BillTrack50 logo
Free Signup Login
Bill

Bill > HB1610

PA HB1610

PA HB1610
In personal income tax, further providing for definitions and for income taxes imposed by other states and providing for provisions for overtime pay; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of

summary

Introduced
06/12/2025
In Committee
06/25/2025
Crossed Over
06/25/2025
Passed
Dead

Introduced Session

Potential new amendment
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 determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations, inquisitorial powers of the department, for retention of records and for penalties; in tax credit and tax benefit administration, providing for application of tax credits or tax benefits to a unitary business; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties.

AI Summary

This bill makes several significant changes to Pennsylvania's corporate net income tax code, focusing on the taxation of unitary businesses (groups of interconnected corporations) starting in tax years beginning January 1, 2026. Key provisions include: establishing a new method for calculating taxable income for unitary businesses on a water's-edge basis, which includes income from certain U.S. and foreign corporate members; modifying how sales are factored into tax calculations, excluding intercompany transactions and certain foreign sales; changing the corporate net income tax rate, gradually reducing it from 7.99% in 2025 to 4.99% by 2029; requiring unitary businesses to file combined annual reports with one member designated as the reporting agent; and implementing new rules for net loss deductions, estimated tax payments, and tax credit applications within unitary businesses. The bill also introduces a new Working Pennsylvanians Tax Credit, which allows eligible taxpayers to claim a tax credit equal to 30% of their federal Earned Income Tax Credit, with any excess being refundable. These changes aim to modernize Pennsylvania's corporate tax system, potentially making the state more competitive for businesses while providing tax relief for working individuals.

Committee Categories

Budget and Finance

Sponsors (27)

Last Action

Referred to Finance (on 06/25/2025)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...