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Legislative Update - Week Ending Aug. 1, 2025
In this issue: Pennsylvania budget stalemate enters second month; Pa. DOR alerts of software issue affecting trust returns; Lawmakers want to reignite Pa. manufacturing; and more.
by PICPA Government Relations
Aug 1, 2025, 09:54 AM
- State Budget Stalemate Enters Second Month
- DOR Alerts Practitioners to Software Issue Affecting Trust Returns
- Relief for Pennsylvania's CPA pipeline Is Here
- Lawmakers Introduce FORGES to Reignite Pa. Manufacturing
- Senate Bill Modernizes Nonprofit Fundraising Rules
- Fetterman Introduces SAFE Act for Survivors of Domestic Abuse
- State AG Joins Call for Federal Cannabis Banking Reform
State Budget Stalemate Enters Second Month
Pennsylvania began its fiscal year on July 1 without an enacted state budget, and negotiations remain stalled between the Republican-controlled Senate, Democratic Gov. Josh Shapiro, and the House Democratic majority. Sticking points include rising Medicaid costs, potential new revenue streams from legalized marijuana and the taxation of “skill games,” and differing priorities concerning transit funding.
Both sides continue to engage in what have been described as “cordial discussions,” but pressure is mounting as the impasse stretches into August. If a resolution is not reached by mid-month, the lack of funding could begin to impact services such as special education, community colleges, public agency operations, and critical health and human services, according to a report by Spotlight PA.
The PICPA government relations team remains actively engaged in Harrisburg, advocating for the unresolved components of its 2025 legislative priorities.
As of this posting, neither the House nor the Senate is scheduled to return to session during the week of Aug. 4.
DOR Alerts Practitioners to Software Issue Affecting Trust Returns
The Pennsylvania Department of Revenue (DOR) has identified an issue involving UltraTax, a third-party tax preparation software, which is affecting the filing of PA-41 trust returns. The problem appears to involve the misclassification of net rent and royalty income as net income from a business, resulting in incorrect adjustments to the returns.
Specifically, in the XML data submitted through UltraTax, the response to the question of whether property was rented for fewer than 30 days is being marked as “True,” even though the paper copy of the return indicates “No.” Because the electronic return reports the income as associated with short-term rentals, DOR’s processing system (myPATH) is reclassifying the income from rents and royalties to business income.
DOR is working with the vendor to resolve the issue and will keep the PICPA and the broader practitioner community informed as updates become available. At this time, the issue is isolated to the third-party software and not related to DOR’s systems.
Relief for Pennsylvania’s CPA Pipeline Is Here
The PICPA helped pass Act 27, a landmark law that modernizes CPA licensure by adding an alternative pathway and simplifying out-of-state mobility. It’s a commonsense solution to a growing workforce challenge, writes Michael Mintzer, CPA, MST, a resource manager with Maillie LLP in West Chester, Pa.
In his CPA Now blog, “Commonsense CPA Law Improvements Offer Accounting Pipeline Relief,” Mintzer breaks down what’s changed, why it matters, and how it can help firms across the state.
“This legislation marks a significant shift toward addressing the CPA pipeline crisis with creativity and pragmatism. Pennsylvania’s action sends a clear message: the state is committed to adapting to the needs of a changing workforce and leading the profession into the future,” writes Mintzer.
To read more about the new PICPA-initiated law changes, read Know the Changes: Act 27 of 2025 Explained.
Lawmakers Introduce FORGES to Reignite Pa. Manufacturing
State Sen. Nick Pisciottano (D-Allegheny) and Patty Kim (D-Dauphin), along with State Reps. David Madsen (D-Dauphin), John Inglis (D-Allegheny), and Nate Davidson (D-Dauphin), introduced companion legislation designed to strengthen Pennsylvania’s steel industry.
Senate Bill 949 and House Bill 1749, titled Fueling Opportunities for the Revitalization, Growth, and Efficiency of Steel (FORGES), aim to support domestic steel production and protect one of the state’s most critical industries from global economic pressures.
The FORGES legislation features two key components aimed at strengthening Pennsylvania’s steel industry. First, it provides a sales and use tax exemption for Pennsylvania-made steel, encouraging in-state production and boosting demand for high-quality, locally manufactured steel. Second, it offers tax credits to businesses that invest in steelmaking facilities within the commonwealth, with additional incentives for those adopting advanced technologies and sustainable practices to enhance efficiency and environmental performance.
