Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 104-A. Nontaxability of certain income

(1) For the purposes of computing the tax under Article III of the act of March 4, 1971 (P.L. 6, No. 2),  1 known as the Tax Reform Code of 1971, the classes of income under section 303  2 of the Tax Reform Code of 1971 shall not include any amount which is excluded from Federal gross income under sections 276 and 278(a) of the COVID-related Tax Relief Act of 2020, enacted as Subtitle B of Title II of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260, 134 Stat. 1182).

(2) For the purposes of Article III of the Tax Reform Code of 1971, no deduction may be disallowed for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan under paragraph (1).