Pennsylvania Net Loss Cap Increases Take Effect

first_imgPennsylvania increases in the net operating loss cap deduction are now effective. Enacted in 2017, the net loss cap is now:35% of taxable income in 2017; and40% of taxable income in 2018 and after.Increases Triggered When Requirements MetFor these increases to take effect, the enacting legislation required:the Pennsylvania Supreme Court to hold all or a part of the net loss deduction limitation unconstitutional; andthe Department of Revenue to publish notice of that court decision in the bulletin.The court issued a decision in October 2017, that found the flat $3 million net loss deduction carryover provision unconstitutional.The department’s notice appears in the most recent bulletin.Act 43-2017 Notice of Pennsylvania Supreme Court Decision Concerning Constitutionality of Corporate Net Income Tax Net Loss Deduction, Pennsylvania Department of Revenue, January 27, 2018 , ¶204-621Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.Not a subscriber? Sign up for a free trial or contact us for a representative.last_img

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