Pennsylvania HB 2675: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for classes of income.

Bill Text

PRINTER'S NO. 3717
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2675
Session of
2026
INTRODUCED BY SCOTT, SAMUELSON, VENKAT, HANBIDGE, NEILSON,
RIVERA, SANCHEZ AND KUTZ, JUNE 26, 2026
REFERRED TO COMMITTEE ON FINANCE, JUNE 26, 2026
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 personal income tax, further providing for
classes of income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303(a.7)(2)(i)(B) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
amended July 11, 2024 (P.L.674, No.56), is amended to read:
Section 303. Classes of Income.--(a) The classes of income
referred to above are as follows:
* * *
(a.7) The following apply:
* * *
(2) (i) The following shall not be subject to tax under
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this article:
* * *
(B) Any distribution that is excludable from tax under
section 529 of the Internal Revenue Code of 1986, as amended[.],
including a rollover from a qualified tuition program to a Roth
IRA that is exempt from taxation under section 529(c)(3)(E) of
the Internal Revenue Code of 1986, as amended.
* * *
Section 2. This act shall take effect immediately.
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