This bill amends the Tax Reform Code of 1971 by adding a new clause to Section 303(a.7)(2)(i) that exempts any compensation received by individual taxpayers under the age of eighteen from being subject to personal income tax. This change aims to alleviate the tax burden on minors who earn income, thereby encouraging financial independence and responsibility among younger individuals.

The new provision will take effect for taxable years beginning after December 31, 2025, allowing time for both taxpayers and the Department of Revenue to adjust to the changes. The bill is designed to promote fairness in the tax system by recognizing the unique circumstances of young earners.