For Immediate Release
June 22, 2018
HARRISBURG - PA Chamber of Business and Industry President and CEO Gene Barr issued the following statement regarding the enactment of S.B. 1056 – legislation that reverses a recent ruling by the Department of Revenue that prohibited Pennsylvania taxpayers from taking advantage of 100 percent bonus depreciation when filing their corporate taxes; and also stripped away the depreciation benefits in the recently enacted federal Tax Cuts & Jobs Act.
“We applaud the General Assembly for reversing the Department of Revenue’s bonus depreciation rule change. At a time when we should be building on the tax reforms enacted on the federal level; the department’s policy change gave Pennsylvania the unfortunate distinction of being the only state in the nation to disallow any form of accelerated depreciation until an asset was disposed of or sold. This put the state at a serious competitive disadvantage, and many of our member companies told us us they’d likely never experience tax relief under the ruling as they would be far more likely to try to repair an expensive piece of equipment before attempting to discard or sell it.
“We commend the legislature for working quickly to address this issue – which will help to put Pennsylvania on a more level playing field with other states and improve the state’s overall competitiveness. We look forward to the governor quickly signing this legislation into law.”
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.