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House Co-Sponsorship Memoranda
House of Representatives
Session of 2025 - 2026
Regular Session
MEMORANDUM
| Posted: | December 2, 2024 09:22 AM |
|---|---|
| From: | Representative Thomas H. Kutz |
| To: | All House members |
| Subject: | Net Operating Loss for Small Businesses |
| The Tax Reform Code of 1971 enables Pennsylvania taxpayers subject to the state Corporate Net Income Tax to deduct an amount of net losses that arise in one year from their taxable income in subsequent years. While several changes made been made to the treatment of net losses over the years, pertaining to the carry forward period and amount limitations, our small businesses, subject to our state Personal Income Tax, have not been afforded this same benefit. In the near future, I plan to introduce legislation which would allow a small business to similarly use a net loss deduction. Since small businesses don’t have access to the capital larger companies have, their ability to use such tax strategies helps them have greater control over their financial position. For example, if an owner sells some personal items to help his business make payroll, he can take the business loss against the tax bill he creates selling the personal items. Please join me in co-sponsoring this important legislation to support small businesses in Pennsylvania. Thank you. |
Memo Updated: December 2, 2024 09:23 AM