Rep. Josh Kail (R-Beaver/Washington) offers hope to Pennsylvania through the introduction of commonsense legislation that would uncap businesses. Net Operating Loss (NOL) carries forward deductions by 2025. This dynamic tax strategy will empower small businesses and make Pennsylvania more attractive to, and competitive, with new businesses.

Currently, Pennsylvania caps a business’s NOL carryforward deduction at 40% of taxable income. Pennsylvania is one of the only two states that cap NOL deductions below the federal limit (80% of taxable income). For start-ups, which likely experience losses in their first few years, this cap is a penalty. The same goes for manufacturers in the commodity markets who often have major fluctuations in profits and losses.