Budget & Taxes (Business Taxes)

in committee · Pennsylvania · House Jan 22, 2025

HB 217: 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 classes of income.

HB 217 amends Pennsylvania's tax code to require businesses to deduct start-up costs (like initial expenses for new ventures) entirely in the year incurred, rather than spreading deductions over multiple years as permitted under federal rules. This change affects new businesses and entrepreneurs with start-up expenses by altering how they calculate state personal income tax. The bill also allows business net losses to offset other income in the same tax year. These provisions apply to tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allows immediate deduction of business start-up costs, reducing taxable income for new businesses and providing tax relief.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · Senate Apr 28, 2025

SB 656: 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 definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

SB 656 proposes changes to Pennsylvania's corporate net income tax, primarily affecting corporations that are part of a "unitary business," meaning a group of related companies operating as a single economic unit. Beginning after December 31, 2025, these businesses would calculate their taxable income based on the combined income of their U.S. operations ("water's-edge basis"). The bill also modifies rules for deductions related to intercompany dividends and addresses the treatment of intangible and interest expenses incurred in transactions between affiliated entities. Income for these unitary businesses would be apportioned to the state using a sales factor.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modifies corporate tax rules for unitary businesses and intercompany deductions, closing potential tax loopholes to ensure fairer tax collection and promote fiscal responsibility under the Tax Reform Code.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · House Aug 4, 2025

HB 1773: An Act amending the act of April 12, 1951 (P.L.90, No.21), known as the Liquor Code, providing for adult use cannabis; imposing certain gross receipts tax and excise tax; and making repeals.

HB 1773 amends Pennsylvania's Liquor Code to legalize adult recreational cannabis use for individuals aged 21 and older. The bill establishes a regulatory framework for cannabis businesses, including licensing requirements, and imposes two specific taxes: a gross receipts tax on all cannabis sales and an excise tax on cannabis products. It also repeals outdated provisions in the existing Liquor Code that conflict with this new system. The bill is currently under review by the Health committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new gross receipts and excise taxes on cannabis sales, creating dedicated state revenue streams under the Liquor Code amendment.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Pennsylvania · House Feb 12, 2025

HB 565: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for employer health insurance contribution tax credit; and promulgating regulations.

HB 565 creates a new tax credit for Pennsylvania employers who pay for their employees' health insurance. It allows businesses to reduce their state tax bill by up to 100% of their contributions toward employee health insurance premiums, but only the first $500 per employee counts toward the credit. The credit percentage decreases as the number of covered employees increases: 100% for fewer than 50 employees, 75% for 50-99 employees, and 50% for 100+ employees. Employers must submit specific employee and insurance provider details to the Department of Revenue to claim the credit, which cannot be carried over, refunded, or sold.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing employer state tax burden for health insurance, aligning with tax relief indicators for businesses under Budget & Taxes.95% confidence ✓ HealthcareSupports HealthcareTax credit incentivizes employers to provide health insurance, expanding coverage access for employees through reduced business costs.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentIncentivizes employer-provided health insurance via tax credit, expanding worker benefits without mandating coverage.95% confidence

Sub-Topics Business Taxes Tax Credits Insurance

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passed · Pennsylvania · House Jun 18, 2026

HB 1678: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax; and providing for additional property tax rebate.

HB 1678 adds a 45-mill tax plus a 5-mill surtax on gross receipts from digital advertising services displayed to users within Pennsylvania. It directly affects digital advertising providers (e.g., companies running banner or search ads) but exempts broadcast and news media entities. The tax applies to revenue from ads shown on digital interfaces (websites, apps) where users are located in Pennsylvania, excluding sales of internet access, telecom hardware, and resale services. The law takes effect for taxable years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new 50-mill tax on digital ad revenue, directly increasing state tax revenue under Tax Reform Code.95% confidence

Sub-Topics Business Taxes

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passed · Pennsylvania · House Mar 30, 2026

HB 1260: An Act providing for solar-ready projects involving a warehouse or distribution center; authorizing tax exemptions and special tax provisions; imposing duties on the Department of Environmental Protection; and imposing penalties.

