Legislative Updates: A Weekly Roundup of Federal, State, and Local Actions – June 10

Your Chamber advocacy team is working to share legislative updates and continue to advocate for your business in Washington, D.C., Harrisburg, and Philadelphia. We’ve created a round-up of recent activity including Key Takeaways for Your Business and a Detailed Legislative Update. This represents our best knowledge of the situation as of 9:00 a.m. on Friday, June 10, 2022.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub:

CALL TO ACTION – Advocate for City Councilmembers to Lower Wage and BIRT Taxes

It’s Time to Give ALL Working Philadelphians a Raise

With inflation surging, staples of everyday life — gas, groceries, and going out — are getting more expensive. Everyone could use some more money in their pockets to help meet rising costs. There are hard-working Philadelphians who wake up early and go to sleep late every day running or working at jobs that are the lifeblood of our city’s economy.

That’s why cutting taxes on workers and business owners is so important: it would give workers an immediate raise and increase employers’ ability to raise wages now and in the future.

The rationale for cutting taxes for workers is easy to understand. For everyone who works and pays taxes, cutting Philadelphia’s too high wage tax would give an immediate tax cut to every worker who lives or works in the city. It puts more money in people’s pockets right away so they can afford the things they need – some of which are local goods and services.

Philadelphia workers and business owners are struggling to make ends meet because of forces outside their control – rising prices brought on by inflation. The city can and should give every worker an immediate raise by cutting the “highest in the nation” wage tax and the “double tax” on working people who own businesses. This has to be part of how our city recovers, grows, and prospers.

Addressing Gun Violence in Philadelphia
As of June 9, 2022, there have been 198 fatalities and 808 non-fatal shooting victims in Philadelphia this year alone. According to a recent PEW poll, an overwhelming 70% of Philadelphians surveyed cited “crime, drugs, and public safety” as the most important issue facing our city. In the wake of the tragedy on South Street, recent national headlines, and with respect to every life impacted by the trauma of gun violence, the topic’s relevancy continues to hit home.

The Chamber released a statement earlier this week and implores everyone in our city to join together to address and stop these senseless attacks. The business community will continue to do everything we can to partner with our elected officials and support them in making our communities safer by reducing the threat of gun violence.

City Council Stated Meeting
Councilmember Katherine Gilmore Richardson introduced a bill to amend evening curfew hours for minors. Under the bill, all persons under 18 years of age must be in the house by 10:00 PM. Under current law, the curfew time for minors 16 and older is midnight.

Councilmember Helen Gym introduced a bill to establish tax rates for city real estate and the School District.

Bill 220337 (Employee Commuter Benefits Program) was approved unanimously by City Council.

Several Councilmembers, including Green, Bass, Jones, Thomas, and Domb, gave impassioned speeches about the need to strengthen gun laws, reconsider how gun permits are issued in the City of Philadelphia, assist parents and caretakers with getting guns out of the hands of their children, and fund prevention-based initiatives for young people. In addition, Councilmember Kenyatta Johnson introduced, and City Council approved, a resolution calling for hearings to address ongoing gun violence in the city.

Upcoming City Council Hearings
On Friday, June 10, 2022, the City Council on Public Works and Public Property will hold a hearing on various bills related to sewer and stormwater line conversions, conveyances, easements, and lease agreements for certain city-owned land, and criteria for evaluating non-competitive dispositions of city-owned land.

On Friday, June 10, 2022, the City Council Committee on Labor and Civil Service will hold a hearing on various bills related to prevailing wage requirements in airport gate operating agreements, extending protections for displaced contract workers to airport service employees and parking workers, and modifying retirement benefits for reemployed retirees.

On Monday, June 13, 2022, the City Council Committee on Rules will hold a hearing on various zoning bills related to transit-oriented development overlays, affordable housing preservation districts, business and neighborhood improvement districts, and to create a legal fund for zoning appeals by RCOs.

On Tuesday, June 14, 2022, the City Council Committee of the Whole will hold a hearing on the FY 2023 budget bills, as well as various tax relief bills, including increasing the Homestead Exemption, limiting interest and penalties while certain property tax assessments are under appeal, changes to the BIRT tax, reductions to the wage tax, modifications to the LOOP program, and expansion of the Senior Tax Freeze Program.  The Committee will also consider bills to increase fees for recording deeds and to impose a tax to create the Philadelphia County Demolition Fund.

On Thursday, June 16, 2022, the City Council Committee on Global Opportunities and the Creative/Innovative Economy will hold a hearing on the findings and recommendations of the Philadelphia Fashion and Garment Industry Task Force.

