PA
Pennsylvania Senate Bill SB656

Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB656

Introduced
4/28/25  

Caption

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.

Impact

The proposed changes outlined in SB 656 will significantly affect how corporations assess and report their taxable income in Pennsylvania. By clarifying the rules on combined reporting for unitary businesses, the bill aims to create a more consistent tax base and streamline the tax filing process. This means that corporations operating across state lines might benefit from reduced complexity in determining their Pennsylvania tax obligations, while enhancing the state's ability to capture tax revenues from multi-state entities.

Summary

Senate Bill 656 addresses amendments to the Corporate Net Income Tax within the Tax Reform Code of Pennsylvania. The bill proposes updated definitions for taxable income, requirements for reporting and payment, and stipulations for how corporations that are part of a unitary business file their tax reports. One notable aspect of the bill is the 'water’s-edge' basis for determining taxable income for corporations that are unitary members, which seeks to provide a clearer structure for tax obligations and ensure compliance with federal regulations.

Sentiment

The sentiment surrounding SB 656 appears to be generally positive within certain business sectors that value the clarity and modernization of tax regulations. Supporters argue that the updated definitions and reporting structures will lead to fairer tax liabilities and greater economic stability within the corporate sector. However, concerns have been raised regarding the potential increase in administrative burdens for corporations adjusting to the new reporting requirements, especially among smaller businesses that may have fewer resources to manage these changes.

Contention

A point of contention among stakeholders revolves around the impact of these amendments on smaller and medium-sized businesses, which may find it challenging to adapt to the new unified reporting standards. Some advocacy groups are wary that while larger corporations could streamline their processes and potentially save on operational costs, smaller entities might struggle with the initial transition, leading to unwarranted tax pressures. Additionally, there are discussions on how the new provisions might affect the overall competitive landscape within the state, particularly concerning businesses' decisions on where to establish their operations.

Latest PA SB656 Activity

View All Events: PA 2025-2026 Regular Session SB656

Companion Bills

No companion bills found.

Previously Filed As

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 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 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 HB2422

In corporate net income tax, further providing for definitions.

PA HB60

In corporate net income tax, further providing for definitions.

PA HB2440

In corporate net income tax, further providing for definitions.

PA HB1483

In corporate net income tax, further providing for definitions.

PA SB346

In corporate net income tax, further providing for definitions.

PA HB2395

In corporate net income tax, further providing for definitions.

Similar Bills

CA AB310

Wealth tax.

CA AB2088

Wealth 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 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 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.

MO SB1212

Modifies provisions relating to the apportionment of income for financial institutions

MA H2755

To level the playing field for Massachusetts small and medium sized businesses

CA AB1604

Charter schools: school facilities: Charter School Facility Grant Program: conduit financing.