Pa. Bill Seeks To Temporarily Loosen NOL Limit Amid Virus

Pennsylvania would temporarily increase its net operating loss limitation from 40% of income to 100% to assist businesses affected by the COVID-19 pandemic under a bill introduced in the state's House of Representatives.

H.B. 198, filed Thursday by Rep. George Dunbar, R-Jeanette, would allow taxpayers to deduct up to 100% of net operating losses from current year income. The additional 60% deduction would be allowed only for losses that were incurred in 2020 and would not apply to losses carried forward from previous years, according to the bill. 

The bill, if passed, would take effect immediately.

--Editing by Joyce Laskowski.

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