This bill amends the Tax Reform Code of 1971 by adding a new subsection to Section 402, which addresses the imposition of corporate net income tax. The new language specifies that certain privileges related to the tax do not include work performed by employees of a corporation who are residents of Pennsylvania but primarily work in another state or the District of Columbia, provided they work remotely in Pennsylvania for less than fifty percent of their normal working hours annually. Additionally, the bill clarifies that this new provision does not affect a taxpayer's right to income apportionment as outlined in a previous section of the code.

Furthermore, the bill abrogates a regulation at 61 Pa. Code 153.23(b) to the extent that it is inconsistent with the new provisions. The changes will take effect for tax years beginning after December 31, 2023, and the act is set to take effect immediately upon passage.

Statutes/Laws affected:
Printer's No. 1412 (Jan 30, 2026): P.L.6, No.2