This bill amends the Tax Reform Code of 1971 by adding a new subsection to Section 303, which outlines specific classes of income that will not be subject to personal income tax. The new provisions include exemptions for the discharge of eligible student loans under qualified loan forgiveness programs and for amounts paid by employers for educational assistance that are excludable under federal tax law. The definitions of "eligible student loan" and "qualified loan forgiveness program" are also provided to clarify the terms used in the new subsection.

The changes introduced by this bill will take effect for taxable years beginning after December 31, 2025. This legislation aims to alleviate the tax burden on individuals benefiting from student loan forgiveness and educational assistance, thereby promoting educational opportunities and financial relief for borrowers in Pennsylvania.

Statutes/Laws affected:
Printer's No. 843 (Mar 05, 2025): P.L.6, No.2
Printer's No. 0843: P.L.6, No.2