Spring has sprung! The weather is warming up and people are itching to get out after a year of pandemic restrictions and a cold winter. At the same time, the COVID-19 vaccines are getting into the arms of more and more people and we’re beginning to see some restrictions ease up. It’s important to keep an eye on both the county and the state’s COVID-19 mitigation efforts and we wanted to provide you with some quick links to current guidelines and vaccine roll-out information, on top of our usual legislative update.
Personal Income Tax Deadline Extended – The deadline to file 2020 Pennsylvania Personal Income Tax (PIT) returns and make final income tax payments has been extended to May 17, 2021. The IRS has also extended the federal income tax filing deadline to the same date.
PADOR Guidance on Home Office Expenses – The Pennsylvania Department of Revenue has issued some guidance on the deduction of home office expenses on 2020 tax returns. This guidance pertains to Pennsylvania only, not federal taxes. Find the guide here.
INTRODUCED, NOT YET PASSED:
COVID-19 Recovery Plans – Various economic recovery plans for a post-COVID Pennsylvania have been drafted and introduced.
The Commonwealth COVID Comeback plan, sponsored by Rep. Josh Kail (R-Beaver, Washington), is a package designed to bolster jobs and boost economic recovery by focusing on manufacturing and providing incentives with no new taxes or fees.
House Bill 198, a competing bill sponsored by Rep. George Dunbar (R-Westmoreland), would allow a net operating loss deduction of up to 100% to give businesses a chance to recover and reinvest post-COVID. An additional 60% deduction from losses that occurred in 2020 only can claimed, but it does not apply to losses carried from prior tax years.
Rep. Natalie Mihalek (R-Allegheny, Washington) drafted a plan to provide certain tax relief to low-income families. It also intends to focus on assisting struggling businesses while also attracting new business by adjusting the special poverty provisions tax exemption and reducing the corporate income tax.
A final bill by Rep. Torren Ecker (R-Adams, Cumberland) proposes a way to have expedited and efficient resolutions on lawsuits which have been brought on due to COVID-19 exposure.
Taxpayer Protection Act – Sponsored by Senator Bartolotta, proposes an amendment to the Commonwealth’s constitution that would limit increases in state spending to protect tax payers. Read more here.
Prioritize PA: Small Businesses plan – A package designed to support small businesses that have struggled throughout the COVID-19 pandemic due to restrictions. This package proposes no-interest loans for small businesses, a tax credit program, similar to the Education Improvement Tax Credit Program, temporary waivers for fees on licensing, various property tax deductions, and an option to offset earnings from prior or future years against current year losses to obtain refunds or future tax cuts. To learn more, click here.