I will soon introduce legislation to reverse several provisions of Act 45 of 2025 (Fiscal Code) that restricts business expensing under the Corporate Net Income Tax (CNIT).
 
Act 45 decoupled Pennsylvania from federal tax law by eliminating immediate and full expensing for research and development (R&D) investments. Instead, businesses are now required to amortize their R&D expenses solely for Pennsylvania tax purposes. This change increases tax liability for employers, discourages private‑sector investment, and adds unnecessary complexity to tax compliance.
 
My legislation will restore full R&D expensing by realigning Pennsylvania with federal tax treatment. It will also reinstate expensing for qualified production property (QPP) and business interest that were changed per Act 45.
 
This is a straightforward, pro‑growth correction. According to the Independent Fiscal Office, the changes enacted in Act 45 will cost Pennsylvania businesses hundreds of millions of dollars. Reversing these provisions will help maintain our competitiveness and support innovation.
 
I invite you to join me in cosponsoring this important legislation.