An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in realty transfer tax, providing for deductions.

HB 842 amends Pennsylvania's Tax Reform Code to create new deductions for realty transfer tax paid on certain home purchases. It directly affects low-to-moderate income buyers (those collecting SSI or with household income ≤215% of federal poverty level) and buyers purchasing primary residences at ≤80% of their county's median home price. The bill allows these buyers to deduct the transfer tax paid from their taxable income, and in the second scenario, the seller also receives this deduction. Counties must submit annual median home price data to the Department of Revenue to implement the price-based deduction. The changes take effect 60 days after enactment.