Budget & Taxes (Income Tax)

in committee · Pennsylvania · House Apr 22, 2025

HB 1287: 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 special tax provisions for poverty.

This bill, HB 1287, updates Pennsylvania's personal income tax provisions for low-income individuals and families. It increases the income threshold for full tax forgiveness or a refund from $6,500 to $10,000 for individuals and from $13,000 to $20,000 for married couples. The bill also introduces an annual cost-of-living adjustment for these poverty income amounts, based on the regional Consumer Price Index. This mechanism ensures that the eligibility thresholds for tax relief can increase over time, reflecting changes in the cost of living.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax forgiveness thresholds for low-income individuals, providing direct tax relief per poverty provisions in the Tax Reform Code.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Pennsylvania · House Jun 2, 2025

HB 1537: 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.

HB 1537 amends Pennsylvania's Tax Reform Code of 1971 to clarify the definition of "compensation" for personal income tax purposes. The bill explicitly includes certain deferred compensation (like 409A plan distributions) while excluding specific payments such as disability benefits, retirement payments, public assistance, and employer-provided health benefits. This definition affects how Pennsylvania taxes income from employment, ensuring consistent application of tax rules for taxpayers and employers. The change aligns Pennsylvania's tax code with specific federal provisions but does not alter tax rates or create new taxes. The bill is currently referred to the Finance committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies tax definitions for consistent application under PA's Tax Reform Code, promoting fiscal responsibility without altering tax rates or funding levels.95% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate Jun 3, 2025

SB 821: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for National Guard service tax credit.

SB 821 creates a $500 tax credit for Pennsylvania National Guard members who meet specific eligibility criteria. To qualify, a taxpayer must be a Pennsylvania resident with at least two full years of active service by December 31 of the taxable year, and remain an active member when filing their tax return. The credit reduces taxes owed under Pennsylvania's income tax code (Article III) for taxable years beginning after December 31, 2026, and cannot be carried over, refunded, or sold. It requires self-certification via annual tax returns, with the Department of Revenue reporting on usage annually starting in 2027. This policy directly benefits qualifying National Guard members by lowering their state tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $500 tax credit for National Guard members, reducing tax liability under PA income tax code, aligning with tax relief support for eligible taxpayers.90% confidence ✓ VeteransSupports VeteransCreates $500 tax credit for PA National Guard members with 2+ years service, directly providing financial benefit to veterans through tax reduction.95% confidence

Sub-Topics Income Tax Tax Credits National Guard & Reserve

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in committee · Pennsylvania · Senate Apr 2, 2025

SB 253: 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.

SB 253 modifies Pennsylvania's tax code to help residents who earn income in other states claim credits for taxes paid there. It allows Pennsylvania residents to claim a credit against their state tax for income taxes paid to other states, limited to the portion of their total income taxed by that other jurisdiction. The bill simplifies documentation by permitting certified statements instead of submitting full state tax returns to verify taxes paid. This change applies to taxable years beginning after December 31, 2021, and affects Pennsylvania taxpayers with income subject to taxation in other states.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enables tax credits for out-of-state income, reducing PA tax burden for residents and simplifying documentation. Provides tax relief, aligning with support indicators.90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Jun 5, 2025

HB 1561: An Act providing for a tax credit for retrofitting residential high-rise structures with an automatic fire sprinkler system and associated monitoring or detection devices.

HB 1561 offers a tax credit to owners of residential high-rise buildings for installing automatic fire sprinkler systems and related monitoring or detection devices. The bill directly affects property owners or managers of qualifying high-rise residential structures who undertake these retrofits. It provides a financial incentive by allowing eligible taxpayers to reduce their state income tax liability based on the cost of the qualifying fire safety equipment. The credit aims to encourage improved fire safety in multi-story residential buildings through direct cost savings for property owners.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing state income tax liability for fire safety retrofits, offering direct tax relief to property owners.95% confidence

Sub-Topics Government Spending Income Tax Tax Credits

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in committee · Pennsylvania · House Jun 25, 2025

HB 1662: An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, providing for tax credit for Pennsylvania child learning investment.

