From McKonly & Asbury

Pennsylvania offers a great way for businesses, and even individuals, to receive potential tax benefits for their charitable contributions through the Educational Improvement Tax Credit Program (EITC) and the Opportunity Scholarship Tax Credit Program (OSTC).

The most popular program – the EITC – allows businesses to receive a credit against Pennsylvania taxes by contributing to one of three types of organizations: Educational Improvement Organizations, Scholarship Organizations, and Pre-K Scholarship Organizations. The OSTC is very similar to the EITC, but the donations may only go to scholarship organizations for students in underperforming schools.

The Pennsylvania Department of Community and Economic Development (DCED) runs these programs and provides a list of the organizations to which participants can donate here. If an organization is not on the list, but meets the criteria they simply need to apply to be considered. The types of businesses that qualify for the program include those authorized to do business in the Commonwealth of Pennsylvania which are subject to tax or whose owners are subject to tax. This includes pass-through entities and special purpose pass-through entities.

Applications open July 1st for new applicants and May 15th for returning applicants. The applications are accepted on a first-come-first-serve basis, so businesses should apply on their respective application dates for the best chance of being accepted into the program.

Watch a video here to learn more about the EITC and OSTC programs. 

With the finalization of the 2021-22 State Budget, the Legislature is now on summer recess until mid-September. Bills that would support businesses are therefore on hold. The Chamber will continue to advocate for policy changes to encourage people to return to the workforce.

Legislation of interest to many employers would have ended the $300 per week federal Unemployment Compensation bonus prior to early September. Business leaders and a recent poll by the U.S. Chamber of Commerce cite this bonus as a significant factor in keeping individuals from returning to work. While bills introduced in both the House and Senate are now moot, the governor also has the ability to end the bonus payments early. The Chamber is joining other chambers of commerce from across the state and the PA Chamber of Business and Industry in calling on Governor Wolf to end the bonus payments as soon as possible.

The PA Department of Labor and Industry will reimplement the requirement that individuals receiving unemployment benefits demonstrate active work search the week of July 11. House Bill 406 would have resumed the requirement sooner. The bill passed the House 187-14 but stalled in the Senate.

With the end of the emergency declaration in early June, several special rules to support the restaurant industry ended. House Bill 1154 would make drinks to go permanent and extend expanded outdoor seating for licensed establishments until the end of 2022. The bill, sponsored by Representative Kurt Masser, passed the House 187-14 but was modified in the Senate. After Governor Wolf threatened to veto the Senate version, the House worked on compromise language but a final concurrence vote has not yet occurred in the Senate. Senator Scott Martin, R-Lancaster County, is asking Senate leadership to call senators into session to vote on the bill before a special rule allowing them to vote remotely expires on June 30th. 

Pending finalization of that legislation, the Pennsylvania Restaurant & Lodging Association is advising that establishments that applied for the temporary expanded premises outdoor seating last year can apply for a permanent extension at PLCB+. Log in, click on “Other License Changes/Amendments” and select “Extension of Premise” from the drop-down menu.  There is a $220 fee and an inspection will be required to pursue this option. While the site says establishments cannot operate until you have an inspection, upon completion of your application, the PLCB will send a letter granting temporary operating authority until inspection from the PLCB is received.

Edited from the PA Chamber of Business & Industry

Ahead of the June 30 Constitutional deadline, the General Assembly and Wolf administration reached agreement on a $39.78 billion budget for the 2021-22 Fiscal Year.  While a reduction in the Corporate Net Income tax rate is not included in the deal, the final budget does not impose any new or additional tax increases on employers. The looming expansion of overtime eligibility was also repealed as part of the agreement.

The final spending plan is a far cry from Gov. Tom Wolf’s original proposal which included a significant increase to the Personal Income Tax.  Budget negotiations were aided by higher than anticipated revenue collections, as well as the influx of $7 billion in federal stimulus aid.

