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, providing for exemption from tax for early withdrawal from certain accounts.

This Pennsylvania bill, SB 1300, amends the state's personal income tax code to allow tax-free withdrawals from certain retirement accounts for specific life events. It directly affects Pennsylvania residents who hold these accounts and plan to access funds for a child's birth or adoption or to purchase a first-time home. Under the new provisions, parents may withdraw up to $5,000 individually or $10,000 combined per child, while first-time homebuyers can withdraw up to $10,000. The legislation aligns state tax treatment with federal exemptions for these categories of early withdrawals. These tax exemptions will apply to tax years beginning on or after January 1, 2027.