NFIB issued the press release below on Oct. 27th, applauding members of the Pennsylvania Senate who voted in favor of a bill that would change state tax laws to encourage small-business growth. SB 349 would permit pass-through businesses to utilize the same tax strategies as a corporation by bringing Pennsylvania’s Section 179 tax law more in line with the Federal Internal Revenue Code. Section 179 allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service.
HARRISBURG, PA (October 27, 2021) – The National Federation of Independent Business (NFIB) Pennsylvania today applauded members of the Pennsylvania Senate who voted in favor of SB 349 (Hutchinson), which would change state tax laws to encourage small-business growth. NFIB is grateful to Senator Scott Hutchinson (R-Venango) for sponsoring the legislation, which passed by a 31-19 vote.
“This legislation will help our struggling small and independent businesses grow, after the last 18 months of uncertainty and state-imposed restrictions. This legislation mimics parts of the federal Tax Cuts and Jobs Act, which allows full expensing up to $1,050,000 for the purchase of new equipment, but at the state tax level,” said Greg Moreland, state director of NFIB PA. “Prior to the pandemic we saw how federal tax code changes helped drive business growth around the country, and if SB 349 becomes state law, small businesses will be better positioned to invest, grow, hire, and drive Pennsylvania’s economic recovery.”
“Equipment is so expensive now that Pennsylvania’s current deduction limit isn’t much help,” added Moreland.
“The increase in the deduction found in Senate Bill 349 is not a tax credit, but simply allows a tax deduction earlier in the useful life of depreciable assets,” said Sen. Hutchinson, who chairs the Senate Finance Committee. “This overdue change is an incentive to encourage businesses to buy equipment and to invest, which promotes job growth in Pennsylvania.”
“The passage of SB 349 is the first step in helping advance a small business tax package to help employers recover from the COVID-19 pandemic and mandated shutdowns by bringing Pennsylvania tax law in-line with federal tax deduction law,” said Senate Majority Leader Kim Ward (R-Westmoreland).
NFIB also appreciated the efforts of Majority Leader Ward, Senate President Pro Tempore Jake Corman (R-Centre), and Sen. Hutchinson, who helped encourage passage of the legislation. The measure now heads to the state House.
For more than 75 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.