Bill

Bill > HB1177


PA HB1177

PA HB1177
In personal income tax, further providing for classes of income.


summary

Introduced
04/09/2025
In Committee
04/09/2025
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 modify the definition of compensation for personal income tax purposes. Specifically, the bill clarifies the types of income that are considered compensation, including salaries, wages, commissions, bonuses, incentive payments, fees, tips, and similar remuneration received for services rendered, whether paid directly or through an agent and whether in cash or property. The bill maintains existing exemptions for certain types of government-related income, such as active military duty outside Pennsylvania, service with the U.S. Public Health Service or National Oceanic and Atmospheric Administration, and emergency State duty. These exemptions ensure that specific types of government service compensation are not subject to Pennsylvania state income tax. The bill will take effect 60 days after its enactment, providing a standard transition period for implementation of the tax code modification.

Committee Categories

Budget and Finance

Sponsors (15)

Last Action

Referred to Finance (on 04/09/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...