HB 788 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in mutual thrift institutions tax, further providing for imposition, report and payment of tax and exemptions.

PRINTER'S NO.   809

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 788
                                               Session of
                                                 2025

     INTRODUCED BY MERSKI, GREINER, HARKINS, ROWE, SANCHEZ, ZIMMERMAN
        AND MENTZER, MARCH 3, 2025

     REFERRED TO COMMITTEE ON FINANCE, MARCH 3, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in mutual thrift institutions tax, further
11      providing for imposition, report and payment of tax and
12      exemptions.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    Section 1502(a) and (d)(2) of the act of March 4,
16   1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
17   amended to read:
18      Section 1502.    Imposition; Report and Payment of Tax;
19   Exemptions.--(a)    Every institution shall annually, by April 15
20   of each year beginning in the year 1984, make a report to the
21   Department of Revenue, setting forth the entire amount of
22   taxable net income received or accrued by said institution from
23   all sources during the preceding year, and such other
 1   information as the department may require, and upon such taxable
 2   net income the said institution shall pay into the State
 3   Treasury, through the Department of Revenue, for the use of the
 4   Commonwealth, a State excise tax at the rate of eleven and one-
 5   half per cent for the calendar years 1983, 1984, 1985 and 1986
 6   and fiscal years beginning in 1983, 1984, 1985 and 1986, at the
 7   rate of twenty per cent for calendar years 1987, 1988, 1989 and
 8   1990 and fiscal years beginning in 1987, 1988, 1989 and 1990 and
 9   at the rate of twelve and one-half per cent for calendar year
10   1991 and fiscal years beginning in 1991 and at the rate of
11   eleven and one-half per cent for calendar year 1992 and each
12   calendar year thereafter and fiscal years beginning in 1992 and
13   each fiscal year thereafter upon such annual taxable net income,
14   for the privilege of doing business in the Commonwealth. The
15   annual rate of the tax imposed by this section for taxable years
16   beginning for the calendar year or fiscal year on or after the
17   dates specified shall be as follows:
18        Taxable Year                      Tax Rate
19   January 1, 2025,
20      through December
21      31, 2025                              8.99%
22   January 1, 2026,
23      through December
24      31, 2026                              8.55%
25   January 1, 2027,
26      through December
27      31, 2027                              7.95%
28   January 1, 2028,
29      through December
30      31, 2028                              7.45%

20250HB0788PN0809                 - 2 -
 1   January 1, 2029,
 2      through December
 3      31, 2029                                 6.95%
 4   January 1, 2030,
 5      through December
 6      31, 2030                                 6.45%
 7   January 1, 2031,
 8      through December
 9      31, 2031                                 5.95%
10   January 1, 2032,
11      through December
12      31, 2032                                 5.45%
13   January 1, 2033, and
14      each taxable year
15      thereafter                               4.99%
16   Every institution shall be required to make payment of estimated
17   tax pursuant to the provisions of sections 3003.2, 3003.3 and
18   3003.4 of Article XXX for taxable years beginning after December
19   31, 1991. For taxable years beginning before January 1, 1992,
20   every institution shall be required to make payment of tentative
21   tax pursuant to the provisions of Article XXX. The remaining
22   portion of the tax due shall be paid at the time the report
23   prescribed herein is required to be made.
24      * * *
25      (d)   * * *
26      (2)   [The] Beginning with calendar year 2026 and fiscal years
27   beginning in 2026, the net loss carryover deduction for a
28   taxable year shall be that amount which is the sum of any net
29   losses for the preceding [three] ten taxable years, beginning
30   with the earliest year, to the extent that any such net loss has

20250HB0788PN0809                  - 3 -
1   not previously been allowed as a deduction in a prior taxable
2   year, except that the deduction shall not exceed the amount of
3   the net income for the current year determined after
4   apportionment.
5      * * *
6      Section 2.    This act shall take effect in 120 days.




20250HB0788PN0809                  - 4 -