For Immediate Release
April 25, 2018
HARRISBURG - PA Chamber President Gene Barr issued the following statement in response to the state Senate’s passage of S.B. 1056. The bill would reverse a recent anti-business ruling by the Department of Revenue that prohibits Pennsylvania taxpayers from taking advantage of 100 percent bonus depreciation when filing their corporate taxes, and would provide for a generally accepted depreciation schedule:
“The Department of Revenue’s ruling, which was published in a bulletin last December, sends the exact opposite message that we need to be delivering to would-be investors who are looking where to locate and grow jobs. Not only does it require taxpayers who take advantage of capital investments – primarily for the purchase of new equipment or to expand and improve production at their facilities – to absorb the full expense of those purchases rather than be allowed some tax relief, but it makes Pennsylvania the only state in the country to allow no depreciation until the asset is disposed of or sold.”
“We’ve heard from many business leaders that under this ruling, they’ll likely never experience tax relief after making equipment purchases as they are far more likely to try to fix an expensive piece of equipment before attempting to discard or sell it. Business owners are finally gaining more confidence in the marketplace, and people are generally expecting them to make these types of bold investments. However, this ruling requires them to do so without the benefit of a tax advantage they’d long relied on. Not surprisingly, this has had a dramatically negative impact on Pennsylvania’s economic competitiveness.”
“As the Pennsylvania Chamber is working to promote state-level tax reforms that will mirror the economic successes we’ve seen at the federal level, we are urging the House – which already passed identical legislation in March – to quickly get S.B. 1056 to Governor Tom Wolf’s desk and for him to sign it into law. Doing so will go a long way toward telling the private sector that Pennsylvania is open for business.”
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.