PA SB853

Creates a tax credit for small businesses (50 or fewer full-time equivalent employees) to offset increased labor costs following any state minimum wage increase under The Minimum Wage Act of 1968

Tax credit equals 50% of the additional compensation paid to minimum wage workers in the first year after a wage increase, dropping to 25% in the second year, and expiring in the third year

Excess credits may be carried forward up to three years but cannot be carried back or refunded

Pass-through entities (partnerships, S-corporations) may transfer unused credits to shareholders, members, or partners proportionally, who must claim them immediately without further carryover or transfer options

Department of Revenue is responsible for publishing guidelines and regulations; the act takes effect 60 days after enactment