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, further providing for definitions.

This Pennsylvania bill amends the state's Tax Reform Code to update how corporations can deduct net losses against their taxable income. It establishes new rules that increase the maximum amount of net loss a company can use to reduce its tax bill in any given year, with the limit rising over time until it reaches 100% of taxable income for years starting after December 31, 2024. The legislation also clarifies how long past losses can be carried forward to offset future profits, extending the carryover period for losses generated after 1997 to 20 years. These changes directly affect corporations filing state income tax returns by allowing them to lower their current tax liability more aggressively when they have incurred losses.