HB 1960 — An Act providing for an exemption to a business income and receipts tax imposed by a city of the first class.

PRINTER'S NO.     2476

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       HOUSE BILL
                       No. 1960
                                              Session of
                                                2025

     INTRODUCED BY DAWKINS, CEPHAS, GIRAL, SOLOMON, HILL-EVANS,
        SANCHEZ AND GALLAGHER, OCTOBER 16, 2025

     REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, OCTOBER 17, 2025


                                   AN ACT
 1   Providing for an exemption to a business income and receipts tax
 2      imposed by a city of the first class.
 3      The General Assembly of the Commonwealth of Pennsylvania
 4   hereby enacts as follows:
 5   Section 1.   Short title.
 6      This act shall be known and may be cited as the Business
 7   Income and Receipts Tax Exemption Act.
 8   Section 2.   Definitions.
 9      The following words and phrases when used in this act shall
10   have the meanings given to them in this section unless the
11   context clearly indicates otherwise:
12      "Business."   As defined under section 301(c) of the act of
13   March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
14   1971.
15   Section 3.   Tax exemption.
16      (a)   Exemption.--A city of the first class shall permit an
17   exemption to the city's business income and receipts tax for any
18   business with $100,000 or less in gross annual receipts taxable
 1   by the city.
 2      (b)   Eligibility.--To be eligible for the exemption under
 3   subsection (a), a business must:
 4            (1)   be registered and operating within the confines of
 5      the City of Philadelphia;
 6            (2)   demonstrate compliance with all Federal, State and
 7      local tax obligations; and
 8            (3)   provide documentation to substantiate revenue
 9      figures and eligibility for the exemption as outlined by
10      guidelines adopted by the city of the first class.
11   Section 4.     Reporting requirements.
12      A business that receives an exemption under section 3(a) must
13   provide annual reports to the Department of Revenue of the city
14   of the first class detailing the business's gross receipts and
15   the utilization of the exemption.
16   Section 5.     Applicability.
17      This act shall apply to tax years beginning after December
18   31, 2025.
19   Section 6.     Effective date.
20      This act shall take effect immediately.




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