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Finance 2021-2022

The Senate Finance Committee met on Tuesday, September 20, 2022 and took action as follows:

Reportado como Comprometido:

SB 1320 (Aument) The bill amends the Tax Reform Code to allow certain business entities to be taxed on income generated at the entity level rather than the existing pass-through methodology. The bill also allows for a credit for partners whose pass-through entities (PTEs) pay the Entity Level Tax (ELT) to other states.  The bill was approved by a vote of 7-4.

HB 1377 (Boback) This bill provides for Keystone Opportunity Zones to prevent circumstances where a business moves from one zone to another for the purpose of gaining additional tax reductions or exemptions. Also known as “zone hopping.”  The bill was unanimously approved.

HB 2057 (Roae)This legislation amends Title 15 (Corporations and Unincorporated Associations) to provide a variety of update to the corporations’ law. Specifically, updates related to annual reports, mergers, registration of foreign entities, implementing corporate law best-practices related to ALI corporate principles, and Delaware Corporate Law, and provides for emergency provisions related to pandemics and epidemics.  The bill was unanimously approved.

HB 2667 (Mercuri) – This bill amends Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, further providing for the definition of remote location. This bill is a combination of technical fixes in response to Act 8 passed earlier this year.  This bill unanimously approved.  

Reportado como enmendado:

SB 1315 (Phillips-Hill) – This legislation amends the Tax Reform Code to allow employees of out-of-state employers to work remotely up to 50% of the time without triggering the Pennsylvania Corporate Net Income Tax.   Sen. Phillips-Hill offered amendment A05579 which made changes to clarify a taxpayer’s ability to apportion income related to work conducted outside of Pennsylvania. The amendment was adopted by a vote of 7-4.  The bill as amended was approved by a vote of 7-4.

HB 1059 (Hickernell) – This legislation amends the Tax Reform Code to increase the Personal Income Tax threshold by which a taxpayer is required to make estimated payments, from $8,000 to $20,000.  Sen. Hutchinson offered amendment A05518 which was a technical amendment to delay implementation by 1 year.  The amendment was unanimously adopted. The bill as amended was unanimously approved.

HB 2277 (Topper)This bill amends the Tax Reform Code to remove the current requirement that certain businesses to make accelerated sales tax payments. Sen. Hutchinson offered amendment A05581 which would delay implementation of the act.  The amendment was unanimously adopted. The bill as amended was unanimously approved.

*all 7-4 votes were along party lines.

The Senate Finance Committee met on Wednesday, June 22, 2022 and took action as follows:

Reportado como enmendado:

SB 1205 (Robinson/Costa) – This bill increases the maximum annual Waterfront Development Tax Credit allocation limit from $1.5 million to $10 million.  The bill was unanimously adopted.

HB 385 (Dunbar) – This bill moves language from the Fiscal Code to the Tax Reform Code related to the exemption of Personal Income Tax for loan forgiveness funds granted under the Paycheck Protection Program (PPP) from the Pennsylvania’s Personal Income Tax.  In addition, this legislation adds language related to “like-kind” exchanges to allow businesses to reduce their tax liability when assets are exchanged for similar property.  The bill was unanimously adopted.

HB 1342 (Rader) – Adds an exemption to the Inheritance Tax for transfers of property from a member of the military who dies as a result of injury/illness received while on active duty.  The bill was unanimously adopted.

The Senate Finance Committee met on Monday, June 6, 2022 and took action as follows:

Reportado como enmendado:

Senate Bill 721 (Mensch) – This bill amends the Tax Reform Code to provide for a Corporate Net Income Tax reduction from 9.99% to 6.99% over a three year period.  Sen. Hutchinson offered Amendment A04349 which would delay the rate reduction dates by 1 year.  The amendment was unanimously adopted.  The bill as amended was approved by a vote of 7-4.

The Senate Finance Committee met on Tuesday, May 24, 2022 and took action as follows:

Reportado como enmendado:

Senate Bill 321 (Bartolotta) – This bill would increase the Film Production Tax Credit’s annual allocation limit from $70 million to $125 million.  Sen. Hutchinson offered Amendment A04174, which removed reference to changing the name of the tax credit.  The amendment was adopted by a vote of 8-3. The bill as amended was approved by a vote of 8-3.

The Senate Finance Committee held a public hearing on Wednesday, April 20, 2022 on Pennsylvania Film Tax Credit Program

The Senate Finance Committee met on Wednesday, April 13, 2022 and took action as follows:

Reportado como Comprometido:

House Bill 199 (Dunbar) – This bill amends the Tax Reform Code to allow a person to claim a deduction for depletion of a mine, oil and gas well and other natural deposits by utilizing percentage depletion calculation.  The bill was approved by a vote of 7-4.

