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 classes of income.

This bill modifies the state's tax code to exclude specific financial compensation from being counted as taxable income. It directly affects individuals who received payments from the federal or state government, Norfolk Southern Railway, or their agents following the train derailment in East Palestine, Ohio, on February 3, 2023. The key provision adds a new category to the tax law stating that these specific recovery funds are not subject to personal income tax. By making this change, the legislation ensures that money awarded for the aftermath of that disaster remains tax-free for the recipients.