NFIB underscores three key tax code reforms
Bills introduced by state Sen. Mike Folmer and state Rep. Stephen Bloom; by state Sen. Mike Brubaker and state Rep. Seth Grove; and by state Sen. Scott Hutchinson and state Rep. George Dunbar have all gained recognition from NFIB.
Folmer and Bloom support a like-kind exchange wherein a business could sell property or material assets and purchase similar assets within a certain time period with no tax penalty. Currently, like-kind exchange is allowed by most states and the federal government, but not by Pennsylvania.
Brubaker and Grove introduced a net-operating loss proposal, whereby any business generating a loss would be able to offset the loss against other earnings. In the commonwealth, a corporation is permitted to do so but other small business entities are not.
Hutchinson and Dunbar’s contribution concerns a Section 179 Expense Deduction. At this time, any large business purchase is depreciated over the course of several years. The proposed bill would enable the depreciation to be accomplished in the year following the purchase. The regulation also would raise the cap on eligible expenses from $25,000 to $100,000.