DiSanto Proposes Expansion of State Income Tax Forgiveness

HARRISBURG—Senator John DiSanto (Dauphin/Perry) has introduced bipartisan legislation to expand Pennsylvania’s Income Tax Forgiveness Program to assist low-income working families and retirees struggling to make ends meet.

Pennsylvania’s tax forgiveness program provides for a refund or reduction of state income tax liability for eligible taxpayers qualifying on income and family size.  The $6,500 single and $13,000 married eligibility income for total forgiveness has not been raised since 1999, and the $9,500 dependent additional income allowance was last adjusted in 2004. Currently, incomes up to $8,750 for an individual and $15,250 for a couple qualify for partial tax forgiveness.

Senate Bill 1037 provides a 5 percent increase for these income eligibility thresholds and subsequent annual increases to keep pace with rising inflation. “Income limits for tax forgiveness have not been adjusted for many years, diminishing this benefit for our working families,” said DiSanto. “My proposal encourages employment by giving low-income workers tax relief even as they gain experience and skills that allow them to advance their careers and earn higher wages.”

Retired state employee and government watchdog Barry Shutt said, “As someone who has advocated for several years for an update to the tax forgiveness threshold for low-income workers, I am very pleased that my State Senator, John DiSanto, has taken a leading role in improving the limits of the threshold. I urge his colleagues in the Senate and House of Representatives to join the Senator’s effort to ensure a more just treatment of low-income workers across the Commonwealth.”

Senate Bill 1037 has been referred to the Senate Finance Committee, where it awaits consideration.

CONTACT: Chuck Erdman 717-787-6801 cerdman@pasen.gov