An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for special tax provisions for poverty.

HB 1742 amends Pennsylvania's personal income tax code to create special provisions for taxpayers living in poverty. The bill allows individuals with an income of $6,500 to $10,000, or married couples with a combined income of $13,000 to $20,000, to receive a refund or forgiveness of any taxes they have overpaid. Eligible taxpayers also receive an additional $9,500 income allowance for each dependent they claim. The poverty income thresholds are set to increase annually based on the Consumer Price Index, ensuring they do not decrease even if inflation rates are negative.