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, providing for exemption from tax for early withdrawal from certain accounts.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill amends Pennsylvania’s tax law to exempt certain early withdrawals from personal income tax. Specifically, it allows individuals to exclude withdrawals related to the birth or adoption of a child, first-time homebuyer purchases, and specific amounts withdrawn for each child born or adopted. The goal is to align Pennsylvania’s tax policy with the federal government’s approach to retirement account withdrawals.
Key provisions
- Exempts withdrawals related to the birth or adoption of a child from personal income tax.
- Exempts first-time homebuyer purchases up to $10,000 from personal income tax.
- Allows parents to withdraw up to $5,000 individually for each child born or adopted.
- Allows parents to withdraw up to $10,000 together for each child born or adopted.
- Exempts withdrawals of up to $10,000 for first-time homebuyers.
- The exemption mirrors federal tax policy on retirement account withdrawals.
- The changes apply to tax years beginning on or after January 1, 2027.
Who is affected
- Pennsylvania residents
- Parents of children
- First-time homebuyers
- Retirement account holders
- The Department of Revenue
Notable changes
- Creates an exemption for early withdrawals from certain retirement accounts.
Bill text
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Document of record
- Version
- Pn 1637 Html
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
9 on record
Primary sponsor
Cosponsors
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