HB 2675

                                                    PRINTER'S NO.   3717
                 THE GENERAL ASSEMBLY OF PENNSYLVANIA
                     HOUSE BILL
                     No. 2675
                                              Session of
                                                2026
 INTRODUCED BY SCOTT, SAMUELSON, VENKAT, HANBIDGE, NEILSON,
    RIVERA, SANCHEZ AND KUTZ, JUNE 26, 2026
 REFERRED TO COMMITTEE ON FINANCE, JUNE 26, 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, further providing for
11    classes of income.
12    The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14    Section 1.    Section 303(a.7)(2)(i)(B) of the act of March 4,
15 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
16 amended July 11, 2024 (P.L.674, No.56), is amended to read:
17    Section 303.    Classes of Income.--(a)     The classes of income
18 referred to above are as follows:
19    * * *
20    (a.7)   The following apply:
21    * * *
22    (2)   (i)   The following shall not be subject to tax under
1 this article:
2    * * *
3    (B)   Any distribution that is excludable from tax under
4 section 529 of the Internal Revenue Code of 1986, as amended[.],
5 including a rollover from a qualified tuition program to a Roth
6 IRA that is exempt from taxation under section 529(c)(3)(E) of
7 the Internal Revenue Code of 1986, as amended.
8    * * *
9    Section 2.   This act shall take effect immediately.
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