Bill > SB853

This bill creates a tax credit program to help small businesses offset the costs of minimum wage increases. Specifically, the bill provides a tax credit for employers with 50 or fewer full-time equivalent employees who experience increased labor costs due to minimum wage rate changes. The tax credit allows employers to claim 50% of the wage increase difference in the first year after a minimum wage hike, and 25% in the second year, effectively expiring after three years. Employers can apply the credit against various state tax liabilities (such as corporate net income tax) but cannot get a cash refund for unused credits. The credit can be carried forward for up to three years, and for pass-through entities like partnerships, the credit can be transferred proportionally to shareholders or members. The Department of Revenue is tasked with creating guidelines and regulations to implement the program. The tax credit is designed to help smaller businesses manage the financial impact of mandated wage increases by providing a temporary tax offset, with the credit amount decreasing over time to encourage businesses to adjust to the new wage standards.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=853