The Senate Finance Committee approved three bills on Tuesday (February 7) intended to help Pennsylvania’s small businesses expand and grow, according to Committee Chairman Senator Scott Hutchinson.
“When the Commonwealth invests in small businesses, it is an investment that strengthens the economic fiber of our communities and, directly or indirectly, sustains the quality of life for us all,” Senator Hutchinson said.
Senate Bill 201, sponsored by Senator Mike Folmer, provides for “like-kind” exchange tax deferrals.
“Like-kind exchanges apply in every other state except Pennsylvania. We need to allow the Commonwealth’s small businesses to remain competitive and give them the opportunity for growth,” said Senator Folmer. “I commend Senator Hutchinson for bringing these important reforms up for consideration in the Finance Committee.”
Senate Bill 202, sponsored by Senator John Eichelberger, permits a small business to deduct net losses from a subsequent tax year’s state tax liability.
“I thank Chairman Hutchinson for putting this pro-business bill on the committee’s agenda,” Senator Eichelberger said. “As we know, small business is the backbone of our economy and the package of bills voted on by the committee today will go a long way sustaining and strengthening them.”
Senate Bill 203, sponsored by Senator Hutchinson, increases the deductible amount of a small business’ qualifying equipment purchases to the amount that may currently be deducted under Section 179 of the Internal Revenue Code.
“This is not a major jump, especially when you take into account the potential costs facing the small business as it looks to modernize or grow,” Senator Hutchinson said. “However, it may be a small measure of financial relief that will encourage a small business owner to move forward, to make that important investment that ultimately means the difference between prosperity and shuttering the shop.”
The committee also approved two measures that would set reasonable limits on state spending.
Senate Bill 7, sponsored by Senator Folmer, creates the Taxpayer Protection Act which limits the State appropriation increases to the average percentage change in personal income in the Commonwealth for the prior three years or to the average percentage change in inflation for the three years prior plus the average percentage change in the state population for the three years prior, whichever is less.
Senate Bill 173, sponsored by Senator Camera Bartolotta, is a constitutional amendment providing for state appropriation limits.
Contact: Justin Leventry (717) 787-9684