State Representative Dallas Kephart (R-Cambria/Clearfield) recently praised the passage of Net Operating Loss (NOL) tax reform provisions, now part of a comprehensive legislative package. NOL allows businesses to transfer losses from one tax year to future tax years, potentially lowering long-term tax liability by offsetting profits in subsequent years.
“This reform marks a win that I have been advocating for since being elected to office,” said Kephart. “NOLs will help businesses invest and hire more people in Pennsylvania.”
Kephart further mentioned his previous efforts to promote this reform: “Last year, I had stand-alone amendments to a bill with this NOL provision that passed with overwhelming bipartisan support in the House of Representatives. I am proud to have worked with my colleagues on this beneficial tax policy. I look forward to continuing to create an economic environment that encourages businesses to invest in Pennsylvania to generate more jobs and economic growth. There is a lot more work to do.”
Once implemented, Pennsylvania’s policy will align with federal tax rules and those of 48 other states. The provision will reach an 80% deduction cap after a gradual annual increase from the current 40%.
For further information, contact Matthew Davis at 717.787.3994 or mdavis@pahousegop.com.
