Budget & Taxes (Income Tax)

in committee · Pennsylvania · House Mar 25, 2025

HB 1001: 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 1001 exempts compensation received from the Federal or State Government or Jet Rescue Air Ambulance (or its agent) related to the Med Jets Flight 056 crash (January 31, 2025, in Philadelphia) from Pennsylvania personal income tax. This bill directly affects individuals who received such payments due to the crash, making that compensation non-taxable under the state's tax code. The key provision adds a specific exception to the Tax Reform Code of 1971, removing this income from taxable categories. The exemption applies only to payments tied to this single, specific incident.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts specific crash compensation from state income tax, providing targeted tax relief to affected individuals under the Tax Reform Code.90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Mar 3, 2025

HB 760: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in corporate net income tax, further providing for imposition of tax.

HB 760 amends Pennsylvania's corporate net income tax rates under the 1971 Tax Reform Code, directly affecting corporations operating in the state. The bill reduces the annual corporate tax rate from 7.99% for 2025-2025 to 5.99% for 2026-2026, and further lowers it to 4% starting in 2027 and beyond. Key provisions include a phased reduction schedule with specific rates for each taxable year period, replacing prior rate structures. The changes take immediate effect upon enactment, altering the tax burden for corporations filing under Pennsylvania's corporate net income tax system.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill reduces corporate tax rates from 7.99% to 4%, weakening state tax revenue and fiscal management per the Tax Reform Code amendment.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · Senate Mar 23, 2026

SB 124: 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 124 (Pennsylvania's Tax Reform Code amendment) allows Pennsylvania taxpayers to deduct up to $10,000 in unreimbursed expenses related to donating a human organ (such as liver, kidney, or bone marrow) for transplantation. The deduction covers travel, lodging, lost wages, and medical costs incurred during the donation, but only for the tax year the transplant occurred and only once per lifetime. It does not apply to tax years before 2025 and cannot reduce taxable income below zero. This provision directly affects individuals who donate organs and seek tax relief for associated costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for organ donation expenses, reducing taxable income for qualifying taxpayers, aligning with tax relief indicators.90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Jan 17, 2025

HB 206: An Act amending the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, in consolidated collection of local income taxes, further providing for definitions.

HB 206 amends Pennsylvania's Local Tax Enabling Act to clarify the definition of "earned income" for local income tax purposes. It specifies that employee business expenses reported to the Department of Revenue under the Tax Reform Code can be deducted when calculating earned income, while explicitly excluding military wages (and spouses living outside PA), business loss offsets, and clergy housing allowances. This change directly affects Pennsylvania residents paying local income taxes, particularly those in the excluded categories. The bill modifies how local governments calculate taxable income but does not create new taxes or alter tax rates. (Bill: HB 206, Section 501 amendment)

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies tax definitions to close loopholes (excludes business loss offsets, clergy allowances), aligning with fiscal responsibility indicators.85% confidence

Sub-Topics Income Tax Sales Tax

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in committee · Pennsylvania · House Jan 27, 2025

HB 334: 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 providing for Pennsylvania Individual Recruitment and Retention Tax Credit.

HB 334 creates a $2,500 Pennsylvania Individual Recruitment and Retention Tax Credit for specific new professionals who move to the state after December 2024. It directly affects qualifying taxpayers certified in teaching (e.g., instructional or special education certificates), law enforcement (e.g., police academy graduates), or healthcare (e.g., registered nurses) who become Pennsylvania residents and secure employment in those fields. The credit reduces their state income tax bill for wages earned in qualifying roles, available for three consecutive years (including the first qualifying year), and requires proof of certification to the Department of Revenue. The credit expires December 31, 2030, and applies only to individuals becoming qualifying taxpayers between 2025 and 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $2,500 tax credit for essential workers (teachers, law enforcement, healthcare) reducing state income tax burden, aligning with tax relief for public service roles.95% confidence ✓ Criminal JusticeSupports Criminal JusticeTax credit explicitly targets law enforcement recruitment (police academy graduates), aiming to strengthen workforce retention in criminal justice sector.85% confidence ✓ EducationSupports EducationProvides $2,500 tax credit to recruit/retain teachers (with instructional/special ed certs), directly supporting educator workforce through financial incentives.90% confidence ✓ HealthcareSupports HealthcareBill offers $2,500 tax credit specifically for healthcare professionals (e.g., RNs) to recruit/retain in PA, directly strengthening workforce availability and access to care.95% confidence

