Loading chat...

PA HB1586

Bill

Official Source

Status

Introduced

6/10/2025

Primary Sponsor

Ryan Warner

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Creates a fully refundable Pennsylvania personal income tax credit equal to 100% of state income taxes paid on overtime wages
  • Defines overtime wages as compensation required to be paid at 1.5 times or more the regular wage rate under Pennsylvania's Minimum Wage Act of 1968
  • Requires taxpayers to calculate the credit using employer-provided wage statements and submit documentation to the Department of Revenue
  • Reduces the credit amount by any tax forgiveness already received under Section 304, and caps the credit at the proportion of tax otherwise due
  • Applies to taxable years beginning after December 31, 2025, with the Department of Revenue incorporating the credit into the standard PA-40 form

Legislative Description

In personal income tax, providing for tax paid on overtime wages.

Last Action

Referred to Finance

6/10/2025

Committee Referrals

Finance6/10/2025

Full Bill Text

No bill text available