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 623 amends Pennsylvania's Tax Reform Code of 1971 to clarify the definition of "compensation" for personal income tax purposes. It adds a new subsection defining "domestic abuse" to include physical, psychological, sexual, emotional, or economic abuse, including control tactics and abuse targeting family members. This change specifically allows tax-free withdrawals from retirement benefits (under 26 U.S.C. § 72) for individuals who have self-certified as victims of domestic abuse within the past five years, without triggering standard penalties. The bill directly affects Pennsylvania taxpayers who qualify under this new definition and access retirement funds for domestic abuse-related hardship.