Delaware Loophole Bill Leaves Committee — Members of the House Finance Committee last week approved a measure to close the Delaware Loophole and improve the state’s overall business tax structure as one step toward improving the Commonwealth’s jobs climate, reports State Rep. Jim Cox (R-129).
House Bill 440 would institute an “expense add-back” provision to target very specific transactions of Pennsylvania businesses that are taking advantage of the loophole for the sole purpose of tax avoidance.
The bill was amended to include tax reform proposals put forward by the governor, including increasing the state’s net operating loss cap in 2014; offering deductions to help start-up businesses create jobs; implementing a 10-year phase down of the Corporate Net Income tax beginning in 2015; and closing other existing tax loopholes.
Pennsylvania continually ranks among the worst states in the nation when it comes to offering a competitive business climate for job creators. House Bill 440 is designed to make the state a more attractive home for businesses and to level the playing field for all job creators.
The measure now heads to the full House for consideration.
Delaware Loophole Bill Leaves Committee
