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, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

HB 1703 would amend Pennsylvania's 1971 Tax Reform Code to change how personal income tax applies to businesses that pass income to owners, such as partnerships and S corporations. The bill introduces an option for these businesses to pay tax at the business level instead of having the tax pass through to individual owners. It also clarifies rules for taxing income from these businesses and handling taxes paid to other states. This change would directly affect business owners and Pennsylvania's tax collection process.