FY 2023 Budget
City Council and the Kenney Administration are hard at work finalizing the FY 2023 budget. Two issues have emerged as significant priorities in the budget negotiations: property tax relief and immediate, urgent action to stem the tide of gun violence.

On Tuesday, May 3, 2022, the Kenney Administration announced that the citywide property reassessment found that the aggregate value of all properties in Philadelphia has risen by approximately 21 percent since Tax Year 2020.

In light of last Saturday’s mass shooting on South Street, several Councilmembers have decried the city’s response to escalating gun violence in the city. Councilmember Parker wants to increase funding for beat cops and police recruiting. Councilmember Bass criticized the lack of urgency by the city and called for action resembling “an all-hands on deck, emergency situation.” Councilmember Gym has called for increased funding for libraries and recreation centers.

Budget negotiations will continue in the coming days. City Council must approve the budget by June 30. Council’s last session day before summer recess is June 23.

State Budget Has Slow Start
Legislative leaders are slowly beginning to work on the state budget, with code bills likely to start being considered next week. The state budget deadline is June 30. All sides appear to be on board with a 2% reduction in the state’s Corporate Net Income (CNI) tax rate – a top priority of the Chamber. The CNI bill will likely be included as part of the budget process. The week of June 20 will be a very busy one in Harrisburg, with members voting on numerous code bills. More to come.

Small Business Tax Break Bill Passes House Committee
On Tuesday, the PA House Finance Committee unanimously approved a Senate-passed bill giving a state tax break to small businesses. Senate Bill 347 allows for a deferral on paying state personal income taxes known as a “like kind” exchange when a property is exchanged for a similar property.

Airport Land Development Zone Bill Passes Senate
This week, legislation to create an Airport Land Development Zone at commercial and non-commercial airports for state tax credit purposes passed the state House Finance Committee. Senate Bill 562 would allow a business investing and creating jobs in an airport zone to be eligible for a state tax credit equivalent to $2,100 for each new full-time job under the bill.

Highly Automated Vehicles Bills Move
The Pennsylvania Transportation Committee voted to approve House Bill 2398 to allow highly automated vehicles (HAV) to be tested under an automated driving system without a human driver in the driver’s seat. The bill would change the current requirement that a licensed human driver be in physical control of the vehicle.

Regional Clean Hydrogen Hubs
This week, the U.S. Department of Energy (DOE) released a Notice of Intent (NOI) to fund an $8 billion five-year program to develop regional clean hydrogen hubs (H2Hubs) as authorized by the Infrastructure Investment and Jobs Act (IIJA).  H2Hubs would function as a network of clean hydrogen producers, potential clean hydrogen consumers, and connective infrastructure located in close proximity. DOE anticipates issuing the Funding Opportunity Announcement (FOA) in the September/October 2022 timeframe. Last month, Pennsylvania Governor Tom Wolf announced plans to compete for the H2Hubs designation to locate one of the four planned regional hubs for the nation in Pennsylvania.

FY 2023 Appropriations
House Appropriations Committee released its expected schedule for marking up FY 2023 appropriations bills. Subcommittee and Full Committee markups for the 12 annual appropriations bills are scheduled to begin on Wednesday, June 15, through the end of the month.  Typically, draft language is released at least 24 hours in advance of the scheduled markup. See the full schedule in the detailed report.

CALL TO ACTION – Advocate for City Councilmembers to Lower Wage and BIRT Taxes

It’s Time to Give ALL Working Philadelphians a Raise

With inflation surging, staples of everyday life — gas, groceries, and going out — are getting more expensive. Everyone could use some more money in their pockets to help meet rising costs. There are hard-working Philadelphians who wake up early and go to sleep late every day running or working at jobs that are the lifeblood of our city’s economy.

That’s why cutting taxes on workers and business owners is so important: it would give workers an immediate raise and increase employers’ ability to raise wages now and in the future.

The rationale for cutting taxes for workers is easy to understand. For everyone who works and pays taxes, cutting Philadelphia’s too high wage tax would give an immediate tax cut to every worker who lives or works in the city. It puts more money in people’s pockets right away so they can afford the things they need – some of which are local goods and services.

But cutting Philadelphia’s business taxes is equally important to increasing workers’ wages as a cut in the wage tax is. People who are not business owners might see headlines and think businesses just want lower taxes, but they don’t understand that Philadelphia’s taxes are different than other cities.

Philadelphia taxes people who are self-employed twice – once on sales, net income taxes, and then the wage tax. That double taxation really limits the ability of firms to grow and increase the pay for employees.

