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Bill

HB 724

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.

2025-2026 Regular Session Introduced by Jessica Benham and 18 co-sponsors

Prohibits Pennsylvania businesses from claiming tax deductions for anti-union activities, increasing the financial cost of opposing unionization efforts.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 724

Legislative bill overview

HB 724 would amend Pennsylvania's Tax Reform Code of 1971 to prohibit businesses from claiming tax deductions for expenses related to anti-union activities. This means companies could no longer reduce their taxable income by deducting costs associated with union opposition, such as legal fees for union-busting campaigns or consultant fees for union avoidance strategies.

Why is this important

This bill would directly affect labor-management relations by removing a financial incentive for businesses to oppose unionization efforts. It represents an attempt to level the playing field between employers and workers seeking to organize, potentially increasing unionization rates in Pennsylvania by making anti-union campaigns more costly for employers.

Potential points of contention

  • First Amendment concerns: Opponents may argue that prohibiting deductions for anti-union activities restricts employer speech rights and the ability to advocate against unionization as a legitimate business position
  • Economic competitiveness: Business groups may contend that increased costs for labor relations could make Pennsylvania less attractive for business investment or operations compared to other states
  • Tax code complexity: Questions about how to define and distinguish "anti-union activities" from routine labor relations expenses, potentially creating auditing and compliance challenges for the IRS and businesses

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

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