SB 100 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in inheritance tax, further providing for expenses.

PRINTER'S NO.   776

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 100
                                               Session of
                                                 2025

     INTRODUCED BY BROOKS, LAUGHLIN, ROTHMAN, FONTANA, BROWN, BAKER,
        COSTA, STEFANO, J. WARD, FARRY AND MASTRIANO, MAY 12, 2025

     REFERRED TO FINANCE, MAY 12, 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 inheritance tax, further providing for
11      expenses.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 2127 of the act of March 4, 1971 (P.L.6,
15   No.2), known as the Tax Reform Code of 1971, is amended to read:
16      Section 2127.    Expenses.--The following expenses may be
17   deducted from the value of the property transferred:
18      (1)   Administration expenses. All reasonable expenses of
19   administration of the decedent's estate and of the assets
20   includable in the decedent's taxable estate are deductible.
21      (2)   Bequest to fiduciary or attorney in lieu of fees. A
22   transfer to an executor, trustee or attorney in lieu of
 1   compensation for services is deductible to the extent it does
 2   not exceed reasonable compensation for the services to be
 3   performed.
 4      (3)   Family exemption. The family exemption is deductible.
 5   For purposes of this article, a family exemption not exceeding
 6   one hundred thousand dollars ($100,000) may be deducted from the
 7   value of the property transferred if the exemption is claimed by
 8   a member of the same family.
 9      (4)   Funeral and burial expenses. Reasonable and customary
10   funeral expenses, including the cost of a family burial lot or
11   other resting place, are deductible.
12      (5)   Tombstones and gravemarkers. Reasonable and customary
13   expenses for the purchase and erection of a monument, gravestone
14   or marker on decedent's burial lot or final resting place are
15   deductible.
16      (6)   Burial trusts or contracts. Bequests or devises in
17   trust, or funds placed in trust after decedent's death or funds
18   paid under a contract after decedent's death, in reasonable
19   amounts, to the extent that the funds or income from the funds
20   is to be applied to the care and preservation of the family
21   burial lot or other final resting place in which the decedent is
22   buried or the remains of the decedent repose and the structure
23   on the burial lot or other final resting place, are deductible.
24      (7)   Bequests for religious services. Bequests in reasonable
25   amounts for the performance or celebration of religious rites,
26   rituals, services or ceremonies, in consequence of the death of
27   the decedent, shall be deductible.
28      Section 2.   The amendment of section 2127 of the act shall
29   apply to the value of property transferred after June 30, 2024.
30      Section 3.   This act shall take effect immediately.

20250SB0100PN0776                   - 2 -