Bill
Bill > HB813
summary
Introduced
03/05/2025
03/05/2025
In Committee
05/12/2025
05/12/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in personal income tax, further providing for classes of income.
AI Summary
This bill amends the Tax Reform Code of 1971 to create new tax exemptions for specific types of income related to student loans. Specifically, the bill provides that income from two sources will not be subject to state personal income tax: (1) the discharge of an eligible student loan under a qualified loan forgiveness program, and (2) employer-provided educational assistance that is excludable under federal tax law (specifically section 127 of the Internal Revenue Code). The bill defines "eligible student loans" as those issued under federal student assistance guidelines and "qualified loan forgiveness programs" as those established by the Department of Education's Office of Postsecondary Education. These tax exemptions will apply to taxable years beginning after December 31, 2025, which means Pennsylvania residents will be able to exclude these types of income from their state tax returns starting in the 2026 tax year. The bill aims to provide financial relief to individuals with student loans and those receiving educational assistance from their employers by reducing their state tax liability.
Committee Categories
Budget and Finance, Education
Sponsors (33)
Jenn O'Mara (D)*,
Anthony Bellmon (D),
Heather Boyd (D),
Danilo Burgos (D),
Johanny Cepeda-Freytiz (D),
Morgan Cephas (D),
Missy Cerrato (D),
Joe Ciresi (D),
Gina Curry (D),
Tina Davis (D),
Justin Fleming (D),
Dan Frankel (D),
Bob Freeman (D),
José Giral (D),
Roni Green (D),
Liz Hanbidge (D),
Carol Hill-Evans (D),
Joe Hohenstein (D),
Kristine Howard (D),
Mary Isaacson (D),
Malcolm Kenyatta (D),
Tarik Khan (D),
La'Tasha Mayes (D),
Joe McAndrew (D),
Bob Merski (D),
Danielle Otten (D),
Eddie Pashinski (D),
Chris Pielli (D),
Tarah Probst (D),
Ben Sanchez (D),
Mike Schlossberg (D),
Melissa Shusterman (D),
Ben Waxman (D),
Last Action
Re-referred to Finance (on 05/12/2025)
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