Pennsylvania 2023-2024 Regular Session

Pennsylvania Senate Bill SB334

Introduced
1/31/23  

Caption

In research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.

Impact

The implementation of SB334 is expected to have a significant impact on state laws regarding taxation and economic development. By increasing the cap on total approved tax credits from $60 million to $100 million and earmarking $20 million specifically for small businesses, the bill directly addresses the needs of smaller entities for capital. The structure of the tax credits aims to provide financial incentives for businesses to innovate and grow, potentially leading to higher employment rates in the Commonwealth.

Summary

Senate Bill 334 establishes the Angel Investment Tax Credit program in Pennsylvania, which aims to stimulate economic growth by encouraging private equity investments in small businesses. The bill outlines that the tax credits will be available for individuals and entities making qualified investments in small businesses that meet specific criteria, such as being headquartered in Pennsylvania and having fewer than 100 employees. This initiative is designed to facilitate early-stage financing for businesses poised for high growth and job creation within the state.

Sentiment

The general sentiment surrounding SB334 appears to be positive, particularly among business owners and economic development advocates who view it as a vital tool for fostering entrepreneurship. However, there may be skepticism among some legislators and constituents regarding the effectiveness of such tax incentives — whether they will truly benefit small businesses or simply enrich investors without significant local impact.

Contention

Notable points of contention could arise from the bill's provisions regarding the eligibility criteria for businesses and investors. For instance, the requirement that investors must be accredited and the stipulation that businesses must establish their headquarters in Pennsylvania may limit participation for some potential investors. Furthermore, discussions may surface around the effectiveness of tax credits as a long-term economic strategy, debating whether direct investments or other forms of support might yield better outcomes for economic growth.

Companion Bills

No companion bills found.

Previously Filed As

PA SB191

In tax credit and tax benefit administration, further providing for definitions; in research and development tax credit, further providing for limitation on credits; and providing for Angel Investment Tax Credit.

PA SB792

In research and development tax credit, further providing for limitation on credits.

PA HB1004

In research and development tax credit, further providing for limitation on credits.

PA SB655

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; in tax credit and tax benefit administration, further providing for definitions; and providing for personal health investment tax credit.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB2452

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA SB1106

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA HB1126

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA SB661

In educational tax credits, further providing for limitations.

PA SB706

In educational tax credits, further providing for limitations.

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