This bill amends the Tax Reform Code of 1971 by adding a new article, Article XXIX-J, which prohibits corporations operating in Pennsylvania from taking tax deductions for expenses related to anti-union activities. Specifically, it prevents domestic and foreign entities from deducting business expenses incurred while attempting to influence their employees regarding labor organizations. The bill outlines various scenarios that would fall under this prohibition, including payments related to unfair labor practice complaints and expenses for meetings discussing labor organization activities.

Additionally, the bill provides exceptions to this prohibition, allowing deductions for certain communications and consultations directly with employee representatives or shareholders, as well as expenses related to the voluntary recognition of labor organizations and the operation of grievance procedures under collective bargaining agreements. The provisions of this new article will apply to taxable years beginning on or after the effective date of the legislation, which is immediate upon enactment.

Statutes/Laws affected:
Printer's No. 632 (Apr 11, 2025): P.L.6, No.2
Printer's No. 0632: P.L.6, No.2