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PA HB1703

Bill

Status

Introduced

7/8/2025

Primary Sponsor

Keith Greiner

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Pass-through entities (partnerships and Pennsylvania S corporations) may elect annually to pay Pennsylvania personal income tax at the entity level rather than having income taxed solely at the individual owner level
  • Taxable owners receive a refundable credit against their individual Pennsylvania income tax equal to their share of tax paid by the electing pass-through entity
  • Elections must be made by the 15th day of the 4th month of the entity's taxable year, are irrevocable for that year, and may only be made while the federal $10,000 SALT deduction cap under 26 U.S.C. § 164(b)(6) remains in effect
  • Electing entities must make quarterly estimated tax payments and file returns reporting owner information, income allocations, and tax amounts paid
  • Provisions apply to taxable years beginning after December 31, 2025, with the act taking effect immediately upon enactment

Legislative Description

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

Last Action

Referred to Finance

7/8/2025

Committee Referrals

Finance7/8/2025

Full Bill Text

No bill text available