News

House passes 'Delaware loophole' business tax bill

Written by The Associated Press | Jul 2, 2013 6:15 AM
Money dollars

(Harrisburg) -- Pennsylvania lawmakers are advancing legislation to tighten rules for the so-called Delaware loophole, where businesses set up a holding company in that state to shield revenues from state taxes.

The House voted 119-to-83 late Monday in favor of a wider tax bill that included the loophole changes.

The measure's architect, Republican Rep. Dave Reed of Indiana County, calls it a "fair and responsible approach" that uses an "expense add-back" provision to target companies that take advantage of the loophole.

Another provision would increase the state's cap on net operating loss deductions, a change that businesses have sought.

The underlying bill was amended in the House, so it'll need another round of Senate voting before it can go to Governor Corbett.

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