The issue

Pennsylvania resident partners subject to pass-through entity taxes (PTET) in other states may face double taxation in Pennsylvania. Even though the PTET paid to other states are equivalent to those which would otherwise be paid directly by Pennsylvania residents to those other states, the Pennsylvania Department of Revenue (DOR) has stated that resident partners are not entitled to a credit against personal income tax for PTET paid to other states. This stance differs from the DOR’s position on resident S corporation shareholders, who are eligible for a credit against their personal income tax.

Our position

The PICPA is urging state lawmakers to adopt legislation introduced by Sen. Doug Mastriano (R-Franklin) that extends equivalent credits to resident partners and S corporation shareholders. Senate Bill 253 addresses the inequity and mitigates the risk of double taxation. Reps. Ben Sanchez, CPA-inactive (D-Montgomery), and Keith Greiner, CPA (R-Lancaster), introduced a companion bill, House Bill 1471.

Status: In June 2025, the state House approved House Bill 1610, an omnibus tax bill. One provisions in the bill included PICPA's resident partner credit fix. Senate Bill 253 was reported out of the Senate Finance Committee on April 1, 2025, and it awaits consideration by the full Senate. House Bill 1471 was referred to the House Finance Committee on May 21, 2025.

Reviewed June 2026