Legislative Update March 2025

The Philadelphia Chamber of Commerce recently shared a legislative update, and we’ve highlighted the key points most relevant to our members. Upcoming legislative and tax changes in Pennsylvania and Philadelphia could significantly impact sheet metal contractors—affecting business taxes, workforce development, and contracting opportunities in new housing projects. 

Tax Changes That Could Impact Your Business

• Pennsylvania’s Corporate Net Income Tax (CNIT) Reduction: A proposed bill would lower the CNIT rate from 7.99% to 4% by 2026. This could significantly reduce tax burdens for contractors operating as C-corporations.

• Philadelphia’s Business Income and Receipts Tax (BIRT) Cuts: The mayor proposes gradually cutting the BIRT tax in half over 15 years, while the Chamber of Commerce is advocating for eliminating the Net Income portion within 5 years. These cuts could improve profitability for contractors operating in the city.

• “People’s Tax Plan” – Small Business Tax Relief: Proposed legislation would raise the BIRT exemption to $200,000, providing tax relief for smaller contractors.

City Budget & Infrastructure Investments

• $800M Housing Initiative (H.O.M.E.): Philadelphia is investing in the construction and preservation of 30,000 housing units, which could lead to more contracting opportunities for HVAC, sheet metal, and mechanical firms.

• Workforce Development in Construction: Part of the H.O.M.E. initiative includes funding to support workforce development in housing construction—potentially growing the labor pool for skilled trades.

Regulations & Compliance Updates

• Proposed Ban on Truck Parking at Residential Properties: A new bill aims to increase penalties for parking semi-trailers and truck tractors in residential areas—contractors who rely on such vehicles for job sites may need to adjust logistics.

• Philadelphia Wage & Net Profits Tax Reduction Plan: The Chamber is pushing for lower wage taxes to help businesses stay competitive, but reductions would take time to implement.

Read the full update from the Philadelphia Chamber of Commerce