Bill > HB1471

This bill modifies Pennsylvania's tax code to expand tax credit provisions for income taxes paid to other jurisdictions. Specifically, the bill broadens the types of business entities eligible for tax credits when their shareholders or partners pay income taxes in other states. The changes now include limited liability companies and partnerships, in addition to S corporations, and explicitly allow for both direct and indirect ownership structures. The bill clarifies that the tax credit cannot exceed the proportional amount of income taxed by another jurisdiction relative to the taxpayer's total taxable income. Additionally, the bill simplifies documentation requirements, allowing businesses to provide a certified statement with tax information instead of submitting full state tax returns. The changes will apply to taxable years beginning after December 31, 2021, and the act takes effect immediately. The bill aims to provide more flexibility and clarity for taxpayers who earn income across multiple states, ensuring they are not double-taxed on the same income.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1471