Budget & Taxes (Small Business)

HB 1335 provides $500,000 in funding from a restricted revenue account within the state’s General Fund to the Office of Small Business Advocate. This appropriation directly supports the office’s work assisting small businesses with navigating state regulations and accessing resources. The bill, now law as Act No. 4A of 2025, creates no new policies but allocates specific funds for the office’s existing operations.

SB 285 appropriates $2,243,000 from a restricted revenue account in Pennsylvania's General Fund to the Office of Small Business Advocate within the Department of Community and Economic Development. This funding is specifically for the office's operations during the 2025-2026 fiscal year (July 1, 2025 - June 30, 2026). The bill directly affects the Office of Small Business Advocate by providing dedicated funding to support its work. As a procedural appropriation bill, it focuses solely on authorizing the financial allocation without creating new policy.

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.

SB 853 creates a tax credit for small Pennsylvania businesses (with 50 or fewer full-time equivalent employees) affected by minimum wage increases. It allows employers to claim a credit equal to 50% of the wage increase cost in the first year after a minimum wage hike, and 25% in the second year, against their state tax liability. Unused credit can be carried over for up to three years but cannot be refunded or carried back. Pass-through businesses may also transfer unused credits to owners in proportion to their share of business income.