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.

HB 207 amends Pennsylvania's Tax Reform Code to clarify the definition of "compensation" for personal income tax purposes, specifically adding an exception for certain military and emergency-related income. The bill explicitly excludes income earned by active-duty U.S. military members (including their spouses living outside Pennsylvania) and income from active state emergency duty under Pennsylvania's emergency management laws. This change directly affects Pennsylvania taxpayers who receive such income, ensuring it is not taxed as regular compensation. The amendment becomes effective 60 days after enactment.