A petition for certiorari has been filed with the U.S. Supreme Court in a case in which the Pennsylvania Supreme Court upheld the portion of the Commonwealth Court decision holding that the cap on net loss carryover for tax year 2007 violated the Uniformity Clause of the Pennsylvania Constitution, but it reversed the Commonwealth Court’s remedy of allowing an unlimited deduction in favor of severing the $3 million flat dollar cap from the law. The taxpayer had challenged the net loss carryover (NLC) deduction as in effect in 2007 on the basis that the provision limiting the deduction to the greater of $3 million or 12.5 percent of taxable income violated the Uniformity Clause of the Pennsylvania Constitution by unfairly discriminating against taxpayers with taxable income greater than $3 million. The state high court found that striking the $3 million flat cap and keeping the remaining 12.5 percent net loss deduction most closely comported with a clear intent on the part of the legislature to balance the twin goals of encouraging corporate investment through allowing the NLC while ensuring the state’s financial health by capping the amount that may be deducted in a given tax year. (Nextel Communications of the Mid-Atlantic, Inc. v. Commw., Pa. S.Ct., Dkt. No. 6 EAP 2016, 10/18/2017, cert. filed U.S. S.Ct., Dkt. No. 17-1506, 05/03/2018.) (See our prior coverage herehere and here.)