Conklin: Measure to exempt COVID-19 aid from state, local taxes
HARRISBURG, May 4 – A bill to prevent recipients of federal pandemic cash payments from being required to pay state and local taxes on the funds passed unanimously in the House, state Rep. Scott Conklin, D-Centre, announced today.
Conklin said the bill, authored by state Rep. Brandon Markosek, D-Allegheny, would ensure that those who received the assistance, as part of the CARES Act that passed in Congress last month and was signed into law, would not have to pay state or federal taxes on the funds. Conklin added the funds are already exempt from federal taxation.
“These funds were provided as assistance, not as income, and they shouldn’t be treated as such in Pennsylvania,” said Conklin. “Our businesses and residents need help, not an additional tax burden on top of trying to stay afloat during this crisis. We need to remain focused on doing everything we can to help them through this time and in the weeks and months to follow, and this legislation is one example of doing just that.
The CARES Act included a provision to provide cash payments to individuals making less than $99,000 per year and couples making less than $198,000 annually.
The bill, which has companion legislation in the Senate, will now head to the Senate for further action.