Representing a $7.7 billion, or 24 percent, spending increase over the previous fiscal year, lawmakers pointed to a growth in mandated spending – primarily under the Department of Human Services – as well as the use of one-time revenue sources in previous state budgets as the reason behind the significant increase.  In an attempt to reign in additional spending growth under the DHS, the Fiscal Code contains language prohibiting the department from creating new programs without legislative authority.

The budget allocates $2.52 billion to the state’s Rainy Day Fund and sets aside $5 billion of federal stimulus funds to be utilized in future budgets.  The budget also includes a $300 million increase in education funding and a $40 million increase to the Educational Improvement Tax Credit.  Of the federal stimulus dollars, $50 million has been designated towards the Pennsylvania State System of Higher Education system redesign and $282 million to help nursing homes and assisted living facilities with COVID related costs.  An additional $372 million has been appropriated to the governor’s office to assist with COVID-19 response.

Among the numerous policies included in budget-related legislation was a one-sentence provision to repeal an administration proposal initiated in 2018 to dramatically and continually expand the range of employees eligible for overtime pay (i.e. the requirement to pay time-and-a-half for every hour over 40 worked in a given week).

From PA Chamber of Business & Industry

Among the numerous policies included in budget-related legislation passed last week was a one-sentence provision that has significant implications for many Pennsylvania employers.

Part of the final budget deal between the Republican-majority legislature and Democratic Gov. Tom Wolf was an agreement to repeal an administration proposal initiated in 2018 to dramatically and continually expand the range of employees eligible for overtime pay (i.e. the requirement to pay time-and-a-half for every hour over 40 worked in a given week).

The PA Chamber has led a diverse coalition opposing this rule, including the nonprofit community, higher education, healthcare institutions and the restaurant industry.  Many employers reported they would be unable to afford these higher costs in the years ahead and would be forced to convert salaried employees to hourly workers so hours could be tracked and capped each week.  Employees expressed concern at the prospect of losing their salary status and the associated flexibility and benefits.

As this rule progressed through the regulatory process the PA Chamber launched several grassroots advocacy campaigns and worked with the state legislature to pass a concurrent resolution to disapprove of the rule, which the Governor subsequently vetoed.

The repeal of this rule represents significant relief for Pennsylvania employers, many of whom continue to struggle recovering the pandemic, shutdown orders and economic fallout.

Join McKonly & Asbury on July 29th at 2 p.m. for its 2021 State and Local Tax Update webinar! Mark Heath, Partner and Director of Tax Services along with Lindsey Waltemyer, Manager and SALT Leader will be discussing the state tax implications of recent federal tax changes, including those changes related to COVID-19. Other topics to be covered include a discussion of states imposing new pass-through entity taxes; the various tax consequences of having employees working from home in other states; as well as voluntary disclosure agreements and when they can be beneficial to taxpayers. The webinar will round out with some state tax updates from the past year and will look at state comparisons and the trends in state taxation going forward.

During this webinar, attendees will:

• Gain perspective on how states are continuing to handle tax issues in the wake of Wayfair, Federal Tax changes, and COVID-19, including many states creating new pass-through entity taxes.
• Learn the tax consequences and considerations when allowing employees to work from home in various states.
• Understand the purpose of a voluntary disclosure agreement and the value it can provide.
• See how Pennsylvania compares to other states and what trends are coming forward in state taxation.

Register for the webinar here.

The order requiring universal face coverings was lifted statewide on Monday, June 28.  

“We are continuing to make progress toward stopping the spread of COVID-19 throughout the commonwealth, as many Pennsylvanians have taken responsibility for their own health and the health of their communities by getting vaccinated,” Acting Secretary of Health Alison Beam said. “Even though the universal masking order will be lifted in a few days, businesses, organizations, health care providers and other entities maintain the option of requiring employees, guests or customers to wear a mask, regardless of their vaccination status.” 