Small business owners in the city with employees know first-hand how high business taxes limit self-employed people, restrict their ability to hire more employees, and increase the tax base. It seems that policymakers too often forget that business owners are also working people. It’s easy to look at a business as an unbodied “entity” and not something an individual started, poured their heart and sweat into, and earned their income from. Not all businesses are big, publicly-traded firms. Most are small, and many are solo entrepreneurs providing services to other firms and the public. Paying taxes twice reduces their income even as prices rise.

Business owners from all demographics work hard to grow. When they grow, they naturally need help, so they hire, creating income for others. No one hires just to hire. They hire because they need help. The more they grow, the more help they need. So, it makes sense to invest in this kind of growth.

It is also important to increase the number of small and medium-sized firms in Philadelphia if the city is going to help pull people out of poverty. There is no way to reduce our city’s poverty without increasing the number of people working at good wages. It is well documented that the city has maintained one of the slowest job growth rates in the country, with above-average unemployment and a 24% poverty rate. Past tax cuts have done exactly that: increased the number of jobs in the city. One study found that previous tax cuts between 1996 and 2008 resulted in 25,000 additional jobs for the city.

Philadelphia workers and business owners are struggling to make ends meet because of forces outside their control – rising prices brought on by inflation. The city can and should give every worker an immediate raise by cutting the “highest in the nation” wage tax and the “double tax” on working people who own businesses. This has to be part of how our city recovers, grows, and prospers.

Addressing Gun Violence in Philadelphia
As of June 9, 2022, there have been 198 fatalities and 808 non-fatal shooting victims in Philadelphia this year alone. According to a recent PEW poll, an overwhelming 70% of Philadelphians surveyed cited “crime, drugs, and public safety” as the most important issue facing our city. In the wake of the tragedy on South Street, recent national headlines, and with respect to every life impacted by the trauma of gun violence, the topic’s relevancy continues to hit home.

The Chamber released a statement earlier this week and implores everyone in our city to join together to address and stop these senseless attacks. The business community will continue to do everything we can to partner with our elected officials and support them in making our communities safer by reducing the threat of gun violence.

City Council Stated Meeting
Councilmember Katherine Gilmore Richardson introduced a bill to amend evening curfew hours for minors. Under the bill, all persons under 18 years of age must be in the house by 10:00 PM. Under current law, the curfew time for minors 16 and older is midnight.

Councilmember Helen Gym introduced a bill to establish tax rates for city real estate and the School District.

Bill 220444 (Redistricting Bill) was reported out of Committee and had First Reading. As a reminder, this redistricting bill addresses the issue of prison gerrymandering. Under the legislation, incarcerated people will be counted as residents in their home Council District rather than in the district where they are jailed. This bill will be considered for Final Passage at the next session of City Council on Thursday, June 16, 2022.

Bill 220337 (Employee Commuter Benefits Program) was approved unanimously by City Council. As a reminder, this bill requires employers (with 50 or more employees) to offer pre-tax mass transit and bicycle commuter benefits to employees (who work an average of 30 hours per week). Once the Mayor signs, this bill will take effect on December 31, 2022.

Bills 200006-A, 200007, and 200040 were moved from the Suspension Calendar to the Final Passage Calendar at the next session of City Council on Thursday, June 16, 2022. These bills propose to amend the Philadelphia Code and the Philadelphia Home Rule Charter to provide a preference in civil service examinations for qualified graduates of a School District Career and Technical Education (CTE) program.

Surging gun violence, both locally and nationally, was on the minds of Councilmembers at today’s session.  Several Councilmembers, including Green, Bass, Jones, Thomas, and Domb, gave impassioned speeches about the need to strengthen gun laws, reconsider how gun permits are issued in the City of Philadelphia, assist parents and caretakers with getting guns out of the hands of their children, and fund prevention-based initiatives for young people. In addition, Councilmember Kenyatta Johnson introduced, and City Council approved, a resolution calling for hearings to address ongoing gun violence in the city.

Upcoming City Council Hearings
On Friday, June 10, 2022, the City Council on Public Works and Public Property will hold a hearing on various bills related to sewer and stormwater line conversions, conveyances, easements, and lease agreements for certain City-owned land, and criteria for evaluating non-competitive dispositions of City-owned land.

On Friday, June 10, 2022, the City Council Committee on Labor and Civil Service will hold a hearing on various bills related to prevailing wage requirements in airport gate operating agreements, extending protections for displaced contract workers to airport service employees and parking workers, and modifying retirement benefits for reemployed retirees.