House Bill 324 (White) – This bill amends the First Class City Business Tax Reform Act of 1984 further providing for the definition of net operating loss, increasing the net operating loss carryforward period from 3 to 20 tax years.   The bill was unanimously adopted.

House Bill 333 (E. Nelson) – This bill amends the Tax Reform Code to allow businesses to take an increased deduction for certain manufacturing equipment. The current deduction is capped at $25,000. This bill would raise the cap to $1,000,000.  The bill was approved by a vote of 7-4.

Reportado como enmendado:

Senate Bill 771 (Aument) – This bill amends the Tax Reform Code to reduce the corporate net income tax rate to 6.99% over three years. The bill would reduce the rate to 5.99% if 2024 CNIT revenue generated at 6.99% exceeds the IFO’s revenue projection for 2024 at 9.99%.  Senator Hutchinson offered Amendment A03920, which would delay the rate reduction timeline by one year.  The amendment was adopted by a vote of 10-1. The bill as amended was approved by a vote of 7-4.

The Senate Finance Committee met on Wednesday, February 9, 2022 and took action as follows:

Reportado como enmendado:

SB 230 (Phillips-Hill) – This bill amends the definition of income when calculating eligibility for the Property Tax Rent Rebate (PTRR) Program to exclude distributions rolled over between retirement accounts, if the transactions occur within 60 days of each other.  Sen. Hutchinson offered Amendment A03623, which would delay the effective date of this change until January 2023.  The amendment was unanimously adopted. The bill was unanimously reported out as amended.

Reportado como Comprometido:

SB 622 (Pittman) – This bill expands the definition of “enforcement officer” to include commissioned police officers employed by the Department of Corrections (DOC), Bureau of Investigations and Intelligence to add them to state pension system.  The bill was reported out unanimously.

HB 2058 (Mako)This legislation amends the Local Tax Enabling Act to align the local tax filing deadline to the federal personal income tax filing deadline. The bill was reported out unanimously.

The Senate Finance Committee met on Monday, October 25, 2021, to consider the following legislation:

Senate Bill 349 (Hutchinson) –  The legislation amends the Tax Reform Code of 1971 to increase the cap on deductions available to pass-through entities subject to the personal income tax for the purchase of tangible property in line with Section 179 of the federal Internal Revenue Code.

SB 349 was reported out of Committee by a vote of 8-2 – negative votes were from Senators Hughes and Muth, respectively.

 

    The Senate Finance Committee met on Wednesday, June 23, 2021, to consider the following executive nominations to the State Tax Equalization Board (STEB):

    • Gary Baker
    • Brittany Mercadante

    Both nominations were unanimously approved.

    The Senate Finance Committee met on Monday, June 21, 2021, and took action as follows:

    Reportado como Comprometido:

    HB 1348 (Saylor) – This bill amends the Fiscal Code to provide for the transfer of federal funds within the Department of Human Services.  The bill was unanimously approved.

    The Senate Finance Committee met on Monday, June 14, 2021, and took action as follows:

    Reportado como Comprometido:

    SB 347 (DiSanto) – This legislation amends the Tax Reform Code to allow for “like-kind” exchanges which would allow for businesses to reduce their tax liability when property is exchanged for similar property. The bill was approved by a vote of 9-2.

    SB 447 (Brooks)This bill amends the Tax Reform Code to reduce the corporate net income tax from 9.99% to 6.99%. The bill was approved by a vote of 8-3.

    SB 586 (Argall)This bill amends the Tax Reform Code to clarify nonprofit eligibility for participation in the Historic Preservation Tax Credit Program. The bill was unanimously approved.

    HB 952 (Oberlander)This legislation would replace the sales and use tax refund program for data center equipment purchases with a tax exemption program. The bill was approved by a vote of 10-1.

    The Senate Finance Committee met on Tuesday, June 8, 2021, and took action as follows:

    Reportado como Comprometido:

    SB 368 (Bartolotta) – This bill allows small businesses to utilize a net operating loss (NOL) to reduce their PIT liability. In addition, businesses would be authorized to carry the NOL forward up to 20 years. The bill was approved by a vote of 9-2.

    Reportado como enmendado:

    SB 734 (Haywood) – This bill amends the Tax Reform Code to provide for the implementation of recommendations made by the 42nd Statewide Investigating Grand Jury Report, specifically in relation to the KIZ and R&D tax credit programs. Sen. Haywood offered amendment A01449 which adds potential fines on tax credit brokers in violation of this bill, allows the DOR to utilize risk scoring assessment criteria for tax credit applicants, narrows the legislation to only apply to transferrable tax credits, requires DOR/DCED to release additional information in their annual reports on tax credits/benefits, and creates an appeals process for applicants denied for a tax credit program. The amendment and the bill as amended were unanimously approved.

