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, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

This bill modifies Pennsylvania's corporate net income tax law to update how taxable income is calculated for corporations, particularly those operating across state lines. It clarifies definitions for taxable income and adjusts rules for dividend deductions, restricting additional deductions for dividends between companies in the same unitary group after December 31, 2026. The legislation also introduces stricter limits on deductions for intangible and interest expenses related to transactions with affiliated entities, while providing tax credits to offset taxes paid by related companies in other jurisdictions. Additionally, the bill updates provisions for underpayment of estimated taxes and establishes requirements for consolidated tax reporting.