Pennsylvania SB 392: 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. 338
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 392
Session of
2025
INTRODUCED BY BOSCOLA, MARCH 6, 2025
REFERRED TO FINANCE, MARCH 6, 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
classes of income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303 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 303. Classes of Income.--* * *
(a.13) (1) An amount paid as real property taxes that
exceeds the amount of the deduction for real property taxes
permitted under 26 U.S.C. § 164(b)(6)(B) (relating to taxes)
shall be deductible from taxable income on the annual personal
income tax return. The deduction shall not result in taxable
income being less than zero.
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(2) For purposes of this subsection:
(i) The term "homestead" means the owner-occupied, primary
residence and the parcel of land within this Commonwealth on
which the residence is located and other improvements located on
the parcel. If a portion of the structure is used for a
nonresidential purpose, the homestead is equal to that portion
of the property used as the primary residence of the owner-
occupant.
(ii) The term "real property tax" means the total real
property tax imposed by a school district on a homestead for the
tax year. Real property tax imposed by a city of the first class
shall constitute taxes imposed by a school district for the
purposes of this definition. The term does not include payments
made in lieu of taxes or any penalties or interest paid in
connection with the tax.
(iii) The term "residence" means a structure used as a place
of habitation by the owner of the structure.
* * *
Section 2. The addition of section 303(a.13) of the act
shall apply to taxable years beginning after December 31, 2025.
Section 3. This act shall take effect immediately.
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