Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB576

Introduced
4/9/25  

Caption

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

Impact

The introduction of SB576 is intended to alleviate the financial burdens on mutual thrift institutions within Pennsylvania. By significantly reducing tax rates over the years, the bill could enhance profitability for these organizations, encouraging investments and possibly leading to increased lending activity. This could foster a healthier financial landscape for communities that rely on these institutions for affordable credit and thrift options. Furthermore, the extended net loss carryover provision allows institutions to deduct losses from previous years for a greater duration, providing additional financial relief.

Summary

Senate Bill 576 aims to amend the Tax Reform Code of 1971, specifically addressing taxation regulations for mutual thrift institutions. The bill introduces changes to the imposition, reporting, and payment of taxes applicable to these institutions, as well as adjustments to exemptions. Notably, the bill proposes a schedule of tax rate reductions, moving from 7.95% in 2025 to a proposed rate of 4.99% in 2031 and beyond. This structured decrease reflects an intention to create a more favorable tax environment for mutual thrift institutions, potentially stimulating growth in the sector.

Sentiment

The sentiment around SB576 appears positive, particularly among supporters within the financial sector and affiliated organizations. Proponents argue that the bill is essential for stimulating economic activity within Pennsylvania’s mutual thrift institutions, ultimately benefiting consumers through improved services and potentially lower rates. However, there could also be apprehensions among fiscal conservatives or budget watchdogs regarding the implications of reduced tax revenue on state funding for public services.

Contention

Despite the favorable outlook for mutual thrift institutions, SB576 may face scrutiny concerning its long-term fiscal effects on state revenue. Critics might raise concerns that the significant tax reductions could undermine the state’s ability to fund essential services, particularly if the anticipated economic growth does not offset the reduction in tax income. There may also be discussions regarding whether the bill favors certain financial entities over others, creating a quasi-competitive disadvantage within the broader financial services market.

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 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 SB654

In sales and use tax, further providing for

PA SB815

In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries; and, in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.

PA SB269

In personal income tax, further providing for imposition of

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.

Similar Bills

No similar bills found.