Budget & Taxes (Income Tax)

in committee · Pennsylvania · House May 21, 2025

HB 1471: 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 income taxes imposed by other states.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole by limiting credits to PA tax proportion, ensuring proper revenue collection per bill's explicit intent to prevent excess credits.90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Jan 8, 2025

HB 22: 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 and for classes of income.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdds exclusions for disability, retirement, public assistance, and foster care payments, reducing taxable income for affected taxpayers and providing tax relief.90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate Apr 21, 2025

SB 653: 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 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing deductions for education expenses, reducing taxable income for eligible employees under specific conditions.95% confidence ✓ EducationSupports EducationEnables tax deductions for higher education expenses, reducing individual costs and supporting access to education.65% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate Apr 30, 2025

SB 655: 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; in corporate net income tax, further providing for definitions; in tax credit and tax benefit administration, further providing for definitions; and providing for personal health investment tax credit.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits/deductions for military health expenses, reducing taxable income for businesses and individuals per Tax Reform Code amendments.92% confidence ✓ VeteransSupports VeteransCreates tax credit for military personnel's fitness expenses, directly benefiting veterans through accessible health services and recognizing service.85% confidence

Sub-Topics Income Tax Tax Credits National Guard & Reserve

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in committee · Pennsylvania · House Mar 3, 2025

HB 775: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for phoenix employee and returnship tax credits; and imposing penalties.

HB 775 creates tax credits for Pennsylvania businesses hiring "phoenix employees" (workers who were out of the workforce for two years or received a 50%+ pay increase) in high-demand occupations. Companies can claim a credit equal to twice the state personal income tax rate on qualifying employees' earnings, applied against corporate, franchise, or personal income taxes. The bill limits annual credits to $150,000 in the first year, $300,000 in the second, and $450,000 thereafter, with $15 million allocated for the first year. Businesses must commit to retaining employees for three years and maintaining operations in Pennsylvania for five years to qualify. The credit directly affects employers in high-demand fields and workers reentering the workforce after extended gaps.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates corporate tax credits reducing state revenue, weakening fiscal management through tax cuts for businesses.90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Mar 31, 2025

HB 1073: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for shelter animal adoption tax credit; and establishing the Shelter Animal Adoption Tax Credit Program.

This bill creates a $100 tax credit for Pennsylvania taxpayers who adopt cats or dogs from animal shelters, humane societies, or rescue organizations. The credit applies to state income taxes, with a maximum annual benefit of $300 (covering up to three adopted animals). To claim the credit, taxpayers must submit proof of spaying/neutering and adoption during the tax year. The program directly affects individuals adopting shelter animals, aiming to incentivize pet adoption through tax relief.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $100 tax credit for shelter pet adoptions, reducing state tax liability for eligible individuals, aligning with tax relief indicators for middle-income taxpayers.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Pennsylvania · Senate Mar 21, 2025

SB 485: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and establishing the Residential Electric Vehicle Charging Station Tax Credit.

SB 485 creates a Pennsylvania tax credit for homeowners who install residential electric vehicle (EV) charging stations. It allows eligible taxpayers to claim a credit covering 100% of the installation cost, up to $2,000, against their state income tax liability for the year the station is placed in service. To qualify, a taxpayer must reside in Pennsylvania for over half the previous year, own their primary residence, and install the charger there. The credit is refundable, meaning any unused portion is paid back as a cash refund if it exceeds the taxpayer's state income tax bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit covering 100% of EV charger installation costs ($2k max), reducing tax liability for eligible homeowners per Tax Reform Code amendment.95% confidence ✓ EnergySupports EnergyCreates tax credit for residential EV charging stations, promoting clean energy infrastructure adoption and reducing fossil fuel dependence through EV adoption incentives.95% confidence ✓ EnvironmentSupports EnvironmentSB 485 creates a tax credit for residential EV charging stations, directly promoting clean transportation infrastructure and reducing emissions from vehicles, aligning with environmental protection goals.92% confidence

Sub-Topics Income Tax Tax Credits Electric Vehicles

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in committee · Pennsylvania · Senate May 5, 2025

SB 722: 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 722 amends Pennsylvania's Tax Reform Code to modify how "net profits" are calculated for personal income tax purposes. The bill updates the rules for deducting start-up expenditures and introduces new provisions for combining net profits and losses from different businesses. It establishes specific netting rules for "small businesses" and "non-small businesses," allowing small businesses to carry over net losses for up to twenty years. This legislation directly affects individuals who report income or losses from their business or professional activities, particularly those operating small businesses, for state personal income tax. These changes will apply to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows small businesses to carry net losses for 20 years, providing tax relief and promoting fiscal flexibility for business owners.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · Senate May 12, 2025

SB 753: An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, establishing the Put Down Roots PA Pilot Program; and providing for duties of Pennsylvania Higher Education Assistance Agency.

Senate Bill 753 establishes the Put Down Roots PA Pilot Program, to be administered by the Pennsylvania Higher Education Assistance Agency (PHEAA). This program offers student loan relief grants to eligible first-time homebuyers in Pennsylvania. To qualify, individuals must purchase a home as their primary residence, have never owned a home in the Commonwealth before, agree to reside there for at least three years, and have an annual household income under $200,000. Grants can be awarded up to $40,000, but cannot exceed the individual's student loan debt or 15% of the home's purchase price. These grant awards are also exempt from state income tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesFunds student loan relief grants via state budget allocation, increasing appropriations for housing assistance under Fiscal Code95% confidence ✓ HousingSupports HousingProvides student loan relief grants to first-time homebuyers with income limits, directly advancing affordable housing access through financial assistance for homeownership.95% confidence

Sub-Topics Income Tax Homeownership

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in committee · Pennsylvania · House Apr 9, 2025

HB 1177: 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 1177 amends Pennsylvania's Tax Reform Code of 1971 to clarify that specific government service income is excluded from the definition of "compensation" for personal income tax purposes. The bill explicitly removes from taxable compensation income earned from active duty with the U.S. armed forces outside Pennsylvania, the U.S. Public Health Service, NOAA, or Pennsylvania emergency duty (including under state emergency management laws). This change directly affects Pennsylvania residents who receive these government service payments, ensuring they are not classified as taxable compensation under current law. The bill does not alter tax rates or brackets but refines the tax code's definition of taxable income to align with federal and state service structures.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes military/public health income from taxable compensation, providing tax relief for affected residents per Tax Reform Code amendment.95% confidence ✓ VeteransSupports VeteransExcludes veterans' military income from PA state tax, reducing tax burden for active duty service.95% confidence

Sub-Topics Income Tax

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