Another tax season has come and gone like the wind. 🌬️ Hopefully, you’re all filed and paid and made in the shade! And if not, what time are you fleeing the country? LOL just kidding! 🙃💸
The Shapiro administration has its eye on a few Keystone State tax credits. 🔎 Some say the programs aren’t making much of a dent, but in some cases supporters say they offer a helping hand. 🤝
Here’s Five Fast Facts on the possible fate of three PA tax credits:
- ✂️ Cutting Floor - A handful of Pennsylvania tax credits could be on their way out. Gov. Shapiro is proposing (for a second time) to scrap three programs and shift the focus to higher-paying jobs. The credits, totaling about $10M a year, are being criticized as too small and too niche to have much impact.
- 🚰 Water Down the Drain? - The first tax credit is related to a program that encourages companies to help fund waterfront projects. Businesses get tax credits for donating to nonprofits working on things like trails and riverfront development. But even after the program expanded to $5M a year, not all the money is being used, and some say the incentives need to be stronger.
- 🎮 Money Game - PA is also trying to support the video game industry with a tax credit, but it may not be moving the needle. The program is capped at $1M annually, making it one of the smallest in the country. It hasn’t drawn many new companies, but some existing businesses say it still plays a role in their growth.
- 🧰 On the Job - The final tax credit on the chopping block targets businesses who add manufacturing jobs. It offers $4M a year, but its size and structure may be limiting its impact. Experts say many companies would have added jobs anyway, raising questions about its value.
- 🧐 Decisions, Decisions - The ultimate fate of the programs will likely hinge on state budget negotiations ahead of the June 30 deadline. Those talks will determine whether the credits are scaled back, reworked, or trashed altogether. For now, the programs remain in limbo as lawmakers and the administration plan their next move
🔥Bottom line: Listen, we’re all for axing programs that throw our tax dollars down the drain. Maybe we’ll get to keep that extra cash in our paychecks instead? #wishfulthinking. If this past winter did your energy bills dirty, there’s still time to apply for help through LIHEAP! The program extended their deadline and if you qualify, it could be a big help. Check out this article for more details!
Do any of these tax credits impact your paycheck?
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