Governor Tom Wolf was joined by business and economic leaders at the York County Economic Alliance to celebrate Pennsylvania’s new, lower Corporate Net Income Tax (CNIT) rate that puts Pennsylvania on a path to 4.99% for a more competitive business environment that attracts good-paying jobs.
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“I’ve been calling for a lower Corporate Net Income Tax rate since I first took office and I’m thrilled that we were able to make this happen in my last budget,†said Governor Wolf.
“This lower rate is a game-changer for business in PA. We’re going to ensure tax fairness, make Pennsylvania a top location for businesses, and bring new, good-paying jobs here for Pennsylvanians.â€
Pennsylvania is officially on a path to a 4.99% CNIT rate — half of its current 9.99% rate — which will place the commonwealth as the seventh lowest CNIT rate in the nation.
CNIT is a state tax paid by businesses within Pennsylvania on their corporate profits.
It is a major piece of states’ business tax climate that contributes to companies’ decisions on where they decide to establish job-creating business operations.
Pennsylvania’s 9.99 percent rate was the second highest in the country among the 44 states that levy a CNIT. The 9.99 percent rate often posed a barrier to Pennsylvania’s ability to attract new business and new jobs.
“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.â€
Pennsylvania’s new, competitive CNIT rate is just one more benefit that makes Pennsylvania a great place to do business, including:
A strategic East Coast location within a day’s drive of nearly 40 percent of the United States population and 60 percent of the Canadian population.
A workforce fueled by world-class higher education and research institutions with six universities ranked in the top 100 nationwide.
An affordable cost of living paired with abundant recreational and cultural opportunities.
Reducing Pennsylvania’s CNIT rate was a bipartisan effort and priority. Governor Wolf was joined today by Representatives Carol Hill-Evans, Mary Jo Daley, and Greg Rothman. ■