For Immediate Release
March 14, 2018
HARRISBURG - PA Chamber President Gene Barr issued the following statement about the House’s nearly unanimous passage of H.B. 2017, legislation that would reverse a recent state Department of Revenue ruling that prohibits taxpayers from claiming a full 100 percent bonus depreciation deduction for Pennsylvania purposes:
“The Pennsylvania Chamber applauds the House for addressing this serious business tax competitiveness issue. The Department of Revenue’s December bulletin requires that taxpayers who take advantage of 100 percent bonus depreciation for federal purposes need to add it back into their income when calculating their Pennsylvania taxes; and also prohibits employers from being able to apply a deduction until their assets were disposed of or sold.
This action has made the Commonwealth the only state in the nation to disallow any form of accelerated depreciation. When we also consider the fact that Pennsylvania has the highest Corporate Net Income tax rate in the nation and is among the only states that caps Net Operating Loss Carryforwards, the agency’s drastic move strongly encourages businesses NOT to do business in Pennsylvania. We are proud to stand with the multi-industry CompetePA Coalition in urging support for this bill, which is fair, equitable and fiscally responsible; and which will help Pennsylvania attract new companies and encourage existing companies to expand their operations.
Employers expect and deserve certainty and predictability when filing their taxes, and H.B. 2017 does that by providing a nationally accepted form of accelerated depreciation. We urge Senate lawmakers to follow the House’s lead and pass this bill without delay.”
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its statewide membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.