Budget & Taxes (Income Tax)

in committee · Pennsylvania · House Sep 9, 2025

HB 1846: 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 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts minor workers' income from tax, providing direct tax relief for lower-income earners under 18 per the Tax Reform Code amendment.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · Pennsylvania · House Jul 23, 2025

HB 1754: 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 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes SNAP/Medicaid from taxable income, providing tax relief for low-income recipients85% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · House Sep 9, 2025

HB 1850: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for teacher tax credit.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for teachers, reducing state income tax liability, providing tax relief for middle-income educators under Tax Reform Code.95% confidence ✓ EducationSupports EducationCreates tax credit for K-12 teachers, reducing their tax burden and supporting educators financially per bill's direct provision.95% confidence

Sub-Topics Income Tax Tax Credits K-12 Education Teachers

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in committee · Pennsylvania · House Oct 28, 2025

HB 1900: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for educator tax credit.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for educators, providing income tax relief per Tax Reform Code amendment, aligning with tax relief indicators for middle-income groups.95% confidence ✓ EducationSupports EducationCreates tax credit for educators, directly supporting teachers' financial well-being and incentivizing retention through tax benefits.95% confidence

Sub-Topics Income Tax Tax Credits Teachers

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in committee · Pennsylvania · House Jun 24, 2025

HB 1649: An Act amending Titles 53 (Municipalities Generally) and 72 (Taxation and Fiscal Affairs) of the Pennsylvania Consolidated Statutes, eliminating school district property taxes; imposing county and school district taxes; establishing the School District Emergency Fund and the School District Property Tax Elimination Fund; consolidating Articles II and III of the Tax Reform Code of 1971; in preliminary provisions relating to sales and use tax, providing for definitions; in taxation generally relating to sales and use tax, providing for exclusions and for transfer to county sales and use tax accounts; in preliminary provisions relating to personal income tax, providing for definitions; and making repeals.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates school district property taxes while establishing new revenue streams (county sales tax increase, local income tax) to fund school districts, restructuring tax policy for fiscal management.95% confidence

Sub-Topics Income Tax Property Tax Revenue

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in committee · Pennsylvania · House Jan 17, 2025

HB 254: 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.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for residential EV charging stations, providing direct tax relief to qualifying PA residents under tax credit administration.95% confidence ✓ EnergySupports EnergyCreates tax credit for home EV charging stations, directly promoting electric vehicle adoption and clean energy infrastructure investment to reduce fossil fuel dependence.95% confidence ✓ EnvironmentSupports EnvironmentCreates tax credit for residential EV charging stations, promoting electric vehicle adoption and reducing transportation emissions - direct environmental benefit through clean energy infrastructure support.85% confidence ✓ TransportationSupports TransportationCreates tax credit for residential EV charging stations, directly promoting sustainable transportation infrastructure adoption and aligning with sustainable transport indicators.95% confidence

Sub-Topics Income Tax Tax Credits Electric Vehicles Electric Vehicles

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in committee · Pennsylvania · Senate Nov 5, 2025

SB 1084: 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 child adoption tax credit.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new child adoption tax credit reducing state income tax liability for adoptive families, providing direct tax relief under Tax Reform Code.95% confidence

Sub-Topics Income Tax Tax Credits

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passed · Pennsylvania · House May 16, 2025

HB 820: 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 working Pennsylvanians tax credit.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit (30% of federal EITC) for low-to-moderate income residents, directly providing tax relief and reducing state tax liability for qualifying taxpayers.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates refundable tax credit matching federal EITC, directly increasing disposable income for low-to-moderate income workers, expanding financial benefits.95% confidence

Sub-Topics Income Tax Tax Credits

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