SB 792 Pennsylvania Senate · 2025-2026 Regular Session

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in research and development tax credit, further providing for definitions, for credit for research and development expenses and for limitation on credits.

SB 792 sets annual limits on Pennsylvania's research and development (R&D) tax credit program. It caps total annual credits at $120 million, with $24 million specifically reserved for small businesses. Unused portions of either the small business allocation or the general allocation can roll over to the other group if not fully claimed in a given year. This bill directly affects businesses claiming R&D tax credits in Pennsylvania, particularly small businesses that receive priority funding. The change modifies the existing tax credit structure under the 1971 Tax Reform Code.

Bill status in committee 1 of 4 stages cleared

Introduction

Jun 2025

Committee Review

Floor Vote

Governor

Introduced Jun 6, 2025 Last action Jun 22, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Printer's No. PN0903 → Printer's No. PN1803 · 5 edits

MODERATE

This bill version significantly increases the financial incentives for research and development by raising the credit rate for small businesses from 20% to 25% and increasing the overall funding cap from $60 million to $120 million. It also expands the definition of a 'small business' by doubling the asset threshold from $5 million to $10 million, allowing more companies to qualify for the enhanced credit. Additionally, the bill adds new definitions for 'Pennsylvania Base Amount' and clarifies that unused funding for one group of applicants can be reallocated to the other.

Scope change

The bill's scope expanded to include more businesses as eligible recipients of the tax credit by raising the asset limit for 'small business' status.

FISCAL

Increased the total annual funding cap for the tax credit from $60 million to $120 million.

ELIGIBILITY

Raised the net book value asset threshold for 'small business' status from $5 million to $10 million.

Increased the research and development tax credit rate for small businesses from 20% to 25%.

DEFINITION

Added specific definitions for 'Pennsylvania Base Amount' and 'Small Business' to clarify eligibility and calculation methods.

REQUIREMENT

Added a provision allowing unused funding allocated to small businesses or non-small businesses to be reallocated to the other group if not fully used.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 22, 2026

Committee

Re-referred to Appropriations

upper

Jun 9, 2026

Upper · Passed

Reported as amended

upper

Jun 6, 2025

Committee

Referred to Institutional Sustainability & Innovation

upper

1 primary · 10 co-sponsors