Senate Bill 396 Printer's Number 508

PENNSYLVANIA, April 1 - PRIOR PRINTER'S NO. 343

PRINTER'S NO. 508

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

396

Session of

2025

INTRODUCED BY MASTRIANO, CULVER, PISCIOTTANO AND STEFANO,

MARCH 6, 2025

SENATOR HUTCHINSON, FINANCE, AS AMENDED, APRIL 1, 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 personal income tax, further providing for

definitions, providing for elective tax imposed at pass-

through entity level and further providing for taxability of

partners and for income of a Pennsylvania S corporation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 301(w) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended

to read:

Section 301. Definitions.--Any reference in this article to

the Internal Revenue Code of 1986 shall mean the Internal

Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.),

as amended to January 1, 1997, unless the reference contains the

phrase "as amended" and refers to no other date, in which case

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