Jan. 07, 2026
WAYNE/SUSQUEHANNA COUNTY – To remain competitive, Pennsylvania must encourage and cultivate businesses on the leading edge of technology. That is why Rep. Jonathan Fritz (R-Susquehanna/Wayne) is co-sponsoring legislation,
House Bill 1129, which would help start-up businesses convert their net operating losses to capital.
“Pennsylvania is fortunate to be home to many new and exciting ventures, especially in the technology and biotechnology arena, but those businesses also face significant challenges when entering the marketplace, requiring years of development before maturing as a business,” Fritz explained. “These companies often have a need to raise capital to scale and bring innovations to life; however, Pennsylvania isn't, at present, a desirable place for such start-ups.
“The competition for capital often results in the relocation of such businesses to other states with a more favorable climate. We simply want to level the playing field. I am a highly competitive person, and I bring that attitude to Harrisburg. Pennsylvania should always be in the mix when companies are looking to start up or move operations. We have all the ingredients needed to prosper, like great institutions of higher education, quality health care networks, ample recreation opportunities, ideal geographic proximity and a hardworking mindset. We just need a more pro-business environment."
The proposed legislation will allow early-stage businesses to sell their net operating losses and unused research and development tax credits to unrelated companies, converting their losses to capital. It would permit monies received from these sales to be used to build and grow the operating business here in Pennsylvania, investing in high-paying jobs within the Commonwealth.
“Qualifying businesses would be provided a valuable source of non-dilutive capital during the most vulnerable period of their development. Bolstering these new and innovative businesses supports the creation of good jobs within in-demand industries and serves to strengthen Pennsylvania’s economy now and into the future,” Fritz concluded.
House Bill 1129 was referred to the House Appropriations Committee in December 2025, where it awaits a committee vote.
Representative Jonathan Fritz
111th Legislative District
Pennsylvania House of Representatives
Media Contact: Melissa Fox
717.260.6522
mefox@pahousegop.com
RepFritz.com / Facebook.com/RepFritz