Cutler Legislation to Encourage Reinvestment in Pennsylvania Gets Thumbs Up from House Finance Committee
1/22/2013
HARRISBURG – The House Finance Committee today approved legislation authored by Rep. Bryan Cutler (R-Peach Bottom) to encourage reinvestment in Pennsylvania and end an archaic law that taxes in-state business loans.

“Current law gives a tax advantage to out-of-state lenders rather than those investors we have right here in the Commonwealth,” said Cutler. “This legislation will encourage a reinvestment in Pennsylvania and allow small businesses to acquire the capital they need to remain solvent.”

House Bill 78 would eliminate the corporate loans tax, which is currently imposed at the rate of 4 mills on resident individuals who earn interest on bonds and on non-resident corporations if their treasurers are located within the Commonwealth.

The Pennsylvania Chapter of the National Federation of Independent Business and the Pennsylvania Institute of Certified Public Accountants expressed support of the legislation.

Cutler noted that while the idea behind the legislation has been around for decades, he was prompted to introduce the bill by a resident of the district who runs a home renovation business.

“In this economy, lending is very restricted, and this tax only makes it harder for our small businesses to succeed,” said Cutler. “This legislation is part of the larger effort to reform Pennsylvania tax law to encourage hiring, business growth and investment in our Commonwealth.”

The legislation will now go before the full House for debate and deliberation.

More information about Cutler and his legislative priorities is available at www.RepCutler.com and www.Facebook.com/RepBryanCutler.

Representative Bryan Cutler
100th Legislative District
Pennsylvania House of Representatives
Media Contact: Nicole Wamsley
717.783.8063
nwamsley@pahousegop.com
www.RepCutler.com / www.Facebook.com/RepBryanCutler
www.Twitter.com/RepBryanCutler
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