Bill > HB1287

This bill amends the Tax Reform Code of 1971 to increase the income thresholds for special tax provisions aimed at individuals and families living in poverty. Specifically, the bill raises the individual poverty income limit from $6,500 to $10,000, and the joint poverty income limit for married couples from $13,000 to $20,000. Additionally, the bill introduces an annual cost-of-living adjustment mechanism that will automatically increase these poverty income amounts based on the Consumer Price Index for All Urban Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware, and Maryland area. The adjustment will be calculated annually and can only result in increases, not decreases, to the income thresholds. Claimants are still entitled to an additional income allowance of $9,500 for each dependent, and the definition of a married claimant remains the same, requiring separate tax returns and living apart for at least six months of the tax year or being separated by a written agreement. The bill will take effect 60 days after its enactment, providing relief for low-income individuals and families by expanding eligibility for tax provisions designed to alleviate poverty.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1287