Legislation recently approved by the Pennsylvania Senate advances tax reform and eliminates a disadvantage for small businesses, according to this story by Natalie Kapustik, The Center Square contributor
Senate Bill 347, sponsored by Sen. John DiSanto, R-Dauphin, the bill mirrors the federal Internal Revenue Code; it gives small businesses a “like-kind” exchange for tax deferral when property is exchanged for similar property. This facilitates businesses investing in job-creating assets that are necessary to stay competitive, a Senate Republicans news release said.
Every state except Pennsylvania provides a similar option to this federal law at the state level.
The bill is part of the Small Business Tax Reform Package to help small businesses recover from COVID-19 pandemic. Those businesses account for 65% of the workforce in the commonwealth.
“My legislation levels the playing field for small businesses looking to expand or even relocate in our Commonwealth,” DiSanto said. “Like-kind exchange treatment can be a deciding factor for real estate transactions; and my bill will improve Pennsylvania’s business climate to encourage economic growth and job creation.”
The bill is now before the House for consideration.