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 exemption from tax for early withdrawals from certain accounts.

This bill proposes to exempt certain early withdrawals from specific accounts from Pennsylvania personal income tax, mirroring existing federal tax rules. It directly affects parents and first-time homebuyers by allowing them to withdraw up to $5,000 individually or $10,000 jointly for a child's birth or adoption, and up to $10,000 for a home purchase. The legislation applies to tax years beginning on or after January 1, 2027, and becomes effective 60 days after passage.