Bill > HB1537

This bill modifies the definition of "compensation" in Pennsylvania's tax code by removing and adjusting language related to certain income distributions. Specifically, the bill eliminates previous text about distributions under section 409A of the Internal Revenue Code that were attributable to elective income deferrals. Instead, the bill adds a new subsection (xi) that appears to capture similar language about such distributions, ensuring that these specific types of deferred income are not considered part of "compensation" for tax purposes. The bill provides clarity on what types of payments and benefits are excluded from the definition of compensation, such as disability payments, retirement benefits, public assistance, expense reimbursements, and employer-provided benefit programs. The technical changes aim to refine the tax code's definition of compensation, potentially impacting how certain types of income are treated for tax reporting and assessment. The changes will take effect 60 days after the bill's enactment.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1537