City Council last week passed a bill that would expand the time period in which a business can carry forward net operating losses.
City Councilman Al Taubenberger (R-at large) sponsored the measure to improve the tax structure that affects the business community. Bill No. 180909 would extend the net operating loss carry-forward period to 20 years. The adjustment would bring Philadelphia in line with the rest of the state, and is intended to make the city more competitive for businesses to come to — or stay in.
”This is a real victory for our business community, especially for our small business community. While it is a small change, this will have big implications for the future. This legislation would allow businesses to better plan for the future, especially if we hit an economic downturn. Giving a business the leverage to survive and to continue to grow is what we need in this city.” Taubenberger said.
“The stronger our business community is, the more jobs it will create, leading to more Philadelphians having good-paying jobs. Providing economic freedom for Philadelphians is one of my biggest goals, and I know a stronger sense of stability for our business community will only encourage them to grow.”
The next step for the legislation is to change state law, which limits Philadelphia to a net operating loss period of three years. ••