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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | February 10, 2022 01:58 PM |
|---|---|
| From: | Senator John T. Yudichak and Sen. Ryan P. Aument |
| To: | All Senate members |
| Subject: | Small Business Workforce Tax Credit |
| In the near future, we intend to introduce legislation creating a Small Business Workforce Tax Credit to help address the ongoing statewide labor shortage. The intent of the proposed tax credit is to incentivize hiring by small businesses throughout Pennsylvania for the purpose of successfully drawing our citizenry back to work. Specifically, this bill will reduce the amount of state taxes that small businesses owe if they are able to boost employment figures compared to the previous year. As part of our proposal, businesses would qualify for a tax credit if they had 50 or fewer employees as of December 31, 2019; and experienced at least a 25 percent decrease in income tax gross receipts when comparing the second quarter of 2020 to the second quarter of 2019. During a recent Senate Community Economic & Recreational Development Committee hearing on Small Business Assistance & Economic Recovery, entrepreneurs told lawmakers that the workforce shortage has not improved in Pennsylvania. In fact, for many small businesses, the situation has worsened with each new COVID variant. Two years after the mandated shutdowns imposed by the Wolf administration, 50 percent of restaurant operators in the full-service, quick service, and fast-casual segments expect recruiting and retaining employees to be their top challenge in 2022, according to the National Restaurant Association. Our legislation will encourage employers to develop creative methods to address the workforce shortage that has plagued our state and nation, and reward them with a tax credit for successfully recruiting and hiring new employees. Please join us in cosponsoring this important piece of legislation. |