Pennsylvania 2023-2024 Regular Session

Pennsylvania Senate Bill SB346

Introduced
3/14/23  
Refer
3/14/23  

Caption

In corporate net income tax, further providing for definitions.

Impact

The revisions stipulated in SB346 specifically address the calculations surrounding net loss for taxable years, allowing for higher percentages of taxable income to be deducted in subsequent years. This change could greatly benefit businesses that experience downturns, permitting them to carry losses forward for longer durations. The anticipated outcome is that more businesses will enjoy significant tax relief, thereby promoting economic recovery and growth in the state of Pennsylvania.

Summary

Senate Bill 346 proposes amendments to the Pennsylvania Tax Reform Code of 1971, specifically focusing on corporate net income tax definitions and net loss deductions. As the corporate landscape continues to evolve, the bill aims to provide clearer guidance on how taxable income and net losses are defined, which may aid businesses in comprehensively understanding their tax obligations. By adjusting the limits on net loss deductions, the bill is designed to support businesses, especially in their recovery phases following financial setbacks.

Sentiment

General sentiment around SB346 appears supportive among the business community, as many see it as a step towards fostering a more favorable tax environment. However, there could be concerns from critics about the potential impacts on state tax revenue, as larger deductions may lead to reduced income for the state. As discussions unfold, stakeholders will need to balance the benefits for corporations with the necessary funding for public services.

Contention

One notable point of contention is the potential budgetary impact of increased net loss deductions on state finances. While proponents argue it will encourage investment and job retention by easing the tax burden on struggling businesses, opponents may express concerns regarding long-term fiscal sustainability. The debate raises important questions about the priorities within the taxation system and how best to support businesses while ensuring adequate funding for essential state programs.

Companion Bills

No companion bills found.

Similar Bills

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 HB1483

In corporate net income tax, further providing for definitions.

PA HB2395

In corporate net income tax, further providing for definitions.

CA SB554

Nurse practitioners: physician assistants: buprenorphine.

CA AB710

Postsecondary education: cost of attendance: fiscal matters.

US HB2511

Sarah Katz Caffeine Safety Act

US HB10370

To amend the Federal Food, Drug, and Cosmetic Act to establish certain labeling requirements for caffeine, and for other purposes.

US SB3294

Child Care Nutrition Enhancement Act of 2023