HB 1662 would create a new tax credit under Pennsylvania's Fiscal Code for families who pay for early childhood education or learning materials for their children. Eligible taxpayers could reduce their state income tax bill by the amount spent on qualifying expenses, such as preschool tuition or educational supplies. The bill specifically targets child learning investments to offset costs for early education resources. It is currently referred to the House Finance Committee for further review.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing state income tax for early education expenses, providing relief for families per Fiscal Code amendment.90% confidence ✓ EducationSupports EducationCreates tax credit for early childhood education expenses, increasing access to learning resources and reducing costs for families.95% confidence

Sub-Topics Income Tax Tax Credits Early Childhood Higher Education

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in committee · Pennsylvania · House May 29, 2025

HB 1514: 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 paid on tipped wages.

HB 1514 creates a tax credit for Pennsylvania taxpayers who earn tips, allowing them to get back the income tax paid on those tips. The credit equals 100% of the tax paid on "tipped wages" (wages received as voluntary customer tips, not set by employers) and is fully refundable, meaning it can reduce tax bills or generate refunds even if no tax was owed. Taxpayers must claim the credit using their employer's statement of tipped wages (required under 34 Pa. Code § 231.36) when filing their annual tax return on the standard PA 40 form. This change applies to tax returns for years starting after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for tipped wages, reducing tax burden on lower/middle income earners through direct tax relief.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides refundable tax credit for tipped wages, directly increasing net earnings for workers reliant on tips, aligning with wage support indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Pennsylvania · House Jun 10, 2025

HB 1586: 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 paid on overtime wages.

HB 1586 creates a refundable tax credit for Pennsylvania taxpayers who earn overtime wages. It allows eligible workers to reduce their state income tax bill by 100% of taxes paid on overtime wages, calculated using employer-provided documentation (as required by 34 Pa. Code § 231.36). The credit applies to tax returns filed for taxable years beginning after December 31, 2025, and will be integrated into the standard PA 40 tax form. This directly affects Pennsylvania workers receiving overtime pay under the Minimum Wage Act of 1968.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit reducing state income tax for overtime workers, offering direct tax relief to eligible taxpayers (middle/lower income), aligning with tax relief indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides refundable tax credit for overtime wages, directly increasing workers' net compensation by eliminating tax on overtime earnings.95% confidence

Sub-Topics Income Tax Tax Credits Labor Standards Minimum Wage

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in committee · Pennsylvania · House Jun 26, 2025

HB 1672: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Firefighter and Emergency Medical Service Provider Recruitment and Retention Tax Credit.

HB 1672 creates a $2,500 annual tax credit against individual income tax for active paid or volunteer firefighters and emergency medical service (EMS) providers in Pennsylvania. It directly affects qualifying professionals working in fire or EMS roles as defined by state law, including career responders and volunteers. The credit reduces tax owed on wages earned, applies for up to three years (the year they become qualified plus the next two), and requires proof of eligibility to the Department of Revenue. The credit expires for new applicants after 2028 and ends entirely by December 31, 2031.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $2,500 annual tax credit for firefighters/EMS, reducing tax burden for essential workers, aligning with tax relief for middle/lower income.95% confidence ✓ HealthcareSupports HealthcareTax credit for EMS providers strengthens healthcare workforce retention, improving emergency medical access and supporting medical professionals.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Pennsylvania · House Jul 16, 2025

HB 1742: 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.

HB 1742 eliminates Pennsylvania's personal income tax for tax years beginning on or after January 1, 2026. It removes the requirement for employers to withhold income tax from wages starting in 2026 and repeals filing obligations for Pennsylvania S corporations for tax years starting after 2025. The bill directly affects Pennsylvania residents, employers, and S corporations by ending income tax liability, withholding, and related return filings for future tax years. Key provisions amend Sections 302(a), 323, 330(a), and 330.1(a) of the Tax Reform Code of 1971 to reflect these changes. The law takes effect immediately, but the tax changes apply only to tax years beginning in 2026 or later.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates PA personal income tax for 2026+, providing tax relief and reducing state revenue, aligning with support indicators for tax relief.95% confidence

Sub-Topics Income Tax

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