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Senate approves tax relief, state budget bills

Legislation addressing ADA rules advanced

Approval of a tax relief package and a state budget bill highlighted the actions of the State Senate during the week of June 16^th, according to Senator Bob Regola (R-39).

On Monday, the Senate approved a four-bill stimulus package that would provide nearly $96 million in tax relief in the upcoming fiscal year for lower-income working Pennsylvanians, small businesses looking to expand, as well as major employers and job creators.  The bills now go to the House of Representatives for consideration.

Senate Bill 1385 would expand the cap on the Net Operating Loss provision of the Corporate Net Income Tax to $5 million or 20 percent of taxable income.  The NOL cap is currently set at $3 million or 12.5 percent of taxable income.  

Senate Bill 1386, introduced by Senator Regola, would increase the eligibility limits for special tax forgiveness for low-income families.  The bill would increase claimant income eligibility limits by a total of $2,000 and the dependent allowance by $500 over three years. Currently, a family of four with a combined income of less than $32,000 pays no state income tax.  Under SB 1386, families earning $37,000 or less would be exempt.  

“With gas at $4 a gallon and food costs skyrocketing, it is essential that we provide tax relief for lower-income working families,” said Sen. Regola.  “Raising the limits on our tax forgiveness program will provide true tax relief to families who need it the most.”

Senate Bill 1387 would double the amount that small businesses may deduct as Section 179 expenses on their income tax filings. SB 1387 would increase the maximum annual deduction to $50,000.

Senate Bill 1388 would amend Pennsylvania's Corporate Net Income Tax to expand the sales factor to 85 percent.  Most corporations that conduct business in more than one state are required to use a three-factor apportionment in order to apportion their business income among the states where they have activity.  The three-factor apportionment formula currently consists of property (15 percent), payroll (15 percent) and sales (70 percent). 

The Senate approved Senate Bill 1389, the Senate Republican Budget proposal for Fiscal Year 2008-09 on Wednesday.  SB 1389 calls for $27.9 billion in General Fund spending, which is an increase of $749.2 million (2.76 percent) over the current budget.  The proposal is $415.8 million lower than what the Governor requested for FY 2008-09.  SB 1389 now goes to the House of Representatives for its consideration.

On Tuesday, the Senate approved a package of bills to bring municipal law provisions governing pre-hiring examinations of emergency responders in cities, towns, townships, and boroughs into compliance with the federal Americans with Disabilities Act.  The ADA clearly prohibits requiring a medical examination of applicants before an offer of employment.  However, the ADA does allow medical examinations and inquiries with certain conditions. 

Senate Bills 1363 thru 1368 deal with ADA Compliance: SB 1363 (Paid Firemen Civil Service Employee Law); SB 1364 (Local Police Officers Civil Service Employee Law); SB 1365 (Borough Code); SB 1366 (1^st Class Township Code); SB 1367 (3^rd Class City Code); and, SB 1368 (Firemen, Civil Service in 3^rd Class Cities Law).

The bills in the package were previously approved by the Senate Local Government Committee, chaired by Senator Regola.

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Contact:  Nathan Silcox (717) 787-6063