H0377B2849A05357 SFL:CMM 01/15/08 #90 A05357
AMENDMENTS TO HOUSE BILL NO. 377
Sponsor: REPRESENTATIVE TURZAI
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 and before January 1, 2008, the greater of twelve and one-half
20 per cent of taxable income as determined under subclause 1 or,
21 if applicable, subclause 2 or three million dollars
22 ($3,000,000); [or]
23 (III) For taxable years beginning after December 31, 2007,
24 one hundred per cent of taxable income as determined under
25 subclause 1 or, if applicable, subclause 2; or
26 (B) The amount of the net loss or losses which may be
27 carried over to the taxable year or taxable income as determined
28 under subclause 1 or, if applicable, subclause 2.
29 [(1.1) In no event shall the net loss deduction include more
30 than five hundred thousand dollars ($500,000), in the aggregate,
31 of net losses from taxable years 1988 through 1994.]
32 (2) (A) A net loss for a taxable year may only be carried
33 over pursuant to the following schedule:
34 Taxable Year Carryover
35 1981 1 taxable year
36 1982 2 taxable years
37 1983-1987 3 taxable years
38 1988 2 taxable years plus
39 1 taxable year
40 starting with the
1 1995 taxable year
2 1989 1 taxable year plus
3 2 taxable years
4 starting with the
5 1995 taxable year
6 1990-1993 3 taxable years
7 starting with the
8 1995 taxable year
9 1994 1 taxable year
10 1995-1997 10 taxable years
11 1998 and thereafter 20 taxable years
12 (B) The earliest net loss shall be carried over to the
13 earliest taxable year to which it may be carried under this
14 schedule. The total net loss deduction allowed in any taxable
15 year shall not exceed:
16 (I) Two million dollars ($2,000,000) for taxable years
17 beginning before January 1, 2007.
18 (II) The greater of twelve and one-half per cent of the
19 taxable income as determined under subclause 1 or, if
20 applicable, subclause 2 or three million dollars ($3,000,000)
21 for taxable years beginning after December 31, 2006[.], and
22 before January 1, 2008.
23 (III) One hundred per cent of taxable income as determined
24 under subclause 1 or, if applicable, subclause 2 for taxable
25 years beginning after December 31, 2007.
26 * * *
27 Section 3. The amendment of section 401(3)4(c) of the act
28 shall apply to taxable years beginning after December 31, 2007.
29 Amend Sec. 2, page 2, line 27, by striking out "2" and
30 inserting
31 4
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