PA HB1129

Establishes the Net Operating Loss Transfer Program allowing eligible biotechnology and technology businesses operating in Pennsylvania for no more than 7 years to sell their net operating losses to purchasing taxpayers in exchange for funds equal to at least 80% of the tax benefit value

Caps transferable net losses at $20 million lifetime per selling taxpayer, $5 million per year per seller, and $200 million total program-wide per year

Requires eligible businesses to have at least 30% of U.S. full-time employees in Pennsylvania, no positive net operating income for the past two years, and protected proprietary intellectual property or generate at least 50% of revenue in the Commonwealth

Mandates selling taxpayers use exchange funds for allowable expenditures (construction, real estate, salaries, R&D, working capital) and continue doing business in Pennsylvania for 5 years or face prorated forfeiture of funds

Imposes a $3,500 nonrefundable application fee with June 30 annual deadline, requires annual program reporting by March 1, and establishes misdemeanor penalties up to $2,000 fine and 3 years imprisonment for fraudulent applications