summary
Introduced
01/29/2025
01/29/2025
In Committee
03/31/2025
03/31/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 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 imposition of tax.
AI Summary
This bill amends the Tax Reform Code of 1971 to modify the corporate net income tax rates in Pennsylvania. Specifically, the bill reduces the corporate tax rate from 9.99% in 2022 to 8.99% in 2023, further decreasing to 8.49% in 2024 and 7.99% in 2025. Most significantly, the bill establishes a permanent corporate tax rate of 4% starting from January 1, 2026, which is a substantial reduction from previous years' proposed gradual decreases. The previous version of the law had a more complex sliding scale of tax rate reductions that would have continued until reaching 4.99% in 2031, but this bill simplifies the schedule by setting a flat 4% rate for 2026 and subsequent years. The bill takes effect immediately, meaning the new tax rates will be applied as outlined. This change aims to potentially make Pennsylvania more competitive for businesses by lowering the corporate tax burden.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Re-referred to APPROPRIATIONS (on 03/31/2025)
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