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 bill amends Pennsylvania's corporate tax code to clarify how businesses handle intangible expenses and interest costs when dealing with related companies. It establishes rules that generally disallow deductions for these specific costs in transactions between affiliated entities, but it also provides a credit to offset taxes paid by the related company on those same costs. The legislation includes exceptions for arm's length transactions, deals with foreign entities under specific tax treaties, and allows companies to choose how to calculate these adjustments. These changes apply to tax years starting after December 31, 2022, and directly affect corporations operating in Pennsylvania with related business entities.