Pennsylvania SB 253: 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 income taxes imposed by other states.

Bill Text

PRINTER'S NO. 204
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 253
Session of
2025
INTRODUCED BY MASTRIANO, FONTANA, SCHWANK, CULVER, PENNYCUICK,
BOSCOLA, COSTA AND VOGEL, FEBRUARY 13, 2025
REFERRED TO FINANCE, FEBRUARY 13, 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 personal income tax, further providing for
income taxes imposed by other states.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 314 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 314. Income Taxes Imposed by Other States.--(a) A
resident taxpayer before allowance of any credit under section
312 shall be allowed a credit against the tax otherwise due
under this article for the amount of any income tax, wage tax or
tax on or measured by gross or net earned or unearned income
imposed on him or on a Pennsylvania S corporation, limited
liability company or partnership in which he is a direct or
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indirect shareholder or partner, to the extent [of his pro rata
share thereof determined in accordance with section 307.9,] that
the tax was imposed on the taxpayer's distributive share or
other share thereof by another state with respect to income
which is also subject to tax under this article. For purposes of
this subsection, the term "state" shall only include a state of
the United States, the District of Columbia, the Commonwealth of
Puerto Rico and any territory or possession of the United
States.
(b) The credit provided under this section shall not exceed
the proportion of the tax otherwise due under this article that
the amount of the taxpayer's income subject to tax by the other
jurisdiction bears to his entire taxable income.
(c) In lieu of submitting a copy of each State return in
which a tax liability is reported and tax is paid, a member,
partner, shareholder, partnership or Pennsylvania S corporation
may provide a certified statement that reflects each member's,
partner's or shareholder's share of taxable income, amount of
State income tax paid and other information that the department
requires.
Section 2. The amendment or addition of section 314(a) and
(c) shall apply to taxable years beginning after December 31,
2021.
Section 3. This act shall take effect immediately.
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