Close the Delaware Loophole and Reduce PA's Corprate Net Income Tax
According to the Pennsylvania Budget and Policy Center 71% of all Pennsylvania corporations avoid paying any corporate income tax by taking advantage of the “Delaware Loophole.” By implementing a “Combined Reporting” system, we could close that loophole so that all Pennsylvania companies pay their fair share of taxes, which would allow us to significantly reduce our Corporate Net Income Tax and end the crippling reputation that Pennsylvania has the highest corporate tax rate in the country.
Angel Investor Tax Credits
To encourage capital investments in targeted small businesses, an individual who invests in a qualified business will receive personal tax credits equal to 25% of the total investment. Qualified small businesses would include companies in the growth sector, or to any small diverse business. Qualified small businesses can receive up to $2 million per year in tax credit-eligible cash equity investment, of which no more than $1 million can come from a single investor. (With a 25% credit, if any investor kicks in $1 million, he or she will get $250,000 in tax savings.)
Electric Vehicle Infrastructure Tax Credit
Encouraging the use of electric vehicles is not only good for the environment, but it will help grow the domestic energy industry in Pennsylvania. We will rely less on gasoline refined from foreign oil, and more on electricity created in PA from cleaner domestic energy sources. But to encourage purchases of electric vehicles, investments in charging stations must be made. Sharif proposes Electric Vehicle Infrastructure Tax Credits to incentivize these investments by giving businesses a one-time tax credit to cover 75% of costs for an EV charging station project.
Institute a Sate Earned Income Tax Credit
Twenty-nine states plus the District of Columbia have enacted their own version of the federal Earned Income Tax Credit (EITC) to help working families earning low wages meet basic needs. Pennsylvania has not followed suit. State EITCs provide extensive benefits to children, families, and communities, and are straightforward to administer and to claim. By investing in an EITC, we can make a real difference in the lives of low- and moderate-income working families.