Budget & Taxes (Income Tax)

in committee · Pennsylvania · House Mar 10, 2025

HB 833: A Joint Resolution proposing an amendment to the Constitution of the Commonwealth of Pennsylvania, further providing for exemptions and special provisions.

HB 833 proposes a constitutional amendment to add a 4% tax on Pennsylvania residents with annual taxable income exceeding $1 million. This tax would apply only to income above the $1 million threshold, directly affecting high-income earners in the state. The amendment includes an annual cost-of-living adjustment for the income threshold, aligning it with federal tax bracket methodology. This is a policy change to the state constitution, not an immediate law, requiring approval through the constitutional amendment process.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 4% tax on high earners ($1M+ income), creating new revenue stream for state fiscal management. Targets top bracket, aligns with progressive tax policy.90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate Mar 31, 2025

SB 207: 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.

SB 207 gradually reduces Pennsylvania's corporate net income tax rate over time. It lowers the tax rate from 9.99% (for 1995-2022) to 4.99% by 2031, with incremental reductions each year (e.g., 8.99% for 2023, 8.49% for 2024, 7.99% for 2025). This bill directly affects corporations operating in Pennsylvania that pay state corporate income tax. The key mechanism is a scheduled, multi-year reduction in the tax rate for corporate net income, as specified in Section 402(b) of the Tax Reform Code of 1971.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces corporate tax rate from 9.99% to 4.99% by 2031, providing direct tax relief for corporations under Tax Reform Code.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · House Apr 1, 2025

HB 1092: An Act establishing the Taxpayer Dividend Program; imposing powers and duties on the State Treasurer and Department of Revenue; and providing for payment of certain taxpayer dividends.

HB 1092 establishes a program to refund a portion of Pennsylvania's state budget surplus directly to eligible taxpayers. It requires the State Treasurer and Department of Revenue to identify resident individuals who filed 2024 tax returns and paid their liabilities, then calculate payments based on the General Fund surplus (capped at the June 2024 surplus amount) and the Budget Stabilization Reserve Fund (capped at the fund balance minus 6% of 2024-2025 General Fund revenues). The bill specifies that payments must be made within 45 days of a funding appropriation, with any unused funds returned to the Budget Stabilization Reserve Fund. This program directly affects Pennsylvania residents who filed 2024 individual income tax returns and paid their tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct tax refunds from state surplus to eligible taxpayers, constituting tax relief per bill summary.95% confidence

Sub-Topics Income Tax State Budget

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in committee · Pennsylvania · House Jan 17, 2025

HB 207: 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 207 amends Pennsylvania's Tax Reform Code to clarify the definition of "compensation" for personal income tax purposes, specifically adding an exception for certain military and emergency-related income. The bill explicitly excludes income earned by active-duty U.S. military members (including their spouses living outside Pennsylvania) and income from active state emergency duty under Pennsylvania's emergency management laws. This change directly affects Pennsylvania taxpayers who receive such income, ensuring it is not taxed as regular compensation. The amendment becomes effective 60 days after enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes military/emergency income from PA personal income tax, providing tax relief to affected taxpayers per bill's explicit definition change.95% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Apr 15, 2025

HB 1220: An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, in taxation by school districts, repealing provisions relating to local tax study commission and to adoption of further referendum.

HB 1220 repeals two sections of Pennsylvania's Taxpayer Relief Act that required school districts to form a local tax study commission and hold public referendums before levying certain taxes. Specifically, it removes the requirement for school districts to create a commission to study tax policies and make nonbinding recommendations (Section 331) and eliminates the need for voter approval via referendum before imposing earned income or personal income taxes (Section 332). This bill directly affects Pennsylvania school districts by simplifying their tax levy process, as they will no longer need to conduct the study or seek referendum approval for these specific tax types. The repeal streamlines administrative steps without altering the tax authority itself.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals referendum requirements for school district taxes, reducing voter accountability in fiscal decisions.95% confidence ✓ EducationSupports EducationRemoves barriers requiring school districts to hold referendums on tax levies, enabling more flexible funding without voter approval for education-related taxes.85% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Jan 16, 2025

HB 152: 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 152 amends Pennsylvania's Tax Reform Code to exclude housing allowances provided by churches or religious organizations to ordained, commissioned, or licensed clergy from personal income tax. This applies to individuals who conduct religious worship, perform sacerdotal duties, and administer sacraments under their church's tenets, regardless of whether the housing is on church-owned property. The change affects clergy members receiving such housing allowances, making those amounts non-taxable for income tax purposes. The exclusion takes effect for taxable years beginning after December 31, 2023.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes clergy housing allowances from taxable income, providing tax relief under Tax Reform Code amendment90% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House May 12, 2025

HB 813: 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 813 amends Pennsylvania's Tax Reform Code of 1971 to exempt certain student loan discharges and employer educational assistance from personal income tax. Specifically, it excludes from taxation: (1) the discharge of eligible student loans under qualified federal forgiveness programs, and (2) employer-paid educational assistance that meets federal exclusion rules under Section 127 of the Internal Revenue Code. These exemptions apply to taxable years beginning after December 31, 2025. The bill directly affects Pennsylvania taxpayers who qualify for these specific student loan forgiveness or employer education benefits under federal programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts student loan forgiveness and employer education benefits from income tax, providing direct tax relief to eligible individuals under the Tax Reform Code.95% confidence ✓ EducationSupports EducationExempts student loan discharges and employer education benefits from tax, reducing financial barriers to higher education access and supporting educational affordability.92% confidence

Sub-Topics Income Tax Student Financial Aid

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in committee · Pennsylvania · House May 6, 2025

HB 1414: 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 1414 amends Pennsylvania's corporate income tax rates under the 1971 Tax Reform Code. It lowers the annual corporate tax rate for taxable years starting in 2026 (from 7.49% to 6.99%), 2027 (from 6.99% to 5.99%), and 2028 onward (from 6.49% to 4.99%). This directly affects corporations operating in Pennsylvania that pay state corporate income tax. The bill makes these rate changes effective immediately upon enactment.

Topics ✗ Budget & TaxesOpposes Budget & TaxesLowers corporate tax rates (7.49%→4.99%), reducing state revenue and weakening tax base per bill's explicit rate reductions.95% confidence

Sub-Topics Business Taxes Income Tax

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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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