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Pennsylvania's new low corporate tax rate attracts businesses and good jobs

Governor Tom Wolfe joined business and economic leaders from the York County Economic Union in celebrating Pennsylvania’s new lower corporate net income tax (CNIT) rate. That puts Pennsylvania on the road to his 4.99% for a healthier and more competitive business environment. – Create jobs and move the economy forward.

“Since taking office, I have called for a lower corporate net income tax rate, and I am thrilled that the last budget did this,” said Gov. Wolfe. “These low interest rates are game-changing for businesses in Pennsylvania.

Pennsylvania is officially on the road to a CNIT rate of 4.99%, half of the current 9.99%.

Luke Bernstein, President and CEO of the PA Chamber of Commerce, said: “We are proud to have worked with Governor Wolfe and the bipartisan coalition of lawmakers, and thank you for working with us to realize these long-sought goals for tax reform. Our collective effort to put Pennsylvania’s economic future first at a time when compromises seem elusive will greatly enhance federal competitiveness. and send an important message to job creators and investors around the world that Pennsylvania is open to business.We believe Pennsylvania is a great place to live, work and raise a family. We look forward to building on this momentum with additional growth-enhancing reforms that we will accelerate as a company.”

The CNIT is a state tax paid by businesses in Pennsylvania on their corporate profits. This is a key part of the state’s business tax environment that influences companies in deciding where to establish their job-creating operations. Pennsylvania’s 9.99% tax rate was her second highest among the 44 states that impose CNIT. The 9.99% tax rate has often been an obstacle to Pennsylvania’s ability to attract new business and jobs.

By making Pennsylvania’s business environment more competitive with lower CNIT rates, Gov. Wolf welcomes businesses to settle here or expand their current operations. Both will lead to new high-paying jobs for Pennsylvanians. It also instantly informs business he leaders that Pennsylvania is open for business.

“By lowering the CNIT, Pennsylvania will be more competitive in attracting business and economic development projects, meaning more jobs and investment will be brought to our communities,” said the Department of Community and Economic Development. Acting Secretary Neil Weaver said. “It also demonstrates our commitment to keeping Pennsylvania’s existing businesses federal by providing a business environment that is meaningful to the company’s bottom line as it continues to grow. increase.”

Pennsylvania’s new competitive CNIT rates are just another advantage that makes Pennsylvania a great place to do business.

  • It’s a strategic location on the east coast that approximately 40% of the US population and 60% of Canada’s population can drive to in a day.
  • A workforce supported by a world-class higher education and research institution with six universities ranked in the nation’s top 100.
  • Affordable cost of living and abundant recreational and cultural opportunities.

Reducing Pennsylvania’s CNIT rate was a bipartisan effort and priority. Gov. Wolf joined today with Rep. Carol Hill Evans, Rep. Mary Jo Daly, and Greg Rothman.

“Governor. Wolfe has called for CNIT cuts in nearly every budget he has introduced, and I am proud to sponsor legislation in several sessions to achieve that,” Daly said. MP said. “Working with the staff of the Department of Revenue and the House Democratic Appropriations Committee, our plan to reduce CNIT will encourage new businesses and manufacturers to open stores in Pennsylvania, creating good jobs and boosting the local economy. I hope that.”

The CNIT cut is one of a series of actions that reinforce Gov. Wolfe’s commitment to improving Pennsylvania’s business climate, including eliminating outdated capital and franchise taxes and investing heavily in education and the workforce.