PRIOR PRINTER'S NO. 3229 PRINTER'S NO. 4085
No. 2335 Session of 2002
INTRODUCED BY TURZAI, STETLER, ARMSTRONG, M. BAKER, BARRAR,
BOYES, BROWNE, BUNT, CAPPELLI, COLAFELLA, CREIGHTON, DALLY,
FAIRCHILD, FEESE, FRANKEL, GABIG, HABAY, HERSHEY, HUTCHINSON,
LEH, MAHER, MANN, MARKOSEK, McCALL, McILHATTAN, METCALFE,
S. MILLER, PETRARCA, PICKETT, PIPPY, RAYMOND, READSHAW,
ROHRER, ROSS, RUBLEY, SAINATO, SAYLOR, SCHRODER, SEMMEL,
S. H. SMITH, STABACK, R. STEVENSON, T. STEVENSON,
E. Z. TAYLOR, WANSACZ, WATSON, WILT, YOUNGBLOOD, ZUG,
HENNESSEY AND PALLONE, FEBRUARY 4, 2002
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 24, 2002
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 EXCLUSIONS FROM SALES AND <--
11 USE TAX; AND further defining "taxable income" for corporate
12 net income tax.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 401(3)4(c) of the act of March 4, 1971 <--
16 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
17 12, 1999 (P.L.26, No.4), is amended to read:
18 SECTION 1. SECTION 204 OF THE ACT OF MARCH 4, 1971 (P.L.6, <--
19 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED BY
1 ADDING CLAUSES TO READ:
2 SECTION 204. EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY
3 SECTION 202 SHALL NOT BE IMPOSED UPON
4 * * *
5 (62) THE SALE AT RETAIL OR USE OF SAFETY OR PROTECTIVE
6 HELMETS.
7 (63) THE SALE AT RETAIL TO OR USE BY A PUBLIC SCHOOL
8 DISTRICT OR A CONSTRUCTION CONTRACTOR EMPLOYED BY A PUBLIC
9 SCHOOL DISTRICT, OF ANY MATERIALS AND BUILDING SUPPLIES, OTHER
10 THAN MACHINERY OR EQUIPMENT, USED IN THE CONSTRUCTION,
11 RECONSTRUCTION, REMODELING, REPAIRS AND MAINTENANCE OF ANY
12 PUBLIC SCHOOL BUILDING, FACILITY OR STRUCTURE WITHIN THIS
13 COMMONWEALTH.
14 SECTION 2. SECTION 401(3)4(C) OF THE ACT, AMENDED MAY 12,
15 1999 (P.L.26, NO.4), 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 * * *
21 (3) "Taxable income." * * *
22 4. * * *
23 (c) (1) The net loss deduction shall be the lesser of two
24 million dollars ($2,000,000) or the amount of the net loss or
25 losses which may be carried over to the taxable year or taxable
26 income as determined under subclause 1 or, if applicable,
27 subclause 2. In no event shall the net loss deduction include
28 more than five hundred thousand dollars ($500,000), in the
29 aggregate, of net losses from taxable years 1988 through 1994.
30 (2) A net loss for a taxable year may only be carried over
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1 pursuant to the following schedule:
2 Taxable Year Carryover
3 1981 1 taxable year
4 1982 2 taxable years
5 1983-1987 3 taxable years
6 1988 2 taxable years plus
7 1 taxable year
8 starting with the
9 1995 taxable year
10 1989 1 taxable year plus
11 2 taxable years
12 starting with the
13 1995 taxable year
14 1990-1993 3 taxable years
15 starting with the
16 1995 taxable year
17 1994 1 taxable year
18 1995 [and thereafter]
19 -1997 10 taxable years
20 1998 and thereafter 20 taxable years
21 The earliest net loss shall be carried over to the earliest
22 taxable year to which it may be carried under this schedule. The
23 total net loss deduction allowed in any taxable year shall not
24 exceed two million dollars ($2,000,000).
25 * * *
26 Section 2 3. This act shall take effect in 60 days. <--
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