Pennsylvania SB 1153: 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. 1412
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1153
Session of
2026
INTRODUCED BY PHILLIPS-HILL, KEEFER, VOGEL, STEFANO AND CULVER,
JANUARY 30, 2026
REFERRED TO FINANCE, JANUARY 30, 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 corporate net income tax, further providing
for imposition of tax; and abrogating a regulation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 402 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 402. Imposition of Tax.--* * *
(d) (1) The privileges described in subsection (a)(1) and
(2) do not include work performed by employes of the
corporation:
(i) who are residents of this Commonwealth;
(ii) whose primary work location for the corporation, within
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the meaning of 61 Pa. Code Ch. 153 (relating to corporate net
income tax), is in another state or the District of Columbia;
and
(iii) who work remotely in this Commonwealth less than fifty
per cent of their normal working hours on an annual basis.
(2) Nothing in this subsection shall be construed to affect
the right of a taxpayer to apportionment of income as provided
in section 401(3)2(a)(3).
Section 2. The regulation at 61 Pa. Code § 153.23(b) is
abrogated to the extent of any inconsistency with this act.
Section 3. This act shall apply to tax years beginning after
December 31, 2023.
Section 4. This act shall take effect immediately.
20260SB1153PN1412 - 2 -
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