Ortitay bill would end sale of tax credits
State Rep. Jason Ortitay, R-South Fayette, recently introduced legislation that would end the practice of selling state tax credits.
“While tax credit programs are intended to stimulate the economy by encouraging businesses to locate or expand in Pennsylvania, some programs have veered from their intended purposes,” Ortitay said. “There are tax credit programs where upward of 99 percent of the credits are sold and not used by the original recipient. It appears that these credits are being used simply as a funding mechanism, which distorts the state’s tax climate and ultimately hurts the economy. My legislation would help to refocus these programs back to their intended uses.”
State House Bill 1999 would disallow state tax credit recipients from selling their state tax credits. It would only apply to tax credit programs with currently eligible taxpayers and ones that allow for the sale or transfer of tax credits to taxpayers other than shareholders.