Harrisburg –The Senate effort to move Pennsylvania out of a pandemic economy and create jobs for Pennsylvanians continued with passage of additional small business tax reform legislation, Sen. Gene Yaw said today.
Senate Bill 347 eliminates a disadvantage faced by Pennsylvania small businesses when competing with those in other states. The bill will be sent to the House of Representatives for consideration.
Under federal tax law, a “like-kind” exchange under the Internal Revenue Code allows for tax deferral when property is exchanged for similar property. This long-standing federal provision allows employers to invest in the job-creating assets businesses need to remain competitive. Every state but Pennsylvania provides for a similar deferral on the state level.
The bill is part of a Small Business Tax Reform Package to help employers recover from the COVID-19 pandemic and mandated shutdowns. Small businesses create 65% of the jobs in the commonwealth.
The Senate previously passed Senate Bill 349 to bring state tax law governing expense deductions in line with federal law, eliminating the unequal treatment of small businesses in Pennsylvania. The increase in limits makes it easier for employers to buy equipment and to invest, which promotes job growth.
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