2024/25 Budget - Wins for PA Businesses

By House Appropriations Committee Staff , | 2 months ago
Economic Development Analyst: Chris Fetterman, Special Advisor for Economic Development

• Net Operating Loss (NOL) increase – increases NOL deduction from 40% to 80%.
• Exclusion of Waste Grease Removal from SUT - exempts the removal of waste grease from various facilities from Sales and Use Tax.
• Goodwill Deduction - clarifies that any goodwill recorded in Call Reports filed by banks with the FDIC is excluded from the bank shares tax calculation.
• Main Street Matters – $20 million dollars aimed at improving Pennsylvania’s downtown corridors and main streets to help businesses develop and attract residents.

• Increases PHARE transfer – removes the previous transfer formula to $70 million in fiscal year 2024/25 and $10 million yearly increases until it reaches $100 million in fiscal year 2027/28.
• Historic Preservation Tax Credit - increases the cap to $20 million from $5 million.
• Establishes the Mixed-Use Revitalization Program- the fiscal code (HB2310) provides for a $10 million transfer from the Building Pennsylvania program to support grants to projects that involve the acquisition, redevelopment, and revitalization of distressed, unoccupied, and blighted properties, including existing and former malls, including affordable housing opportunities.
• Creates Pennsylvania Strategic Investments to Enhance Sites (PA SITES) Program – authorizes up to $500 million in bonds to be issued to create shovel-ready sites across Pennsylvania to help attract businesses and developers and provide funding for the Multimodal Transportation Fund and the PA Small Water and Sewer Program.
• Expanded Neighborhood Assistance Tax Credit Program – increases the limit of tax credits for NAP programs per fiscal year from $36 to $72 million and adjusts the maximum credit that businesses can claim.

• Employer 529/ABLE Contribution - creates a tax credit for employer contributions to 529 tuition savings accounts.
• Pennsylvania First – invests an additional $5 million to provide grants, loans, or loan guarantees to assist job creators and support workforce development.

• Establishes the Agriculture Innovation Grant Program ($10 million in GAA) to provide grants for:
  • Innovations to improve energy efficiency, water quality, reduce water consumption and odors, or address waste issues
  • Processing agricultural commodities that sequester carbon into durable goods
  • Technologies which produce energy from agricultural sources (manure/food waste/biomass) or reduce the amount of CO₂ used or emitted by farms
• Rural Jobs and Investment Tax Credit – extends the program with up to $50 million in investment authority.
• Clean Streams Fund transfer - $50 million/year