PRINTER'S NO. 1718
No. 1446 Session of 2001
INTRODUCED BY METCALFE, THOMAS, ARMSTRONG, HENNESSEY, ADOLPH,
BARRAR, BELFANTI, CALTAGIRONE, L. I. COHEN, CORRIGAN,
CREIGHTON, FORCIER, GABIG, GEIST, HERSHEY, HORSEY,
HUTCHINSON, MARKOSEK, MARSICO, S. MILLER, NICKOL, ROHRER,
WILT AND ZUG, APRIL 26, 2001
REFERRED TO COMMITTEE ON FINANCE, APRIL 26, 2001
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," further providing for net loss carryover.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 401(3)4(a) of the act of March 4, 1971
14 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
15 April 23, 1998 (P.L.239, No.45), is amended to read:
16 Section 401. Definitions.--The following words, terms, and
17 phrases, when used in this article, shall have the meaning
18 ascribed to them in this section, except where the context
19 clearly indicates a different meaning:
20 * * *
1 4. (a) [For] (1) Except as provided in subparagraph (2),
2 for taxable years beginning in 1982 through taxable years
3 beginning in 1990 and for the taxable year beginning in 1995 and
4 each taxable year thereafter, a net loss deduction shall be
5 allowed from taxable income as arrived at under subclause 1 or,
6 if applicable, subclause 2. For taxable years beginning in 1991,
7 1992, 1993 and 1994, the net loss deduction allowed for years
8 prior to 1991 shall be suspended, and no carryover of net losses
9 from taxable years 1988, 1989, 1990, 1991, 1992 and 1993 shall
10 be utilized in calculating net income for the 1991, 1992, 1993
11 and 1994 taxable years, but such net losses may be used as
12 provided in paragraph (c) in calculating net income for the 1995
13 taxable year and for two taxable years thereafter.
14 (2) The net loss deduction for taxable years prior to 1991
15 and taxable years 1991, 1992, 1993 and 1994 not recaptured
16 during taxable years 1995, 1996 and 1997 may be used to
17 recalculate income for the purpose of filing an amended return
18 for tax years 1991, 1992, 1993 and 1994. Any other provision in
19 this act pertaining to the limitation of filing an amended
20 return shall not apply to this section.
21 * * *
22 Section 2. This act shall take effect immediately.
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