The legislators emphasized that revitalizing steel production is about economic development, protecting Pennsylvania’s workforce, and preserving the legacy of steel towns across the state.
“Pennsylvania’s steel built this country’s cities, powered its military victories, and created the union jobs that built the American middle class,” said Pisciottano, CPA-Inactive. “It’s time we recommit to that tradition and invest in the future of steelmaking in our state.”
The legislation has been referred to committees in both the House and Senate for consideration.
Senate Bill Modernizes Nonprofit Fundraising Rules
The Pennsylvania Senate unanimously approved legislation to modernize how nonprofits raise money.
Senate Bill 416, sponsored by Sen. Devlin Robinson (R-Allegheny), would allow charitable organizations to accept electronic payments – such as credit cards, debit cards, and online platforms such as PayPal or Venmo – for raffle tickets. Under current law, nonprofits are limited to accepting only cash or checks for these transactions, which has made it harder to raise funds in today’s increasingly cashless society.
The legislation also adds safeguards to ensure accountability and transparency in the use of digital payment methods, Robinson notes. Organizations must still comply with the Small Games of Chance Act, and all funds must be deposited into a dedicated account, just as current law requires for cash transactions.
The bill now heads to the House for consideration.
Fetterman Introduces SAFE Act for Survivors of Domestic Abuse
Pennsylvania’s U.S. Sen. John Fetterman introduced a bill to provide a critical filing option for taxpayers experiencing spousal abuse or abandonment. The Survivor Assistance for Fear-Free and Easy Tax Filing Act of 2025 (SAFE Act) allows survivors of domestic abuse or spousal abandonment to file their taxes as if they were not married.
“We can and should do everything we can to make life easier for survivors of domestic abuse,” said Fetterman. “I’m proud to partner with Sens. Cornyn, Cortez Masto, and Ernst to introduce this bill to allow survivors to file their taxes and receive the biggest refund they can under law without being forced to contact their abusers.”
Currently, the tax system requires those who are married to file taxes under one of two designations: married filing jointly or married filing separately. Either one may require contact with an abusive or absent spouse. Under the SAFE Act, survivors would have autonomy over their tax filings, have access to tax benefits such as credits and deductions, and have protection from being financially tied to their abusive or absent spouse. The SAFE Act would remove the control that abusive or absent spouses often have over survivor spouses.
The measure is strongly supported by the AICPA.
State AG Joins Call for Federal Cannabis Banking Reform
Pennsylvania Attorney General Dave Sunday joined a bipartisan coalition of 32 attorneys general in calling on Congress to pass the SAFER Banking Act of 2025. The coalition submitted a letter to congressional leaders urging passage of legislation that would provide legal clarity for banks and financial institutions to serve state-regulated cannabis businesses, addressing critical public safety concerns while improving the states’ ability to collect taxes and conduct regulatory oversight.
The letter emphasizes that current federal banking restrictions create unnecessary public safety risks by forcing legitimate cannabis businesses to operate primarily in cash. This cash-intensive environment makes employees and customers targets of violent crime while undermining states’ ability to effectively regulate and tax these industries.
Currently, 39 states, three territories, and the District of Columbia permit medical cannabis use, while 24 states, two territories, and the District of Columbia have legalized adult-use cannabis.
The attorneys general note that 21 states currently collect cannabis tax revenues, but many state agencies have been turned away by financial institutions when attempting to deposit cannabis-related payments.
The coalition emphasizes that the SAFER Banking Act would not encourage cannabis legalization in states that have chosen not to permit it, nor would it change cannabis’s federal legal status. Instead, the legislation creates a targeted safe harbor that allows depository institutions to provide financial services to covered businesses in states that have implemented laws and regulations ensuring accountability in the cannabis industry.
Joining Sunday in filing the letter are the attorneys general of Maryland, Ohio, Georgia, the District of Columbia, Alaska, American Samoa, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Northern Mariana Islands, Oklahoma, Oregon, Rhode Island, South Dakota, U.S. Virgin Islands, Utah, Vermont, Washington, and West Virginia.
