Harrisburg –The Senate effort to move Pennsylvania out of a pandemic economy and create jobs for Pennsylvanians continued this week with passage of additional small business tax reform legislation co-sponsored by Senator Mario Scavello (R-40).
Senate Bill 347 eliminates a disadvantage faced by Pennsylvania small businesses when competing with those in other states. The bill will be sent to the House of Representatives for consideration.
Under federal tax law, a “like-kind” exchange under the Internal Revenue Code allows for tax deferral when property is exchanged for similar property. This long-standing federal provision allows employers to invest in the job-creating assets businesses need to remain competitive. Every state but Pennsylvania provides for a similar deferral on the state level.
The bill is part of a Small Business Tax Reform Package to help employers recover from the COVID-19 pandemic and mandated shutdowns. Small businesses create 65% of the jobs in the commonwealth.
Two weeks ago, the Senate passed Senate Bill 349, also sponsored by Senator Scavello, to bring state tax law governing expense deductions in line with federal law, eliminating the unequal treatment of small businesses in Pennsylvania. The increase in limits makes it easier for employers to buy equipment and to invest, which promotes job growth.
“Government can’t create jobs, but too often it gets in the way of those who do,” said Scavello. “I’m co-sponsoring these bills because the employers who create the most jobs for Pennsylvania families – small business operators – were hit with the one-two punch of the pandemic and the Wolf administration’s forced business closures. Passage of these bills are important steps forward.”
Contact: Christine Zubeck firstname.lastname@example.org (717) 787-6123