SB 621 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, prohibiting tax deductions for anti-union activities.

PRINTER'S NO.   632

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 621
                                                  Session of
                                                    2025

     INTRODUCED BY PISCIOTTANO, KEARNEY, FONTANA, SAVAL, HUGHES,
        COSTA, TARTAGLIONE, KANE, SANTARSIERO AND L. WILLIAMS,
        APRIL 11, 2025

     REFERRED TO FINANCE, APRIL 11, 2025


                                     AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," prohibiting tax deductions for anti-union
11      activities.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.     The act of March 4, 1971 (P.L.6, No.2), known as
15   the Tax Reform Code of 1971, is amended by adding an article to
16   read:
17                               ARTICLE XXIX-J
18           PROHIBITING TAX DEDUCTIONS FOR ANTI-UNION ACTIVITIES
19   Section 2901-J.    Scope of article.
20      This article prohibits domestic entities and foreign entities
21   that are corporations operating in this Commonwealth from taking
22   tax deductions for expenses incurred in opposing unionization
 1   efforts of their workers.
 2   Section 2902-J.    Definitions.
 3      The following words and phrases when used in this article
 4   shall have the meanings given to them in this section unless the
 5   context clearly indicates otherwise:
 6      "Corporation."    A domestic entity or foreign entity
 7   incorporated for a purpose involving pecuniary profit,
 8   incidental or otherwise, to its shareholders or members, whether
 9   or not the business entity is a cooperative corporation.
10      "Domestic entity."    A corporation that is formed under the
11   laws of this Commonwealth and that exercises, whether in its own
12   name or through a corporation, limited liability company,
13   limited liability partnership, limited liability limited
14   partnership, limited partnership, general partnership or other
15   entity, any of the following privileges:
16          (1)    Doing business in this Commonwealth.
17          (2)    Carrying on activities in this Commonwealth,
18      including solicitation.
19          (3)    Having capital or property employed or used in this
20      Commonwealth.
21          (4)    Owning property in this Commonwealth.
22      "Foreign entity."    A corporation that is organized by or
23   under the laws of a jurisdiction other than this Commonwealth
24   and that exercises, whether in its own name or through a
25   corporation, limited liability company, limited liability
26   partnership, limited liability limited partnership, limited
27   partnership, partnership or other entity, any of the following
28   privileges:
29          (1)    Doing business in this Commonwealth.
30          (2)    Carrying on activities in this Commonwealth,

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 1      including solicitation.
 2          (3)    Having capital or property employed or used in this
 3      Commonwealth.
 4          (4)    Owning property in this Commonwealth.
 5      "General partnership."      Either of the following:
 6          (1)    A partnership as defined in 15 Pa.C.S. § 8412(a)
 7      (relating to definitions).
 8          (2)    An association whose internal affairs are governed
 9      by the laws of a jurisdiction other than this Commonwealth
10      which would be a partnership if its internal affairs were
11      governed by the laws of this Commonwealth.
12      "Labor organization."      As follows:
13          (1)    An organization of any kind or an agency or employee
14      representation committee or plan:
15                 (i)    in which employees participate; and
16                 (ii)    which exists for the purpose, in whole or in
17          part, of dealing with employers concerning grievances,
18          labor disputes, wages, rates of pay, hours of employment
19          or conditions of work.
20          (2)    The term does not include a labor organization that,
21      by ritualistic practice, constitutional or bylaw
22      proscription, tacit agreement among its members or otherwise,
23      denies a person membership in the organization on account of
24      race, creed, color or political affiliation.
25      "Limited liability company."       An association formed under and
26   subject to 15 Pa.C.S. Ch. 88 (relating to limited liability
27   companies).
28      "Limited liability limited partnership."      A domestic or
29   foreign limited partnership for which there is in effect:
30          (1)    a statement of registration under 15 Pa.C.S. Ch. 82

