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Bill > SB656
PA SB656
PA SB656In 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.
summary
Introduced
04/28/2025
04/28/2025
In Committee
04/28/2025
04/28/2025
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 definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.
AI Summary
This bill makes several significant changes to Pennsylvania's corporate net income tax regulations, primarily focusing on unitary businesses and tax reporting requirements. The bill introduces new definitions and provisions that will take effect for taxable years beginning after December 31, 2025, including establishing a water's-edge basis for reporting income, defining a comprehensive list of tax havens, and requiring members of a unitary business to file a combined annual report with one designated member acting as the agent. The legislation modifies how taxable income is calculated for corporations, particularly those part of a unitary business, by implementing new rules for dividend deductions, intangible expense deductions, and income apportionment. It also changes the estimated tax underpayment rules for corporations filing combined annual reports, providing some relief from interest penalties by allowing calculations based on the combined tax of all unitary business members. Additionally, the bill restricts how net losses can be used within a unitary business and provides the Secretary of Revenue with expanded authority to allocate income and deductions among corporations to ensure accurate tax reporting.
Committee Categories
Budget and Finance
Sponsors (12)
Tina Tartaglione (D)*,
Maria Collett (D),
Carolyn Comitta (D),
Jay Costa (D),
Wayne Fontana (D),
Art Haywood (D),
Vincent Hughes (D),
John Kane (D),
Tim Kearney (D),
Katie Muth (D),
Steve Santarsiero (D),
Sharif Street (D),
Last Action
Referred to Finance (on 04/28/2025)
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