The state Senate Finance Committee recently advanced two bills designed to help businesses recover from the COVID-19 pandemic.
Both bills were written by state Sen. John Yudichak (I-Luzerne/Carbon).
Senate Bill 681 would allow a temporary carry-forward of all purchased tax credits.
Under the bill, two one-year carry-forward provisions would be permitted for tax credits purchased in 2020 and 2021. Tax credits purchased in 2020 could be used for 2020 or 2021, and tax credits purchased in 2021 can be used for 2021 or 2022.
“During COVID-19, over 30 percent of Pennsylvania’s businesses were closed as a result of the Department of Health’s mitigation orders, forcing over 3 million Pennsylvanians out of work and leaving the financial future of thousands of business owners very uncertain,” Yudichak said. “Senate Bill 681 will bring confidence in Pennsylvania’s tax credit programs and will help businesses expand, retain and create new jobs, and invest in their local communities.”
Senate Bill 682 would extend the eligibility timeframe from eight years to 10 years for the Keystone Innovation Zone (KIZ) tax credit program.
The program currently provides tax credits to for-profit companies that are less than eight years old and operating within the geographic boundaries of a particular KIZ.
The bills move to the full Senate for consideration.