May 26—NANTICOKE — The Pennsylvania Senate Finance Committee on Tuesday approved two bills authored by Sen. John Yudichak that will help businesses recover from the COVID-19 pandemic.
Senate Bill 681 passed by a vote of 8-2 and Senate Bill 682 passed by a vote of 8-2. They will now advance to the full Senate for consideration.
Senate Bill 681 allows for a temporary carry-forward of all purchased tax credits. Specifically, the legislation will provide for two, one-year carry-forward provisions for tax credits purchased in 2020 and 2021. This means that tax credits purchased in 2020 could be used for 2020 or 2021, and tax credits purchased in 2021 can be used for 2021 or 2022.
Yudichak, I-Swoyersville, said this carry-forward is a temporary COVID-19 relief measure, and tax credit sales initiated in 2022 and every year thereafter would not be eligible for this carry-forward.
“During COVID-19, over 30 percent of Pennsylvania’s businesses were closed as a result of the Department of Health’s mitigation orders, forcing over 3 million Pennsylvanians out of work and leaving the financial future of thousands of business owners very uncertain,” Yudichak said. “Senate Bill 681 will bring confidence in Pennsylvania’s tax credit programs and will help businesses expand, retain and create new jobs, and invest in their local communities.”
Senate Bill 682 extends the eligibility time-frame for the Keystone Innovation Zone (KIZ) tax credit program from eight years to 10 years. Currently, the KIZ tax credit program provides tax credits to for-profit companies, less than eight years old, operating within geographic boundaries of a particular KIZ.
In order to apply for a KIZ tax credit, these companies must show a 50% increase in gross revenue from year to year within the first eight years of incorporation.
Yudichak said by extending the eligibility time-frame by two years, it will allow companies who are now…
