Each year the governor and state legislative leaders lay out their sometimes competing and sometimes complementary visions for the fiscal year budget. Within these proposals PFMA identifies and advocates for line items and initiatives that would present a positive impact for association members, along with other proposals that could be made part of an overall budget agreement. Here is a rundown of what PFMA has identified as priorities in the 2024-25 budget cycle.
For 2024, accelerating the phasedown of the Corporate Net Income Tax Rate and implementing Net Operating Loss carryforward are two tax-related priorities for PFMA that could be part of an agreed state budget.
In the 2022-23 fiscal year, Pennsylvania’s budget agreement included a tiered reduction in the state’s corporate net income tax rate, which had stood at 9.99 percent, the highest flat rate in the country. The rate was reduced one percentage point to 8.99 percent on January 1, 2023, and subsequent 0.5 percentage point cuts are scheduled to occur each year until the rate reaches 4.99 percent in 2031. PFMA supports accelerating the phasedown of the CNIT so the final 4.99 percent rate is achieved sooner.
Additionally, PFMA strongly supports implementing NOL carryforwards, allowing businesses to carry losses forward and deduct them from future profits. This change would help Pennsylvania compete with other states that have more business-friendly NOL rules in place.
Governor Shapiro’s 2024-25 budget proposal contemplates the regulation of two major sectors: games of skill and adult-use cannabis. PFMA’s priority in the context of these concepts is ensuring member businesses have the opportunity to participate on a level playing field in these areas if they choose. Given the contemplation of legalizing recreational cannabis, the association is highlighting the need for regulatory frameworks governing the safe sale of marijuana and related products such as Delta-8 at member locations.
Following the successful passage of Organized Retail Theft legislation into law at the end of 2023, PFMA strongly supports funding in the 2024-25 state budget to establish and support operations of the new Organized Retail Crime Task Force under the Office of Attorney General. PFMA Loss Prevention Committee members are holding regular meetings with OAG staff to help guide and provide feedback on the work of the task force.
Insofar as the 2024-25 state budget may address minimum wage, PFMA is advocating that any increase to the state minimum wage is weighed carefully and takes a reasonable approach. Relatedly as it pertains to the workforce, PFMA supports investment in the Child Care Works program to leverage millions in federal funding for child care assistance.
PFMA also supports funding in the 2024-25 state budget to increase the minimum SNAP benefit and to administer the Summer EBT Program, both included in Governor Shapiro’s proposal, as well as funding for a statewide Healthy Food Financing Initiative.
As budget negotiations coalesce leading into June, the association continues to meet with appropriators and administration officials to share insights and advocate on behalf of members on these priorities. If you have questions on any of these items please reach out to PFMA Association Services.
October 31, 2024
