The Pennsylvania House Finance Committee advanced legislation this week that would eliminate a disadvantage that businesses in the state face when competing with those in other states.
The bill, SB347, refers to like-kind exchanges, which allow for tax-deferral when a property is exchanged for a similar property. Like-kind exchanges are a long-standing federal provision that facilitates efficient investment in the assets businesses need to remain competitive. However, every state in the nation except Pennsylvania provides for a similar deferral on the state level, as current Pennsylvania tax law contains no such provision.
The legislation, sponsored by state Rep. John DiSanto (R-Dauphin/Perry), would change that by amending the Pennsylvania state law to mirror the federal law, thus allowing businesses in the state to compete more effectively.
The approval of the bill by the House Finance Committee drew support from the National Federation of Independent Business Pennsylvania (NFIB Pennsylvania).
“Happy to report that SB 347 (Like kind exchanges) was just reported unanimously from the House Finance Cmte. This is a top priority for the small business community and is now before the House. Thank you @SenatorDiSanto for sponsoring this important bill,” NFIB Pennsylvania tweeted.
The bill now moves to the full House for consideration.