Enacted on June 30, 2021, H.B. 952 provides an update to Pennsylvania’s Qualified Manufacturing Innovation and Reinvestment Deduction (QMIRD). Applicable to tax years beginning after December 31, 2020, the deduction applies to Pennsylvania taxable income (i.e., post-apportionment).
H.B. 952 provides updated deadlines for a number of credit and incentive programs in the state and also makes changes to the administration of tax credit programs.
The takeaway: Manufacturers considering Pennsylvania investments should be aware of the significant benefit provided by H.B. 952. Eligible multistate taxpayers could expect the QMIRD deduction to significantly impact Pennsylvania taxable income due to the deduction being applied to post-apportioned income.
The bill replaces the burdensome September 15 R&D tax credit deadline with a December 1 filing date to allow calendar-year taxpayers to first report and file their federal returns. Finally, updates related to the administration of tax credit programs introduce additional reporting requirements and grant taxpayers an ability to appeal to the Pennsylvania Department of Revenue.