Fiedler, Abney, Inglis bill to modernize Tax Code, close digital ads loophole reported out of House Finance Committee

Rep. John Inglis June 3, 2026 | 4:16 PM

HARRISBURG, June 3 – Today, the House Finance Committee approved H.B. 1678. The legislation would update Pennsylvania’s existing gross receipts tax to include the sale of digital advertisements. This is a long-overdue modernization of the commonwealth’s dated Tax Code, to include the global, digital economy.

The vast majority of the tax will be paid by the wealthiest Big Tech corporations, including Google, Meta, Amazon, TikTok and Microsoft, the sponsors said. Digital ads subject to the tax would include banners, search engine results and full-screen interstitial ads.

The legislation was introduced by Rep. Elizabeth Fiedler, D-Phila., and Rep. Aerion Abney and Rep. John Inglis, both D-Allegheny.

“Bus drivers, teachers, cashiers and nurses are struggling to keep up with their household bills. This budget season in Harrisburg, we must remain focused on keeping their costs down. This bill protects people’s wallets and brings in revenue for important public programs and services like education, healthcare and transit,” said Fiedler. “It’s past time we require billionaires and Big Tech corporations pay their fair share to our Commonwealth, and close the digital ads loophole. I am thankful to the House Finance Committee for seeing the urgent need to move this bill.”

The legislation could have significant impact on the state’s budget. House Bill 1678 is designed to close the loophole that has allowed this tremendous profit to escape taxation for years. Closing the digital ads loophole could raise $500 million in revenue for the state. The digital ads industry is projected to be worth $1 trillion in just five years.

"Every day, Pennsylvanians are exposed to digital advertisements that generate billions in profits for some of the world's largest corporations, yet those companies contribute little to nothing in Pennsylvania taxes on that revenue,” said Abney. “House Bill 1678 is about fairness, ensuring that major digital advertising platforms pay their fair share so we can invest an estimated $500 million annually in our schools, roads and bridges, public transportation, housing and other critical priorities.”

“It’s great to see this piece of legislation move out of committee. The Digital Advertising Tax ensures corporations and billionaires are paying more of a fair share of taxes, and it’s about time,” said Inglis. “This potential revenue can be used to invest in our essential public services in communities across the entire commonwealth. There is still work to be done regarding fair taxes on the wealthy, but this is an exciting and overdue step in the right direction!”

Pennsylvania has one of the most regressive tax structures in the nation, with its poorest residents paying nearly double the tax rate of the wealthiest.

“The gross receipts tax dates back to the 1860s, and our Tax Code was codified in 1971. Who in 1971 anticipated that we’d all be carrying mobile phones in our pockets and getting ads all day long?,” said Finance Chair Steve Samuelson. “There’s a new report since our hearing on this bill, which shows that in 2025, digital ad revenue rose by 13.9%. This most recent report says that digital ad revenue is $294 billion nationwide. More than $11 billion of this revenue is derived from ads targeting Pennsylvanians."

In the Pennsylvania House, H.B. 1678 has 49 co-sponsors from across the Commonwealth. State Sen. Lindsey Williams introduced companion legislation in the state Senate. The bill is part of the “Tax Billionaires, Fund PA” package.

“I am proud to support this legislation because Pennsylvania families and local businesses should not be left carrying the load while multinational corporations profit from our communities without giving back,” said Abney.