PA
Pennsylvania House Bill HB788

Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB788

Introduced
3/3/25  

Caption

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

Impact

The implications of HB 788 are considerable, as it would fundamentally change how mutual thrift institutions are taxed in Pennsylvania. The proposed tax reductions are intended to provide financial relief to these institutions, which may encourage their growth and competition with other financial services. This shift could lead to increased investments and improved services for customers of these institutions, positively affecting the state’s economic landscape. However, it is also critical to consider how these tax changes may affect the overall revenue collected by the state, as lower tax rates may lead to decreased income for state-funded programs.

Summary

House Bill 788 proposes amendments to the Tax Reform Code of 1971 specifically focusing on the taxation of mutual thrift institutions. The bill aims to alter the tax rates imposed on these financial entities, adjusting them over the course of several years, ultimately reducing the tax rate significantly by 2033. It outlines a systematic reduction schedule that moves from 8.99% in 2025 to 4.99% in subsequent years, which indicates an effort to attract more business to the mutual thrift sector and promote economic growth through lower taxation.

Sentiment

The general sentiment around HB 788 appears to be cautiously optimistic among supporters, particularly within the financial sector and economic development advocates. They view the tax reductions as a potential incentive for attracting more mutual thrift institutions to the state, thus creating jobs and stimulating financial activity. However, there is a counter sentiment among some fiscal conservatives who express concern about the long-term revenue impact and equity of such reductions, suggesting the need for a balanced approach ensuring state resources for essential services are not adversely affected.

Contention

Notable points of contention surrounding HB 788 may arise from the implications of tax reductions for state-funded programs. Some legislators may argue that the benefits of supporting mutual thrift institutions do not outweigh the potential revenue losses that could affect public services and infrastructure projects. Additionally, discussions might delve into the fairness of tax breaks for specific financial sectors while other industries could face higher tax burdens or stagnant rates. The debate reflects broader concerns regarding fiscal responsibility and prioritizing long-term economic strategies versus immediate benefits.

Companion Bills

No companion bills found.

Previously Filed As

PA SB858

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

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 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 HB1462

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

PA SB345

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

PA HB1482

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 SB269

In personal income tax, further providing for imposition of

PA SB654

In sales and use tax, further providing for

PA HB1773

In personal income tax, further providing for imposition of tax and for amount of withholding tax.

Similar Bills

No similar bills found.