Pennsylvania Governor Signs Law Increasing Philadelphia Net Operating Loss Carryforward Provisions to 20 Tax Years

The Pennsylvania Governor Nov. 3 signed a law amending the First Class City Business Tax Reform Act, increasing net operating loss (NOL) carryforwards for corporate income, individual income, and trust income tax in the city of Philadelphia. The law includes measures: 1) increasing the NOL carryforward provisions to 20 years from three years; and 2) specifying that the increased carryforward applies to NOLs incurred in 2022 and each tax year thereafter. The law takes effect Nov. 3. [/PA\FINAL\2021R1HB324///, enacted 11/03/22]

Reference: View Bill. View Legislative Information.