Pennsylvania HB820 amends tax credit definitions and introduces a working Pennsylvanians tax credit.

Pennsylvania HB820 amends the Tax Reform Code of 1971 to redefine "tax credit" and introduces a new working Pennsylvanians tax credit. This credit is equal to 30% of the Federal earned income tax credit for the same taxable year. Eligible taxpayers can apply this credit against their tax liability. If the credit exceeds the taxpayer's liability, the excess is refunded. The credit applies to taxable years beginning after December 31, 2024. The Department of Revenue can create rules and guidelines for administering this credit.

Pennsylvania HB820 amends tax credit definitions and introduces a working Pennsylvanians tax credit.

Pennsylvania HB820 amends the Tax Reform Code of 1971 to redefine "tax credit" and introduces a new working Pennsylvanians tax credit. This credit is equal to 30% of the Federal earned income tax credit for the same taxable year. Eligible taxpayers can apply this credit against their tax liability. If the credit exceeds the taxpayer's liability, the excess is refunded. The credit applies to taxable years beginning after December 31, 2024. The Department of Revenue can create rules and guidelines for administering this credit.