PRINTER'S NO. 1450
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1082
Session of
2022
INTRODUCED BY SCAVELLO, PITTMAN, KEARNEY, SCHWANK, MASTRIANO AND
YUDICHAK, FEBRUARY 28, 2022
REFERRED TO FINANCE, FEBRUARY 28, 2022
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, providing for alternative
special tax provisions for poverty.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding a section to
read:
Section 304.3. Alternative Special Tax Provisions for
Poverty.--(a) Pursuant to section 2(b)(ii) of Article VIII of
the Constitution of Pennsylvania, which provides for
establishing as a class or classes of subjects of taxation the
property or privileges of persons who, because of poverty, are
determined to be in need of special tax provisions, the General
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Assembly hereby declares its intent and purpose to exercise its
power pursuant to that section by enacting the alternative tax
provisions of this section.
(b) Having determined that there are certain persons in this
Commonwealth whose incomes are such that imposition of an income
tax would deprive them and their dependents of bare necessities
of life, and having determined that poverty is a relative
concept inextricably joined with actual income and the number of
people dependent upon such income, the General Assembly deems it
to be a matter of public policy to provide special tax
provisions for that class of persons to relieve their economic
burden.
(c) An individual having one or more dependents shall be
entitled to a refund or forgiveness of any money which has been
paid over to, or would except for the provisions of this section
be payable to, the Commonwealth under the provisions of this
article may claim a refund as follows:
(1) For taxable years beginning after December 31, 2022, in
the amount by which ten per cent of the earned income credit
allowable under section 32 of the Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. ยง 32), as amended, exceeds the tax
imposed under this article for the taxable year.
(2) For taxable years beginning after December 31, 2025, in
the amount by which fifteen per cent of the earned income credit
allowable under section 32 of the Internal Revenue Code of 1986,
as amended, exceeds the tax imposed under this article for the
taxable year.
(3) For taxable years beginning after December 31, 2028, in
the amount by which twenty per cent of the earned income credit
allowable under section 32 of the Internal Revenue Code of 1986,
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as amended, exceeds the tax imposed under this article for the
taxable year.
(4) For taxable years beginning after December 31, 2031, in
the amount by which twenty-five per cent of the earned income
credit allowable under section 32 of the Internal Revenue Code
of 1986, as amended, exceeds the tax imposed under this article
for the taxable year.
(d) An individual eligible for the special tax provisions
for poverty in section 304 may claim a refund under subsection
(c) in lieu of utilizing the special tax provisions for poverty.
(e) For spouses who file separate Federal tax returns, the
credit allowed under this section may only be used by the spouse
with the greater tax otherwise due, computed without regard to
this credit.
Section 2. This act shall take effect immediately.
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