SB 253 — 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 income taxes imposed by other states.

PRINTER'S NO.       204

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 253
                                               Session of
                                                 2025

     INTRODUCED BY MASTRIANO, FONTANA, SCHWANK, CULVER, PENNYCUICK,
        BOSCOLA, COSTA AND VOGEL, FEBRUARY 13, 2025

     REFERRED TO FINANCE, FEBRUARY 13, 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      income taxes imposed by other states.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    Section 314 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 314.    Income Taxes Imposed by Other States.--(a)     A
17   resident taxpayer before allowance of any credit under section
18   312 shall be allowed a credit against the tax otherwise due
19   under this article for the amount of any income tax, wage tax or
20   tax on or measured by gross or net earned or unearned income
21   imposed on him or on a Pennsylvania S corporation, limited
22   liability company or partnership in which he is a direct or
 1   indirect shareholder or partner, to the extent [of his pro rata
 2   share thereof determined in accordance with section 307.9,] that
 3   the tax was imposed on the taxpayer's distributive share or
 4   other share thereof by another state with respect to income
 5   which is also subject to tax under this article. For purposes of
 6   this subsection, the term "state" shall only include a state of
 7   the United States, the District of Columbia, the Commonwealth of
 8   Puerto Rico and any territory or possession of the United
 9   States.
10      (b)    The credit provided under this section shall not exceed
11   the proportion of the tax otherwise due under this article that
12   the amount of the taxpayer's income subject to tax by the other
13   jurisdiction bears to his entire taxable income.
14      (c)    In lieu of submitting a copy of each State return in
15   which a tax liability is reported and tax is paid, a member,
16   partner, shareholder, partnership or Pennsylvania S corporation
17   may provide a certified statement that reflects each member's,
18   partner's or shareholder's share of taxable income, amount of
19   State income tax paid and other information that the department
20   requires.
21      Section 2.    The amendment or addition of section 314(a) and
22   (c) shall apply to taxable years beginning after December 31,
23   2021.
24      Section 3.    This act shall take effect immediately.




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