PRINTER'S NO. 3269
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2268
Session of
2020
INTRODUCED BY CEPHAS, HILL-EVANS, ISAACSON, ULLMAN, DAWKINS,
SCHLOSSBERG, FREEMAN, BURGOS, KINSEY, HARRIS, CALTAGIRONE,
READSHAW, OTTEN, MADDEN, MURT, SCHWEYER, A. DAVIS, DeLUCA,
McCLINTON, DEASY, JOHNSON-HARRELL AND DONATUCCI,
FEBRUARY 4, 2020
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 4, 2020
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)(1) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended,
the subsection is amended by adding a paragraph and the section
is amended by adding a subsection to read:
Section 303. Classes of Income.--* * *
(a.7) The following apply:
(1) An amount paid as a contribution into a qualified
tuition program shall be deductible from taxable income on the
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annual personal income tax return. The deduction shall be
allowable to an employer that makes a contribution into a
qualified tuition program for the account of an employe of the
employer. The amount paid as a contribution to a qualified
tuition program allowable as a deduction under this subsection
shall be subject to an annual limitation not to exceed the
threshold for exclusion from gifts as provided in section
2503(b) of the Internal Revenue Code of 1986, as amended, per
designated beneficiary. The deduction shall not result in
taxable income being less than zero.
* * *
(3.1) Notwithstanding any other provision of law to the
contrary, the deduction under this subsection shall apply to any
tax on income levied by a political subdivision.
* * *
(a.10) The following apply:
(1) An amount paid as a contribution into a student loan
account shall be deductible from taxable income on the annual
personal income tax return. The deduction shall be allowable to
an employer that makes a contribution into a student loan
account for an employe of the employer. The amount paid as a
contribution to a student loan account allowable as a deduction
under this subsection shall be subject to an annual limitation
not to exceed the threshold for exclusion from gifts as provided
in section 2503(b) of the Internal Revenue Code of 1986, as
amended, per designated beneficiary. The deduction shall not
result in taxable income being less than zero.
(2) Notwithstanding any other provision of law to the
contrary, the deduction under this subsection shall apply to any
tax on income levied by a political subdivision.
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(3) For purposes of this subsection:
(i) The term "student loan account" means an account into
which may be deposited payments from a borrower, or on behalf of
a borrower, to a lender for the purpose of repaying a loan
approved for postsecondary education expenses incurred by the
borrower.
(ii) The term "qualified tuition program" shall have the
same meaning as provided in section 529(b)(1) of the Internal
Revenue Code of 1986, as amended.
Section 2. This act shall take effect in 60 days.
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