Pennsylvania House Bill HB1222

Pennsylvania 2023-2024 Regular Session

• Introduced: 5/24/23
• Refer: 5/24/23

Caption

Providing for a commuter and commerce toll tax credit.

Impact

The implementation of HB 1222 is set to impact Pennsylvania's tax structure by introducing an article in the Tax Reform Code of 1971, specifically addressing commuter and commerce toll tax credits. By allowing taxpayers to offset some of their toll-related expenses, the bill aims to make commuting more affordable and encourage economic activity via toll roads. This could particularly benefit daily commuters and small businesses that rely on transportation across toll bridges and highways, fostering a more favorable economic environment in regions with significant toll costs.

Summary

House Bill 1222 introduces a new tax credit aimed at alleviating the financial burden of commuting and toll expenses for Pennsylvania residents and businesses. Specifically, the bill authorizes a commuter and commerce toll tax credit that allows taxpayers to claim a credit for 50% of their qualified toll expenses, with a maximum credit limit set at $1,000 per year. This initiative is part of a broader tax reform effort designed to provide relief while promoting the use of toll roads within the state. Taxpayers are required to submit applications for this credit, accompanied by receipts for tolls paid, which further emphasizes accountability in the disbursement of tax benefits.

Sentiment

The sentiment surrounding HB 1222 appears largely positive, with proponents advocating for its potential to ease the financial burden on workers and businesses that frequently use toll roads. Supporters argue that this tax credit can stimulate local economies by alleviating commuting costs, ultimately leading to increased job retention and mobility. However, concerns have also been raised about the long-term budget impacts of such tax credits and whether they adequately address the needs of all Pennsylvania residents, particularly those in lower-income brackets who may not benefit as significantly from such measures.

Contention

Debate regarding the bill may surface around the nature of the tax credit itself, particularly regarding its application limits and the overall effectiveness in addressing commuting challenges. For instance, while some legislators express concern that a cap of $1,000 may be insufficient for frequent travelers or larger households incurring higher toll expenses, others argue that the bill is an important first step in addressing transportation costs without significantly impacting the state’s revenue system. Therefore, the balance between fiscal responsibility and providing necessary tax relief remains a critical point of contention.