Senate GOP Unveils Stimulus Package
The Senate Republican Caucus today unveiled a sweeping stimulus package that would provide nearly $96 million in tax relief in the upcoming fiscal year for lower-income working Pennsylvanians, small businesses looking to expand, as well as major employers and job creators.
The four-bill Senate Republican Tax Stimulus Package was presented today during a press conference in the State Capitol Media Center hosted by Senator Pat Browne (R-16 and Chairman of the Senate Finance Committee), which has oversight powers over state tax matters.
"The package we are unveiling today is the result of intensive study and review of a number of proposals with the goal of finding the optimum combination to provide tax relief where it is most needed and best be able to stimulate Pennsylvania's economy," Senator Browne said. "I plan to bring these proposals to the Finance Committee as soon as possible, since these measures must be included as part of the General Assembly's consideration of Pennsylvania's 2008-09 budget."
Senate Bill 1385, sponsored by Senator Jake Corman (R-34), would expand the cap on the Net Operating Loss provision of the Corporate Net Income Tax to $5 million or 20 percent of taxable income. The NOL cap is currently set at $3 million or 12.5 percent of taxable income. If enacted, the effective date of the increase would be January 1, 2009.
Senate Bill 1386, sponsored by Senator Bob Regola (R-39), would increase the eligibility limits for special tax forgiveness for low-income Pennsylvanians. The bill would increase claimant income eligibility limits by a total of $2,000 over three years and the dependent allowance by $500 over the same period.
Senate Bill 1387, sponsored by Senator Pat Vance (R-31), would double the amount that small businesses may deduct as Section 179 expenses on their income tax filings. Section 179 of the federal Internal Revenue Code provides for the deduction of all or part of the costs of machinery and equipment used for business purposes.
Senate Bill 1388, sponsored by Senator John Eichelberger (R-30), would amend Pennsylvania's Corporate Net Income Tax to expand the sales factor to 85 percent. Most corporations that 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 four-bill Senate Republican Tax Stimulus Package was presented today during a press conference in the State Capitol Media Center hosted by Senator Pat Browne (R-16 and Chairman of the Senate Finance Committee), which has oversight powers over state tax matters.
"The package we are unveiling today is the result of intensive study and review of a number of proposals with the goal of finding the optimum combination to provide tax relief where it is most needed and best be able to stimulate Pennsylvania's economy," Senator Browne said. "I plan to bring these proposals to the Finance Committee as soon as possible, since these measures must be included as part of the General Assembly's consideration of Pennsylvania's 2008-09 budget."
Senate Bill 1385, sponsored by Senator Jake Corman (R-34), would expand the cap on the Net Operating Loss provision of the Corporate Net Income Tax to $5 million or 20 percent of taxable income. The NOL cap is currently set at $3 million or 12.5 percent of taxable income. If enacted, the effective date of the increase would be January 1, 2009.
Senate Bill 1386, sponsored by Senator Bob Regola (R-39), would increase the eligibility limits for special tax forgiveness for low-income Pennsylvanians. The bill would increase claimant income eligibility limits by a total of $2,000 over three years and the dependent allowance by $500 over the same period.
Senate Bill 1387, sponsored by Senator Pat Vance (R-31), would double the amount that small businesses may deduct as Section 179 expenses on their income tax filings. Section 179 of the federal Internal Revenue Code provides for the deduction of all or part of the costs of machinery and equipment used for business purposes.
Senate Bill 1388, sponsored by Senator John Eichelberger (R-30), would amend Pennsylvania's Corporate Net Income Tax to expand the sales factor to 85 percent. Most corporations that 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.
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