The U.S. Supreme Court declined to review a Pennsylvania Supreme Court decision regarding the Pennsylvania corporate net loss carryover (NLC).
Pennsylvania Supreme Court NLC Decision
The Pennsylvania court found that a statutory limitation on the NLC deduction violated Pennsylvania’s constitutional uniformity provision. The court severed the flat $3 million NLC deduction limitation as a remedy.
Severing the flat deduction did not grant the taxpayer any relief. In addition, applying the remaining NLC provisions left the taxpayer with the same tax liability.
Nextel Communications of the Mid-Atlantic, Inc. v. Commonwealth of Pennsylvania, U.S. Supreme Court, Dkt. 17-1506, petition for certiorari denied June 11, 2018