The House Finance Committee approved two bills last week aimed at easing the tax burden on Pennsylvania small business owners, says State Rep. Jim Cox (R-129)
House Bill 48 would eliminate the Pennsylvania inheritance tax on assets of family-owned business enterprises transferred upon death to other family members, allowing business owners to keep their businesses viable. Under current law, any business assets transferred upon death of an owner are subject to different rates of taxation depending to whom the business is being transferred. Those rates can range from 4.5 percent to 15 percent, sometimes forcing business owners to resort to forced liquidation of essential business resources.
The committee also passed House Bill 78, which would eliminate the corporate loans tax for resident individuals who earn interest on bonds and non-resident corporations whose treasurers are located within the Commonwealth. Current law gives a tax advantage to out-of-state lenders, and House Bill 78 encourages reinvestment in Pennsylvania to allow small businesses to acquire the capital they need to remain solvent.
Both bills now head to the full House for consideration.
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