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For Immediate
Release
3/11/08
Contact:
Nate Silcox
(717) 787-6063
Senator Regola Introduces
Two Tax Cut Measures
Legislation
would promote energy savings
State Senator Bob Regola (R-39) today introduced two
bills during the General Assembly’s Special Session on
Energy that would provide tax breaks for individuals and
businesses that take steps to improve their energy
efficiency and reduce pollution.
“These bills are intended to reward consumers and
companies that take steps to invest in new technology that
result in energy savings and greater efficiency,” said Sen.
Regola. “This is a win-win situation for consumers and
companies that will receive tax breaks, while we improve and
invest in the environment.”
Sen. Regola noted that the development of alternate
energy sources and related technology is hampered by current
laws limiting the ability to timely deduct from corporate
tax liability for net losses particularly for new or small
businesses. As such, Senator Regola’s first bill -- Senate
Bill 43 of the Special Session -- would increase the
deductibility of a net operating loss (NOL) from 12.5
percent to 50 percent of taxable income, up from a maximum
of $3 million to $12 million.
“Pennsylvania is one of only two states that prohibit
companies from carrying forward the full extent of their net
operating losses to offset future income,” said Regola.
“This penalizes companies by significantly increasing their
tax rates. By increasing the NOL cap, we provide an
incentive for businesses to invest in new and improved
technology to achieve energy savings.”
The second bill, Senate Bill 44 of the Special Session,
would establish energy efficiency and pollution prevention
tax credits for businesses and individuals. The tax credit
would be for up to 50 percent of the cost associated with
the acquisition or upgrade of equipment which results in at
least a 10 percent increase in energy efficiency or in
pollution reduction.
“My bill would provide businesses with a credit up to 100
percent of its gross income and a carryover provision would
allow the credit to be carried forward for up to 20 years,”
said Regola. “The real innovation in my bill is that
individuals would also be rewarded for implementing similar
energy saving and pollution reduction measures. They would
be able to take the credit, at the same rate and under the
same criteria as businesses, for up to 50 percent of the
cost to purchase and install equipment that results in a 10
percent increase in energy efficiency, or in pollution
prevention.”
Both bills will be referred to the Special Session’s
Committee on Legislation for its consideration.
Additional Information:
Tax Relief
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