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House Finance Committee hears bill to lower mutual thrift tax, members weigh phased cuts and NOL changes
Summary
Lawmakers heard testimony from mutual‑bank leaders urging passage of House Bill 788 to reduce the 11.5% mutual thrift institutions tax and extend net operating loss carryforward rules; committee members flagged a modest near‑term fiscal cost and proposed amendments on timing and NOL duration.
HARRISBURG — Lawmakers on the House Finance Committee on Thursday heard testimony on House Bill 788, a bipartisan proposal to reduce Pennsylvania’s mutual thrift institutions tax and expand net operating loss (NOL) carryforward periods for mutual banks.
Representative Mirsky, the bill’s prime sponsor, said the measure "would address a long standing inequity in how Pennsylvania taxes our mutual thrift institutions," arguing mutual banks are depositor‑owned community lenders that should not face a higher tax burden than other financial institutions.
"These are commonly community based financial institutions, mutual banks, savings banks, savings and loan associations, and building and loan associations that operate very differently from investor owned banks," Mirsky said in opening remarks. The bill would cut the current 11.5% mutual thrift tax to 8.99% immediately and then lower it over nine years to 4.99%, Mirsky said, aligning the final rate with the corporate net income tax rate enacted under Act 53 of 2022.
John Dill…
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