Budget & Taxes (Business Taxes)

in committee · Pennsylvania · Senate Feb 20, 2025

SB 264: An Act amending the act of December 1, 1977 (P.L.237, No.76), known as the Local Economic Revitalization Tax Assistance Act, further providing for exemption schedule.

SB 264 extends the maximum duration for tax breaks on qualifying properties in economically depressed areas from 10 to 20 years under Pennsylvania's Local Economic Revitalization Tax Assistance Act. It directly affects businesses seeking tax exemptions for deteriorated industrial, commercial, or new construction in designated depressed communities. The key change modifies Section 5(b)(1) to allow local taxing authorities to provide longer tax exemption schedules, while maintaining existing eligibility criteria. This applies to new exemption applications submitted after the law's effective date, which takes effect 60 days after enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends tax breaks for businesses in depressed areas, providing fiscal relief to stimulate economic revitalization under tax policy.92% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Pennsylvania · House Feb 25, 2025

HB 724: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, prohibiting tax deductions for anti-union activities.

HB 724 amends Pennsylvania's tax code to prohibit businesses from deducting expenses related to opposing workers' unionization efforts. It applies to all business entities operating in Pennsylvania - including corporations, limited liability companies, and partnerships - that spend money to influence employees against forming or joining labor organizations. The law specifically blocks tax deductions for costs like hiring anti-union consultants, running campaigns against unionization, or other activities aimed at discouraging union membership. This change increases taxable income for businesses engaging in such activities, directly affecting employers in the state who previously deducted these expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole by prohibiting deductions for anti-union activities, aligning with 'closes tax loopholes' indicator under Budget & Taxes.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProhibits tax deductions for anti-union activities, making it financially harder for businesses to oppose unionization, thus supporting workers' collective bargaining rights.95% confidence

Sub-Topics Business Taxes Collective Bargaining

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in committee · Pennsylvania · Senate Jan 29, 2025

SB 206: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.

SB 206 modifies Pennsylvania's personal income tax by setting a 3.07% rate for taxable years ending in 2025, after which no personal income tax will be collected for years beginning in 2026 or later. It also eliminates employer withholding requirements starting in 2026 if employees certify they had no prior-year tax liability and expect none for the current year. Additionally, the bill repeals the requirement for residents to file personal income tax returns and for Pennsylvania S corporations to submit annual returns for taxable years starting in 2026. These changes directly affect Pennsylvania residents, employees, employers, and S corporations.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates personal income tax for all taxpayers after 2025, providing direct tax relief and reducing government revenue collection from individual income.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · Senate Mar 31, 2025

SB 207: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in corporate net income tax, further providing for imposition of tax.

SB 207 gradually reduces Pennsylvania's corporate net income tax rate over time. It lowers the tax rate from 9.99% (for 1995-2022) to 4.99% by 2031, with incremental reductions each year (e.g., 8.99% for 2023, 8.49% for 2024, 7.99% for 2025). This bill directly affects corporations operating in Pennsylvania that pay state corporate income tax. The key mechanism is a scheduled, multi-year reduction in the tax rate for corporate net income, as specified in Section 402(b) of the Tax Reform Code of 1971.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces corporate tax rate from 9.99% to 4.99% by 2031, providing direct tax relief for corporations under Tax Reform Code.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · Senate Mar 31, 2025

SB 473: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for discount.

SB 473 amends Pennsylvania's 1971 Tax Reform Code to adjust discounts for businesses that pay sales and use tax on time. It directly affects businesses filing sales tax returns (monthly, quarterly, or semiannually) by offering two discount options: a flat fee per return ($25, $75, or $150 based on filing frequency) plus a percentage discount (1% on the first $1 million of taxable revenue, then 0.25% on amounts over $1 million). The bill replaces the previous discount structure with these specific, tiered provisions to incentivize prompt tax payments. The changes take effect 60 days after enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax discounts to businesses for timely filing, reducing tax burden under the Tax Reform Code.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Pennsylvania · Senate Jul 8, 2025

SB 910: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for natural gas severance tax; and repealing expiration provision relating to unconventional gas well fees.

SB 910 creates a new 6.5% severance tax on natural gas extracted at the wellhead in Pennsylvania, starting January 1, 2026. It directly affects natural gas producers (businesses extracting gas for sale or commercial use), excluding those working with storage fields or coal bed methane. The bill requires producers to report monthly gas volumes and pay taxes within 15 days of each reporting period, with revenues deposited into the state General Fund. It also repeals an expiration provision for unconventional gas well fees, ensuring those fees remain in effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new 6.5% severance tax on natural gas producers, directing revenue to state General Fund, directly increasing tax revenue for state budget.95% confidence

Sub-Topics Business Taxes State Budget

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in committee · Pennsylvania · Senate Jun 18, 2025

SB 853: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for small business minimum wage increase tax credit.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing state tax liability for small businesses affected by minimum wage hikes, providing tax relief for middle-income employers.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit to help small businesses comply with minimum wage hikes, supporting worker wage increases without restricting employer obligations.85% confidence

Sub-Topics Business Taxes Tax Credits Minimum Wage Tags Small Business

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