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

SB 1031 amends Pennsylvania's corporate tax code by repealing outdated penalty provisions and establishing a new Net Operating Loss Transfer Program. This program allows corporations with net operating losses to transfer those losses to other corporations, reducing future tax liability for the recipient. The bill also introduces new penalties for failing to comply with the transfer program's requirements. It directly affects corporations operating under Pennsylvania's corporate net income tax system, particularly those with unused losses or those seeking to offset future tax obligations.