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.

SB 392 amends Pennsylvania's Tax Reform Code to allow a new deduction for real property taxes paid on a homeowner's primary residence (defined as "homestead") that exceed the federal limit under 26 U.S.C. § 164(b)(6)(B). This deduction applies only to taxes paid to school districts or equivalent city taxes, excluding payments in lieu of taxes or penalties. The deduction cannot reduce taxable income below zero and applies to tax years beginning after December 31, 2025. It directly affects Pennsylvania homeowners with property taxes exceeding the federal cap, providing a limited tax benefit for their primary residence.