Sub-Topics Income Tax Tax Credits Policing Special Education

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in committee · Pennsylvania · House Jan 23, 2025

HB 310: A Joint Resolution proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, providing for expiration of authority to levy or collect real property taxes.

HB 310 proposes a constitutional amendment to end Pennsylvania school districts' authority to levy property taxes after June 30, 2029. It requires the state to fund school districts annually with amounts equal to their 2029 property tax revenue (minus debt service) through new state and local taxes on retail sales, income, and earned income. These new tax revenues would be deposited into a dedicated "Stabilization of Education Fund" exclusively for school support, prohibiting any future property taxes on school districts. The amendment would replace property tax reliance with a statewide funding mechanism for school district budgets.

Topics ✓ Budget & TaxesSupports Budget & TaxesReplaces school property taxes with new sales/income taxes to maintain 2029 funding levels via dedicated education fund, ensuring continued public school financial support.90% confidence ✓ EducationSupports EducationReplaces school property taxes with state funding via dedicated education fund, maintaining current revenue levels for school support.95% confidence

Sub-Topics Debt & Bonds Income Tax Revenue School Funding

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in committee · Pennsylvania · Senate Mar 6, 2025

SB 392: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for homeowners' property taxes, reducing taxable income and offering relief per Tax Reform Code amendment.95% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate Jan 29, 2025

SB 206: 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 imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.

SB 206 modifies Pennsylvania's personal income tax by setting a 3.07% rate for taxable years ending in 2025, after which no personal income tax will be collected for years beginning in 2026 or later. It also eliminates employer withholding requirements starting in 2026 if employees certify they had no prior-year tax liability and expect none for the current year. Additionally, the bill repeals the requirement for residents to file personal income tax returns and for Pennsylvania S corporations to submit annual returns for taxable years starting in 2026. These changes directly affect Pennsylvania residents, employees, employers, and S corporations.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates personal income tax for all taxpayers after 2025, providing direct tax relief and reducing government revenue collection from individual income.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · House Mar 5, 2025

HB 814: 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 tax credit for spouses of first responders killed in line of duty.

HB 814 creates a tax credit for Pennsylvania residents who are spouses of first responders (including police, firefighters, EMTs, or emergency rescue personnel) killed while performing their duties. The credit equals 100% of the real property tax paid on the couple's primary residence, up to the amount of personal income tax due for the year. Spouses who remarry after their partner's death or who claim other property tax rebates are ineligible. The Department of Revenue may require documentation to verify the residence qualifies as the principal home. This bill directly affects surviving spouses of eligible first responders by reducing their state income tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing income tax liability for spouses of fallen first responders, providing targeted tax relief aligned with middle-income support.95% confidence

Sub-Topics Income Tax Property Tax Tax Credits

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in committee · Pennsylvania · House Mar 18, 2025

HB 422: 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 422 creates a new tax deduction for Pennsylvania residents who donate human organs. It allows taxpayers to deduct up to $12,000 annually for unreimbursed expenses directly related to organ donation, including travel, lodging, lost wages, and medical costs. The deduction applies only to the year the transplantation occurred, may be claimed just once in a lifetime, and cannot reduce taxable income below zero. This provision affects organ donors who incur qualifying out-of-pocket costs while living. The change takes effect for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for organ donation expenses, providing relief to donors by reducing taxable income per Tax Reform Code amendment.90% confidence

Sub-Topics Income Tax

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