Budget & Taxes (Income Tax)

in committee · Pennsylvania · House Jul 16, 2026

HB 2706: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, establishing the Pennsylvania Child and Dependent Care Enhancement Tax Credit Program; and making a repeal.

This bill establishes a new Pennsylvania tax credit program designed to help residents who pay for child and dependent care. It allows eligible taxpayers to claim a state tax credit based on the amount they already claim for the same expenses on their federal tax returns. The credit rate changes over time, starting at 30% for tax years ending before 2023, increasing to 100% for years between 2023 and 2026, and returning to 100% for years after 2026. The maximum credit is calculated on up to $3,000 of expenses for one child or $6,000 for two or more children.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes a tax credit for child and dependent care expenses, providing tax relief to residents and supporting families.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Pennsylvania · House Jun 26, 2026

HB 2675: 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 classes of income.

This bill amends Pennsylvania's personal income tax code to clarify that certain educational savings distributions are not taxable. Specifically, it ensures that withdrawals from qualified tuition programs rolled over into a Roth IRA remain exempt from state taxation, aligning state rules with federal tax exemptions. The change directly affects Pennsylvania residents who utilize these specific financial vehicles for education savings. By updating the Tax Reform Code, the legislation provides clear guidance on which income classes are excluded from state tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill clarifies tax exemptions for educational savings, promoting fiscal responsibility and reducing tax burden on families using qualified financial vehicles.90% confidence ✓ EducationSupports EducationBill exempts educational savings distributions from state tax, increasing access to education funding for families.85% confidence

Sub-Topics Income Tax Higher Education

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in committee · Pennsylvania · House Apr 9, 2026

HB 2370: 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 imposition of tax and for requirement of withholding tax.

This bill amends Pennsylvania's personal income tax law to establish a temporary lower tax rate of 2.99% for six months starting in 2026, before reverting to the standard rate of 3.07%. It applies this reduced rate to income earned by residents and nonresidents from sources within the state. Additionally, the legislation requires employers to withhold taxes from employee paychecks in a way that accounts for this temporary rate change. The changes are set to take effect on July 1, 2026, or later if the law is not signed into effect sooner.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides temporary tax relief by lowering the personal income tax rate, aligning with support indicators for tax reduction.95% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate May 7, 2026

SB 1319: 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 and providing for physical health improvement tax credit.

This Pennsylvania bill creates a new tax credit for residents who spend money on physical health improvements, such as gym memberships and in-person exercise classes. To qualify, taxpayers must have a household income at or below 300% of the federal poverty limit, with a maximum credit of $500 for individuals or $1,000 for married couples filing jointly. The credit is non-refundable, meaning it can only reduce tax owed to zero and cannot result in a refund, and it specifically excludes costs for books, virtual training, or personal trainers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit for low-income residents, providing tax relief and financial support for health improvements.95% confidence ✓ HealthcareSupports HealthcareBill creates a tax credit to incentivize physical health improvements, directly advancing public health goals.90% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Pennsylvania · House May 13, 2026

HB 2511: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by exempting specific early withdrawals from personal income tax, aligning with fiscal relief indicators.85% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate May 7, 2026

SB 1320: 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 and providing for youth sport participation cost tax credit.

Pennsylvania Senate Bill 1320 creates a new tax credit to help residents offset costs for youth sports programs. The bill defines eligible expenses as fees, equipment, and travel for non-professional sports activities attended by students from kindergarten through age 21. Parents, guardians, or grandparents can claim a credit against their state income tax if their household income is at or below 300% of the federal poverty level. The maximum credit is $1,500 for individual filers and $3,000 for joint filers, and the credit cannot be refunded or carried over to other tax years.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit for youth sports, providing financial relief to low-to-moderate income households.95% confidence ✓ EducationSupports EducationBill provides tax credits to offset youth sports costs, expanding extracurricular access for K-12 students and supporting student programs.75% confidence

Sub-Topics Income Tax Tax Credits K-12 Education

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in committee · Pennsylvania · Senate May 1, 2026

SB 1314: 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 imposition of tax.

SB 1314 amends Pennsylvania's personal income tax law to increase tax rates for taxable years beginning after December 31, 2025. The bill raises the tax rate for residents from 3.7% to 9.7% and for nonresidents earning income from Pennsylvania sources from 3.7% to 9.7%. It also clarifies that income earned by certain trusts is taxable to the grantor rather than the trust itself. These changes directly affect Pennsylvania residents, nonresidents with Pennsylvania income, and individuals who establish or manage trusts.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill increases personal income tax rates from 3.7% to 9.7%, directly raising the tax burden on residents and nonresidents.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · House May 27, 2026

HB 2536: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for direct support professionals tax credit.

This bill creates a new tax credit for individuals employed as direct support professionals who assist people with developmental or intellectual disabilities. To qualify, workers must have an adjusted gross income of less than $100,000 and can claim a credit of up to $1,000 against their state taxes, with any unused portion refunded as cash. The program is limited to a total of $2 million per fiscal year and will be available from 2026 through 2030.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a tax credit for direct support professionals, providing tax relief and funding for essential disability services.90% confidence ✓ HealthcareSupports HealthcareBill provides tax credits to direct support professionals, strengthening the workforce that assists individuals with disabilities in healthcare and social services.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates a tax credit for direct support professionals, providing financial benefits to workers in this sector.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Pennsylvania · Senate Apr 23, 2026

SB 1300: 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 withdrawal from certain accounts.

This Pennsylvania bill, SB 1300, amends the state's personal income tax code to allow tax-free withdrawals from certain retirement accounts for specific life events. It directly affects Pennsylvania residents who hold these accounts and plan to access funds for a child's birth or adoption or to purchase a first-time home. Under the new provisions, parents may withdraw up to $5,000 individually or $10,000 combined per child, while first-time homebuyers can withdraw up to $10,000. The legislation aligns state tax treatment with federal exemptions for these categories of early withdrawals. These tax exemptions will apply to tax years beginning on or after January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing tax-free withdrawals for specific life events, directly advancing the tax topic area.90% confidence ✓ HousingSupports HousingBill allows tax-free withdrawals for first-time home purchases, providing financial assistance that supports housing acquisition.75% confidence

Sub-Topics Income Tax

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in committee · Pennsylvania · Senate Jun 9, 2026

SB 1299: An Act providing for a tax credit for retrofitting residential high-rise structures with an automatic fire sprinkler system and associated monitoring or detection devices.

This Pennsylvania legislation establishes a tax credit for owners of residential high-rise buildings located in major cities. The credit is designed to offset the costs of installing or upgrading automatic fire sprinkler systems and associated monitoring equipment within these structures. Owners may receive a credit equal to the amount spent on the retrofitting or up to 100% of their income tax liability, whichever is less. The Office of the Mayor in the respective city will administer the program and determine which buildings qualify as high-rise structures. The tax credit becomes available for tax years beginning after December 31, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a tax credit to offset retrofitting costs, offering direct tax relief and fiscal incentives for property owners.90% confidence ✓ HousingSupports HousingBill funds safety retrofits for high-rise housing, protecting tenant safety and preserving existing housing stock.85% confidence

Sub-Topics Income Tax Tax Credits Property Taxes

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