An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in realty transfer tax, providing for deductions.

PRINTER'S NO. 872
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 842
Session of
2025
INTRODUCED BY WEBSTER, GIRAL, SANCHEZ, HILL-EVANS, MADDEN,
CERRATO, MALAGARI AND SHUSTERMAN, MARCH 10, 2025
REFERRED TO COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT,
MARCH 10, 2025
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 realty transfer tax, providing for deductions.
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 1102-C.7. Deductions.--(a) For taxable years
beginning after December 31, 2025, if there is a transfer of
residential property to a buyer collecting Supplemental Security
Income benefits or with a household income not greater than 215%
of the Federal poverty level, an amount equal to the tax paid at
the time of transfer shall be deductible from the taxable income
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of the buyer.
(b) For taxable years beginning after December 31, 2025, if
there is a transfer of residential property to a buyer for use
as a primary residence for a purchase price not greater than 80%
of the median purchase price of a residential property in the
county in which the transfer is completed, an amount equal to
the tax paid at the time of transfer shall be deductible from
the taxable income of the buyer and the taxable income of the
seller.
(c) For the purpose of establishing the median purchase
price of a residential property, each county office of the
recorder of deeds shall submit to the department no later than
January 31, 2026, and each January 31 thereafter, documentation
establishing the median purchase price of a residential property
for the preceding calendar year.
(d) If the deduction allowed under this section is greater
than the amount of tax due, no refund or carryover credit shall
be allowed.
Section 2. This act shall take effect in 60 days.
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