H0377B2849A05288 JKL:SRA 01/11/08 #90 A05288
AMENDMENTS TO HOUSE BILL NO. 377
Sponsor: REPRESENTATIVE LEVDANSKY
Printer's No. 2849
1 Amend Title, page 1, line 11, by removing the period after
2 "poverty" and inserting
3 ; and, in corporate net income, further providing for
4 the definition of "taxable income."
5 Amend Bill, page 2, by inserting between lines 26 and 27
6 Section 2. Section 401(3)4(c) of the act, amended July 12,
7 2006 (P.L.1137, No.116), is amended to read:
8 Section 401. Definitions.--The following words, terms, and
9 phrases, when used in this article, shall have the meaning
10 ascribed to them in this section, except where the context
11 clearly indicates a different meaning:
12 * * *
13 (3) "Taxable income." * * *
14 4. * * *
15 (c) (1) The net loss deduction shall be the lesser of:
16 (A) (I) For taxable years beginning before January 1, 2007,
17 two million dollars ($2,000,000);
18 (II) For taxable years beginning after December 31, 2006,
19 the greater of twelve and one-half per cent of taxable income as
20 determined under subclause 1 or, if applicable, subclause 2 or
21 three million dollars ($3,000,000); or
22 (B) The amount of the net loss or losses which may be
23 carried over to the taxable year or taxable income as determined
24 under subclause 1 or, if applicable, subclause 2.
25 (1.1) In no event shall the net loss deduction include more
26 than five hundred thousand dollars ($500,000), in the aggregate,
27 of net losses from taxable years 1988 through 1994.
28 (2) (A) A net loss for a taxable year may only be carried
29 over pursuant to the following schedule:
30 Taxable Year Carryover
31 1981 1 taxable year
32 1982 2 taxable years
33 1983-1987 3 taxable years
34 1988 2 taxable years plus
35 1 taxable year
36 starting with the
37 1995 taxable year
38 1989 1 taxable year plus
39 2 taxable years
40 starting with the
1 1995 taxable year
2 1990-1993 3 taxable years
3 starting with the
4 1995 taxable year
5 1994 1 taxable year
6 1995-1997 10 taxable years
7 1998 and thereafter 20 taxable years
8 (B) The earliest net loss shall be carried over to the
9 earliest taxable year to which it may be carried under this
10 schedule. The total net loss deduction allowed in any taxable
11 year shall not exceed:
12 (I) Two million dollars ($2,000,000) for taxable years
13 beginning before January 1, [2007] 2009.
14 (II) The greater of [twelve and one-half] fifteen per cent
15 of the taxable income as determined under subclause 1 or, if
16 applicable, subclause 2 or [three million dollars ($3,000,000)]
17 five million dollars ($5,000,000) for taxable years beginning
18 after December 31, [2006] 2008.
19 * * *
20 Section 3. The amendment of section 401(3)4(c) of the act
21 shall apply to taxable years beginning after December 31, 2008.
22 Amend Sec. 2, page 2, line 27, by striking out "2" and
23 inserting
24 4
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