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PA SB653

PA SB653
In personal income tax, further providing for classes of income.


summary

Introduced
04/21/2025
In Committee
04/21/2025
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 allow employees to deduct from their taxable income the amount of expenses related to higher education or career and technical education that are reimbursed by their employer, but only to the extent that such reimbursement is reported as Federal taxable income. This means that if an employer provides educational expense reimbursement that is counted as taxable income at the federal level, the employee can now subtract that same amount from their Pennsylvania state taxable income, effectively reducing their state tax burden. The bill will apply to taxable years beginning after December 31, 2025, and will take effect 60 days after its passage. This change could provide a financial benefit to employees pursuing additional education or technical training by offering a state tax offset for education-related expenses reimbursed by their employers.

Committee Categories

Budget and Finance

Sponsors (12)

Last Action

Referred to Finance (on 04/21/2025)

bill text


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