PA
Pennsylvania House Bill HB1414

Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1414

Introduced
5/6/25  

Caption

In corporate net income tax, further providing for imposition of tax.

Impact

The intended impact of HB1414 on state law is significant as it aims to streamline the corporate tax structure and promote a more business-friendly environment. The gradual reduction of the corporate tax rate is put forth as a method to attract new businesses and retain existing ones, potentially improving job creation and enhancing state revenue through increased economic activity. Such changes could contrast sharply with other states' tax policies, thereby positioning Pennsylvania favorably in the regional economic landscape.

Summary

House Bill 1414 seeks to amend Pennsylvania's Tax Reform Code of 1971, specifically targeting the corporate net income tax. The bill proposes a tiered reduction of the corporate tax rate, initiating from 7.99% in the year 2025 and eventually decreasing it to 4.99% in subsequent years. Proponents argue that such a reduction will make Pennsylvania more competitive for businesses and encourage economic growth by alleviating the financial burden of corporate taxes on companies operating within the state.

Sentiment

The sentiment surrounding HB1414 is generally favorable among business advocates and those politically aligned with reducing tax burdens. Supporters express optimism that lower corporate taxes can lead to broader economic benefits, while opponents warn of potential downsides such as reduced state revenues and challenges to funding essential public services. There is a division in opinion among legislators, with economic development proponents championing the bill, while critics point to concerns over the long-term fiscal implications of such tax cuts.

Contention

Notable points of contention include the balance between fostering a competitive business environment and ensuring adequate funding for public services which may suffer from reduced tax revenues. Critics argue that the bill may prioritize corporate profitability over public investment, potentially leading to long-term risks for the state’s financial health. The debate encapsulates broader discussions about the role of taxation in economic development and the need for fiscal responsibility in state governance.

Companion Bills

No companion bills found.

Previously Filed As

PA HB1482

In corporate net income tax, further providing for imposition of tax.

PA SB345

In corporate net income tax, further providing for imposition of tax.

PA HB1447

In corporate net income tax, further providing for imposition of tax.

PA HB1550

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

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 SB858

In mutual thrift institutions tax, further providing for imposition, report and payment of tax and exemptions.

PA SB161

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA SB416

In corporate net income tax, further providing for imposition of tax; and abrogating a regulation.

PA SB269

In personal income tax, further providing for imposition of

PA SB346

In corporate net income tax, further providing for definitions.

Similar Bills

No similar bills found.