Budget & Taxes

HB 422 creates a new tax deduction for Pennsylvania residents who donate human organs. It allows taxpayers to deduct up to $12,000 annually for unreimbursed expenses directly related to organ donation, including travel, lodging, lost wages, and medical costs. The deduction applies only to the year the transplantation occurred, may be claimed just once in a lifetime, and cannot reduce taxable income below zero. This provision affects organ donors who incur qualifying out-of-pocket costs while living. The change takes effect for tax years beginning after December 31, 2025.

This bill allows Pennsylvania cities to levy an annual property tax of up to one-tenth of a cent (0.5 mill) specifically to fund local ambulance, rescue, and emergency services. Cities may use up to half the revenue from this tax for staff salaries and benefits, with council approval required to exceed this limit (though a resolution can waive the cap). If a city proposes a tax rate above 0.5 mill, it must submit the question to voters at the next municipal election occurring at least 60 days after the proposal. The law directly affects cities seeking to finance emergency services through property tax without voter approval for rates at or below 0.5 mill.