The US State of Pennsylvania’s Governor Josh Shapiro signed a tax bill – Senate Bill 654 – into law on 11 July, 2024.
This bill follows the state’s federal tax code that proposes to gradually increase the net operating loss carryover limit (NOL) of a corporation’s taxable income and broadens the scope of certain state tax credits.
Under the bill, the limit on utilising net operating loss (NOL) carryforwards has been raised from 40% to 80% of a corporation’s taxable income for certain NOLs incurred after 2025.
The bill was signed as part of a comprehensive 2024-25 budget agreement that lawmakers finalised two weeks after the 30 June deadline.
