summary
Introduced
07/23/2025
07/23/2025
In Committee
07/23/2025
07/23/2025
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 definitions.
AI Summary
This bill amends the definition of "compensation" in the Pennsylvania Tax Reform Code by adding Medicaid waiver payments to the list of payments that are not considered taxable compensation. Specifically, the bill modifies section 301(d) of the existing law to include Medicaid waiver payments alongside other public assistance and social safety net benefits like the Supplemental Nutrition Assistance Program, Women, Infants, and Children program, Temporary Assistance for Needy Families, Children's Health Insurance Program, Pell Grants, and Head Start. This means that Medicaid waiver payments, which are typically made to help individuals with disabilities or chronic conditions receive care in their homes or communities instead of in institutional settings, will be excluded from an individual's taxable income. The bill will take effect 60 days after its enactment, providing clarity for taxpayers and tax administrators about the treatment of these specific types of payments in Pennsylvania's personal income tax calculations.
Committee Categories
Budget and Finance
Sponsors (9)
Greg Scott (D)*,
Gina Curry (D),
José Giral (D),
Roni Green (D),
Carol Hill-Evans (D),
Jeanne McNeill (D),
Nikki Rivera (D),
Ben Sanchez (D),
Dan Williams (D),
Last Action
Referred to Finance (on 07/23/2025)
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