PRIOR PRINTER'S NO. 2482
PRINTER'S NO. 2520
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2137
Session of
2021
INTRODUCED BY WENTLING, PEIFER, MIZGORSKI, HILL-EVANS,
LONGIETTI, ROZZI, BROOKS, RYAN, R. MACKENZIE, BERNSTINE,
MALAGARI, CIRESI, JAMES, PENNYCUICK, QUINN, MERSKI AND
WEBSTER, DECEMBER 7, 2021
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, DECEMBER 14, 2021
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in personal income tax, further providing for
classes of income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a subsection to read:
Section 303. Classes of Income.--* * *
(a.11) Any amount of principal and interest canceled by the
United States Secretary of Education under section 455(m) of the
Higher Education Act of 1965 (Public Law 89-329, 20 U.S.C. ยง
1087e(m)) shall be excluded from income under this article.
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(A.11) THE FOLLOWING SHALL NOT BE SUBJECT TO TAX UNDER THIS
ARTICLE:
(1) ANY AMOUNT OF PRINCIPAL AND INTEREST CANCELED BY THE
UNITED STATES SECRETARY OF EDUCATION UNDER SECTION 455(M) OF THE
HIGHER EDUCATION ACT OF 1965 (PUBLIC LAW 89-329, 20 U.S.C.
1087E(M)).
(2) ANY AMOUNT OF PRINCIPAL AND INTEREST EXCLUDED AS GROSS
INCOME BY REASON OF DISCHARGE DURING THE EXCLUSIONARY PERIOD
UNDER SECTION 108(F)(5) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED BY SECTION 9675 OF SUBTITLE G OF TITLE IX OF THE
AMERICAN RESCUE PLAN ACT OF 2021 (PUBLIC LAW 117-2, 135 STAT.
4). FOR THE PURPOSES OF THIS CLAUSE, THE PHRASE "EXCLUSION
PERIOD" MEANS THE PERIOD OF TIME AFTER DECEMBER 31, 2020, AND
BEFORE JANUARY 1, 2026.
* * *
Section 2. The addition of section 303(a.11) of the act
shall apply to taxable years beginning after December 31, 2020.
Section 3. This act shall take effect immediately.
20210HB2137PN2520 - 2 -
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