PA Rep. Bloom's Tax Bill Would Give Small Businesses Incentive to Grow

Date: April 11, 2018

Taxes could be deferred for the purchase of newer equipment or a larger building

 

HARRISBURG, (Apr. 11, 2018) – The National Federation of Independent Business (NFIB), which represents 14,000 small businesses in Pennsylvania, applauded state House members who voted for a bill that would encourage small business expansion by improving a provision in the Pennsylvania Tax Code.  NFIB also thanked the bill sponsor, Rep. Steve Bloom (R-Cumberland),

“Much of the equipment that manufacturers use today is very expensive, and this would make it easier to make updates because the taxes are deferred,” said Kevin Shivers, executive state director of NFIB PA. “The state doesn’t lose money because the tax still has to be paid, but not at the time of the purchase when the business owner is already forking out a lot of money.” 

HB 331, The bill which would permit so-called “like-kind” exchanges also applies to the purchase of a new or larger building when the original facility is sold. The exchange of old for new must occur simultaneously.

“All fifty states except Pennsylvania already allow for like-kind exchanges, and so does the IRS,” added Shivers. “It’s a common-sense measure to encourage business growth, which will bring more tax dollars in to state coffers when that company expands and hires more employees.”

HB 331 now moves to the Senate for consideration.

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