Budget & Taxes (Business Taxes)

passed · Pennsylvania · House Jan 30, 2026

HB 1129: 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, repealing provisions relating to penalties and to repealer and effective date; establishing the Net Operating Loss Transfer Program; and imposing penalties.

HB 1129 amends Pennsylvania's corporate tax code to establish a new program allowing businesses to transfer unused net operating losses to other corporations, directly affecting companies with tax losses they previously couldn't utilize. The bill repeals outdated penalty provisions and a repealer clause from the 1971 tax code while adding new penalties for non-compliance. Key provisions include creating a formal mechanism for loss transfers and updating tax enforcement rules. This bill is pending in the legislature (last reported as committed on 2025-09-10) and would change how corporations manage tax liabilities under Pennsylvania law.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends tax code to establish loss transfer program and update enforcement, promoting fiscal responsibility through modernized tax administration.95% confidence

Sub-Topics Business Taxes Income Tax

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passed · Pennsylvania · House Jun 25, 2025

HB 1610: 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 definitions and for income taxes imposed by other states and providing for provisions for overtime pay; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations, inquisitorial powers of the department, for retention of records and for penalties; in tax credit and tax benefit administration, further providing for definitions and providing for application of tax credits or tax benefits to a unitary business; providing for working Pennsylvanians tax credit; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties.

HB 1610 amends Pennsylvania's corporate tax rules to change how businesses with multiple related entities (unitary businesses) calculate their state tax liability. Starting in 2026, these businesses will determine Pennsylvania tax based on their total sales within the state relative to their nationwide sales, using a new "water's-edge" apportionment method. The bill specifically revises definitions and tax calculation rules for corporations, including adjustments to how income from intercompany transactions is treated and how nonbusiness income is allocated. This primarily affects large corporations operating across state lines as unified business groups. The changes aim to align Pennsylvania's tax calculation with federal reporting requirements for such entities.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill amends corporate tax rules with 'water's-edge' apportionment and adds Working Pennsylvanians tax credit, promoting fiscal responsibility and tax relief for workers.85% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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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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in committee · Pennsylvania · Senate Oct 3, 2025

SB 1031: 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, repealing provisions relating to penalties and to repealer and effective date; establishing the Net Operating Loss Transfer Program; and imposing penalties.

SB 1031 amends Pennsylvania's corporate tax code by repealing outdated penalty provisions and establishing a new Net Operating Loss Transfer Program. This program allows corporations with net operating losses to transfer those losses to other corporations, reducing future tax liability for the recipient. The bill also introduces new penalties for failing to comply with the transfer program's requirements. It directly affects corporations operating under Pennsylvania's corporate net income tax system, particularly those with unused losses or those seeking to offset future tax obligations.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill establishes corporate tax loss transfer program, reducing tax liability for recipients and decreasing state revenue, weakening fiscal management.85% confidence

Sub-Topics Business Taxes Income Tax

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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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