House Co-Sponsorship Memoranda

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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted:	March 7, 2013 02:47 PM
From:	Representative John A. Lawrence and Rep. Gordon Denlinger
To:	All House members
Subject:	Comprehensive Legislation to Significantly Reform the Business Tax Code in an Effort to Improve Economic growth in PA

March 7, 2013

Dear Colleagues,

In the near future, we will introduce comprehensive legislation to significantly reform the business tax code in an effort to improve economic growth in Pennsylvania. We would appreciate your consideration of these two bills that would make important reforms to simplify the tax code, increase our state’s competitive standing, and improve the process of collecting taxes.

We would appreciate your support of these important initiatives.

Document #1

Introduced as HB883

Description:	HB 883 – Denlinger Reduce the corporate net income tax from 9.99% to 6.99% through a gradual phase-down. Under current law, Pennsylvania has the highest overall corporate tax rate on earth. We need to attract job creators with a more attractive tax rate, create jobs by reducing the burden to create a business, and retain job creators by providing tax savings that can be reinvested into their businesses Eliminate the resident credit for taxes paid to foreign countries. We are currently the only state to allow this credit to be taken; this change will restrict the credit to taxes paid to other states, not other countries. Repeal of the local receivers of use tax provision Enhance Pass Through Business compliance Provide changes to non-filer penalties for corporate net income tax returns

Document #2

Introduced as HB884

Description:	HB 884 – Lawrence Raise the net operating loss (NOL) cap from $3 million to $5 million Realignment of state tax code regarding like-kind exchanges and start-up business deductions to align Pennsylvania to federal law Closing the 89-11 loophole in the realty transfer tax Repeal of two state tax credits that have been underutilized: coal waste removal/ultra clean fuels, and call center tax credits.