Key Issues - State Taxes

Resources

Proposed Plan to Address Future Deficits (2010-11 Budget Fact Sheet)

Pennsylvania’s Film Production Tax Credit and Industry Analysis released in June 2009 by the Legislative Budget and Finance Committee is one of a series of reports being prepared by the LB&FC in response to  Senate Resolution 20 of 2009 and House Resolution 127 of 2009.  The resolutions directed the Committee to undertake a review of 18 of the Commonwealth’s tax credit programs.  Among other findings, the report on the film tax credit concluded that the total industry produces fiscal benefits to the Commonwealth of $62.7 million. While some of this activity would occur without the benefit of the tax credit, a significant proportion of this activity would be at risk without such a tax credit program.  Thus, on the whole, the industry could be said to produce a net fiscal gain in state and local taxes of $4.5 million ($62.7 million minus the $58.2 million cost of the tax credits).    An LB&FC Fact Sheet with report highlights can be found here. 

Preliminary reports on the Educational Improvement Tax Credit and Research and Development Tax Credit programs have also been released by LB&FC as part of their review of 18 of the Commonwealth’s tax credit programs.  The preliminary information on the EITC indicates that DECD has approved 239 scholarship organizations and 136 pre-K scholarship organizations for participation under the program.  Together, these organizations awarded $50.3 million in scholarships in FY 2008-09.  This $50.3 million came from contributions made by 3,190 businesses, which, in turn, received $44.8 million in tax credits.  The study of the R&D program indicates that the Commonwealth receives more applications for credits than are available.  In 2008, 554 businesses received R&D tax credits, 240 of which were small businesses.  Applications from these 554 businesses totaled $82.7 million.  Because the program is capped at $40 million, the tax credits were prorated among eligible applicants as provided for in the program’s enabling legislation.

State Tax Changes – 2008 (2008 Policy Office Issue Brief)

The Pennsylvania Tax Compendium (June 2007), is a general guide to Pennsylvania taxes which provides a description of the basis, rate and history of Pennsylvania taxes.

The 2007-08 Statistical Supplement (October 2008) to the Pennsylvania Tax Compendium provides tax collection data, including historical data for comparison purposes.

The Tax Foundation’s State Tax Policy and Data section provides a comprehensive resource for information on tax and spending policy in the 50 U.S. states.

The Federation of Tax Administrators website, provides comparisons of state tax rates and links to other state tax agencies and federal websites.