It is very important to note that the business must be held by the qualified transferee for seven years, or you will lose the exemption. Accordingly, the Pennsylvania Division of Revenue will require that the transferee submit a form for each of those seven years to maintain the exemption.
This is the second time that Pennsylvania has changed its inheritance tax laws in the last two years as it most recently eliminated the tax of many family farms. Both of these laws are designed to allow families to keep small businesses and farms without having to sell them off to pay the tax. They are also designed to help people keep their jobs.
I will note that the law also makes dramatic changes to other tax laws, including requiring owners of out of state entities to report their Pennsylvania source income.