Pennsylvania Tax Bill Doubling Losses Limit Passes (Correct)

Pennsylvania lawmakers passed an omnibus tax bill Thursday that doubles the net operating loss carryover limit and expands other tax credits.

The bill (SB 654), passed in a 43-6 vote in the Senate and 129-73 in the House, now goes to Gov. Josh Shapiro (D) for his signature. The legislation proposes gradually increasing the net operating loss limit that can be carried over from 40% of taxable income to 80% by 2026, aligning it with the federal threshold. Democrats and Republicans in both chambers, as well as business groups, have been advocating for such legislation.