Jan. 25, 2022

HARRISBURG – Legislation sought by PA House Majority Caucus Chairman George Dunbar (R-Westmoreland) to improve Pennsylvania’s tax laws related to claiming deductions by property owners who receive royalties for extracted resources passed the House Tuesday. House Bill 199 would allow property owners to account for the percentage depletion of a mine, oil and gas well, and other natural deposits when filing their Personal Income Tax (PIT), which is consistent with federal laws administered by the Internal Revenue Service.

“By making the deduction process consistent with federal regulations, it will be easier to navigate and less cumbersome,” said Dunbar. “The current system is complicated with confusing red tape and often, property owners just walk away from the deduction. By matching state law to federal law, we are eliminating that red tape.”

Dunbar assembled a team of legislators who proposed a package of bills aimed at simplifying the tax code for Pennsylvania residents and small businesses. Other bills in the package include:

- House Bill 285, sponsored by Rep. Daryl Metcalfe (R-Butler), would permit the deferral of taxation on a lump sum distribution from Employee Stock Ownership Plans.
- House Bill 333, sponsored by Rep. Eric Nelson (R-Westmoreland), would increase the amount small business can deduct for the depreciation of machinery and equipment from $25,000 to $1.05 million.
- House Bill 1960, sponsored by Rep. Josh Kail (R-Beaver/Washington) increases the Net Operating Loss paid by Corporate Net Income Tax payees from 40% to 80% over the next four years.

“Small businesses have a track record of being Pennsylvania’s job creators and economic engines. But they have been devastated by pandemic-related closures and supply chain disruptions,” Dunbar said. “Simplifying the tax code will be a meaningful way to help them, and Pennsylvania’s overall economy, continue to recover.”

House Bill 199 passed 118-82 and will now be considered by the Senate.

The 56th Legislative District includes the following Westmoreland County communities: townships of Hempfield (part), North Huntingdon, and Penn (part); and the boroughs of Irwin, Manor, North Irwin and Trafford (part).

Representative George Dunbar
56th District
Pennsylvania House of Representatives