House Finance Committee reports combined-reporting bill after hours of testimony and debate

The House Finance Committee voted 14–12 to report House Bill 16 10, a measure sponsored by state representatives Elizabeth Fiedler and Mary Jo Daley that would require unitary combined reporting for corporate net income tax filers beginning with tax year 2026.

The bill would require related business entities under common ownership to file a single combined report on a water's-edge basis, add a new statutory definition for tax havens (with limited carve-outs for legitimate business purposes), create rules to apportion net operating losses and tax credits within a unitary group, and include a safe-harbor for tax years 2026 and 2027, according to testimony presented to the committee.

Supporters said combined reporting would reduce profit-shifting and make tax liability fairer for Pennsylvania businesses that operate primarily in the Commonwealth. "73% of the corporations active in our state pay no corporate taxes to the Commonwealth at all. 73%," Representative Elizabeth Fiedler said, arguing the change would require national firms to pay tax on the share of their business…