FILE - PA John DiSanto 1-29-2019

Pennsylvania state Sen. John DiSanto, R-Dauphin

(The Center Square) – Legislation to advance tax reform and eliminate a disadvantage for small businesses was approved by the Pennsylvania Senate.

Senate Bill 347, sponsored by Sen. John DiSanto, R-Dauphin, mirrors the federal Internal Revenue Code to allow small businesses a “like-kind” exchange for tax deferral when property is exchanged for similar property. This facilitates businesses investing in job-creating assets that are necessary to stay competitive, a Senate Republicans news release said.

Every state except Pennsylvania provides a similar option to this federal law at the state level.

The bill is part of the Small Business Tax Reform Package to help small businesses, which account for 65% of the workforce in the commonwealth, recover from COVID-19 pandemic.

“My legislation levels the playing field for small businesses looking to expand or even relocate in our Commonwealth,” DiSanto said. “Like-kind exchange treatment can be a deciding factor for real estate transactions, and my bill will improve Pennsylvania’s business climate to encourage economic growth and job creation.”

The bill was sent to the House for consideration.