Bill > HB217

This bill modifies the Pennsylvania Tax Reform Code to update how net profits and net losses are calculated for tax purposes. Specifically, the bill allows taxpayers to deduct start-up expenditures (as defined under section 26 U.S.C. § 195(b)(1)(A) of the Internal Revenue Code) in the same taxable year, and permits deductions from other classes of income equal to the net loss for the tax year. The changes clarify language around how businesses can account for start-up costs and losses when calculating their taxable income. The amendments will apply to tax years beginning after December 31, 2025, giving businesses and tax authorities time to prepare for the new accounting method. The bill takes effect immediately, though the substantive tax changes will not be implemented until the 2026 tax year.