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Rep. Dave Reed (R-Indiana) Last week my bill to reduce and reform the Corporate Net Income Tax passed the state House. The bill is part of the Keystone Manufacturing Initiative (KMI) designed to create a better business environment and generate jobs for the Commonwealth. My bill, HB515, redefines the way income is calculated, which is also subject to the Corporate Net Income Tax and prevents outsourcing by keeping Pennsylvania's manufacturing jobs here in Pennsylvania. The bill will amend the state Tax Reform Code to allow the single sales factor to fall under the Corporate Net Income Tax. Current law requires the Corporate Net Income Tax to be calculated based on the property, payroll and sales factors within and outside of Pennsylvania. So, only tax sales made in Pennsylvania, rather than a combination of sales, payroll and capital will be taxed. This legislation will allow manufacturers to reduce their tax burden, thus making Pennsylvania a more attractive place to do business. The goal is to foster the creation of more family-sustaining jobs, and the KMI is our means to achieving this end. The bill now moves on to the state Senate for further consideration. In March my bill, HB220, was the first KMI bill to pass the House. This bill will allow manufacturers to use a career development credit against the Corporate Net Income Tax, Capital Stock and Franchise Tax and Personal Income Tax for expenses incurred as the result of training workers, thereby reducing costs of employee training while allowing specialized skills training to specific industry needs. KMI bills passing so far last week include: Business Tax Relief Elimination of the cap on net operating loss carry-forward (HB650) -- Rep. Mike Turzai (R-Allegheny). Eliminating Pennsylvania's limited net operating loss carry-forward will provide greater opportunities for Pennsylvania firms, especially new companies experiencing losses in the early years of cyclical firms experiencing losses when the economy downturns. This bill will create greater long-term profitability opportunities. Regulatory Flexibility for Small Business (HB236) -- Rep. Tina Pickett (R-Bradford). The bill would require state agencies to consider the impact on small business before imposing regulatory mandates and examine alternatives for small businesses that would achieve the desired regulation, ensuring the protection of important public policy goals without sacrificing jobs and family financial security. Affordable Health Care Health Care Savings Accounts (HB107) -- Rep. John Payne (R-Dauphin). This bill would provide deposits to health care savings accounts the same tax advantages now granted only to health insurance premiums. It would allow individuals to control some of their own health care dollars without a tax penalty. Small Business Healthcare Tax Credit (HB734) -- Rep. Scott Boyd (R-Lancaster). This legislation would provide a tax credit to small businesses that offer employee health insurance benefits through the new Health Savings Account (HSA) and contribute to the employee's HSA. Specifically, this legislation offers a tax credit to employers based upon the amount of money they contribute to an employee's HSA. The KMI package is supported by the National Federation of Independent Business, Pennsylvania Chamber of Business and Industry, Pennsylvania Manufacturers' Association, and the Pennsylvania Roundtable. For more information on KMI, visit www.PaJobPlan.com. CapNews Guest Speaker: Archives |
