This bill amends the Tax Reform Code of 1971, specifically addressing the personal income tax provisions. It establishes that, effective until December 31, 2025, every resident individual, estate, or trust will be subject to a tax rate of three and seven hundredths percent on their income. However, starting January 1, 2026, no personal income tax will be imposed. Additionally, the bill modifies the withholding requirements for employers, stating that from January 1, 2026, they will no longer be required to withhold taxes on employee wages.

Furthermore, the bill revises the requirements for tax returns and the obligations of Pennsylvania S corporations. It stipulates that tax returns must be filed by taxpayers with income for the taxable year, but this requirement will not apply to taxable years beginning on or after December 31, 2025. Similarly, Pennsylvania S corporations will be required to file returns for each taxable year, but this obligation will also cease for taxable years starting on or after December 31, 2025. The bill includes provisions for the repeal of inconsistent acts and regulations, and it is set to take effect immediately.