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Pennsylvania Supreme Court finds net loss carry-over deduction cap violates uniformity clause, severs fixed dollar limitation

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On Oct. 18, 2017, the Pennsylvania Supreme Court held that the fixed dollar limitation of Pennsylvania’s net loss carry-over deduction provision, as applied to Nextel Communications in 2007, violated the Uniformity Clause of the Pennsylvania Constitution. In fashioning a remedy, the court severed the flat $3 million cap from the statute, while retaining the 12.5 % limitation.