Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB792

Introduced
6/6/25  

Caption

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

Impact

The proposed legislation is expected to have a substantial impact on state laws regarding the administration of tax credits. By increasing the total cap on tax credits, SB792 seeks to create a more favorable environment for businesses that rely on research and development activities to drive growth and innovation. The allocation of tax credits for small businesses could significantly support local economies, fostering an ecosystem conducive to startups and small enterprises engaged in technological advancements.

Summary

Senate Bill 792 aims to amend the Pennsylvania Tax Reform Code of 1971 by increasing the limitation on tax credits for research and development from $60 million to $120 million annually. A significant portion of these credits, amounting to $24 million, is specifically allocated for small businesses. This bill is designed to encourage innovation and economic activity within the state by providing greater financial support for qualifying taxpayers engaged in research and development activities.

Sentiment

The sentiment surrounding SB792 appears generally positive, particularly among proponents who argue that the bill will boost economic development in Pennsylvania. Supporters believe that enhancing the financial incentives for research and development will not only benefit businesses but also create job opportunities and promote long-term economic stability. Critics of the bill may voice concerns about the implications of the increased tax credits on state revenue and the effectiveness of such tax incentives in fostering genuine growth.

Contention

Notable points of contention may arise regarding the distribution and effectiveness of the allocated tax credits. While proponents argue that the increased funding for small businesses will stimulate local economies, others may question whether these credits will reach the intended recipients and truly stimulate innovation. Additionally, there may be debates over the best approach to tax incentives and whether they provide sufficient return on investment for the state.

Companion Bills

No companion bills found.

Previously Filed As

PA SB334

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

PA HB1429

In neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit.

PA SB1181

In neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit.

PA SB825

In entertainment production tax credit, further providing for limitations.

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 SB679

In mixed-use development tax credit, further providing for mixed-use development tax credits.

PA HB653

In tax credit and tax benefit administration, further providing for definitions; and providing for tax credits for rehabilitation and reconstruction of certain factory and mill buildings and for a business tax credit.

PA SB478

In entertainment production tax credit, further providing for limitations.

PA HB1547

In entertainment production tax credit, further providing for carryover, carryback and assignment of credit, for limitations and for pass-through entity.

PA SB661

In educational tax credits, further providing for limitations.

Similar Bills

No similar bills found.