An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for classes of income.

SB 722 amends Pennsylvania's Tax Reform Code to modify how "net profits" are calculated for personal income tax purposes. The bill updates the rules for deducting start-up expenditures and introduces new provisions for combining net profits and losses from different businesses. It establishes specific netting rules for "small businesses" and "non-small businesses," allowing small businesses to carry over net losses for up to twenty years. This legislation directly affects individuals who report income or losses from their business or professional activities, particularly those operating small businesses, for state personal income tax. These changes will apply to tax years beginning after December 31, 2024.