Barrar wants Wolfe to exempt military from EIT

Posted by Press Release on February 12, 2016

State Rep. Steve Barrar, R-160, Chester/Delaware Counties, the majority chairman of the Veterans Affairs and Emergency Preparedness Committee, commended the Senate for unanimously passing legislation this week to benefit military personnel. As the House passed the bill in June, it will now be presented to the governor for his signature.

House Bill 561 would amend the Local Tax Enabling Act of 1965 to exempt wages or compensation paid to individuals on active duty military service from the Earned Income Tax, regardless of whether it is earned for service within the borders of the Commonwealth or not.

“Our military professionals are top contributors to our communities. The passage of House Bill 561 into law would provide our active duty military with a well-deserved tax incentive and express the appreciation of our Commonwealth citizenry, and further demonstrate that Pennsylvania is a military-friendly state,” Barrar said in a press release.

Currently, all active duty military pay is taxable as earned income unless it is received from the United States Government for active duty outside Pennsylvania or for active state duty for emergency, regardless of location.

“The Veterans Affairs and Emergency Preparedness Committee continues to review legislation aimed at enhancing the lives of our armed forces,” Barrar said. “I thank Rep. Rob Kauffman, of Franklin County, for drafting this important legislation.”