Pennsylvania HB 256: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in inheritance tax, further providing for transfers not subject to tax.

Bill Text

PRINTER'S NO. 202
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 256
Session of
2025
INTRODUCED BY SCIALABBA, GREINER, LEADBETER, MARCELL, HAMM,
ROAE, ROWE AND KOZAK, JANUARY 22, 2025
REFERRED TO COMMITTEE ON FINANCE, JANUARY 22, 2025
AN ACT
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 inheritance tax, further providing for
transfers not subject to tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2111 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a subsection to read:
Section 2111. Transfers Not Subject to Tax.--* * *
(v) The transfer of ownership of amounts in a qualified
tuition program to the designated beneficiary or, in the case of
a designated beneficiary who is under 18 years of age, the
parent or guardian of the designated beneficiary. For the
purposes of this subsection:
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(1) The term "qualified tuition program" shall have the same
meaning as provided in section 529(b)(1) of the Internal Revenue
Code of 1986, as amended.
(2) The term "designated beneficiary" shall have the same
meaning as provided in section 529(e)(1) of the Internal Revenue
Code of 1986, as amended.
Section 2. This act shall apply to estates of decedents
dying after November 6, 2023.
Section 3. This act shall take effect immediately.
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