On June 14, the Senate Finance Committee voted to advance two pieces of legislation impactful to small businesses throughout the Commonwealth.
First, SB 347 (DiSanto), relating to like-kind exchanges, would mirror Pennsylvania law to federal, removing a disadvantage that Pennsylvania small businesses face when competing with those in other states.
Under Federal tax law, a “like-kind” exchange under Internal Revenue Code Section 1031 allows for tax-deferral when property is exchanged for similar property. This long-standing Federal provision facilitates efficient investment in the job-creating assets businesses need to remain competitive.
Every state but Pennsylvania provides for a similar deferral on the state level (current Pennsylvania tax law contains no such provision).
SB 347 passed the Senate Finance Committee by a vote of 9-2, with bipartisan support. It will now advance to second consideration in the Senate.
Secondly, SB 447 (Brooks), relating to the reduction of CNI tax, would reduce the CNI from its current rate by 0.5 percent every year over a period of six years until it reaches 6.99%, in which it will remain thereafter.
Currently, Pennsylvania has the second highest corporate net income tax rate in the nation (9.99%), which impedes the attractiveness of our state to the job-creators of the future.
SB 447 passed the Senate Finance Committee by a vote of 8-3, with bipartisan support. It will now advance to second consideration in the Senate.
Your NFIB-PA team is hard at work advocating for these, and many more bills, that will assist small businesses in Pennsylvania!