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, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners and for income of a Pennsylvania S corporation.

Added detailed requirements for electing pass-through entities to file returns and pay taxes by specific deadlines, including a 90-day window after the effective date or the tax return due date.

Added rules requiring pass-through entities to provide taxable owners with statements within 90 days, with penalties for late submission.

Added provisions allowing taxable owners to claim credits on amended returns filed within 180 days of the effective date, with specific rules for consolidated returns.

Modified the definition of 'taxable owner' to include grantors of trusts or other persons taxable on trust income under Section 302(C) for tax years beginning after 2024.

Modified effective dates for certain amendments, with Section 302.3 additions applying to tax years beginning in 2023 and 2024, while other amendments apply to years after December 31, 2022.

Added authority for the department to assess tax adjustments within 12 months of filing amended returns, with specific limitations on what can be adjusted if the statute of limitations has expired.

Added protection against interest and penalties for pass-through entities that act in good faith when making estimated tax payments under the new provisions.