HARRISBURG, January 18, 2008 – Senator Wayne D. Fontana (D-Allegheny) applauded the Senate Finance Committee for action earlier this week to move Senate Bill 1229, the High-Tech & Manufacturing Stimulus Act, to the full Senate for consideration. The bill, introduced by Senator Fontana and Senator Pat Browne, changes the formula for the corporate net income tax to rely on a business’ sales and removes the cap on the amount of net operating loss that can be claimed on taxes.
“Senate Bill 1229 is a significant step forward in addressing business taxes in Pennsylvania,” Fontana said. “Resolving the issues with the corporate net income tax and the net operating loss carryover will allow Pennsylvania companies to compete successfully for new jobs and investment. This is an issue of great interest to technology and manufacturing firms in Western Pennsylvania and will allow them to put new investment and job growth into the region.”
This is the second initiative in recent years aimed at making improvements to the structure of Pennsylvania’s business tax system. In Spring 2006, legislation increased the cap on net operating losses and increased the sales factor in determining corporate net income tax. This legislation will continue moving Pennsylvania’s economy forward. Supported by members of the CompetePA Coalition, the bill had bipartisan support upon introduction and was unanimously reported from the Senate Finance Committee on Wednesday.