No Tax Increases Proposed in Governor’s Budget

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Pennsylvania Governor Tom Wolf recently proposed a 2019 – 2020 state budget.  The good news, initially, is that the Governor did not include any call for increased state income and sales taxes and, in fact, contains proposals to reduce the corporate state income tax as a means of making the Commonwealth more competitive in drawing […]

PA Announces Measurement Dates for Economic Nexus Standards

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Recently, Pennsylvania adopted an economic nexus standard with respect to determining whether an out-of-state entity is required to register for a license and subsequently collect, report and remit Pennsylvania Sales Tax.  The Commonwealth measures its sales and use tax economic nexus threshold by calendar-year sales preceding the collection period. Additionally, after the first year, collection […]

PA Amends Definition of “Income” for Property Tax/Rent Rebate Program

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For many Pennsylvania seniors, the property tax and rent rebate program has been an important tool in their financial planning. One of the inequities in computing the appropriate rebate has been in the treatment of pension benefits that were fully included in the calculation of income to determine qualification for the rebate. Now, a recently-passed […]

PA Clarifies Guidance on Corporate Income Tax NOL Deductions

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On May 10, 2018, the Pennsylvania Department of Revenue issued new guidance stating that a corporate taxpayer can calculate its 2007 through 2016 net operating loss (NOL) using the greater of: the flat dollar cap; or the percentage cap. For tax years before 2007, Pennsylvania applies the flat dollar cap. The turnabout in the Commonwealth’s […]

PA Tax Updates & Reminders

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The Pennsylvania Department of Revenue recently released its December 2017/January 2018 newsletter, which highlights tax developments over the past year in the following areas: the sales and use tax treatment and requirements for marketplace sales; important personal income tax filing dates; amnesty penalties; and property tax/rent rebate program applications. See below for details and links […]

Pennsylvania NOL Deduction Cap Increased, Other Changes Enacted

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Pennsylvania Governor Tom Wolf has signed legislation amending the corporate income tax net operating loss (NOL) deduction, creating a Manufacturing Innovation and Reinvestment Deduction, amending the film production tax credit districts, and requiring that before a tax credit can be awarded the Department of Revenue can make a finding that the taxpayer has filed all […]

Pennsylvania Net Loss Carryover Deduction Found Unconstitutional

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The Commonwealth of Pennsylvania currently limits through its tax laws the amount of net operating loss from a loss year that can be carried forward and offset income in an income year greater than 30 percent of the taxpayer’s taxable income or $5 million, for taxable years beginning after 2014.  In years past, the limitations […]

Incorrect Tax Notices Frustrate Pennsylvania Taxpayers

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Since the Pennsylvania Department of Revenue (PA DOR) implemented a new technology system several years ago, numerous inaccurate tax notices have been mailed to taxpayers, who have been burdened with the task of resolving the issues. Read the article from the Winter 2017 GYF Perspectives. Contact Alex Palmer or Don Johnston for assistance.

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Governor Directs DCED to Send EITC Letters

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The Wolf administration has directed letters to be sent out to companies (and individuals) notifying them that their applications to the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs have been conditionally approved even though the 2015-2016 state budget has not yet been finalized. The EITC program was created in 2001 […]

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The Commonwealth Moves Closer to a Budget!

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In what is perhaps one of the most dysfunctional budget processes in Pennsylvania history, it now appears that Governor Wolf and the Republican-controlled Congress are finally getting close to resolving the state’s budget impasse. The resolution is coming just in time, as Governor Wolf plans to reintroduce some of his more-acrimonious ideas in his budget […]