On Thursday, July 11, Governor Josh Shapiro signed into law the 2024-25 Pennsylvania budget which totals $47.6 billion in spending, an increase of 4.7% from 2023-24. This budget includes investments in key areas for Pennsylvania such as tax reform, permitting reform, and site development. Budget highlights for the business community include:
· Increasing Pennsylvania’s maximum Net Operating Loss deduction by 10% annually until it reaches 80% in 2028, in line with the federal limit, for losses incurred after the current tax year
· Continuing the annual 0.5% reduction of Pennsylvania’s Corporate Net Income Tax to 7.99% until it ultimately reaches 4.99% in 2031
· Increasing the maximums for the Educational Improvement Tax Credit and the Opportunity Scholarship Tax Credit to $540 million and $90 million, respectively
· $8.1 million for the Childcare Contribution Tax Credit
· $500 million for site development for industrial, commercial, or mixed-use projects
· $10.5 million to increase the efficiency of permitting process at the Department of Environmental Protection, including transparency and the availability of third-party permit reviews
· $20 million for the Main Street Matters program
· $15 million for tourism marketing
· $10 million for agricultural innovation to support new solutions and technologies, including energy and conservation efforts
· Increasing funding for career and technical education programming and equipment by $30 million
· Increasing funding for student teacher stipends by $10 million
· Continuing the reduction of the amount transferred from the Motor License Fund to the Pennsylvania State Policy by $125 million
· $80.5 million to help bridge the funding gap for public transit agencies, with leaders in both parties open to potential conversations on future additional funding
· $80.5 million in new funding to repair roads and bridges
“This budget cycle presented Pennsylvania with the opportunity to invest responsibly in itself and its future. I’m pleased to see that our elected leaders met that moment and took this opportunity to move Pennsylvania forward,” said Ryan C. Unger, President & CEO of the Harrisburg Regional Chamber & CREDC.
“We are grateful to our regional legislative delegation and the Governor for prioritizing pro-business growth policies throughout this process, for which we are also proud to have been an active advocate. While the investments in economic development coupled with tax and regulatory improvements set us on a positive path for growth, we feel there is still work to be done to make Pennsylvania more appealing to prospective businesses and investors. We look forward to working with the administration and delegation as we continue to advance pro-growth policies for Pennsylvania.”
A full line-by-line breakdown of the 2024-25 Pennsylvania budget can be found here.
