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 withdrawals from certain accounts.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill amends Pennsylvania’s tax code to exempt certain early withdrawals from personal income tax. Specifically, it allows for exemptions related to the birth or adoption of a child, and for first-time homebuyers. Individuals can withdraw up to $5,000 per child or $10,000 for adoption expenses, and first-time homebuyers can withdraw up to $10,000. The changes will take effect on January 1, 2027.
Key provisions
- Exempts withdrawals related to the birth or adoption of a child from personal income tax.
- Exempts withdrawals for first-time homebuyers up to $10,000.
- Allows withdrawals of up to $5,000 per child for adoption expenses.
- Allows withdrawals of up to $10,000 for adoption expenses when both parents withdraw.
- The changes will apply to tax years beginning on or after January 1, 2027.
Who is affected
- Pennsylvania residents
- Parents who have recently had a child or adopted a child
- First-time homebuyers in Pennsylvania
Notable changes
- Introduces exemptions for early withdrawals related to childbirth and adoption.
- Creates a specific exemption for first-time homebuyers.
- Aligns with current federal tax exemptions for similar withdrawals.
Bill text
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Document of record
- Version
- Pn 3398 Html
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
9 on record
Primary sponsor
Cosponsors
Benjamin Sanchez
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