HB 1306 — 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 definitions and for classes of income.

PRINTER'S NO.   1500

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1306
                                               Session of
                                                 2025

     INTRODUCED BY FLEMING, KERWIN, HILL-EVANS, PIELLI, MARCELL,
        KHAN, CIRESI, SANCHEZ, MADSEN, KUZMA, BOROWSKI, FREEMAN,
        DONAHUE, STENDER, CERRATO, GREEN AND WATRO, APRIL 28, 2025

     REFERRED TO COMMITTEE ON FINANCE, APRIL 28, 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      definitions and for classes of income.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 301 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 definitions to read:
17      Section 301.    Definitions.--Any reference in this article to
18   the Internal Revenue Code of 1986 shall mean the Internal
19   Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.),
20   as amended to January 1, 1997, unless the reference contains the
21   phrase "as amended" and refers to no other date, in which case
22   the reference shall be to the Internal Revenue Code of 1986 as
 1   it exists as of the time of application of this article. The
 2   following words, terms and phrases when used in this article
 3   shall have the meaning ascribed to them in this section except
 4   where the context clearly indicates a different meaning:
 5      * * *
 6      (f.1)   "Eligible volunteer firefighter" means a person who:
 7      (1)   has been approved by the authorities in control of a
 8   duly organized fire company or fire department as an active or
 9   vested volunteer firefighter of the fire company or fire
10   department; and
11      (2)   is actually performing service in the protection of life
12   and property from fire or other emergency, accident or calamity
13   in connection with which the services of the fire company or
14   fire department are required.
15      * * *
16      (s.3)   "Service award" means a benefit payable to an eligible
17   volunteer firefighter.
18      (s.4)   "Service award program" means a volunteer firefighter
19   defined benefit plan or volunteer firefighter defined
20   contribution plan established or maintained by a fire company,
21   fire department or sponsoring municipality.
22      * * *
23      (x)   "Volunteer firefighter defined benefit plan" means a
24   program that provides to eligible volunteer firefighters a
25   benefit that is definitely determinable under the program and
26   without reference to the amount contributed to the program on
27   the participant's behalf or to any income, expenses, gains or
28   losses or forfeitures of other participants under the program.
29      (y)   "Volunteer firefighter defined contribution plan" means
30   a program that provides to eligible volunteer firefighters a

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 1   benefit as the result of definite and determinable contributions
 2   paid to the program and without reference to any income,
 3   expense, gains or losses or forfeitures of other participants
 4   under the program.
 5      Section 2.   Section 303(a)(1) of the act is amended by adding
 6   a subparagraph to read:
 7      Section 303.   Classes of Income.--(a)   The classes of income
 8   referred to above are as follows:
 9      (1)   Compensation.
10      * * *
11      (v)   Contributions by a fire company, fire department or
12   sponsoring municipality to a taxpayer's service award as part of
13   a service award program shall not be considered compensation for
14   purposes of this article.
15      * * *
16      Section 3.   This act shall apply to taxable years commencing
17   on or after January 1, 2025.
18      Section 4.   This act shall take effect in 60 days.




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