An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, providing for exemption from tax for early withdrawals from certain accounts.

Summary

The bill adds a new section to Pennsylvania's personal income tax code that lets parents withdraw up to $5,000 per child (or $10,000 together) for birth or adoption costs without paying state income tax. It also lets first‑time homebuyers withdraw up to $10,000 for a house purchase tax‑free. The changes start with tax years beginning Jan. 1, 2027.

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