The department continues to urge Pennsylvanians to follow CDC guidance for wearing a mask where required by law, rule, and regulations, including healthcare, local business and workplace guidance. For the protection of themselves and others, individuals who have not yet been vaccinated or are partially vaccinated are still encouraged to wear a mask when in public. The CDC requires individuals to wear a mask on planes, buses, trains, and other forms of public transportation traveling into, within, or out of the United States, and in U.S. transportation hubs, such as airports and stations. In addition, all individuals should still follow guidance at workplaces, local businesses, long-term care facilities, hospitals and other healthcare facilities, prisons, and shelters. 

“As we shift to wearing masks less often, it is important to remain resilient in the fight against COVID-19, just as we have done together over the last year and a half,” Acting Physician General Dr. Denise Johnson said. “The COVID-19 vaccines are the best tools we have to defeat COVID-19. Pennsylvanians are aware of this and have been getting vaccinated. If you have not already been vaccinated, there are plenty of options available near you. Getting as many Pennsylvanians vaccinated as possible will offer more protection against the virus for everyone and is the fastest and safest way for us to return to our normal activities.”  

According to the Centers for Disease Control and Prevention (CDC) vaccine tracker, as of Friday morning, June 25, 74.9 percent of Pennsylvanians age 18 and older have received their first dose, while 59.4 percent are fully vaccinated. The commonwealth ranks 8th among all 50 states for first doses administered by percentage of population.  

Additionally, individuals are reminded that public health measures such as isolation and quarantine are necessary to prevent the spread of infection. It is important for individuals who are sick to stay home unless seeking medical care or COVID-19 testing. Individuals who are identified as close contacts of a person with COVID-19 should cooperate with all public health recommendations, including quarantine, so that if they become infected, they will not spread infection to others.   

The universal masking order was originally issued on April 15, 2020, updated on November 18, 2020 and again March 17, 2021.  

For more information about Pennsylvania’s vaccination program, click here. 

Chamber members enjoyed the evening catching up with business connections at the Chamber’s Business After Hours at Tri-County Lumber‘s new bath and kitchen showroom, Forest & Field on June 23rd. Attendees were able to take a tour of the showroom that is located at 1072 Alliance Park Drive, while enjoying some delicious food, wine and beer.  

Tri-County Lumber’s Forest & Field is a 10,000-square foot showroom that features numerous kitchen & bath cabinetry and countertop displays, a window/door/millwork showroom, siding/decking/roofing displays, a customer lounge area, and a full working kitchen where regular demos and events will be held. It also has private office space and work areas for builders, designers, and architects to work with their clients.

Business After Hours provide regular opportunities to build business relationships while learning about the services offered by other Chamber members. The next Business After Hours will be hosted by Montour Solar One and is currently slated for Wednesday, July 7th.

Danville to Hold 35th Annual Spring Fling

Normally held the first Saturday in May, Spring Fling is an annual celebration of the foods, sites, and sounds that make Danville a special place. The streets of downtown Danville are closed to traffic for this family-friendly festival.  The event will be held this Saturday, June 26th from 9 a.m. to 5 p.m.

Downtown businesses, plus more than 200 vendors from central Pennsylvania and surrounding states converge for this fun outdoor event. The event is also a showcase of our nonprofit organizations, who demonstrate the giving spirit of the community by raising awareness and funds for their causes.

More information here.

Bloomsburg Children’s Museum Installs Pop-Up Exhibit at McBride Library  

Christine Curley (Director, McBride Memorial Library), Holi Sult (Children’s Librarian, McBride Memorial Library), Ginny Weibel (Director, Bloomsburg Children’s Museum) in front of the pop-up exhibit on the brain.

The Bloomsburg Children’s Museum has created a pop-up exhibit for the McBride Library that promotes healthy habits for good mental health and teaches visitors how their brains work. The temporary exhibit reflects a small part of the Museum’s new health and nutrition exhibit titled “The Superpower of You,” slated to open July 23rd.

