Pennsylvania legislation · 2025-2026 Regular Session
Pennsylvania HB2675: 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.
Status: In committee, June 26, 2026
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, further providing for classes of income.
From the introduced text, June 26, 2026:
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(a.7)(2)(i)(B) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended July 11, 2024 (P.L.674, No.56), is amended to read: Section 303. Classes of Income.--(a) The classes of income referred to above are as follows: * * * (a.7) The following apply: * * * (2) (i) The following shall not be subject to tax under this article: * * * (B) Any distribution that is excludable from tax under section 529 of the Internal Revenue Code of 1986, as amended[.], including a rollover from a qualified tuition program to a Roth IRA that is exempt from taxation under section 529(c)(3)(E) of the Internal Revenue Code of 1986, as amended. * * * Section 2. This act shall take effect immediately. 20260HB2675PN3717 - 2 -