Bill > SB792

This bill amends the Tax Reform Code of 1971 to adjust provisions related to the research and development tax credit. Key changes include redefining the "Pennsylvania Base Amount," which is used to calculate the credit, to be 50% of the average Pennsylvania qualified research and development expenses over the three preceding tax years, instead of a calculation based on federal definitions. The bill also increases the net book value threshold for a company to be considered a "small business" from $5 million to $10 million. Furthermore, it modifies the credit calculation by increasing the percentage for general taxpayers from 10% to 14% and for small businesses from 20% to 25% of qualified expenses exceeding the Pennsylvania Base Amount; it also introduces a 6% credit for Pennsylvania qualified research and development expenses in years where there were no such expenses in the three preceding years. Finally, the bill significantly raises the total annual cap on approved research and development tax credits from $60 million to $120 million, with a specific allocation for small businesses increasing from $12 million to $24 million, while allowing unused portions to be transferred between the general and small business allocations.