PRINTER'S NO. 2046
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1805
Session of
2021
INTRODUCED BY SIMS, HILL-EVANS, BURGOS, MADDEN, KINKEAD,
SCHLOSSBERG, LEE, KINSEY, D. MILLER, ISAACSON, DELLOSO,
SANCHEZ AND HOWARD, AUGUST 24, 2021
REFERRED TO COMMITTEE ON FINANCE, AUGUST 24, 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(a.7) 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 paragraph to read:
Section 303. Classes of Income.--* * *
(a.7) The following apply:
* * *
(3.1) The following apply regarding a forgiveness of
indebtedness:
(i) A forgiveness of indebtedness for an amount of a covered
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loan granted under section 9675 of Subtitle G of Title IX of the
American Rescue Plan Act of 2021 (Public Law 117-2, 135 Stat.4)
shall not be subject to tax under this article.
(ii) The exclusion provided under this paragraph shall apply
to a forgiveness of indebtedness for an amount of a covered loan
granted after March 27, 2020.
(iii) The exclusion provided under this paragraph shall
expire after December 31, 2025.
* * *
Section 2. The addition of section 303(a.7)(3.1) shall apply
to taxable years beginning after December 31, 2019.
Section 3. This act shall take effect immediately.
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