The Polish government decided to amend a law criminalizing its accusation of collaborating with Nazism in World War II.
The law had sentenced the convicts to three years in prison.
But the right-wing prime minister decided to review the law five months after it was issued, in a process he described as a "correction".
The House of Representatives hastily approved the amendment to the Holocaust law and was referred to the Senate.
The director of the Prime Minister's Office told Polish radio: "The law aims to" preserve the reputation of Poland ", but from now on the offense will be a misdemeanor and not a crime.
When President André Doda signed the law in February, objections were lodged against him, referring to the Constitutional Court, which ordered that it be suspended.
Israeli President Reuven Rivlin publicly criticized the law in April and told his Polish counterpart that it was indisputable that many Poles had fought Nazism in World War II, but "Poland and Poles had a hand in liquidating" the Jews during the Holocaust.
The Polish government admitted to backtracking on the law, but said it had acted to deter anyone who would repeat the word "Dutch death camps" in the future with impunity.
As required by law
According to the law, "anyone who publicly accuses the Polish nation of responsibility or complicity in Nazi crimes is subject to a fine and a prison sentence of up to three years."
But "a person who commits such an offense shall not be criminally punished in a work of art or science".
The BBC's Adam Eston in Warsaw says Poland has many problems with the EU, including reforms in the justice system, and does not want to open another front with the United States.
For her, the United States provides security against Russia's threats.
Prime Minister Matthias Moravicki says he still sees those who believe Poland's responsibility for Nazi crimes should be jailed. But acknowledged that his Government must take into account the international context.