An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in corporate net income tax, establishing the Net Operating Loss Transfer Program; imposing a penalty; and making editorial changes.

This bill establishes a Net Operating Loss Transfer Program in Pennsylvania to allow certain new or expanding biotechnology and technology businesses to sell their unused tax losses to other companies. The program specifically targets businesses that have been operating in the state for five years or less and employ at least 15% of their U.S. workforce within Pennsylvania. Under the new rules, these "selling taxpayers" can transfer the value of their tax benefits to "purchasing taxpayers," who may then use those benefits to offset their own taxable income. The legislation also updates penalty provisions for tax violations and renumbers existing sections of the Tax Reform Code of 1971 to reflect these changes.