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FOR IMMEDIATE RELEASE |
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CONTACT: Ruth
A. Myers |
State Rep. Ted Harhai |
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Harhai proposal included in Senate version of bill approved in House
HARRISBURG, July 12 – State Rep. Ted Harhai, D-Westmoreland/Fayette, said a bill (S.B. 97) passed earlier this week in the House included his proposal to provide tax credits to small businesses in Pennsylvania.
The Neighborhood Assistance Tax Credit program is a vital economic development tool that provides tax credits to companies that invest in economically distressed neighborhoods, Harhai said. It allows business leaders to tap into a valuable resource of funding for local economic growth. The measure would allow small businesses with Personal Income Tax liability -- commonly referred to as S corporations, limited liability companies or partnerships -- to participate in the program.
“Small businesses are the backbone of our economy,” Harhai said. “They support their communities in countless ways and allowing them to participate in this program is a simple way to encourage further economic growth and development in the communities they serve. I’m proud to support this plan as a way to assist small businesses across the state.”
The legislation would also increase the tax credit to 60 percent from the current level of 50 percent. Additionally, in special areas designated by the governor, the credit would be increased from 70 percent to 80 percent. The credit also would increase to 80 percent for five-year commitments in comprehensive service projects.
The bill also would earmark $2 million out of the program's $18 million allocation for the exclusive use of small businesses. An additional provision in the legislation would allow businesses that have no tax liabilities to transfer or sell their tax credits to other companies. S-corporations also would be able to pass their tax credits on to their shareholders.
The bill now goes back to the Senate for concurrence on House amendments.
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