New PA Tax Legislation
On July 9, Governor Tom Corbett signed new tax legislation (H.B. 465) which makes numerous changes to Pennsylvania tax law. An expansion of the net operating loss deduction cap and an extension of the phase-out of the Capital Stock Foreign Franchise Tax are among the changes. The state will also now require an add-back to Corporate Net Income Tax of intangible expenses that are paid, accrued, or incurred directly or indirectly in connection with transactions with affiliated entities. Personal income tax, inheritance tax, realty transfer tax and Philadelphia sales and use tax are impacted by the new legislation as well. In addition, the law establishes the Innovate in PA Tax Credit and the Mobile Telecommunication Broadband Investment Credit.
Gary Bingel, CPA of EisnerAmper’s State & Local Tax Group has detailed the changes to the tax areas mentioned above along with other highlights from the new legislation in this article: New Pennsylvania Tax Legislation.