Delaware Loophole

State Government
11:59 am
Tue May 7, 2013

House Passes 'Delaware Loophole' Fix and Assorted Tax Cuts

A bill to close the so-called Delaware loophole while lowering other taxes on corporations has passed the state House by a vote of 129 to 65.

The measure aims to capture revenue from companies that have transferred money from commonwealth subsidiaries to corporations in Delaware – a state without corporate taxes.

House Democratic leaders criticized the proposal for using an approach they say wouldn’t actually close the loophole.

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Taxes
12:04 pm
Tue April 23, 2013

House Readies for Vote on Bill to Close Corporate Tax Loophole

A bill crafted to close a corporate tax loophole in Pennsylvania in a way that’s most palatable to businesses is teed up for consideration by the state House.

The so-called Delaware loophole has bedeviled legislators and governors for years. Its name comes from the practice of corporations that transfer money from commonwealth affiliates to a company in Delaware — a state with no corporate taxes.

There are different ways to go about closing the loophole, and therein lies much of the conflict over a bill that’s passed a committee vote.

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