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High Impact

Pennsylvania Bill Prohibits Tax Deductions for Employer Anti-Union Expenses

Original title: 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.

Last action · February 25, 2025: Referred to FINANCE, Feb. 25, 2025Sponsors: John Inglis and 18 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Pennsylvania House Bill 724 prohibits corporations operating in the Commonwealth from taking state tax deductions for business expenses incurred while attempting to influence employees regarding labor organization activities. The restriction applies to taxable years beginning on or after the effective date of the act.

Why it matters

Changes state tax reporting rules for corporations doing business in Pennsylvania by disallowing deductions for specific anti-union activities and meetings, directly affecting corporate tax liabilities and accounting practices.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

domestic entities

Corporations formed under Pennsylvania laws are prohibited from taking tax deductions for expenses related to opposing unionization efforts.

Directly affected

foreign entities

Corporations organized under the laws of jurisdictions outside Pennsylvania that operate in the Commonwealth are prohibited from deducting anti-union expenses.

Directly affected

labor organizations

Organizations representing employees are impacted by restrictions on employer spending and tax deductions aimed at influencing unionization.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Which businesses are affected by this bill?
Domestic and foreign corporations and entities operating, carrying on activities, or owning property in Pennsylvania that are subject to taxes under Article III, IV, or VI of the Tax Reform Code of 1971.
Are all employer communications with employees restricted?
No. Exceptions are made for direct communications or negotiations with designated employee representatives, required communications with shareholders, voluntary recognition processes, labor-management partnerships, grievance procedures, and legally required workplace postings.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Feb 25, 2025HouseCommittee
    Referred to FINANCE, Feb. 25, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

New State Tax Restriction on Labor Activities

The bill establishes a direct link between state tax deductions and corporate expenditures on union avoidance, creating a new enforcement mechanism through tax code disallowances.

Connected Entities

Department of Revenue, General Assembly of the Commonwealth of Pennsylvania, Pennsylvania Labor Relations Board and 1 more
OrganizationDepartment of Revenue“Mentioned in the title of the Tax Reform Code of 1971 as conferring powers and i”Map →
OrganizationGeneral Assembly of the Commonwealth of Pennsylvania“Legislative body enacting the bill”Map →
OrganizationPennsylvania Labor Relations Board“State board related to unfair labor practices and orders”Map →
OrganizationNational Labor Relations Board“Federal board related to unfair labor practice complaints and investigations”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy85
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz45
    Current news / social attention level

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