The Pennsylvania House and Senate return to legislative session this week. The PA Chamber is monitoring the following legislation with the potential to impact the state’s business community.

Floor votes

Senate Bill 346 (Increasing the Cap on Net Operating Loss Deductions)

Would improve Pennsylvania’s treatment of Net Operating Losses (NOLs) by increasing the current 40 percent cap on NOL deductions to 50 percent in 2024, 60 percent in 2025, 70 percent in 2026 and 80 percent in 2027.

House Bill 106 (Mandatory Nurse Staffing Ratios)

Would establish government-mandated nurse staffing ratios in Pennsylvania hospitals and impose monetary penalties for hospitals who do not meet the strict nurse to patient ratios.

House Bill 1394 (the CROWN Act)

This legislation seeks to expand the definition of “race” in the PA Human Relations Act to include “traits historically associated with race, including hair texture and protective hairstyles.”

House Bill 1465 (Public Utility Construction Projects)

Proposes significant changes to the rules regulating a broad scope of public utility construction projects, including subjecting projects to the PA Prevailing Wage Act.

House Bill 1449 (Statewide “Responsible Contractors”)

Would establish a so-called “Responsible Contractor” law to impose strict requirements on Pennsylvania companies contracted for state public works projects.

Committee votes

House Bill 1482 (Accelerated Corporate Net Income Tax Reduction)

Builds on bipartisan tax reform enacted last year by accelerating the reduction in the Corporate Net Income Tax (CNI).  The legislation includes an immediate drop to 7.99% in 2024, followed by a point reduction each year until it reaches 4.99% in 2026.

House Bill 1483 (Increasing the Cap on Net Operating Loss Deductions)

Would improve Pennsylvania’s treatment of Net Operating Losses (NOLs) by increasing the current 40% cap on NOL deductions to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027.

House Bill 1462 (Combined Reporting)

Would switch Pennsylvania from a separate company filing state to a combined reporting state for the corporate net income tax (CNI.) Currently each corporation doing business in Pennsylvania files their own returns and reports only its income or loss to the Department of Revenue to determine Pennsylvania tax liability.

Also attempts to establish mandatory worldwide combined reporting, by introducing a tax haven list, mostly utilized in the 1980’s. Montana and Oregon were the last two states with a list of tax havens, and they have both since repealed their lists, as they raise significant political, economic development and constitutional concerns for states.

House Bill 170 (De Facto Drilling Moratorium)

Massively expands the siting restrictions for new natural gas wells by prohibiting wellpads from being within 2,500 feet of waterways and wetlands and 5,000 feet from certain structures. This limitation would be a de facto moratorium on new shale gas development in most counties.

House Bill 1476 (Data Center Permitting Moratorium)

Impedes development of new data center construction adding much-needed power generation capacity to the grid.

House Bill 503 (PA Human Relations Act Expansion)

Would add familial status, marital status and family caregiver status as protected classes under the PA Human Relations Act.

House Bills 1415 and 1416 (Public Pension Benefit Increase)

Both bills provide for benefit increases for Pennsylvania State Employee Retirement System (SERS) and Public School Employee Retirement System (PSERS) beneficiaries.