Ginny Weibel, Director of the Bloomsburg Children’s Museum said the pop-up exhibit pays homage to the museum’s past.  “Thirty-six years ago, the museum actually started as a traveling organization. We moved around to different locations putting up temporary exhibits in schools and community centers for limited engagements,” said Weibel. 

Weibel explained the choice of topic for the pop-up exhibit.  “The COVID-19 pandemic highlighted a need in our community to better understand stress, anxiety, and depression, particularly in children and teens. We want people to have the knowledge and tools to take charge of their health and work towards developing healthy habits that strengthen both body and mind,” Weibel said. 

In the exhibit, visitors will learn about how the brain functions, how your senses work, tackle some brain games, and learn what you can do to take charge of your brain’s health.

Christine Curley, Director of the McBride Memorial Library emphasized this point. “Mental health plays a key role in our overall health. A child’s mental well-being is just as important as their physical well-being and deserves the same quality of support. We are very grateful for our partnership with the Children’s Museum in bringing this exhibit to our patrons, which not only gives our patrons a chance to learn more about mental health and how the brain works but also helps to connect them to valuable mental health resources.”  

Some of the resources available within the exhibit were provided by the United Way of Columbia and Montour Counties, United in Recovery. Olivia Oden, Stigma Reduction & Education Coordinator for United in Recovery, emphasized the importance of this message. “Providing evidence-based education for youth and families is a key part of prevention when talking about addiction. Substance use disorder is prevalent in many families within our community; learning about the disease from a scientific and biological approach is a great way to teach that it can happen to anyone, and how we can help our kids make healthy, positive choices,” Oden said.   

The exhibit was sponsored by Berwick Youth In Philanthropy, The Community Giving Foundation, and T-Mobile. You can visit the exhibit at the McBride Memorial Library from now until September 30th.  

For information on programs and operating hours of the McBride Memorial Library, please visit https://mcbridelibrary.org

For more information on the Bloomsburg Children’s Museum, please visit  https://the-childrens-museum.org/

More than 430 businesses and organizations belong to the Chamber to receive benefits and support efforts to strengthen their businesses and the region. Increased membership allows the Chamber to offer additional programs and benefits, have a stronger voice in advocacy and be involved in more activities and initiatives. The Chamber welcomes the Berwick Area United Way.

The Berwick Area United Way is a non-profit that is focused on strengthening the local Berwick community.  The organization is dedicated to the health and education of children, the financial stability of families, and the immediate emergency needs of its community members. 

For more information on the Berwick Area United Way visit its website, Facebook page or call 570-759-8203.

Edited from the PA Chamber of Business & Industry

A national workforce shortage is having a negative impact on businesses struggling to recover in the wake of the COVID-19 pandemic.  With unemployment rates higher than pre-pandemic levels, several states are choosing to withdraw from a federal unemployment compensation benefit enhancement program in order to incentivize more individuals to return to the workforce.  Notably, last week, Louisiana became the first state with a Democrat governor to pull back from the federal program.

In a statement, PA Chamber President and CEO Gene Barr called the current workforce shortage a “crisis” for the business community and urged Pennsylvania to scale back its participation in the federal benefit enhancement program.

“As evidenced by Louisiana’s recent decision to withdraw from the federal program, this isn’t a partisan issue,” Barr said.  “It’s simple math.  The private sector cannot compete against federal benefit enhancements that are in many cases paying individuals more than what they made in wages.”

A recent U.S. Chamber survey found a significant number of respondents – more than half – are not in a hurry to return to work and 16 percent say the money they are receiving from unemployment benefits and other government programs makes it ‘not worth looking for work.’

House Bill 508 would phase out Pennsylvania’s participation in the federal unemployment compensation enhancements and implement a Back-to-Work Bonus Program to incentivize individuals to return to work. The bill has passed out of committee and is currently awaiting consideration by the full House. While the PA Chamber is supporting the legislation, the Board of The Columbia Montour Chamber is opposing back-to-work bonuses as inappropriate and unnecessary.