PRIOR PRINTER'S NO. 1954
PRINTER'S NO. 3680
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1416
Session of
2015
INTRODUCED BY EVANKOVICH, BARBIN, BARRAR, BENNINGHOFF, BLOOM,
BURNS, COX, CUTLER, DeLUCA, GALLOWAY, GERGELY, GIBBONS,
GILLEN, GREINER, GROVE, A. HARRIS, IRVIN, KAUFFMAN, KORTZ,
LAWRENCE, MALONEY, MARSHALL, MARSICO, McNEILL, MILNE, RAPP,
REGAN, TRUITT, TURZAI, WARNER, ZIMMERMAN, DUSH, GABLER AND
ORTITAY, JUNE 26, 2015
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 30, 2016
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in corporate net income tax, further providing
for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 401(3)4(c)(1)(A) of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
amended July 9, 2013 (P.L.270, No.52), is amended and clause
(3)4(c)(2)(B) is amended by adding subparagraphs A SUBPARAGRAPH
to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(3) "Taxable income." * * *
4. * * *
(c) (1) The net loss deduction shall be the lesser of:
(A) (I) For taxable years beginning before January 1, 2007,
two million dollars ($2,000,000);
(II) For taxable years beginning after December 31, 2006,
the greater of twelve and one-half per cent of taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
three million dollars ($3,000,000);
(III) For taxable years beginning after December 31, 2008,
the greater of fifteen per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or three
million dollars ($3,000,000);
(IV) For taxable years beginning after December 31, 2009,
the greater of twenty per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or three
million dollars ($3,000,000);
(V) For taxable years beginning after December 31, 2013, the
greater of twenty-five per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or four million
dollars ($4,000,000);
(VI) For taxable years beginning after December 31, 2014,
the greater of thirty per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or five million
dollars ($5,000,000); [or]
(VII) For taxable years beginning after December 31, 2016,
forty per cent of taxable income as determined under subclause 1
20150HB1416PN3680 - 2 -
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
or, if applicable, subclause 2;
(VIII) For taxable years beginning after December 31, 2017,
fifty per cent of taxable income as determined under subclause 1
or, if applicable, subclause 2;
(IX) For taxable years beginning after December 31, 2018,
sixty per cent of taxable income as determined under subclause 1
or, if applicable, subclause 2;
(X) For taxable years beginning after December 31, 2019,
eighty per cent of taxable income as determined under subclause
1 or, if applicable, subclause 2;
(XI) For taxable years beginning after December 31, 2020,
one hundred per cent of taxable income as determined under
subclause 1; or
(VII) FOR TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 2016,
FORTY-FOUR PER CENT OF TAXABLE INCOME AS DETERMINED UNDER
SUBCLAUSE 1; OR
* * *
(2) * * *
(B) The earliest net loss shall be carried over to the
earliest taxable year to which it may be carried under this
schedule. The total net loss deduction allowed in any taxable
year shall not exceed:
* * *
(VII) Forty per cent of taxable income as determined under
subclause 1 or, if applicable, subclause 2 for taxable years
beginning after December 31, 2016.
(VIII) Fifty per cent of taxable income as determined under
subclause 1 or, if applicable, subclause 2 for taxable years
beginning after December 31, 2017.
(IX) Sixty per cent of taxable income as determined under
20150HB1416PN3680 - 3 -
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
subclause 1 or, if applicable, subclause 2 for taxable years
beginning after December 31, 2018.
(X) Eighty per cent of taxable income as determined under
subclause 1 or, if applicable, subclause 2 for taxable years
beginning after December 31, 2019.
(XI) One hundred percent of taxable income as determined
under subclause 1 for taxable years beginning after December 31,
2020.
(VII) FORTY-FOUR PER CENT OF TAXABLE INCOME AS DETERMINED
UNDER SUBCLAUSE 1 FOR TAXABLE YEARS BEGINNING AFTER DECEMBER 31,
2016.
* * *
Section 2. The amendment or addition of section 401(3)4(c)
(1)(A) and (2)(B)(VII), (VIII), (IX), (X) and (XI) of the act
shall apply to taxable years beginning after December 31, 2015
2016.
Section 3. This act shall take effect in 60 days
IMMEDIATELY.
20150HB1416PN3680 - 4 -
<--
<--
<--
<--
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18