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Bill > HB1960
PA HB1960
PA HB1960In corporate net income tax, further providing for definitions and for imposition of tax and providing for certifications and publications.
summary
Introduced
10/06/2021
10/06/2021
In Committee
04/28/2022
04/28/2022
Crossed Over
04/26/2022
04/26/2022
Passed
Dead
11/30/2022
11/30/2022
Introduced Session
2021-2022 Regular Session
Bill Summary
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An <-- act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in corporate net income tax, further providing for definitions. AMENDING THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), ENTITLED "AN <-- ACT RELATING TO TAX REFORM AND STATE TAXATION BY CODIFYING AND ENUMERATING CERTAIN SUBJECTS OF TAXATION AND IMPOSING TAXES THEREON; PROVIDING PROCEDURES FOR THE PAYMENT, COLLECTION, ADMINISTRATION AND ENFORCEMENT THEREOF; PROVIDING FOR TAX CREDITS IN CERTAIN CASES; CONFERRING POWERS AND IMPOSING DUTIES UPON THE DEPARTMENT OF REVENUE, CERTAIN EMPLOYERS, FIDUCIARIES, INDIVIDUALS, PERSONS, CORPORATIONS AND OTHER ENTITIES; PRESCRIBING CRIMES, OFFENSES AND PENALTIES," IN CORPORATE NET INCOME TAX, FURTHER PROVIDING FOR DEFINITIONS AND FOR IMPOSITION OF TAX AND PROVIDING FOR CERTIFICATIONS AND PUBLICATIONS.
AI Summary
This bill amends the Tax Reform Code of 1971 to further provide for definitions and the imposition of the corporate net income tax. The key provisions include:
1. Increasing the percentage of taxable income that can be used as a net loss deduction, from 40% currently to up to 80% by 2024, with potential reductions to 45-50% if certain surplus conditions in the state's General Fund are met.
2. Reducing the corporate net income tax rate from 9.99% to 8.99% starting in 2023, with potential further reductions to 8.49% or 7.99% if certain surplus conditions in the state's General Fund are met.
3. Requiring the Secretary of the Budget to consult with the Independent Fiscal Office in certifying the state's General Fund surplus, and mandating the publication of these certifications and related conditions in the Pennsylvania Bulletin.
The bill aims to provide tax relief to corporations while linking some of the tax reductions to the state's fiscal health, as determined by the size of the General Fund surplus.
Committee Categories
Budget and Finance
Sponsors (24)
Josh Kail (R)*,
Aaron Bernstine (R),
Eric Davanzo (R),
George Dunbar (R),
Keith Greiner (R),
Seth Grove (R),
Rich Irvin (R),
Lee James (R),
Dawn Keefer (R),
John Lawrence (R),
Jim Marshall (R),
Natalie Mihalek (R),
David Millard (R),
Lori Mizgorski (R),
Tim O'Neal (R),
Tracy Pennycuick (R),
Tina Pickett (R),
Greg Rothman (R),
David Rowe (R),
Frank Ryan (R),
Lynda Schlegel-Culver (R),
Brian Smith (R),
Jim Struzzi (R),
Wendi Thomas (R),
Last Action
Referred to FINANCE (on 04/28/2022)
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