Legislative Update - Week Ending Aug. 1, 2025
In this issue: Pennsylvania budget stalemate enters second month; Pa. DOR alerts of software issue affecting trust returns; Lawmakers want to reignite Pa. manufacturing; and more.
by PICPA Government Relations
Aug 1, 2025, 09:54 AM
- State Budget Stalemate Enters Second Month
- DOR Alerts Practitioners to Software Issue Affecting Trust Returns
- Relief for Pennsylvania's CPA pipeline Is Here
- Lawmakers Introduce FORGES to Reignite Pa. Manufacturing
- Senate Bill Modernizes Nonprofit Fundraising Rules
- Fetterman Introduces SAFE Act for Survivors of Domestic Abuse
- State AG Joins Call for Federal Cannabis Banking Reform
State Budget Stalemate Enters Second Month
Pennsylvania began its fiscal year on July 1 without an enacted state budget, and negotiations remain stalled between the Republican-controlled Senate, Democratic Gov. Josh Shapiro, and the House Democratic majority. Sticking points include rising Medicaid costs, potential new revenue streams from legalized marijuana and the taxation of “skill games,” and differing priorities concerning transit funding.
Both sides continue to engage in what have been described as “cordial discussions,” but pressure is mounting as the impasse stretches into August. If a resolution is not reached by mid-month, the lack of funding could begin to impact services such as special education, community colleges, public agency operations, and critical health and human services, according to a report by Spotlight PA.
The PICPA government relations team remains actively engaged in Harrisburg, advocating for the unresolved components of its 2025 legislative priorities.
As of this posting, neither the House nor the Senate is scheduled to return to session during the week of Aug. 4.
DOR Alerts Practitioners to Software Issue Affecting Trust Returns
The Pennsylvania Department of Revenue (DOR) has identified an issue involving UltraTax, a third-party tax preparation software, which is affecting the filing of PA-41 trust returns. The problem appears to involve the misclassification of net rent and royalty income as net income from a business, resulting in incorrect adjustments to the returns.
Specifically, in the XML data submitted through UltraTax, the response to the question of whether property was rented for fewer than 30 days is being marked as “True,” even though the paper copy of the return indicates “No.” Because the electronic return reports the income as associated with short-term rentals, DOR’s processing system (myPATH) is reclassifying the income from rents and royalties to business income.
DOR is working with the vendor to resolve the issue and will keep the PICPA and the broader practitioner community informed as updates become available. At this time, the issue is isolated to the third-party software and not related to DOR’s systems.
Relief for Pennsylvania’s CPA Pipeline Is Here
The PICPA helped pass Act 27, a landmark law that modernizes CPA licensure by adding an alternative pathway and simplifying out-of-state mobility. It’s a commonsense solution to a growing workforce challenge, writes Michael Mintzer, CPA, MST, a resource manager with Maillie LLP in West Chester, Pa.
In his CPA Now blog, “Commonsense CPA Law Improvements Offer Accounting Pipeline Relief,” Mintzer breaks down what’s changed, why it matters, and how it can help firms across the state.
“This legislation marks a significant shift toward addressing the CPA pipeline crisis with creativity and pragmatism. Pennsylvania’s action sends a clear message: the state is committed to adapting to the needs of a changing workforce and leading the profession into the future,” writes Mintzer.
To read more about the new PICPA-initiated law changes, read Know the Changes: Act 27 of 2025 Explained.
Lawmakers Introduce FORGES to Reignite Pa. Manufacturing
State Sen. Nick Pisciottano (D-Allegheny) and Patty Kim (D-Dauphin), along with State Reps. David Madsen (D-Dauphin), John Inglis (D-Allegheny), and Nate Davidson (D-Dauphin), introduced companion legislation designed to strengthen Pennsylvania’s steel industry.
Senate Bill 949 and House Bill 1749, titled Fueling Opportunities for the Revitalization, Growth, and Efficiency of Steel (FORGES), aim to support domestic steel production and protect one of the state’s most critical industries from global economic pressures.
The FORGES legislation features two key components aimed at strengthening Pennsylvania’s steel industry. First, it provides a sales and use tax exemption for Pennsylvania-made steel, encouraging in-state production and boosting demand for high-quality, locally manufactured steel. Second, it offers tax credits to businesses that invest in steelmaking facilities within the commonwealth, with additional incentives for those adopting advanced technologies and sustainable practices to enhance efficiency and environmental performance.
