HARRISBURG – Legislation to provide employers impacted by the COVID-19 pandemic with critical assistance, sponsored by Senators Camera Bartolotta (R-46) and Judy Ward (R-30), was passed by the Senate Finance Committee today.
“Because small employers typically do not have access to large amounts of capital to manage losses, it is critical that we allow them to use tax strategies to survive the pandemic,” Senator Bartolotta said. “Senator Ward and I introduced the bill to provide immediate relief to cash-strapped employers so they can continue to help with Pennsylvania’s economic recovery.”
Senate Bill 368 would permit small businesses to take a net loss against other sources of income and to “carry back” losses to previous tax years. It would also allow employers to take Net Operating Losses against future years for up to 20 years. The changes would give small business owners the option to benefit from the same tax strategies as large corporations and provide the same immediate relief that is offered at the federal level.
“Big corporations were already given an unfair advantage in the past year when the governor favored them over smaller businesses that could have more easily followed social distancing and other COVID-19 guidelines. The tax law should not favor them too,” Senator Ward explained.
Senate Bill 368 is part of the “Prioritize Pennsylvania: Small Businesses” initiative unveiled in March by Bartolotta and Ward, as well as Senators Ryan Aument (R-36) and Kristin Phillips-Hill (R-28), intended to help once-vibrant small businesses by making significant reforms to revitalize Pennsylvania’s economy.
The bill now moves to the full Senate for consideration.
CONTACT: Colleen Greer (Bartolotta’s Office), 717-787-1463
Cheryl Schriner (Ward’s Office), 717-787-5490