    The Senate Finance Committee met on Tuesday, May 25, 2021, and took action as follows:

    Reportado como enmendado:

    SB 288 (Mensch) – This bill amends the Tax Reform Code to expand the Manufacturing Innovation and Reinvestment Deduction Act by expanding the minimum eligible capital investment.  Sen. Hutchinson offered amendment A01050 which creates two investment tiers and allows the deduction to be applied to a taxpayer’s taxable income in order to reduce their liability following the allocation and apportionment of income. The amendment was adopted by a vote of 7-3. The bill as amended was approved by a vote of 8-2.

    Reportado como Comprometido:

    SB 681 (Yudichak) – This bill amends the Tax Reform Code to allow tax credits purchased in 2020 or 2021 to be carried forward one additional tax year. The bill was approved by a vote of 8-2

    SB 682 (Yudichak) – This bill extends the eligibility timeline for the Keystone Innovation Zone (KIZ) tax credit program from 8 years to 10 years. The bill was approved by a vote of 8-2.

     

    The Senate Finance Committee met on Tuesday, May 11, 2021, and took action as follows:

    Reportado como enmendado:

    SB 279 (Stefano) – This legislation will amend the Tax Reform Code to exempt firefighters from the sales and use tax when purchasing protective equipment and accessory communications equipment while using their personal funds.  Sen. Hutchinson offered amendment A00947 which expanded the legislation to include purchases made by fire police. The amendment was adopted, unanimously. The bill was reported out as amended, unanimously.

    SB 568 (Argall) – This bill amends the Tax Reform Code to provide for the sales tax exemption of traffic signals to include all component parts of a traffic signal, foundation, pole and mast arms.  Sen. Argall offered amendment A00967 which created a definition of a traffic signal within the Tax Reform Code. The amendment was adopted by a vote of 10-1. The bill was reported out as amended by a vote of 10-1.

    The Senate Finance Committee met on Monday, April 19, 2021, and took action as follows:

    Reportado como enmendado:

    HB 766 (Greiner) – This bill amends the corporate net income tax deadline and provides emergency state and local income tax authority to the Department of Revenue and the Department of Community and Economic Development. Sen. Browne offered Amendment A00697 which would provide permanent authority to DCED to deal with local taxation to allow them to extend the income tax due date to coincide with the Federal income tax filing deadline. The amendment was unanimously adopted. The bill was unanimously reported out as amended. 

    SB 463 (Hutchinson) –This bill creates an exemption on equipment used in the construction and operation of computer data centers. Sen. Hutchinson offered Amendment A00740 which makes technical corrections to the bill. The amendment was unanimously adopted. The bill was approved by a vote of 8-3.

    Reportado como Comprometido:

    SB 454 (Brooks) – This bill creates an annual $500 state tax credit for volunteer firefighters.  The bill was reported out unanimously.

    SB 562 (Scavello) – This bill creates the Airport Land Development Zone tax credit program which provides a $2,100 tax credit to employers per full-time job created. The bill was reported out by a vote of 7-4.

    The Senate Finance Committee met on Wednesday, March 24, 2021, and took action as follows:

    Reportado como Comprometido:

    HB 230 (Ryan): This bill amends the Administrative Code to require the Independent Fiscal Office, upon request, to prepare a revenue estimate using dynamic scoring for any proposed legislation with a potential fiscal impact of more than $50 million. The bill was reported out by a vote of 7-4.

    SB 74 (Martin): This bill amends the Tax Reform Code to provide for a pediatric cancer research tax credit. The credit would be capped at $10 million annually and expire after 10 years. The bill was reported out unanimously.

    SB 286 (Bartolotta): This bill amends the Pennsylvania Constitution to limit the growth of state government spending. The bill was reported out by a vote of 7-4.

    SB 325 (K. Ward): This bill amends the Tax Reform Code to provide a sales tax exemption for multi-purpose agriculture vehicles used for farming. These vehicles are currently tax exempt, but this legislation clarifies the applicable farming uses of these vehicles. The bill was reported out unanimously.

    SB 343 (Mastriano): This bill amends the Tax Reform Code to further exempt Cervidae livestock operations from the Sales and Use Tax, specifically to exclude Cervidae, swine and exotic animals raised for entertainment hunts from taxation. The bill was reported out by a vote of 7-4.

    Senador Jimmy Dillon

    Senador Jimmy Dillon

    Presidente del Comité