House unanimously supports Markosek proposal to exempt COVID-19 stimulus payments from state and local taxes

Passed bill also includes millions in aid for Pennsylvanians impacted by pandemic

HARRISBURG, Feb. 5 – Just a day after a committee approved state Rep. Brandon Markosek’s legislation to exempt the two COVID-19 economic stimulus payments from state and local taxes, the Pennsylvania House of Representatives passed it.

Markosek’s bill was amended into a larger aid package, which the House unanimously passed this morning.

“I’m pleased the House took swift action in considering my bill and deciding to include it in a package that would deliver direct relief to Pennsylvanians,” said Markosek, D-Allegheny. “The bill that passed today will speed up help for people who are in desperate need, including renters and restaurants who are struggling because of the pandemic.”

Markosek’s proposal would exempt the two recovery rebates to qualifying individuals and children that Congress authorized under the CARES Act from being counted as income, making them exempt from taxes.

The amended bill (S.B. 109) also would exclude the forgiveness of paycheck protection loans from consideration as income, and provide $912 million in relief to help hotels, restaurants, bars and taverns; people struggling to pay rent and utilities; and career and technical centers, community colleges, private and charter schools and the State System of Higher Education.

“People are struggling. My measure and this entire bill are designed to help Pennsylvanians better deal with the financial hardships from the pandemic. It’s well past time to put these measures into place,” Markosek said.

The bill now returns to the Senate for concurrence, which is expected to approve it and send it to the governor for his signature.