Bill would help create a ‘home team advantage’ for Pennsylvania businesses

Harrisburg, PA - Tuesday, May 20, 2008. In a news conference at the State Capitol today, Senator John H. Eichelberger, Jr. (R-30) announced he will sponsor one of four bills in a stimulus package announced by Senate Republicans. Senate Bill 1388 would amend Pennsylvania’s Corporate Net Income Tax to expand the sales factor to 85 percent from 70 percent.

“Increasing the weight of the sales factor would help stimulate manufacturing jobs in the Commonwealth and benefit companies who make their products here,” John says.

Most corporations who conduct business in more than one state are required to use a three-factor apportionment in order to apportion their business income among the states where they have activity. The three-factor apportionment formula consists of property, payroll and sales factors. Right now, the sales factor accounts for 70 percent of the apportionment formula, and the property and payroll factors each account for 15 percent.

“We need to stop penalizing businesses that locate in Pennsylvania by including their buildings and payroll on the state’s Corporate Net Income Tax. This bill will help to fix this problem and help create a ‘home team advantage,’ for our Pennsylvania businesses,” John says.

This four-bill stimulus package would provide nearly $96 million in tax relief in the upcoming fiscal year for lower-income working Pennsylvanians, small businesses looking to expand, major employers and job creators.

The proposal also includes Senate Bill 1385, sponsored by Senator Jake Corman (R-34), to expand the cap on the Net Operating Loss provision of the Corporate Net Income Tax to $5 million or 20 percent of taxable income, Senate Bill 1386, sponsored by Senator Bob Regola (R-39), to increase the eligibility limits for special tax forgiveness for low-income Pennsylvanians and Senate Bill 1387, sponsored by Senator Pat Vance, which would double the amount that small businesses may deduct as Section 179 expenses on their income tax filings. Senator Pat Browne (R-16), Chairman of the Senate Finance Committee, hosted the news conference in the State Capitol Media Center.

John’s Comments on VIDEO:

John’s Comments in AUDIO:

News Conference on VIDEO:

News Conference in AUDIO:

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