Bill Text: PA HB1347 | 2011-2012 | Regular Session | Introduced

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Bill Title: In corporate net income, further providing for the definition of "taxable income."

Spectrum: Partisan Bill (Republican 60-2)

Status: (Introduced - Dead) 2011-04-13 - Referred to FINANCE [HB1347 Detail]

Download: Pennsylvania-2011-HB1347-Introduced.html

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PRINTER'S NO. 1557
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1347 Session of2011
INTRODUCED BY REESE, EVANKOVICH, KRIEGER, DUNBAR, AUMENT, BAKER, BLOOM, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DAY, DELOZIER, DENLINGER, GABLER, GINGRICH, GRELL, GROVE, HELM, HUTCHINSON, KAUFFMAN, KILLION, MAJOR, MARSHALL, METCALFE, METZGAR, MILLARD, MILLER, MILNE, MOUL, MURT, OBERLANDER, PEIFER, PETRARCA, PICKETT, PYLE, QUIGLEY, RAPP, REED, REICHLEY, ROAE, ROCK, SACCONE, SAYLOR, SCAVELLO, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, TALLMAN, TURZAI, VEREB, VULAKOVICH, WATSON AND GIBBONS, APRIL 13, 2011
REFERRED TO COMMITTEE ON FINANCE, APRIL 13, 2011
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, further providing for
the definition of "taxable income."
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 401(3)4(c) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
October 9, 2009 (P.L.451, No.48), is amended to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
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); [or]
(V) For taxable years beginning after December 31, 2010, the
greater of twenty per cent of taxable income as determined under
subclause 1 or, if applicable, subclause 2 or five million
dollars ($5,000,000);
(VI) For taxable years beginning after December 31, 2011,
the greater of twenty per cent of taxable income as determined
under subclause 1 or, if applicable, subclause 2 or seven
million dollars ($7,000,000);
(VII) For taxable years beginning after December 31, 2012,
the greater of twenty per cent of taxable income as determined
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under subclause 1 or, if applicable, subclause 2 or ten million
dollars ($10,000,000); or
(VIII) For taxable years beginning after December 31, 2013,
taxable income as determined under subclause 1 or, if
applicable, subclause 2; or
(B) The amount of the net loss or losses which may be
carried over to the taxable year or taxable income as determined
under subclause 1 or, if applicable, subclause 2.
(1.1) In no event shall the net loss deduction include more
than five hundred thousand dollars ($500,000), in the aggregate,
of net losses from taxable years 1988 through 1994.
(2) (A) A net loss for a taxable year may only be carried
over pursuant to the following schedule:
Taxable Year Carryover
1981 1 taxable year
1982 2 taxable years
1983-1987 3 taxable years
1988 2 taxable years plus 1 taxable year starting with the 1995 taxable year
1989 1 taxable year plus 2 taxable years starting with the 1995 taxable year
1990-1993 3 taxable years starting with the 1995 taxable year
1994 1 taxable year
1995-1997 10 taxable years
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1998 and thereafter 20 taxable years
(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:
(I) Two million dollars ($2,000,000) for taxable years
beginning before January 1, 2007.
(II) The greater of twelve and one-half per cent of the
taxable income as determined under subclause 1 or, if
applicable, subclause 2 or three million dollars ($3,000,000)
for taxable years beginning after December 31, 2006.
(III) The greater of fifteen per cent of the taxable income
as determined under subclause 1 or, if applicable, subclause 2
or three million dollars ($3,000,000) for taxable years
beginning after December 31, 2008.
(IV) The greater of twenty per cent of the taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
three million dollars ($3,000,000) for taxable years beginning
after December 31, 2009.
(V) The greater of twenty per cent of taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
five million dollars ($5,000,000) for taxable years beginning
after December 31, 2010.
(VI) The greater of twenty per cent of taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
seven million dollars ($7,000,000) for taxable years beginning
after December 31, 2011.
(VII) The greater of twenty per cent of taxable income as
determined under subclause 1 or, if applicable, subclause 2 or
ten million dollars ($10,000,000) for taxable years beginning
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after December 31, 2012.
(VIII) For taxable years beginning after December 31, 2013,
taxable income as determined under subclause 1 or, if
applicable, subclause 2.
* * *
Section 2. This act shall take effect immediately.
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