PA - IRC Conformity Date

From TaxAlmanac

PA – IRC Conformity Date

State Tax conformity means that a state “conforms” or abides by the federal tax code as it relates to tax concepts and definitions of income. This is applicable to both businesses and individuals.

Most states conform in some manner, but to varying degrees. There is automatic or “moving date” conformity, which means that changes in federal tax law automatically apply to the state tax code as they occur. Another scenario is “fixed date” conformity, meaning that a state conforms to the federal code as it existed on a certain date. For example, if a state conformed as of January 1, 2001 it would mean that the state does not automatically incorporate federal tax law changes occurring after that date. Some states, like Pennsylvania, use a mixed approach to conformity.

Pennsylvania has a fixed IRC conformity date to the extent certain provisions are specifically adopted by reference. According to Pennsylvania tax law, any reference to the federal Internal Revenue Code (IRC), refers to the IRC of 1986, as amended to January 1, 1997, unless otherwise provided. Generally, Pennsylvania only conforms to certain provisions of the federal tax code when specified instead of following the federal model. Pa. Stat. Ann. § 7301