PA Chamber applauds passage of pro-small business bills in Senate

The Pennsylvania Chamber of Business and Industry’s President and CEO Gene Barr applauded recent passage in the Senate of Bill that would help small businesses by removing tax barriers.

Senate Bill 347 passed on Tuesday, while Senate Bill 349 passed last month, the chamber said. Both are part of the Small Business Tax Reform package aimed at removing state tax barriers for small businesses.

“This legislation provides much-needed relief for struggling businesses, allowing them to invest back in the Commonwealth and create more jobs,” Barr said. “Both are key components of the Chamber’s ‘Bringing PA Back’ initiative, a member-driven recovery effort to advocate for policies that will rebuild Pennsylvania’s economy in a manner that provides opportunity for all.”

SB 347 deals with “like-kind” exchanges, the chamber said. Under federal tax law, a “like-kind” exchange under the Internal Revenue Service Code provides for a tax deferral when property is exchanged for similar property. Currently, Pennsylvania is the only state in the country that does not have similar deferrals at the state level. SB 347 aligns state law to federal law by allowing those tax deferrals at the state level.

The National Federation of Independent Business (NFIB) Pennsylvania also applauded the bill’s passage, saying it will offer a level playing field for businesses looking to expand their investment or to relocate to the state.

“Addressing this tax issue will increase opportunities for growth and investment in small businesses,” said Melissa Wilbur Morgan, assistant state director of NFIB PA. “When employers have more resources, they invest more in their companies by taking on new risks, hiring more employees, increasing wages, increasing benefits, and more.”

SB 349 aligns Pennsylvania law with Section 179 of the federal tax code which allows owners of pass-through businesses to take a tax deduction for the full purchase price of qualifying equipment. According to current Pennsylvania law, those full tax deductions are only allowed for those subject to state corporate income tax, and limits the deduction for businesses subject to the state personal income tax to $25,000. SB 349provides equity or small businesses by increasing the deduction during the current year from $25,000 to $1.05 million, consistent with the federal limit.

“The Commonwealth needs to be increasingly competitive, for both jobs and capital,” Barr said. “Companies and investors have choices, both globally and among the states, on where to place their investments and we want businesses to remain here, invest here and grow here. We applaud the PA Senate for passing these crucial pieces of legislation.”