Bill 040017

..Title Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by amending the definition of "Net Operating Loss" with respect to carryforward period for net operating losses. ..Body THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS: SECTION 1. Chapter 19-2600 of the Philadelphia Code is hereby amended to read as follows: CHAPTER 19-2600. BUSINESS PRIVILEGE TAXES. § 19-2601 Definitions. In addition to the definitions provided in the Act of May 30, 1984, P.L. 345, No. 69, known as the First Class City Business Tax Reform Act, as amended, and Chapter 19-500 of this Title, the following definitions shall apply: * * * Net Operating Loss. * * * (2) With respect to losses incurred in taxable years prior to January 1, 2004, [A] a net operating loss incurred in another tax period may be carried over for three tax years, following the year in which it was incurred. The earliest net loss shall be carried over to the earliest taxable year to which it may be carried. (3) Commencing with losses incurred in taxable years beginning on or after January 1, 2004, a net operating loss incurred in another tax period may only be carried forward pursuant to the following schedule: Available Taxable Year Carryforward 2004 2001 - 2003 2005 2002 - 2004 2006 2003 - 2005 2007 2004 - 2006 2008 2004 - 2007 2009 2004 - 2008 2010 2004 - 2009 2011 2004 - 2010 2012 2013 2014 2015 and thereafter 2004 - 2011 2004 - 2012 2004 - 2013 The prior ten years SECTION 2. This [act] Ordinance shall apply to losses incurred in taxable years beginning on or after January 1, 2004. _____________________________________ Explanation: [Brackets] indicate matter deleted. Italics indicate new matter added. ..End