2009 Pennsylvania Tax Changes

By: J. Gregory Hamm, J.D., CPA, B&R Tax Services Group

Capital Stock/Franchise Tax
Phase out capital stock/franchise tax deferred. Capital stock/franchise tax rates for future years:

2009                            2.89 mils
2010                            2.89 mils
2011                            2.89 mils
2012                            1.89 mils
2013                              .89 mils
2014                            0.00 mils

Valuation deduction increased to $160,000 for taxable years beginning after December 31, 2009.


Corporate Net Income (“CNI”) Tax


CNI Net Loss Expanded

  • Tax Years beginning after 12/31/2008 – Net loss available is higher of $3,000,000 or 15% of taxable income
  • Tax Years beginning after 12/31/2009 – Net loss available is higher of $3,000,000 or 20% of taxable income

CNI Apportionment Factor Modified

  • Tax Years beginning after 12/31/2008 – weighting of sales factor increased to 83%
  • Tax years beginning after 12/31/2009 – weighting of sales factor increased to 90%

Research and Development Credit

  • Amounts available reduced by 50%
  • One year holding period to sale credit eliminated

Education Improvement Tax Credit

  • Amounts available reduced from $75,000,000 to $60,000,000 for fiscal 2009-2010 and to $50,000,000 for fiscal 2010-2011

Tax Amnesty

  • Tax amnesty to be conducted April 26, 2010 – June 18, 2010
  • Applies to taxes delinquent as of 6/30/2009
  • Relieved of penalties and 50% of interest

For questions, contact Gregg at ghamm@cpabr.com or 717-761-7210.

top


211 House Avenue Camp Hill, PA 17011 717-761-7210
141 West High Street Carlisle, PA 17013-2913 717-249-3414
785 5th Avenue, 2nd Floor, Suite 2 Chambersburg, PA 17201 717-264-7456
1600 University Drive State College, PA 16801-6974 814-234-6919