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 definitions.

This bill amends Pennsylvania's Tax Reform Code to update the legal definitions of "compensation" and "domestic abuse" for personal income tax purposes. It clarifies that compensation includes various forms of payment like salaries, bonuses, and specific deferred income, while explicitly excluding items such as retirement benefits, unemployment aid, and reimbursements for actual expenses. The legislation also provides a new definition for "domestic abuse" that covers physical, psychological, sexual, emotional, and economic harm, including efforts to control or isolate a victim. These updated definitions will allow individuals who have experienced domestic abuse to access certain tax provisions, such as early withdrawal from retirement accounts, without facing standard penalties. The changes take effect 60 days after the bill is enacted.