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Committee hears proposal to let startups sell net operating losses to raise capital; lawmakers request more study
Summary
Lawmakers and witnesses discussed House Bill 11 29, a proposal to allow certain companies to sell net operating losses as a way to raise non-dilutive capital; no committee vote was taken.
House members and witnesses discussed a proposal, House Bill 11 29, authored by Representatives Paul Friel and Jonathan Fritz that would allow certain Pennsylvania businesses to transfer or sell net operating losses to raise early-stage, non-dilutive capital.
Dean Miller, president and CEO of the Philadelphia Alliance for Capital and Technologies (PACT), testified that a NOL-exchange program helps early-stage, R&D-intensive companies convert unused tax attributes into capital. "New Jersey has had a net operating loss transfer program for over 20 years, which has enabled New Jersey entrepreneurs to raise over $1,000,000,000 in non dilutive capital," Miller said, and he cited Celgene as an example of a company that…
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