Mar. 14, 2018
HARRISBURG – Today, the House passed
House Bill 2017 by a strong bipartisan vote of 183-4, said Rep. Frank Ryan (R-Lebanon). The legislation would reverse the provisions of Bulletin 2017-02 and allow Pennsylvania businesses the opportunity to take advantage of this important provision, Ryan said.
The reason Ryan introduced House Bill 2017 is that the U.S. tax landscape has undergone significant changes with the recent enactment by Congress and the President of sweeping legislation overhauling our federal tax system.
“Under the new law, bonus depreciation doubles from 50 to 100 percent for property purchased between September 27, 2017, and January 1, 2023 (or January 1, 2024, for a small category of property),” Ryan said. “After that date, at 20 percent phase-down takes effect. Also, bonus depreciation amount is now permitted for the purchase of used property, in addition to new property. This is a common tax plan strategy used by virtually all businesses at some point in time, both large and small. But not in Pennsylvania.”
That’s because businesses looking to expand in Pennsylvania will not be able to take advantage of this provision. On Dec. 22, the Pennsylvania Department of Revenue issued Corporate Tax Bulletin 2017-02. Under these new provisions, in the best case scenario, a taxpayer gets no deduction until the asset is sold or disposed of. If the taxpayer has equipment that may be used indefinitely, it could effectively get no depreciation write-off in Pennsylvania.
“The new tax law has already begun to stimulate economic growth and development in many other states,” Ryan said. “If we act now we can maximize its positive effects for employment and wage increases for Pennsylvania.”
“The Department of Revenue’s draconian pronouncement essentially tells businesses owners ‘thanks, but no thanks, Pennsylvania is closed for business,’” Ryan said. “I thank my colleagues for their support today and hope the Senate can move swiftly to reverse this wrongheaded policy and enact House Bill 2017 into law as soon as possible.”
Representative Frank Ryan
101st Legislative District
Pennsylvania House of Representatives
Media Contact: Charles Lardner
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