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05/26/2024 11:28 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20230&cosponId=38286
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Senate of Pennsylvania
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: December 6, 2022 07:45 AM
From: Senator Kristin Phillips-Hill
To: All Senate members
Subject: Clarifying Flexibility for Working from Home for Employees Who Live in PA, but Work for Out-of-State Corporations
 
In the near future I will reintroduce Senate Bill 1315 of last session. During the COVID-19 pandemic, the Department of Revenue temporarily suspended regulations impacting Pennsylvania residents who worked from home for corporations based outside of the Commonwealth.   

 
As many companies invested significantly in remote working over the last two years, our state’s tax laws complicate this issue for our residents who commute to work for out-of-state employers near our borders.   

 
For example, a major corporation located south of my district and based and domiciled in Maryland, allows its employees the option to work from home. However, employees who reside in Pennsylvania (and in my district) are prevented from enjoying this opportunity because the Corporate Net Income Tax (CNIT) would be triggered by an employee with a flexible work structure who would work some days from their home.     

  

My legislation would permanently codify the exception pertaining to this issue impacting Pennsylvanians who work for employers that are based out-of-state by allowing employees to work from home, if allowed by their employer, up to 50% of the year without triggering the CNIT.   

  

With our geographic proximity to other states and major employers, this flexible option for employees would make Pennsylvania more attractive for new residents and provide flexibility to Pennsylvania residents who commute to out-of-state employers.   

 
Please join me in supporting greater flexibility for Pennsylvania-based employees who work for out-of-state employers. 

 

Previous cosponsors include Senators Schwank, Pittman, J. Ward, Brewster, Vogel, and Stefano. 



Introduced as SB416