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Bill > SB576


PA SB576

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


summary

Introduced
04/09/2025
In Committee
04/09/2025
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, specifically addressing the tax rates and loss carryover deductions for mutual thrift institutions. The legislation introduces a gradual reduction of the state excise tax rate for these financial institutions, starting at 7.95% in 2025 and decreasing annually until reaching 4.99% in 2031 and subsequent years. Additionally, the bill extends the net loss carryover deduction period from three to ten years, allowing institutions to carry forward net losses from the preceding ten taxable years when calculating their current year's tax liability, with the deduction limited to the current year's net income after apportionment. This change provides financial institutions with more flexibility in managing their tax obligations by allowing them to offset current year income with losses from a longer historical period. The bill will take effect 120 days after its enactment, giving institutions time to adjust to the new tax structure and loss carryover provisions.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

Referred to FINANCE (on 04/09/2025)

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