Pennsylvania’s small businesses make our state thrive. That’s why it’s critical that the laws we enact support their ability to invest, hire, and grow right here in the Commonwealth.
It’s also why the PA Chamber worked closely with our federal partners to successfully advocate to make permanent pro-growth provisions from the 2017 federal tax reform law. And earlier this month, Congress passed, and President Trump signed, the Big Beautiful Bill Act, which accomplishes just that.
This sweeping legislation includes several key tax provisions that will benefit small businesses across Pennsylvania:
- Permanent tax cuts for pass-through entities, allowing for greater reinvestment in business operations.
- Permanent 100% bonus depreciation, encouraging investment in technology and infrastructure.
- Permanent $15 million estate tax exemption, helping generational, family-owned businesses remain viable.
- Increased and permanent Child Tax Credit of $2,200, easing financial burdens for working families.
- Higher standard deduction, benefiting 90 percent of taxpayers—including many small business owners—who file as individuals.
- Permanent Family and Medical Leave credit, supporting small businesses in offering competitive employee benefits.
- New deduction for tips and overtime pay, reducing labor costs and supporting fair compensation, especially in hospitality and retail sectors.
Following the bill’s passage, PA Chamber President and CEO Luke Bernstein issued the following statement:
“Making the 2017 tax cuts permanent represents a significant victory for economic growth, investment, and job creation. This legislation provides the certainty employers need to compete and expand. Provisions like bonus depreciation, the R&D deduction, and the now-permanent small business deduction will drive innovation and accelerate economic momentum across Pennsylvania.
“This bill also delivers meaningful tax relief for working Americans and middle-class families—preventing what would have been the largest tax increase in history and helping more people keep what they earn. No legislation is perfect, but we shouldn’t let perfection stand in the way of progress. This bill will boost our economy and set the Commonwealth up for long-term success.
“We commend the members of Pennsylvania’s congressional delegation and Senator McCormick for supporting these pro-jobs provisions, as well as the Trump administration for delivering a major policy achievement.”
Helping Pennsylvania families keep more of what they earn—whether to invest or spend in their local communities—advances our mission, as outlined in the Keystone Initiative, to make Pennsylvania the most competitive state in the nation.