Bill > SB1031

This bill establishes the Net Operating Loss Transfer Program, which allows eligible biotechnology and technology businesses with net operating losses to sell those losses to other taxpayers who can then use them to reduce their own tax liability. Specifically, the bill creates a program where businesses that have been operating in Pennsylvania for seven years or less and meet certain criteria can sell their net operating losses to other taxpayers. Selling businesses can transfer up to $5 million in losses per year, with a lifetime cap of $20 million, and the total program is limited to $200 million in transferable losses annually. To participate, businesses must submit detailed applications to the Department of Community and Economic Development, pay a $3,500 application fee, and commit to spending the received funds on specific business expenses. The program aims to support young, innovative businesses by providing them with additional financial resources. The bill also reinstates penalties for tax-related violations, such as making fraudulent returns or failing to pay taxes, with potential fines up to $1,000 and imprisonment up to six months. The program will be reviewed annually, with the department required to submit a report assessing its effectiveness to the Governor and General Assembly.

Budget and Finance

https://www.palegis.us/legislation/bills/2025/sb1031