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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | May 24, 2024 12:02 PM |
|---|---|
| From: | Representative Joshua D. Kail and Rep. Kristin Marcell |
| To: | All House members |
| Subject: | Removing the Start-Up Penalty |
| Dynamic tax strategies that allow carryover of Net Operating Losses (NOL) empower small businesses. They level the playing field and spur competition with larger entities who benefit from economies of scale and large capital resources. These tax strategies give small businesses greater control over their financial positions. They help proprietors to become anti-fragile, which is critical during the perilous early years when a new business is at greater risk of failing before even getting off the ground. Yet Pennsylvania is one of only two states that does not permit businesses to carryover net operating losses consistent with the federal limit. This restriction is a start-up penalty that hurts Pennsylvania’s economy and turns away businesses who might otherwise move to our state. For Pennsylvania to compete nationally, we must modernize our tax system. This legislation will increase the NOL carryover limit from the current 40% to 100% by 2025. Increasing the Commonwealth’s NOL carryover limitation is a critical step to creating opportunities for family-sustaining jobs and encouraging innovation and entrepreneurship. If you want to make Pennsylvania the place to do business, we ask that you consider co-sponsoring this important piece of legislation. |
Introduced as HB2395