HARRISBURG – Rep. Josh Kail (R-Beaver/Washington) is introducing legislation that would uncap businesses’ Net Operating Loss (NOL) carryforward deductions by 2025. This tax strategy will empower small businesses and make Pennsylvania more attractive to, and competitive for, new business. Currently, Pennsylvania caps a business’ NOL carryforward deduction at 40% of taxable income and is one of 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. “Making Pennsylvania business-friendly is not just a goal; it’s a fundamental necessity, which is why I am calling for an end to the start-up penalty,” said Kail.