HB 422 — 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.

PRINTER'S NO.    398

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 422
                                               Session of
                                                 2025

     INTRODUCED BY HADDOCK, VENKAT, GIRAL, PROBST, FREEMAN, SANCHEZ,
        SAMUELSON, KENYATTA, DONAHUE, BURGOS, HILL-EVANS, CIRESI,
        STEELE, SCHLOSSBERG, SHUSTERMAN, DEASY, GREEN, CEPEDA-
        FREYTIZ, CERRATO AND WARREN, JANUARY 31, 2025

     REFERRED TO COMMITTEE ON FINANCE, JANUARY 31, 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      classes of income.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 303 of the act of March 4, 1971 (P.L.6,
15   No.2), known as the Tax Reform Code of 1971, is amended by
16   adding a subsection to read:
17      Section 303.    Classes of Income.--* * *
18      (a.13)   The following shall apply:
19      (1)   When calculating taxable income on the annual personal
20   income tax return, a taxpayer may deduct an amount not to exceed
21   twelve thousand dollars ($12,000) if, while living, the taxpayer
 1   or the taxpayer's dependent donates one or more of his or her
 2   human organs to another human being for human organ
 3   transplantation and incurs any of the following unreimbursed
 4   expenses which are related to the organ donation:
 5      (i)    Travel expenses.
 6      (ii)    Lodging expenses.
 7      (iii)    Lost wages.
 8      (iv)    Medical expenses.
 9      (2)    Subject to the restriction under paragraph (1), the
10   taxpayer may only deduct an amount equal to the unreimbursed
11   expenses incurred by the taxpayer under paragraph (1). The
12   deduction may not result in taxable income being less than zero.
13      (3)    A deduction under this subsection may only be claimed in
14   the taxable year in which the human organ transplantation
15   occurred. A taxpayer may claim the deduction under this
16   subsection only one time during the taxpayer's lifetime.
17      (4)    As used in this subsection, the term "human organ" means
18   all or part of a liver, pancreas, kidney, intestine, lung or
19   bone marrow.
20      * * *
21      Section 2.    The addition of section 303(a.13) of the act
22   shall apply to tax years beginning after December 31, 2025.
23      Section 3.    This act shall take effect immediately.




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