Markosek’s bill exempting CARES Act funding from state, local tax unanimously passes House
HARRISBURG, May 4 – On Monday, state Rep. Brandon Markosek’s H.B. 2408 that would exempt cash payments disbursed by the CARES Act from state and local taxation was unanimously passed by the state House of Representatives.
“COVID-19 has been harsh for all residents in one form or another. Unfortunately, many struggled financially due to a sudden loss of income, which is why the CARES Act was passed. This funding was exempt from federal taxation with hopes that it would maximize the impact of the distributed funding. This bill does the same exact thing at the state level,” Markosek said.
Congress recently voted and passed the CARES Act, which was put in place to help residents and businesses stay afloat during the COVID-19 pandemic. Included in the coronavirus response were provisions to provide cash payments to people making less than $99,000 and couples making less than $198,000.
These funds are exempt from federal taxation. Markosek’s bill seeks to ensure the funds are exempt from state and local taxation, too.
“I’m grateful to know that even in our darkest moments, my colleagues and I are willing and able to set aside political differences and vote on bills that can truly make a difference in the commonwealth,” Markosek said.
H.B. 2408 now heads to the state Senate for consideration.