On Monday, June 13, 2022, the City Council Committee on Rules will hold a hearing on various zoning bills related to transit-oriented development overlays, affordable housing preservation districts, business and neighborhood improvement districts, and to create a legal fund for zoning appeals by RCOs.

On Tuesday, June 14, 2022, the City Council Committee of the Whole will hold a hearing on the FY 2023 budget bills, as well as various tax relief bills, including increasing the Homestead Exemption, limiting interest and penalties while certain property tax assessments are under appeal, changes to the BIRT tax, reductions to the wage tax, modifications to the LOOP program, and expansion of the Senior Tax Freeze Program.  The Committee will also consider bills to increase fees for recording deeds and to impose a tax to create the Philadelphia County Demolition Fund.

On Thursday, June 16, 2022, the City Council Committee on Global Opportunities and the Creative/Innovative Economy will hold a hearing on the findings and recommendations of the Philadelphia Fashion and Garment Industry Task Force.

FY 2023 Budget
City Council and the Kenney Administration are hard at work finalizing the FY 2023 budget. Two issues have emerged as significant priorities in the budget negotiations: property tax relief and immediate, urgent action to stem the tide of gun violence.

On Tuesday, May 3, 2022, the Kenney Administration announced that the citywide property reassessment found that the aggregate value of all properties in Philadelphia has risen by approximately 21 percent since Tax Year 2020. To reduce the potential impact these rising values may have on residents, City Council is considering a package of relief measures proposed by the Kenney Administration and several Councilmembers, including increasing the Homestead Exemption (competing legislation would increase to $65,000 or $90,000 from the current $45,000); an increase in funds for the Longtime Owner Occupants Program (LOOP) and capping the property value at 150 percent of the previous year’s value; allocating $40 million over five years to enhance implementation of all tax relief programs; increasing outreach to homeowners about the various relief programs; requiring the City’s Office of Property Assessment to post all certification date on their website within 10 days of submission to the Commonwealth for certification; allocating funds for rental assistance and to assist low-income homeowners and renters in property tax appeals; and reducing the residential wage tax rate over the next two years to 3.7 percent (from the current 3.8398 percent) and the non-resident rate to 3.44 percent (from the current 3.4481 percent).

In light of last Saturday’s mass shooting on South Street, several Councilmembers have decried the city’s response to escalating gun violence in the city. Councilmember Parker wants to increase funding for beat cops and police recruiting. Councilmember Bass criticized the lack of urgency by the City and called for action resembling “an all-hands on deck, emergency situation.” Councilmember Gym has called for increased funding for libraries and recreation centers.

Budget negotiations will continue in the coming days. City Council must approve the budget by June 30. Council’s last session day before summer recess is June 23.

Odds and Ends
This week, Philadelphia Parks and Recreation and Welcome America announce the opening of the Oval XP. The Oval XP (at Eakins Oval on the Ben Franklin Parkway) transforms a public parking lot into Philadelphia’s largest outdoor urban oasis where locals and visitors alike can enjoy eight acres of food and beverage, art, music and entertainment, wellness experiences, and free special event programming. The Oval XP officially opens to the public on Thursday, June 16, 2022, and will be open Wednesday through Sunday through August 21, 2022.

Questions? Contact William Carter (wcarter@chamberphl.com) for more information about local legislative affairs.

State Budget Has Slow Start
Legislative leaders are slowly beginning to work on the state budget, with code bills likely to start being considered next week. The state budget deadline is June 30. While the state is flush with revenue, some members of the Republican caucus have expressed concern that in the not-to-distant future, state revenues will be declining. The Governor is championing a substantial increase in education spending and a raise in the state’s minimum wage. All sides appear to be on board with a 2% reduction in the state’s Corporate Net Income (CNI) tax rate – a top priority of the Chamber. The CNI bill will likely be included as part of the budget process. The week of June 20 will be a very busy one in Harrisburg, with members voting on numerous code bills. More to come. 

Small Business Tax Break Bill Passes House Committee
On Tuesday, the PA House Finance Committee unanimously approved a Senate-passed bill giving a state tax break to small businesses. Senate Bill 347 allows for a deferral on paying state personal income taxes known as a “like kind” exchange when a property is exchanged for a similar property. Under current state law, a gain resulting from like-kind exchanges of property in Pennsylvania is generally subject to a personal income tax at the time of the sale, according to the state Senate Appropriations Committee. The bill would allow a gain resulting from a qualifying like-kind exchange of property to be tax-deferred. An analysis estimates a $15.2 million revenue loss in Fiscal Year 2022-23 under the Senate-passed version.

