In an effort to attract new businesses to the commonwealth, Pennsylvania plans to reduce its corporate tax rate by half.
Currently, Pennsylvania’s 9.99% Corporate Net Income Tax (CNIT) rate is the second highest in the nation. New changes have placed Pennsylvania on a path to 4.99% tax rate, or approximately half its current rate. The CNIT rate reduction will make Pennsylvania the seventh lowest in the nation. Legislators are hopeful this bi-partisan effort will create a healthier, more competitive business environment to attract good-paying jobs into the commonwealth.
“This lower rate is a game-changer for business in PA,” said Gov. Wolf. “We’re going to ensure tax fairness, make Pennsylvania a top location for businesses, and bring new, good-paying jobs here for Pennsylvanians.”
“We are here to celebrate a new chapter in Pennsylvania’s story and to highlight what we can collectively achieve when we work together by putting Pennsylvania first,” said Luke Bernstein, president and CEO of the PA Chamber of Business and Industry. “We are proud to have worked alongside Gov. Wolf and a bipartisan coalition of lawmakers and want to thank the governor and legislative leaders for working with us to make these long sought-after tax reform goals a reality. At a time when compromise can seem elusive, our collective efforts to put Pennsylvania’s economic future first has made our commonwealth significantly more competitive and sends the important message to job creators and investors worldwide that Pennsylvania is open for business. We look forward to carrying this momentum forward with additional pro-growth reforms that promote Pennsylvania as the best place to live, work, and raise a family.”
“Lowering the CNIT makes Pennsylvania more competitive in attracting business and economic development projects and means more jobs and more investment coming into our communities,” said Department of Community and Economic Development Acting Secretary Neil Weaver. “This also shows that we are committed to keeping existing Pennsylvania businesses here in the commonwealth by offering a business climate that makes sense for companies’ bottom line as they continue to grow.”