Utilities—return of capital distributions.
(a)Distributions by corporations which are treated as a…#
(a) Distributions by corporations which are treated as a return of capital for Federal income tax purposes shall also be treated as a return of capital for Pennsylvania personal income tax purposes and therefore not taxable as dividends under section 303(a)(5) of the TRC (72 P. S. § 7303(a)(5)).
(b)That portion of a distribution which is a return of…#
(b) That portion of a distribution which is a return of capital shall be applied against and shall reduce the adjusted basis of the stock. That portion of a distribution which is a return of capital, to the extent it exceeds the adjusted basis of the stock, shall be treated as gain or income from the disposition of property.