HB 1357 amends Pennsylvania's tax code to allow employees to deduct overtime pay from their taxable income when filing personal income tax returns. The bill defines "overtime pay" as compensation earned for hours worked beyond 40 per week (per federal standards) and requires employers to withhold tax on this amount. Employees who received overtime in 2026 or later can subtract the full overtime amount from their taxable income, potentially resulting in a tax refund if the deduction lowers their liability below zero. This directly affects Pennsylvania employees who earn overtime and employers who withhold taxes on such earnings. The changes apply to tax years beginning January 1, 2026.
HB 1992 creates a new tax credit for Pennsylvania farmers who donate surplus agricultural products (like crops or livestock) to qualified food banks enrolled in the Pennsylvania Agricultural Surplus System. Farmers can claim a credit equal to 100% of the sale price, fair market value, or $20,000 (whichever is lowest) per year, but must apply for certification from the Department of Community and Economic Development with documentation including the food bank’s written acknowledgment. The credit is limited to $5 million total annually and must be used against state income tax liability for the same year, with no carryover beyond one year. This directly affects eligible farmers and food banks participating in the state’s surplus donation program, aiming to reduce food waste while supporting agricultural producers.
HB 1126 amends Pennsylvania's tax code to create two new provisions: (1) a tax deduction for fitness facilities that provide free or discounted memberships to active-duty military personnel, National Guard members, or reservists, limited to the regular membership fee and not reducing taxable income below zero; and (2) a personal health investment tax credit of up to $600 per year for eligible military members to cover qualified fitness expenses like gym memberships or exercise equipment. The deduction for facilities is only available if they did not claim the same expense for federal taxes. The credit applies to Pennsylvania resident individuals who qualify as active-duty military, National Guard, or reserve members under state definitions. These changes directly affect fitness businesses and military-affiliated taxpayers in Pennsylvania.
HB 623 amends Pennsylvania's Tax Reform Code of 1971 to clarify the definition of "compensation" for personal income tax purposes. It adds a new subsection defining "domestic abuse" to include physical, psychological, sexual, emotional, or economic abuse, including control tactics and abuse targeting family members. This change specifically allows tax-free withdrawals from retirement benefits (under 26 U.S.C. § 72) for individuals who have self-certified as victims of domestic abuse within the past five years, without triggering standard penalties. The bill directly affects Pennsylvania taxpayers who qualify under this new definition and access retirement funds for domestic abuse-related hardship.
HB 1467 amends the Tax Reform Code of 1971, specifically redefining what constitutes "compensation" for personal income tax purposes. The bill explicitly removes "tips" and "gratuities" from the definition of compensation. This means that income earned through tips would no longer be considered taxable compensation under the state's personal income tax, directly affecting individuals who receive such income.
HB 959 amends Pennsylvania's tax code to require the state to pay interest on overpaid personal income taxes. It specifies that interest on refunds will accrue at the same rate used by the U.S. Treasury for federal taxes, starting from the date the overpayment was received. Taxpayers who overpay their state income tax - such as those who paid too much through estimated installments or filed early returns - will now receive interest on the excess amount. The bill also clarifies that no interest applies if a refund is issued within 60 days of the tax return deadline.
HB 1471 amends Pennsylvania's Tax Reform Code to adjust how residents can claim credits for income taxes paid to other states or territories (including U.S. territories, Puerto Rico, and the District of Columbia) on income also subject to Pennsylvania tax. The bill limits the credit to the proportion of Pennsylvania tax corresponding to the income taxed by the other jurisdiction, preventing credits that exceed Pennsylvania's tax liability. It also simplifies documentation by allowing taxpayers to submit a certified statement instead of full copies of their state tax returns to verify tax paid. This change applies to taxable years beginning after December 31, 2021.
HB 22 amends Pennsylvania's Tax Reform Code of 1971 to clarify the definition of "compensation" for personal income tax purposes. It specifically adds exclusions to what counts as taxable compensation, such as certain disability payments, retirement benefits, public assistance, foster care payments, and National Guard service income. These changes directly affect Pennsylvania taxpayers and employers who must apply these definitions when calculating income tax liability. The bill does not alter tax rates but provides clearer guidance on which income types are taxable under state law.
SB 653 amends the state's Tax Reform Code concerning personal income tax. The bill allows employees to deduct certain education-related expenses from their taxable income. Specifically, expenses for higher education or career and technical education that are reimbursed by an employer can be deducted, but only if that reimbursement was reported as Federal taxable income. This change would apply to taxable years beginning after December 31, 2025.
This bill amends the state's tax code to create new deductions and tax credits related to health and fitness for military personnel. Businesses that offer free fitness facility memberships to active duty military, Pennsylvania National Guard, or reserve component members can deduct these costs from their taxable income. Additionally, these qualified military individuals can claim a personal health investment tax credit of up to $600 annually for their own sports and fitness expenses, such as gym memberships or participation fees. These changes will apply to taxable years commencing after December 31, 2024.