HB 1260 would allow businesses owning warehouses or distribution centers to install solar energy systems by providing tax exemptions for "solar-ready" projects. It directly affects commercial property owners in the state by reducing their tax burden for qualifying solar installations. Key provisions include authorizing special tax breaks, requiring the Department of Environmental Protection to establish guidelines for these projects, and imposing fines for non-compliance with solar-ready construction standards. The bill aims to incentivize renewable energy adoption in large commercial facilities through concrete tax policy changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemptions for commercial solar projects, reducing tax burden on qualifying businesses per bill's tax exemption provisions.95% confidence ✓ EnergySupports EnergyProvides tax exemptions for commercial solar installations, directly promoting renewable energy adoption through financial incentives.95% confidence ✓ EnvironmentSupports EnvironmentPromotes solar energy adoption via tax exemptions for commercial properties, directly advancing clean energy infrastructure and reducing carbon footprint through financial incentives.95% confidence

Sub-Topics Business Taxes Renewable Energy Solar

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in committee · Pennsylvania · Senate May 5, 2025

SB 722: 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 classes of income.

SB 722 amends Pennsylvania's Tax Reform Code to modify how "net profits" are calculated for personal income tax purposes. The bill updates the rules for deducting start-up expenditures and introduces new provisions for combining net profits and losses from different businesses. It establishes specific netting rules for "small businesses" and "non-small businesses," allowing small businesses to carry over net losses for up to twenty years. This legislation directly affects individuals who report income or losses from their business or professional activities, particularly those operating small businesses, for state personal income tax. These changes will apply to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows small businesses to carry net losses for 20 years, providing tax relief and promoting fiscal flexibility for business owners.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Pennsylvania · Senate May 22, 2025

SB 772: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for commuter and commerce toll tax credit.

SB 772 creates a new tax credit for Pennsylvania taxpayers who pay tolls on the Pennsylvania Turnpike and specific bridges operated by the Delaware River Joint Toll Bridge Commission, Delaware River Port Authority, and Burlington County Bridge Commission. Taxpayers can claim a credit equal to 50% of their qualifying toll expenses, up to $500 annually, for tolls paid via E-ZPass, cash, or card. The credit applies to individuals and businesses, including pass-through entities like S corporations and partnerships, with unused credits potentially passed to shareholders or owners. The credit becomes available for taxable years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% tax credit for toll expenses, providing direct tax relief to commuters and businesses, aligning with tax relief indicators.95% confidence ✓ TransportationSupports TransportationBill provides tax credit for toll payments on highways/bridges, reducing commuter costs and incentivizing use of transportation infrastructure, aligning with transportation support indicators.92% confidence

Sub-Topics Business Taxes Tax Credits Bridges Ports

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in committee · Pennsylvania · House Mar 24, 2025

HB 1004: 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 limitation on credits.

HB 1004 amends Pennsylvania's 1971 Tax Reform Code to increase annual limits on research and development (R&D) tax credits. It raises the total annual credit cap from $60 million to $120 million, with $24 million specifically reserved for small businesses (up from $12 million). Unused allocations for either small businesses or other qualifying businesses can roll over to the other group within the same fiscal year. The changes take effect 60 days after the bill's passage.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases R&D tax credit caps from $60M to $120M, including $24M for small businesses, providing tax relief to businesses and promoting innovation.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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in committee · Pennsylvania · House Jan 23, 2025

HB 315: 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.

HB 315 amends Pennsylvania's sales tax discount rules to provide clearer, tiered incentives for businesses that file and pay taxes promptly. It replaces the previous discount structure with a new system offering fixed per-return discounts: $25 for monthly filers, $75 for quarterly filers, and $150 for semiannual filers. Additionally, it adds a revenue-based discount: 1% on the first $1 million of taxable sales, plus 0.25% on amounts above that threshold. This bill directly affects businesses required to file and pay sales tax in Pennsylvania, making prompt payment more financially beneficial through these specific, predictable discount tiers.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax discounts for prompt business filers, promoting compliance and fiscal efficiency under tax code amendments.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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