Delaware Loophole End Passed By Pa. House — The State House passed legislation last week to close the Delaware Loophole and implement comprehensive business tax reforms for Pennsylvania job creators, reports Rep. Jim Cox (R-129).
House Bill 440 would close the loophole by targeting specific transactions that some businesses use for the sole purpose of avoiding taxation in the Commonwealth.
The bill also includes several additional tax reforms, including reducing the Corporate Net Income (CNI) Tax rate to 6.99 percent and uncapping the Net Operating Loss (NOL) deductions businesses may take. In addition, the bill would support Pennsylvania’s small businesses, encourage new investments in existing businesses and promote the development of new start-up companies.
All of these reforms seek to make Pennsylvania a more competitive and attractive place to do business.
The bill now heads to the Senate for consideration.