The state Senate approved legislation that would reform the tax laws for small businesses.
In Pennsylvania, small businesses create 65 percent of the jobs.
Senate Bill 347 would reform the tax code to allow Pennsylvania to provide a tax deferral when property is exchanged for similar property. Every state plus the Internal Revenue Code allows for this.
“My legislation levels the playing field for small businesses looking to expand or even relocate in our commonwealth,” state Sen. John DiSanto (R-Dauphin/Perry), who wrote the bill, said. “Like-kind exchange treatment can be a deciding factor for real estate transactions, and my bill will improve Pennsylvania’s business climate to encourage economic growth and job creation.”
The bill is part of a Small Business Tax Reform Package aimed at helping the state’s employers recover from the COVID-19 pandemic and mandated shutdowns and create jobs.
The bill moves to the House of Representatives for consideration.
Last month, the Senate passed and referred to the House legislation bringing state tax law governing expense deductions in line with federal law. Senate Bill 349 would amend the Tax Reform Code of 1971 to increase limits and make it easier for employers to buy equipment and to invest.