The legislators emphasized that revitalizing steel production is about economic development, protecting Pennsylvania’s workforce, and preserving the legacy of steel towns across the state.
“Pennsylvania’s steel built this country’s cities, powered its military victories, and created the union jobs that built the American middle class,” said Pisciottano, CPA-Inactive. “It’s time we recommit to that tradition and invest in the future of steelmaking in our state.”
The legislation has been referred to committees in both the House and Senate for consideration.
Senate Bill Modernizes Nonprofit Fundraising Rules
The Pennsylvania Senate unanimously approved legislation to modernize how nonprofits raise money.
Senate Bill 416, sponsored by Sen. Devlin Robinson (R-Allegheny), would allow charitable organizations to accept electronic payments – such as credit cards, debit cards, and online platforms such as PayPal or Venmo – for raffle tickets. Under current law, nonprofits are limited to accepting only cash or checks for these transactions, which has made it harder to raise funds in today’s increasingly cashless society.
The legislation also adds safeguards to ensure accountability and transparency in the use of digital payment methods, Robinson notes. Organizations must still comply with the Small Games of Chance Act, and all funds must be deposited into a dedicated account, just as current law requires for cash transactions.
The bill now heads to the House for consideration.
Fetterman Introduces SAFE Act for Survivors of Domestic Abuse
Pennsylvania’s U.S. Sen. John Fetterman introduced a bill to provide a critical filing option for taxpayers experiencing spousal abuse or abandonment. The Survivor Assistance for Fear-Free and Easy Tax Filing Act of 2025 (SAFE Act) allows survivors of domestic abuse or spousal abandonment to file their taxes as if they were not married.
“We can and should do everything we can to make life easier for survivors of domestic abuse,” said Fetterman. “I’m proud to partner with Sens. Cornyn, Cortez Masto, and Ernst to introduce this bill to allow survivors to file their taxes and receive the biggest refund they can under law without being forced to contact their abusers.”
Currently, the tax system requires those who are married to file taxes under one of two designations: married filing jointly or married filing separately. Either one may require contact with an abusive or absent spouse. Under the SAFE Act, survivors would have autonomy over their tax filings, have access to tax benefits such as credits and deductions, and have protection from being financially tied to their abusive or absent spouse. The SAFE Act would remove the control that abusive or absent spouses often have over survivor spouses.
The measure is strongly supported by the AICPA.
State AG Joins Call for Federal Cannabis Banking Reform
Pennsylvania Attorney General Dave Sunday joined a bipartisan coalition of 32 attorneys general in calling on Congress to pass the SAFER Banking Act of 2025. The coalition submitted a letter to congressional leaders urging passage of legislation that would provide legal clarity for banks and financial institutions to serve state-regulated cannabis businesses, addressing critical public safety concerns while improving the states’ ability to collect taxes and conduct regulatory oversight.
The letter emphasizes that current federal banking restrictions create unnecessary public safety risks by forcing legitimate cannabis businesses to operate primarily in cash. This cash-intensive environment makes employees and customers targets of violent crime while undermining states’ ability to effectively regulate and tax these industries.
Currently, 39 states, three territories, and the District of Columbia permit medical cannabis use, while 24 states, two territories, and the District of Columbia have legalized adult-use cannabis.
The attorneys general note that 21 states currently collect cannabis tax revenues, but many state agencies have been turned away by financial institutions when attempting to deposit cannabis-related payments.
The coalition emphasizes that the SAFER Banking Act would not encourage cannabis legalization in states that have chosen not to permit it, nor would it change cannabis’s federal legal status. Instead, the legislation creates a targeted safe harbor that allows depository institutions to provide financial services to covered businesses in states that have implemented laws and regulations ensuring accountability in the cannabis industry.
Joining Sunday in filing the letter are the attorneys general of Maryland, Ohio, Georgia, the District of Columbia, Alaska, American Samoa, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Northern Mariana Islands, Oklahoma, Oregon, Rhode Island, South Dakota, U.S. Virgin Islands, Utah, Vermont, Washington, and West Virginia.
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