Airport Land Development Zone Bill Passes Senate
This week, legislation to create an Airport Land Development Zone at commercial and non-commercial airports for state tax credit purposes passed the state House Finance Committee. Senate Bill 562 would allow a business investing and creating jobs in an airport zone to be eligible for a state tax credit equivalent to $2,100 for each new full-time job under the bill.

The bill creates an incentive for land development around the state’s airports, which suffered economic losses during the pandemic.

Highly Automated Vehicles Bills Move
The Pennsylvania Transportation Committee voted to approve House Bill 2398 to allow highly automated vehicles (HAV) to be tested under an automated driving system without a human driver in the driver’s seat. The bill would change the current requirement that a licensed human driver be in physical control of the vehicle.

Questions? Contact Liz Ferry (lferry@chamberphl.com) for more information about state legislative affairs.

Regional Clean Hydrogen Hubs
This week, the U.S. Department of Energy (DOE) released a Notice of Intent (NOI) to fund an $8 billion five-year program to develop regional clean hydrogen hubs (H2Hubs) as authorized by the Infrastructure Investment and Jobs Act (IIJA).  H2Hubs would function as a network of clean hydrogen producers, potential clean hydrogen consumers, and connective infrastructure located in close proximity. The production, processing, delivery, storage, and end-use of clean hydrogen is meant to contribute to decarbonizing multiple sectors of the economy while also enabling regional and community benefits.

DOE anticipates issuing the Funding Opportunity Announcement (FOA) in the September/October 2022 timeframe. The anticipated FOA is expected to result in the selection of at least four clean H2Hubs in different regions of the U.S. that can demonstrate the following characteristics:

• Feedstock Diversity: at least one H2Hub shall demonstrate the production of clean hydrogen from fossil fuels, one H2Hub from renewable energy, and one H2Hub from nuclear energy.
• End-Use Diversity: at least one H2Hub shall demonstrate the end-use of clean hydrogen in the electric power generation sector, one in the industrial sector, one in the residential and commercial heating sector, and one in the transportation sector.
• Geographic Diversity: each H2Hub will be located in a different region of the United States and leverage energy resources abundant to that region, including at least two H2Hubs in regions with abundant natural gas resources.
• Employment: DOE shall prioritize regional clean hydrogen hubs that are likely to create opportunities for skilled training and long-term employment for the greatest number of residents in the region.

Last month, Pennsylvania Governor Tom Wolf announced plans to compete for the H2Hubs designation to locate one of the four planned regional hubs for the nation in Pennsylvania.

FY 2023 Appropriations
House Appropriations Committee released its expected schedule for marking up FY 2023 appropriations bills. Subcommittee and Full Committee markups for the 12 annual appropriations bills are scheduled to begin on Wednesday, June 15, through the end of the month.  Typically, draft language is released at least 24 hours in advance of the scheduled markup.

Subcommittee Markups:

• Wednesday, June 15: Defense; Legislative Branch; Military Construction, Veterans Affairs, and Related Agencies; Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
• Thursday, June 16: Homeland Security; Financial Services and General Government
• Tuesday, June 21: Interior, Environment, and Related Agencies; Energy and Water Development, and Related Agencies
• Wednesday, June 22: State, Foreign Operations, and Related Programs; Commerce, Justice, Science, and Related Agencies
• Thursday, June 23: Transportation, and Housing and Urban Development, and Related Agencies; Labor, Health and Human Services, Education, and Related Agencies

Full Committee Markups:

• Wednesday, June 22: Defense; Legislative Branch
• Thursday, June 23: Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Military Construction, Veterans Affairs, and Related Agencies
• Friday, June 24: Homeland Security; Financial Services and General Government
• Tuesday, June 28: Energy and Water Development, and Related Agencies; Interior, Environment, and Related Agencies
• Wednesday, June 29: State, Foreign Operations, and Related Programs; Commerce, Justice, Science, and Related Agencies
• Thursday, June 30: Transportation, and Housing and Urban Development, and Related Agencies; Labor, Health and Human Services, Education, and Related Agencies; Subcommittee Allocations

Questions? Contact Anselm Sauter (asauter@chamberphl.com) for more information about federal legislative affairs.

The constantly changing nature of this public health crisis requires continued engagement with public policy developments. We invite you to reach out to our advocacy team directly with your questions: 

• Anselm Sauter, Federal Affairs – asauter@chamberphl.com 
• Liz Ferry, State Affairs – lferry@chamberphl.com 
• William Carter, Local Affairs – wcarter@chamberphl.com 

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub: