As seen in Philadelphia Business Journal
A: With the passage of the Pennsylvania state budget, Governor Tom Wolf announced the elimination of Pennsylvania’s Capital Stock and Foreign Franchise tax effective January 1, 2016. This tax dates to 1844, and was imposed on corporations with capital stock, joint-stock associations, limited liability companies (LLCs), business trusts and other companies carrying out business in Pennsylvania. Domestic corporations were subject to the capital stock tax and foreign corporations were subject to foreign franchise tax. Despite a proposal to phase-out the tax 15 years ago, total elimination of the tax was delayed several times. What consequences will the elimination of this tax have? The result will be that any business type, such as S corporations, LLCs taxed as pass-through entities and business trusts must file their last corporation tax returns for 2015, which should be marked as final returns.