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 1      (relating to limited liability partnerships and limited
 2      liability limited partnerships);
 3           (2)   a provision of its certificate of limited
 4      partnership electing to be subject to 15 Pa.C.S. Ch. 82; or
 5           (3)   a similar filing or provision under the organic law
 6      of a foreign partnership.
 7      "Limited liability partnership."      A domestic or foreign
 8   general partnership for which there is in effect:
 9           (1)   a statement of registration under 15 Pa.C.S. Ch. 82;
10      or
11           (2)   a similar filing under the organic law of a foreign
12      general partnership.
13      "Limited partnership."   Either of the following:
14           (1)   A limited partnership as defined in 15 Pa.C.S. §
15      8612(a) (relating to definitions).
16           (2)   An association whose internal affairs are governed
17      by the laws of a jurisdiction other than this Commonwealth
18      which would be a limited partnership if its internal affairs
19      were governed by the laws of this Commonwealth.
20   Section 2903-J.   Prohibition.
21      Except as provided in section 2904-J, a taxpayer that is a
22   domestic entity or foreign entity subject to taxes under Article
23   III, IV or VI shall be prevented from deducting business
24   expenses that are related to an amount paid or incurred in
25   connection with attempting to influence the taxpayer's employees
26   with respect to a labor organization or the activities of a
27   labor organization, including:
28           (1)   An amount paid or incurred by the taxpayer in
29      connection with an action that results in any of the
30      following:

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 1              (i)    A complaint issued under 29 U.S.C. § 160
 2        (relating to prevention of unfair labor practices)
 3        against the taxpayer for an unfair labor practice under
 4        29 U.S.C. § 158(a) (relating to unfair labor practices),
 5        unless an order of the National Labor Relations Board
 6        related to the complaint is set aside in full accordance
 7        with 29 U.S.C. § 160(e) or (f).
 8              (ii)    A settlement offer related to an investigation
 9        by the National Labor Relations Board of a charge of an
10        unfair labor practice under 29 U.S.C. § 158(a) that
11        results in a settlement of the charge without issuance of
12        a complaint under 29 U.S.C. § 160.
13              (iii)    A finding of interference, influence or
14        coercion by a Federal court under 45 U.S.C. § 152
15        (relating to general duties).
16              (iv)    A violation of the act of June 1, 1937
17        (P.L.1168, No.294), known as the Pennsylvania Labor
18        Relations Act.
19              (v)    A complaint of an unfair labor practice under
20        the Pennsylvania Labor Relations Act.
21              (vi)    A violation of an order issued by the
22        Pennsylvania Labor Relations Board.
23        (2)   An amount paid or incurred, including wages, in
24    producing, conducting or attending a meeting or training:
25              (i)    that includes employees of the taxpayer who are
26        or who could become bargaining unit members or members of
27        a craft or class under 45 U.S.C. Ch. 8 (relating to
28        railway labor); and
29              (ii)    at which labor organizations or a labor
30        organization activity is discussed.

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 1          (3)   An amount that is required to be reported under 29
 2      U.S.C. Ch. 11 (relating to labor-management reporting and
 3      disclosure procedure).
 4   Section 2904-J.   Exceptions.
 5      Notwithstanding section 2903-J, the following shall not be
 6   treated as an amount paid or incurred in connection with
 7   attempting to influence the taxpayer's employees with respect to
 8   a labor organization or the activities of a labor organization:
 9          (1)   An amount paid or incurred for communications or
10      negotiations directly with the designated or selected
11      representative of the employees of the taxpayer described
12      under 29 U.S.C. § 159(a) (relating to representatives and
13      elections) or 45 U.S.C. Ch. 8 (relating to railway labor).
14          (2)   An amount paid or incurred for communications
15      directly with shareholders, as may be required under 15
16      U.S.C. § 78m (relating to periodical and other reports).
17          (3)   An amount paid or incurred for communications or
18      consultation by the taxpayer in the process of voluntarily
19      recognizing a labor organization as a representative in
20      accordance with 29 U.S.C. § 159.
21          (4)   An amount paid or incurred for communications or
22      consultation related to the operation of a labor-management
23      partnership described in a collective bargaining agreement in
24      effect between a representative of employees of the taxpayer
25      and the taxpayer.
26          (5)   An amount paid or incurred for communications or
27      consultation related to the operation of a grievance
28      procedure described in a collective bargaining agreement in
29      effect between a representative of employees of the taxpayer
30      and the taxpayer.

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 1          (6)   An amount paid or incurred by a labor organization.
 2          (7)   An amount paid or incurred for communicating
 3      material, including visual or audio media, required to be
 4      posted for, or provided to, employees of the taxpayer by law,
 5      including under the National Labor Relations Act (49 stat.
 6      449, 29 U.S.C. § 151 et seq.) or 45 U.S.C. Ch. 8.
 7      Section 2.   The addition of Article XXIX-J of the act shall
 8   apply to taxable years beginning on or after the effective date
 9   of this section.
10      Section 3.   This act shall take effect immediately.




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