HB 788 Pennsylvania House · 2025-2026 Regular Session

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.

HB 788 amends Pennsylvania's Tax Reform Code of 1971 to adjust tax rates for mutual thrift institutions (like credit unions and mutual banks) operating in the state. It gradually reduces their annual tax rate from 8.99% in 2025 down to 4.99% by 2033, with specific rates set for each year through 2033. The bill also extends the period for carrying forward net losses from three to ten years when calculating tax deductions. This directly affects mutual thrift institutions by lowering their tax burden over time and changing how they can offset past losses against current income.

Bill status in committee 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

Mar 2025

House Passage

Feb 2026

Senate Passage

Governor

Introduced Mar 3, 2025 Last action Feb 4, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Printer's No. PN0809 → Printer's No. PN2871 · 4 edits

MODERATE

This bill update expands the list of sponsors and adds a new co-sponsor while formally reporting the bill as amended by the Finance Committee. The most significant substantive change is the modification of the tax rate schedule, which now includes a specific rate of 7.95% for the 2027 tax year, whereas the previous version omitted this year. Additionally, the bill clarifies the rules for net loss carryovers, specifying that losses from 2025 and earlier can be carried forward for three years, while losses from 2026 onward can be carried forward for six years.

Scope change

The bill's scope regarding tax rates was refined to explicitly include the 2027 tax year, and the applicability of net loss carryovers was clarified with a split schedule based on the year the loss was incurred.

REQUIREMENT

Added new co-sponsors (Kephart, RynCavage, Rossi, and Kutz) to the list of bill sponsors.

TIMELINE

Modified the tax rate schedule to explicitly list a 7.95% rate for the January 1, 2027, through December 31, 2027, period.

DEFINITION

Added a new subsection (1.1) defining the schedule for net loss carryovers, distinguishing between losses from 2025 and earlier (3-year carryover) and losses from 2026 and later (6-year carryover).

TECHNICAL

Updated the header to reflect the new printer's number (PN 2871) and noted the bill as amended and reported from the Committee on Finance.

Floor votes · House Feb 4, 2026

How they voted

26–0

Passed

Total votes 26

Feb 4, 2026

D Democratic14

14 Yea

100% Yea

R Republican12

12 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 4, 2026

House · Passed

House Vote: pass (26-0)

house

Feb 4, 2026

Lower · Passed

Reported as amended

lower

Mar 3, 2025

Committee

Referred to Finance

lower

1 primary · 11 co-sponsors