Southwest Allegheny News

HARRISBURG – The Senate Finance Committee approved Sen. Devlin Robinson’s (R-37) legislation today to reduce the Mutual Thrift Institutions Tax (MTIT) for mutual banks.

Pennsylvania’s mutual thrift institutions, which operate locally, invest directly in their communities by providing accessible and affordable home mortgages, small business loans, and relationship-based savings banking. Currently, the MTIT tax rate is 11.5% and is applied to the institution’s total net earnings from all sources during the tax year. Senate Bill 858 proposes reducing the MTIT similar to the widely supported reduction schedule of the state’s Corporate Net Income Tax (CNIT).

“This bill marks a pivotal advancement in reducing the tax burden on Pennsylvania’s mutual thrift institutions, which play a crucial role in local economies,” Robinson said. “Senate Bill 858 underscores our dedication to supporting and sustaining the financial stability of our local communities, ensuring they continue to thrive and prosper.”

Upon enactment, the MTIT rate would drop to 8.99%, followed by a scaled reduction each Jan. 1 until it reaches 4.99%. The bill also extends the net operating losses look-back period from three years to 10 years.

“The banks in my district and all across Pennsylvania will breathe a sigh of relief with passage of this legislation, as they will finally be on equal footing with other businesses,” Robinson said.

Senate Bill 858 now heads to the Senate for consideration.

CONTACT:

Allison Dutrey