Budget & Taxes (Tax Credits)

HB 723 amends Pennsylvania's Tax Reform Code to require state departments to check if applicants for tax credits or benefits have engaged in anti-union activities within the past decade. It directly affects businesses or individuals seeking tax benefits by blocking eligibility if they have: - Faced federal or state unfair labor practice complaints (e.g., under NLRB rules or Pennsylvania Labor Relations Act), - Settled union-related charges without formal complaints, or - Violated court orders or state labor board decisions. The bill adds specific screening steps to the tax credit application process, defining "anti-union activity" through clear legal references. It takes effect 60 days after enactment.

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.