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Bill > SB191
PA SB191
PA SB191In tax credit and tax benefit administration, further providing for definitions; in research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.
summary
Introduced
01/29/2025
01/29/2025
In Committee
01/29/2025
01/29/2025
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 tax credit and tax benefit administration, further providing for definitions; in research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.
AI Summary
This bill introduces an Angel Investment Tax Credit program to encourage early-stage financing for high-growth potential businesses in Pennsylvania. The legislation increases the total research and development tax credit from $60 million to $100 million annually, with $20 million (up from $12 million) specifically allocated for small businesses. The new Angel Investment Tax Credit allows accredited investors to receive a 25% tax credit for qualified investments in small Pennsylvania businesses that meet specific criteria, such as being headquartered in the state, employing at least 51% of workers in Pennsylvania, having fewer than 100 employees, and being in operation for no more than five consecutive years. The total annual tax credits for this program are capped at $20 million and will be awarded on a first-come, first-served basis. Investors can carry forward unused credits for up to seven years, and the program is set to expire on December 31, 2033. The bill also includes provisions for reporting, potential repayment of credits if business conditions change, and guidelines for how credits can be claimed, transferred, or used by shareholders and pass-through entities.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Referred to Finance (on 01/29/2025)
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