PRINTER'S NO. 174
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.217
Session of
2025
INTRODUCED BY KUTZ, HAMM, JAMES, KUZMA, MARCELL, KAUFFMAN,
M. BROWN, HANBIDGE, CUTLER, GROVE, ROWE, GALLAGHER,
SCIALABBA, KEPHART, M. JONES, TWARDZIK, STAMBAUGH, LAWRENCE,
RYNCAVAGE, STRUZZI AND ZIMMERMAN, JANUARY 22, 2025
REFERRED TO COMMITTEE ON FINANCE, JANUARY 22, 2025
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 personal income tax, further providing for
classes of income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303(a)(2) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
to read:
Section 303. Classes of Income.--(a) The classes of income
referred to above are as follows:
* * *
(2) Net profits or net loss. The net income from the
operation of a business, profession, or other activity, after
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21 provision for all costs and expenses incurred in the conduct
thereof, determined either on a cash or accrual basis in
accordance with accepted accounting principles and practices but
without deduction of taxes based on income. For purposes of
calculating net income under this paragraph, to the extent a
taxpayer properly deducts an amount under [ section 195(b)(1)(A)
of the Internal Revenue Code of 1986 (26 U.S.C. § 195(b)(1)(A)) ]
26 U.S.C. § 195(b)(1)(A) (relating to start-up expenditures) , as
amended, and the regulations promulgated under [ section 195(b)
(1)(A) of the Internal Revenue Code of 1986 ] 26 U.S.C. § 195(b)
(1)(A), the taxpayer shall be permitted a deduction in equal
amount in the same taxable year. There shall be permitted a
deduction from other classes of income equal to the net loss for
the tax year.
* * *
Section 2. The amendment of section 303(a)(2) of the act
shall apply to tax years beginning after December 31, 2025.
Section 3. This act shall take effect immediately.
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