HB 842 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in realty transfer tax, providing for deductions.

PRINTER'S NO.   872

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 842
                                                Session of
                                                  2025

     INTRODUCED BY WEBSTER, GIRAL, SANCHEZ, HILL-EVANS, MADDEN,
        CERRATO, MALAGARI AND SHUSTERMAN, MARCH 10, 2025

     REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
        MARCH 10, 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 realty transfer tax, providing for deductions.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.    The act of March 4, 1971 (P.L.6, No.2), known as
14   the Tax Reform Code of 1971, is amended by adding a section to
15   read:
16      Section 1102-C.7.    Deductions.--(a)   For taxable years
17   beginning after December 31, 2025, if there is a transfer of
18   residential property to a buyer collecting Supplemental Security
19   Income benefits or with a household income not greater than 215%
20   of the Federal poverty level, an amount equal to the tax paid at
21   the time of transfer shall be deductible from the taxable income
 1   of the buyer.
 2      (b)    For taxable years beginning after December 31, 2025, if
 3   there is a transfer of residential property to a buyer for use
 4   as a primary residence for a purchase price not greater than 80%
 5   of the median purchase price of a residential property in the
 6   county in which the transfer is completed, an amount equal to
 7   the tax paid at the time of transfer shall be deductible from
 8   the taxable income of the buyer and the taxable income of the
 9   seller.
10      (c)    For the purpose of establishing the median purchase
11   price of a residential property, each county office of the
12   recorder of deeds shall submit to the department no later than
13   January 31, 2026, and each January 31 thereafter, documentation
14   establishing the median purchase price of a residential property
15   for the preceding calendar year.
16      (d)    If the deduction allowed under this section is greater
17   than the amount of tax due, no refund or carryover credit shall
18   be allowed.
19      Section 2.   This act shall take effect in 60 days.




20250HB0842PN0872                   - 2 -