HARRISBURG – Sen. Devlin Robinson (R-37) announced today that the Senate Finance Committee has approved his legislation to reduce Pennsylvania’s Mutual Thrift Institutions Tax and align it with the commonwealth’s ongoing Corporate Net Income Tax reduction schedule. The bill advanced with strong bipartisan support.
The measure is particularly important to the 37th Senatorial District, which is home to two mutual thrift institutions, including Pennsylvania’s largest. These community-focused institutions provide critical financial services to residents, families, and small businesses throughout the region.
“Community banks are deeply invested in the success of the neighborhoods they serve, and this legislation will help ensure they can continue providing the personalized financial services that strengthen local economies and empower Pennsylvanians,” Robinson said. “By modernizing Pennsylvania’s tax structure for these ‘hometown’ banks, we are supporting institutions that help families buy homes, entrepreneurs start businesses, and communities grow and prosper.”
Senate Bill 576 would immediately reduce the Mutual Thrift Institutions Tax rate from 11.5% to 8.55% and continues to reduce it until it reaches 4.99% in 2033. The legislation would also extend the net operating loss carryback period from three years to six years, providing additional flexibility for mutual financial institutions operating in Pennsylvania.
The bill now advances to the full Senate for consideration.