A new research brief examines Act 85 of 2024, which replaces the alternative fuel tax on electric vehicles with an annual electric vehicle road user charge for battery electric and plug-in hybrid vehicles. It also details the impact of federal funds from the Infrastructure Investment and Jobs Act on Pennsylvania’s EV charging infrastructure.
Director Knittel submitted an article for publication in the February 3, 2025 edition of Tax Notes State. It reviews recent results from the Pennsylvania tax incidence model and discusses factors that make state and local tax systems appear more regressive than they are in practice.
This report uses data from the U.S. Census Bureau, the Internal Revenue Service (IRS), the U.S. Bureau of Economic Analysis (BEA) and other sources to facilitate a comparison of state and local tax systems across the 50 states. The report examines (1) state and local effective tax rates across states, (2) the distribution of state and local taxes across revenue sources (e.g., income, sales and property) and (3) state debt levels.
Director Knittel made a brief presentation at the NFIB Economic Forum.
In response to a legislative request, the IFO transmitted a letter that updates a previous analysis on potential revenue sources that could replace school district property taxes if eliminated.
This research brief provides tabulations of child care industry employment, wages and average annual costs. For 2024 Q2, Pennsylvania private child care employment now exceeds pre-pandemic levels (2019 Q2) by 1,200 employees, while average industry wages increased significantly (31%). Child care costs vary widely depending on family income and access to the Child Care Works program.
This research brief provides tabulations of corporate net income tax return data for tax year 2021. For that year, 48 returns comprised nearly one quarter of tax liability, and 12.4% of taxable income was offset by net operating loss (NOL) deductions.
As part of its statutory duties, the IFO must “(p)rovide an analysis, including economic impact, of all tax and revenue proposals submitted by the Governor or the Office of the Budget.” Tax incidence is a key component of any economic impact analysis. This research brief and methodology compute effective tax rates (ETRs) to track tax incidence and assess the progressivity or regressivity of specific taxes and the overall state and local tax system. The methodology provides a detailed explanation of the data sources and assumptions used by the analysis.
This research brief examines gasoline purchases four years after the height of the pandemic. Gasoline tax revenue is down $250 million per annum due to reduced consumption.
This report presents data on Pennsylvania tax credits and economic development incentives for fiscal years (FY) 2019-20 through FY 2024-25. The tables provide annual detail on tax credit utilization or awards, state spending or grants, job training programs and state loan programs. Fiscal year 2024-25 amounts are budgeted, authorized or projected and will differ from final amounts claimed or awarded. The report also highlights recent changes to incentive program spending or utilization.