Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB1129

Introduced
4/4/25  

Caption

In corporate net income tax, repealing provisions relating to penalties and to repealer and effective date; establishing the Net Operating Loss Transfer Program; and imposing penalties.

Impact

If enacted, HB1129 has the potential to significantly impact corporate tax regulations within Pennsylvania. The establishment of the Net Operating Loss Transfer Program is expected to serve as a lifeline for businesses suffering from losses, aiding them in recovering financially. This may enhance the operational viability of many firms, especially newer or struggling businesses by fostering retention and creation of jobs within the state. It could also lead to increased economic development through the incentive for businesses to maintain operations in Pennsylvania and potentially expand their workforce.

Summary

House Bill 1129 aims to amend the Tax Reform Code of 1971 by establishing a Net Operating Loss Transfer Program, which will enable eligible businesses to sell their tax benefits to purchasing taxpayers. This program is designed to provide financial assistance to businesses that have experienced net operating losses, allowing them to improve their fiscal situations through liquidating tax liabilities. The bill repeals certain penalties related to the corporate net income tax, streamlining tax regulations for businesses in Pennsylvania, and facilitating better compliance and financial sustainability for eligible entities.

Sentiment

The sentiment around HB1129 appears to be supportive among certain business and economic development advocates who argue that allowing businesses to transfer net operating losses will lead to a more robust economy. However, concerns have also been raised regarding potential misuse of the tax benefits if strict oversight and regulation are not implemented. Critics might view this provision as providing undue advantage to certain businesses while calling for broader reforms that might equally benefit a wider array of taxpayers.

Contention

Notable points of contention may arise surrounding the eligibility criteria for businesses to participate in the Net Operating Loss Transfer Program and how benefits will be monitored and enforced. Critics could argue that the program might disproportionately favor larger corporations or those with access to financial resources to navigate the application process. Additionally, opposing views may raise concerns about the efficacy of penalties being repealed, potentially allowing non-compliance which could diminish state revenue.

Companion Bills

No companion bills found.

Previously Filed As

PA HB2226

In corporate net income tax, establishing the Net Operating Loss Transfer Program; imposing a penalty; and making editorial changes.

PA HB1273

In unconventional gas well fee, repealing provisions relating to expiration; imposing a natural gas tax; and imposing penalties.

PA SB1268

Repealing provisions relating to realty transfer tax; and making editorial changes.

PA HB391

Repealing the act of May 11, 1921 (P.L.479, No.225), entitled "An act imposing a State tax on anthracite coal; providing for the assessment and collection thereof; and providing penalties for the violation of this act."

PA HB2433

Providing for corporate political contributions; and imposing penalties.

PA HB50

Repealing the act of June 5, 1937 (P.L.1656, No.344), entitled "An act imposing an annual license tax for the privilege of operating, maintaining or controlling within this Commonwealth a store or stores, theatre or theatres, as herein defined; prescribing the method and manner of collecting such tax and its disposition, including an appropriation for the purpose of administering this act; and providing penalties."

PA SB91

Providing for veterans property tax and rent rebate assistance; establishing the Veterans Property Tax and Rent Rebate Assistance account; imposing penalties; and making a transfer.

PA HB181

Establishing the Family and Medical Leave Program and the Family and Medical Leave Fund; conferring powers and imposing duties on the Department of Labor and Industry; and imposing penalties.

PA HB1550

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

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