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PA HB788

PA HB788
In mutual thrift institutions tax, further providing for imposition, report and payment of tax and exemptions.


summary

Introduced
03/03/2025
In Committee
03/03/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in mutual thrift institutions tax, further providing for imposition, report and payment of tax and exemptions.

AI Summary

This bill amends the Tax Reform Code of 1971 to adjust the tax rate for mutual thrift institutions, which are financial institutions like credit unions and savings and loan associations, and modifies how they can carry forward net losses. Specifically, the bill establishes a new schedule of decreasing tax rates for these institutions, starting at 8.99% in 2025 and gradually reducing to 4.99% by 2033 and thereafter, replacing the previous fixed rate. Additionally, it changes the rules for carrying forward net losses, allowing losses from 2025 and earlier to be carried forward for three taxable years, while losses from 2026 and later can be carried forward for six taxable years, and it revises the calculation for deducting these net losses.

Committee Categories

Budget and Finance

Sponsors (11)

Last Action

Laid on the table (on 02/04/2026)

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