HARRISBURG, Pa. (WHTM) — A bill to make it easier for Pennsylvanians to work from home for employers in other states has advanced in the State Senate.

Senate Bill 416, sponsored by Sen. Kristin Phillips-Hill (R-York), would permanently codify pandemic-era tax exceptions which allowed employees to work from home for up to 50% of the year without triggering the Corporate Net Income Tax (CNIT).

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Under existing tax law, according to the Department of Revenue, a corporation is subject to CNIT when they have one or more employees conducting business activities on its behalf in Pennsylvania.

Phillips-Hill believes this legislation would benefit people in her district who work for companies in Maryland.

“Many citizens across southern York County are employed by corporations based in Maryland,” Phillips-Hill said. “Despite the availability of remote work options, Pennsylvanians have been hindered by tax implications that do not reflect the employment norms of 2024. This bill aims to rectify that, ensuring that our neighbors can fully embrace the opportunities provided by their employers.”

The bill was approved Wednesday by the Senate Finance Committee and will now go to the full Senate for consideration.

During the meeting, one lawmaker asked for more clarification before moving forward with the bill and urged a negative vote.

“I appreciate the end goal of this bill, especially with the pandemic regulations and the suspension that we had there with certain regulations around the pandemic. To continue to apply the 50% remote work eligibility for today’s workforce climate could create some unclear and ununiformed eligibility if it falls slightly under the threshold. So [I’m] looking for some clarification on that before seeing this move forward,” the committee’s minority chair Sen. Nick Miller (D) said.

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