PRINTER'S NO. 873
No. 802 Session of 1999
INTRODUCED BY WHITE, HART, ROBBINS, COSTA, CONTI, WAGNER,
RHOADES, PUNT, MADIGAN, PICCOLA, GERLACH, MUSTO, DENT, WAUGH,
O'PAKE, CORMAN, HELFRICK, BELL, BRIGHTBILL, SALVATORE,
THOMPSON, SLOCUM, EARLL AND LOEPER, APRIL 13, 1999
REFERRED TO FINANCE, APRIL 13, 1999
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," increasing the maximum amount of the net loss
11 deduction for corporate net income tax purposes.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 401(3)4(c) act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, amended April 23,
16 1998 (P.L.239, No.45), is amended to read:
17 Section 401. Definitions.--The following words, terms, and
18 phrases, when used in this article, shall have the meaning
19 ascribed to them in this section, except where the context
20 clearly indicates a different meaning:
21 * * *
1 (3) "Taxable income." * * *
2 4. * * *
3 (c) (1) The net loss deduction shall be the lesser of [one
4 million dollars ($1,000,000)] two million dollars ($2,000,000)
5 or the amount of the net loss or losses which may be carried
6 over to the taxable year or taxable income as determined under
7 subclause 1 or, if applicable, subclause 2. In no event shall
8 the net loss deduction include more than five hundred thousand
9 dollars ($500,000), in the aggregate, of net losses from taxable
10 years 1988 through 1994.
11 (2) A net loss for a taxable year may only be carried over
12 pursuant to the following schedule:
13 Taxable Year Carryover
14 1981 1 taxable year
15 1982 2 taxable years
16 1983-1987 3 taxable years
17 1988 2 taxable years plus
18 1 taxable year
19 starting with the
20 1995 taxable year
21 1989 1 taxable year plus
22 2 taxable years
23 starting with the
24 1995 taxable year
25 1990-1993 3 taxable years
26 starting with the
27 1995 taxable year
28 1994 1 taxable year
29 1995 and thereafter 10 taxable years
30 The earliest net loss shall be carried over to the earliest
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1 taxable year to which it may be carried under this schedule. The
2 total net loss deduction allowed in any taxable year shall not
3 exceed [one million dollars ($1,000,000)] two million dollars
4 ($2,000,000).
5 * * *
6 Section 2. This act shall apply to the tax years beginning
7 on or after January 1, 1999.
8 Section 3. This act shall take effect immediately.
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