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Bill

Bill

HB 1471

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.

2025-2026 Regular Session Introduced by Johanny Cepeda-Freytiz and 10 co-sponsors

HB 1471 revises Pennsylvania income tax rules governing how residents' out-of-state tax obligations are treated, potentially affecting interstate worker tax burden.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 1471

Legislative bill overview

HB 1471 modifies Pennsylvania's Tax Reform Code of 1971 to adjust how the state handles income taxes imposed by other states on Pennsylvania residents. The bill specifically amends provisions related to personal income tax treatment of out-of-state tax obligations. The exact nature of the amendment is not detailed in the bill summary provided, but it targets the interaction between Pennsylvania's tax code and other states' tax claims.

Why is this important

Pennsylvania residents who work in or receive income from other states may face double taxation or complex tax filing requirements. How Pennsylvania credits or accounts for out-of-state taxes directly affects take-home pay for interstate workers and the competitiveness of Pennsylvania's tax environment. This amendment could provide relief, create complications, or shift tax burden depending on its specific provisions.

Potential points of contention

  • Interstate tax equity: Changes could advantage some workers (those in neighboring high-tax states) while disadvantaging others, raising fairness questions
  • Revenue impact: Modifying out-of-state tax treatment could reduce Pennsylvania's tax revenue if it increases credits/deductions for residents paying other states' taxes
  • Complexity for taxpayers: Any changes to how out-of-state taxes are calculated or reported may require costly accounting adjustments or create compliance confusion

Compiled from official sources — confirm details with the bill’s official record.

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