HB 1287 — 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 special tax provisions for poverty.

PRINTER'S NO.    1463

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1287
                                               Session of
                                                 2025

     INTRODUCED BY CEPEDA-FREYTIZ, D. MILLER, VENKAT, GIRAL,
        SCHLOSSBERG, SANCHEZ, KHAN, HILL-EVANS, MERSKI, CIRESI,
        FREEMAN, OTTEN, HOHENSTEIN, STEELE, CERRATO, WAXMAN,
        KENYATTA, FIEDLER, PROBST, PARKER AND GREEN, APRIL 22, 2025

     REFERRED TO COMMITTEE ON FINANCE, APRIL 22, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in personal income tax, further providing for
11      special tax provisions for poverty.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 304(d)(1) of the act of March 4, 1971
15   (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
16   and the subsection is amended by adding a clause to read:
17      Section 304.    Special Tax Provisions for Poverty.--* * *
18      (d)   Any claim for special tax provisions hereunder shall be
19   determined in accordance with the following:
20      (1)   If the poverty income of the claimant during an entire
21   taxable year is [six thousand five hundred dollars ($6,500)] ten
 1   thousand dollars ($10,000) or less, or, in the case of a married
 2   claimant, if the joint poverty income of the claimant and the
 3   claimant's spouse during an entire taxable year is [thirteen
 4   thousand dollars ($13,000)] twenty thousand dollars ($20,000) or
 5   less, the claimant shall be entitled to a refund or forgiveness
 6   of any moneys which have been paid over to (or would except for
 7   the provisions of this act be payable to) the Commonwealth under
 8   the provisions of this article, with an additional income
 9   allowance of nine thousand five hundred dollars ($9,500) for
10   each dependent of the claimant. For purposes of this subsection,
11   a claimant shall not be considered to be married if:
12      (i)    The claimant and the claimant's spouse file separate
13   returns; and
14      (ii)    The claimant and the claimant's spouse live apart at
15   all times during the last six months of the taxable year or are
16   separated pursuant to a written separation agreement.
17      * * *
18      (4)    For the tax year immediately following the effective
19   date of this clause and for every tax year thereafter, the
20   poverty income amounts under clause (1) for a claimant and for a
21   claimant and the claimant's spouse shall be increased by an
22   annual cost-of-living adjustment calculated by applying the
23   percentage change in the Consumer Price Index for All Urban
24   Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware and
25   Maryland area, for the most recent twelve-month period for which
26   figures have been officially reported by the United States
27   Department of Labor, Bureau of Labor Statistics immediately
28   prior to the date the adjustment is due to take effect, to the
29   then current poverty income amounts for a claimant and for a
30   claimant and the claimant's spouse. The department shall

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 1   determine the percentage increase and the new poverty income
 2   amounts for a claimant and for a claimant and the claimant's
 3   spouse prior to the annual effective date of the adjustment and
 4   shall transmit notice to the Legislative Reference Bureau for
 5   publication in the next available issue of the Pennsylvania
 6   Bulletin within ten days of the date the determination is made.
 7   The poverty income amounts for a claimant and for a claimant and
 8   the claimant's spouse may not be decreased as a result of a
 9   negative percentage change in the CPI-U for the Pennsylvania,
10   New Jersey, Delaware and Maryland area.
11      Section 2.   This act shall take effect in 60 days.




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