HB2511 • 2025

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, providing for exemption from tax for early withdrawals from certain accounts.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: INGLIS
Last action: 2026-05-13
Official status: Referred to FINANCE, May 13, 2026
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, providing for exemption from tax for early withdrawals from certain accounts.

What This Bill Does

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, providing for exemption from tax for early withdrawals from certain accounts.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-05-13 FINANCE
Referred to FINANCE, May 13, 2026

Official Summary Text

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, providing for exemption from tax for early withdrawals from certain accounts.

Current Bill Text

Read the full stored bill text

PRINTER'S NO. 3398
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2511
Session of
2026
INTRODUCED BY INGLIS, McNEILL, HILL-EVANS, GIRAL, BIZZARRO,
MERSKI, VENKAT, HAMM, SANCHEZ, CEPEDA-FREYTIZ, CERRATO,
NEILSON, MALAGARI AND MAYES, MAY 12, 2026
REFERRED TO COMMITTEE ON FINANCE, MAY 13, 2026
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in personal income tax, providing for exemption
from tax for early withdrawals from certain accounts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding a section to
read:
Section 304.3. Exception from tax for early withdrawals from
certain accounts.--(a) In accordance with the current tax
exemption by the Federal Government, the following shall be
exempt from taxation as personal income in this Commonwealth, to
the limits under subsection (b):
(1) Expenses related to the birth or adoption of a child.
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(2) The purchase of a house by a first time homebuyer.
(b) The following amounts shall be excluded from tax:
(1) Each parent may withdraw up to five thousand dollars
($5,000) individually for each child born or adopted.
(2) The parents may withdraw up to ten thousand dollars
($10,000) together for each child born or adopted.
(3) Each first time homebuyer may withdraw up to ten
thousand dollars ($10,000).
Section 2. This act shall apply to tax years beginning on or
after January 1, 2027.
Section 3. This act shall take effect in 60 days.
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