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.