Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB1860

Introduced
11/30/23  

Caption

In corporate powers, duties and safeguards, further providing for transfer of securities and restrictions.

Impact

If enacted, HB1860 would significantly impact corporations, particularly those that qualify or wish to qualify as small business corporations under Subchapter S of the Internal Revenue Code. The intention behind these amendments is to support corporate compliance with taxation laws, ensuring that restrictions placed on security transfers enhance tax advantages for shareholders while maintaining the integrity of corporate governance. As such, the bill seeks to balance corporate flexibility in securities transfer with adherence to overarching tax policies.

Summary

House Bill 1860 aims to amend Title 15 of the Pennsylvania Consolidated Statutes by addressing the transfer of securities and the related restrictions. The bill emphasizes the importance of tax and regulatory considerations in owning and transferring corporate securities. Notably, it seeks to provide clarity on specific tax-related purposes for which restrictions on security transfers are deemed reasonable. This includes maintaining the corporation's tax status and preserving specific tax attributes, such as net operating losses.

Sentiment

The overall sentiment surrounding HB1860 appears to lean towards a positive reception among corporate advocates and legal stakeholders. They view the bill as a forward-thinking measure that will facilitate business operations by clarifying existing ambiguities in the law regarding security transfers. However, there might be concerns from fiscal watchdogs regarding potential loopholes or unintended consequences that could arise from broadening the scope of permissible restrictions on securities.

Contention

Despite the stated benefits, notable points of contention may arise concerning the implications of the bill on broader regulatory frameworks governing corporate activities. Discussions may surface over how the proposed amendments could affect transparency and accountability in corporate governance. Critics might argue that while aiming to simplify tax compliance, such amendments could inadvertently undermine regulatory oversight, leading to disparities in corporate accountability.

Companion Bills

No companion bills found.

Previously Filed As

PA SB404

In corporate powers, duties and safeguards, further providing for additional powers of certain public utility corporations.

PA SB574

In corporate powers, duties and safeguards, further providing for additional powers of certain public utility corporations.

PA HB1655

In corporate powers, duties and safeguards, further providing for additional powers of certain public utility corporations.

PA SB639

In corporate powers, duties and safeguards, further providing for additional powers of certain public utility corporations.

PA HB1716

In entities generally, further providing for requirements for names generally and providing for registration of name of domestic nonfiling association; in entity transactions, further providing for nature of transactions and for approval by limited liability company; in foreign associations, further providing for foreign registration statement; in general provisions, further providing for definitions; in corporate powers, duties and safeguards, further providing for certain specifically authorized debt terms; in officers, directors and shareholders, further providing for derivative action; in foreign business corporations, further providing for application of article; in general provisions, further providing for definitions; in corporate powers, duties and safeguards, further providing for certain specifically authorized debt terms; in officers, directors and members, further providing for derivative action; in general partnerships, further providing for contents of partnership agreement; in limited partnerships, further providing for contents of partnership agreement and for derivative action; and, in limited liability companies, further providing for contents of operating agreement and for derivative action.

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 SB363

Financial transactions: corporate entities, securities, loans, and deposits.

PA SB1014

In city revitalization and improvement zones, further providing for definitions, for establishment or designation of contracting authority, for approval, for transfers, for restrictions, for transfer of property and for review.

PA SB654

In sales and use tax, further providing for

PA SB396

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners and for income of a Pennsylvania S corporation.

Similar Bills

No similar bills found.