§ 1301.1. Computation of income tax expense for ratemaking purposes
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 66 Pa.C.S.A. Public UtilitiesEffective: September 3, 2019
Effective: September 3, 2019
66 Pa.C.S.A. § 1301.1
§ 1301.1. Computation of income tax expense for ratemaking purposes
(a) Computation.--If an expense or investment is allowed to be included in a public utility's rates for ratemaking purposes, the related income tax deductions and credits shall also be included in the computation of current or deferred income tax expense to reduce rates. If an expense or investment is not allowed to be included in a public utility's rates, the related income tax deductions and credits, including tax losses of the public utility's parent or affiliated companies, shall not be included in the computation of income tax expense to reduce rates. The deferred income taxes used to determine the rate base of a public utility for ratemaking purposes shall be based solely on the tax deductions and credits received by the public utility and shall not include any deductions or credits generated by the expenses or investments of a public utility's parent or any affiliated entity. The income tax expense shall be computed using the applicable statutory income tax rates.
(b.1) Taxable contributions.--A water or wastewater public utility shall be solely responsible for funding the income taxes on taxable contributions in aid of construction and customer advances for construction and shall record the income taxes the water or wastewater public utility pays in accumulated deferred income taxes for accounting and ratemaking purposes.
Credits
2016, June 12, P.L. 332, No. 40, § 1, effective in 60 days [Aug. 11, 2016]. Amended 2019, July 2, P.L. 357, No. 53, § 3, effective in 60 days [Sept. 3, 2019].
66 Pa.C.S.A. § 1301.1, PA ST 66 Pa.C.S.A. § 1301.1
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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