SB 1300

                                                PRINTER'S NO.   1637
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                   SENATE BILL
                   No. 1300
                                          Session of
                                            2026
INTRODUCED BY PISCIOTTANO, HAYWOOD, SANTARSIERO, HUGHES,
   PENNYCUICK, FONTANA, COSTA, CAPPELLETTI, VOGEL AND PICOZZI,
   APRIL 23, 2026
REFERRED TO FINANCE, APRIL 23, 2026
                               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, providing for exemption
11    from tax for early withdrawal from certain accounts.
12    The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14    Section 1.    The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding a section to
16 read:
17    Section 304.3.    Exception from tax for early withdrawals from
18 certain accounts.--(a)    The General Assembly finds and declares
19 that the Commonwealth shall exclude certain retirement account
20 withdrawals from personal income tax to mirror the Federal
21 Government's removal of taxation on the certain withdrawals.
22    (b)   In accordance with the current tax exemption by the
1 Federal Government, the following shall be exempt from taxation
2 as personal income in this Commonwealth, to the limits under
3 subsection (c):
4    (1)   Expenses related to the birth or adoption of a child.
5    (2)   The purchase of a house by a first time homebuyer.
6    (c)   The following amounts shall be excluded from tax:
7    (1)   Each parent may withdraw up to five thousand dollars
8 ($5,000) individually for each child born or adopted.
9    (2)   The parents may withdraw up to ten thousand dollars
10 ($10,000) together for each child born or adopted.
11    (3)   Each first time home buyer may withdraw up to ten
12 thousand dollars ($10,000).
13    Section 2.     This act shall apply to tax years beginning on or
14 after January 1, 2027.
15    Section 3.     This act shall take effect in 60 days.
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