Pennsylvania SB 100: 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 expenses.

Bill Text

PRINTER'S NO. 776
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 100
Session of
2025
INTRODUCED BY BROOKS, LAUGHLIN, ROTHMAN, FONTANA, BROWN, BAKER,
COSTA, STEFANO, J. WARD, FARRY AND MASTRIANO, MAY 12, 2025
REFERRED TO FINANCE, MAY 12, 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
expenses.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2127 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended to read:
Section 2127. Expenses.--The following expenses may be
deducted from the value of the property transferred:
(1) Administration expenses. All reasonable expenses of
administration of the decedent's estate and of the assets
includable in the decedent's taxable estate are deductible.
(2) Bequest to fiduciary or attorney in lieu of fees. A
transfer to an executor, trustee or attorney in lieu of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

compensation for services is deductible to the extent it does
not exceed reasonable compensation for the services to be
performed.
(3) Family exemption. The family exemption is deductible.
For purposes of this article, a family exemption not exceeding
one hundred thousand dollars ($100,000) may be deducted from the
value of the property transferred if the exemption is claimed by
a member of the same family.
(4) Funeral and burial expenses. Reasonable and customary
funeral expenses, including the cost of a family burial lot or
other resting place, are deductible.
(5) Tombstones and gravemarkers. Reasonable and customary
expenses for the purchase and erection of a monument, gravestone
or marker on decedent's burial lot or final resting place are
deductible.
(6) Burial trusts or contracts. Bequests or devises in
trust, or funds placed in trust after decedent's death or funds
paid under a contract after decedent's death, in reasonable
amounts, to the extent that the funds or income from the funds
is to be applied to the care and preservation of the family
burial lot or other final resting place in which the decedent is
buried or the remains of the decedent repose and the structure
on the burial lot or other final resting place, are deductible.
(7) Bequests for religious services. Bequests in reasonable
amounts for the performance or celebration of religious rites,
rituals, services or ceremonies, in consequence of the death of
the decedent, shall be deductible.
Section 2. The amendment of section 2127 of the act shall
apply to the value of property transferred after June 30, 2024.
Section 3. This act shall take effect immediately.
20250SB0100PN0776 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30