Legislation Quick Search
09/29/2023 07:20 AM
Pennsylvania House of Representatives
Home / House Co-Sponsorship Memoranda

House Co-Sponsorship Memoranda

Subscribe to PaLegis Notifications

Subscribe to receive notifications of new Co-Sponsorship Memos circulated

By Member | By Date | Keyword Search

House of Representatives
Session of 2019 - 2020 Regular Session


Posted: April 14, 2020 05:43 PM
From: Representative Mike Jones and Rep. Peter Schweyer
To: All House members
Subject: Elimination Of Net Operating Loss Expiration
In the near future, I plan to introduce bipartisan legislation, in conjunction with Representative Pete Schweyer, which will remove the time limitation a business may carry forward a net operating loss from one year to the next.
Under Pennsylvania’s corporate net income tax, a businesses’ net operating loss (NOL) can be carried forward into future tax years for up to a maximum of twenty (20) years. While this time period may seem adequate, in some cases as businesses are either starting up or looking to grow, they may not be able to use their net operating loss deductions within that timeframe.  Furthermore, the expiration of the credit can cause unnecessary nuisance accounting requirements.  It is also inconsistent with recently adopted federal standards which eliminated the expirations. The expiration of these deductions reduces their ability to grow investment in our communities.  
Our proposal simply removes the time limitation a business may carry forward a net operating loss. We believe this simple common sense measure will aid the long-term health of businesses operating in Pennsylvania and incentivize them to continue to invest in our hardworking citizens and the communities in which they reside.
I respectfully ask that you join Rep. Schweyer and myself in co-sponsoring this important legislation.

Introduced as HB2420