Pennsylvania legislation · 2025-2026 Regular Session
Pennsylvania HB1586: 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 tax paid on overtime wages.
Status: In committee, June 10, 2025
What the bill says
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, providing for tax paid on overtime wages.
From the introduced text, June 10, 2025:
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, providing for tax paid on overtime wages. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. The act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended by adding a section to read: Section 314.1. Tax Paid on Overtime Wages.--(a) A taxpayer shall be entitled to a tax credit against the tax otherwise due under this article equal to the amount of income which is in the form of overtime wages multiplied by the tax rate under section 302. (b) A taxpayer shall calculate the amount of taxes paid on any overtime wages using the information furnished by the employer pursuant to 34 Pa. Code § 231.36 (relating to statement to employee). (c) The tax credit shall be equal to one hundred per cent of any taxes paid pursuant to this article on overtime wages. If a taxpayer has received any tax …