SB 962 eliminates school district property taxes for residential and commercial properties in Pennsylvania, effective for school districts starting in 2030. It replaces these taxes with two new revenue sources: a 2% increase in county-level sales and use taxes (on items like clothing and candy, previously exempt) and a local income tax of up to 1.88% on resident taxpayers' earned income and retirement benefits (excluding Social Security). The bill establishes two funds: the School District Property Tax Elimination Fund (to distribute sales tax revenue to school districts) and the School District Emergency Fund (for financial stability). It also requires landlords to reduce rents for tenants by the equivalent amount of eliminated property taxes. The legislation aims to shift school funding away from property taxes while maintaining school district budgets, affecting homeowners, businesses, and residents subject to the new income tax.
SB 986 amends Pennsylvania's Tax Reform Code of 1971 to create a new tax credit under the PA EDGE economic development program specifically for businesses in the space economy. This provision would allow eligible space industry companies - such as those involved in satellite manufacturing, launch services, or space-related research - to claim tax credits for job creation and capital investments within Pennsylvania. The credits would reduce these businesses' state income tax liability, aiming to incentivize growth in the state's emerging space sector. The bill is currently referred to the Finance committee for further review.
HB 1846 amends Pennsylvania's 1971 Tax Reform Code to exempt compensation earned by individuals under 18 years old from personal income tax. This provision directly affects minor workers, such as teenagers with part-time jobs or summer employment, by excluding their earnings from taxable income. The bill adds a new tax exemption clause (303(a.7)(2)(i)(F)) specifying that compensation received by under-18 taxpayers is not subject to tax. The exemption applies to taxable years beginning after December 31, 2025, and takes effect immediately upon passage.
HB 1754 amends Pennsylvania's Tax Reform Code of 1971 to update the definition of "compensation" for personal income tax purposes. It specifically clarifies that "compensation" includes salaries, wages, bonuses, and certain deferred income payments under federal law, while explicitly excluding government benefits like Medicaid, SNAP (food stamps), TANF, and retirement payments. The bill does not change tax rates or create new taxes but provides clearer rules for what counts as taxable income under the state's tax code. This technical update primarily affects how Pennsylvania employers and taxpayers report income for state tax filing.
HB 1850 amends Pennsylvania's Tax Reform Code of 1971 to create a new tax credit for teachers. The bill directly affects eligible K-12 teachers by allowing them to reduce their state income tax liability. Its key provision establishes a specific dollar amount credit for teachers meeting certain criteria, such as years of service or teaching in designated subjects. This change would lower the taxable income for qualifying educators under Pennsylvania's tax system. The bill is currently in the Finance Committee for review.
HB 1900 would amend Pennsylvania's Tax Reform Code of 1971 to create a tax credit for educators. This credit would allow teachers and school staff to reduce their income tax liability. The bill specifies this credit as part of the state's tax code changes, though details on eligibility or credit amount are not provided in the available context.
HB 1649 eliminates school district property taxes on residential and commercial properties in Pennsylvania. It replaces these taxes with two new revenue sources: a 2% increase to county-level sales, use, and occupancy taxes (with some exclusions like clothing and candy removed), and a local income tax of up to 1.88% on resident taxpayers' earned income and retirement benefits (excluding Social Security). The bill establishes two funds - the School District Property Tax Elimination Fund (to distribute sales tax revenue to school districts) and the School District Emergency Fund - and requires landlords to reduce rents for tenants by the amount of eliminated property taxes. This directly affects property owners, school districts, and landlords/tenants, shifting funding responsibility from property taxes to broader consumption and income-based taxes.
HB 254 creates a new tax credit for Pennsylvania residents who install electric vehicle charging stations at their primary homes. It allows eligible taxpayers to claim a credit equal to 100% of the installation cost, up to $2,000 per year, which is refundable if it exceeds their state income tax liability. To qualify, residents must have lived in Pennsylvania for over half the previous year, have a valid taxpayer ID, and install the station at their owned primary residence. The credit applies to tax years starting after December 31, 2025, with the Department of Revenue responsible for implementing guidelines.
SB 1084 creates a new child adoption tax credit under Pennsylvania's Tax Reform Code of 1971, allowing adoptive parents to reduce their state income tax payments. The bill amends the existing tax code to establish this credit and clarify definitions for tax credit administration. This change directly affects adoptive families in Pennsylvania by providing a financial benefit to offset adoption costs. The credit is a concrete policy change that modifies how state tax liabilities are calculated for eligible taxpayers.
HB 820 creates Pennsylvania's "Working Pennsylvanians Tax Credit," which provides a state tax credit equal to 30% of a taxpayer's federal Earned Income Tax Credit (EITC) for the same year. This credit directly affects low-to-moderate income Pennsylvania residents who qualify for the federal EITC, applying it against their state tax bill. The credit is refundable, meaning taxpayers receive a cash refund if the credit exceeds their state tax liability. The bill takes effect for taxable years beginning after December 31, 2024.
