Pennsylvania
Pennsylvania is home to 1.2 million small businesses, which employ 45% of the state’s workforce. As Pennsylvania lawmakers craft new policy and legislation, it is crucial that they consider small businesses and how they use affordable digital tools and technologies to grow, compete, and succeed.
Key Policy Issues
Digital Economy
Surveillance Pricing (PA HB 1942)
Overview: Pennsylvania’s small businesses use basic data to offer discounts and personalized promotions that help attract customers, build loyalty, and compete with larger brands. These promotions include discounts for repeat customers, coupons for items left in an online cart, or special offers for people visiting local communities.
The Problem: HB 1942 would restrict small businesses’ ability to use basic data to offer these common promotions, making it harder for them to grow and compete.
The Impact: HB 1942 could make it harder for small businesses to reach customers and offer competitive pricing, putting them at a disadvantage compared to national chains with larger marketing budgets.
Status: HB 1942 was introduced on October 16, 2025 and was referred to the House Consumer Protection, Technology, and Utilities Committee. It remains in consideration for the 2025-2026 legislative session.
Digital Ads Tax (PA HB 1678)
Overview: Pennsylvania’s small businesses rely on affordable digital advertising to reach customers, grow their businesses, and compete with larger companies. Digital ads allow businesses to target local audiences, promote products and services, and connect with customers without the high costs of traditional advertising.
The Problem: HB 1678 would impose Pennsylvania’s gross receipts tax on digital advertising services. While the tax is levied on digital advertising providers, the added costs would be passed through to the small businesses that purchase digital ads, increasing the cost of reaching customers.
The Impact: Higher digital advertising costs would make it more expensive for Pennsylvania’s small businesses to market their products and services online, reducing their ability to compete, attract new customers, and grow in an increasingly digital marketplace.
Status: HB 1678 passed the Pennsylvania House on June 9, 2026 and was referred to the Senate Finance Committee on June 18, 2026. Though unlikely to pass, we expect similar legislation to emerge in future sessions.
Key Officials
Pennsylvania Small Business Leaders, You Can Make Your Voice Heard.
If you’re a Pennsylvania-based small business, please send a letter calling on your lawmakers to reconsider HB 1942 and the harmful impacts it would have on small businesses.
