COVID-19 Small Business Tax Relief Legislation Introduced in PA Senate

Pennsylvania Senators Camera Bartolotta and Judy Ward recently introduced legislation to provide additional economic relief through state tax laws to small businesses that have been impacted by the COVID-19 pandemic.

The first area of change allows small business taxpayers to take a net loss against other sources of income by allowing entities that had to sell off personal resources in order to support the business to continue to report losses.

The second change would allow small business taxpayers that are not corporations to carry forward net operating losses (NOLs) for up to 20 years. Under current state tax law, carryforwards of NOLs are disallowed for individual tax payers. The proposed legislation would align the corporate net income tax NOL carryforward periods with PA individual income tax laws.

Lastly, the proposed legislation would allow small business taxpayers to carry back NOLs as a form of relief. The purpose of the provision is to facilitate getting cash into the hands of small businesses faster, without the creation of a new grant or loan program. This section of the proposed legislation closely mirrors the NOL carryforward provisions of the federal CARES Act enacted in March.

The State and Local Tax department at Schneider Downs will continue to provide updates on the proposed legislation.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
CARES Act, Tax BY Austin Nace
Disappointing News for Employers: Employee Retention Credit Ends Before Fourth Quarter of 2021
Welcome News for the Trucking Industry - Clarification of 100% Meals and Entertainment Deduction for Per Diems
Build Back Better Tax Legislation Update – International Tax Changes
Higher Estate Tax Exemption Amount for 2022
Michael Jackson vs. Kenny Pickett
What to Expect When You’re Expecting a Single Audit
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×