State Rep. Seth Grove said Tax Day was the perfect time to introduce his latest bill.
The Dover Republican's plan would get rid of some of the headaches small business owners face during tax season every year, he said.
"It will eliminate the paperwork burden" Pennsylvania businesses have, Grove said.
His state bill would mirror the federal tax code that allows a profit to be offset by a loss.
For example, the IRS allows corporations to apply a loss against any profits the following year, but state law doesn't permit the tax break.
Companies have to hire accountant to file taxes one way with the IRS and another way with Pennsylvania, Grove said.
The bill goes up for co-sponsorship Wednesday and is part of a three-bill package in which other state lawmakers have introduced legislation to give small businesses a boost.
Grove said the current laws are unfair to small businesses.
"When a new business starts, it takes a few years to make a profit. Then, when they finally make a profit, they're hit with a tax liability," he said.
His legislation will help ensure small businesses stay viable, Grove said.
Many small businesses are operating on less than a 3 percent margin, he said.
"If we strengthen small businesses, we'll strengthen our community. Small business is and always has been the backbone of our economy," Grove said.
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