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Bill

HB 1004

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in research and development tax credit, further providing for limitation on credits.

2025-2026 Regular Session Introduced by Tim Brennan and 22 co-sponsors

HB 1004 modifies Pennsylvania's R&D tax credit limits to adjust business incentives for research investment and state competitiveness.

Referred to Finance
0
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Bill Summary · HB 1004

Legislative bill overview

HB 1004 modifies Pennsylvania's research and development (R&D) tax credit program by adjusting limitations on how much credit businesses can claim. The bill amends the Tax Reform Code of 1971 to change existing cap or eligibility parameters for companies conducting qualified research activities in the state.

Why is this important

R&D tax credits are a key economic development tool states use to incentivize innovation and keep companies investing locally. Changes to credit limitations directly affect business investment decisions and state tax revenue, while potentially influencing whether companies expand or relocate research operations to Pennsylvania.

Potential points of contention

  • Revenue impact: Expanding credit limits increases state tax expenditures; restricting them may discourage R&D investment and business competitiveness
  • Equity concerns: Changes may disproportionately benefit large corporations over startups or small manufacturers depending on how limitations are structured
  • Budget pressure: In tight fiscal years, enhanced credits compete with funding for education, infrastructure, and other state priorities

Compiled from official sources — confirm details with the bill’s official record.

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