *

22Section 2. The act is amended by adding a section to read:

1Section 402.3. Applicability of Federal Law.--The 
2requirements of section 1033 of the Internal Revenue Code of 
31986 (Public Law 99-514, 26 U.S.C. § 1033), as amended, shall be 
4applicable.

5Section 3. This act shall take effect in 60 days.