Philly Leader

On August 8, Gov. Tom Wolf (D-PA) met with business and economic leaders at the York County Economic Alliance where they celebrated the lower Corporate Net Income Tax (CNIT) rate.

According to a press release by Wolf's office, the new tax rate helps Pennsylvanians with a 4.99% tax rate, for what Wolf said is toward creating a more competitive business environment that brings well-paying jobs to the area and help the state’s economy moving forward.

“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 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.”

The rate is half of the current 9.99% tax rate. It puts Pennsylvania as the seventh lowest CNIT rate in the country. The CNIT is a state tax paid by businesses through their profits. Pennsylvania’s tax rate of 9.99% was the second highest in the nation among the 44 states that have a CNIT. It created a barrier for the state’s ability to bring in new businesses and create new jobs.

Luke Bernstein, the president and CEO of the PA Chamber of Business and Industry, said they were celebrating a new chapter in the state’s history.

“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,” Bernstein said. “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.”

Department of Community and Economic Development Acting Secretary Neil Weaver said that lowering the CNIT makes the commonwealth of Pennsylvania more intriguing for businesses to come to the state. It also attracts economic development projects. He said this means more jobs and investments coming to Pennsylvania.

“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,” Weaver said.

Wolf’s statement touted Pennsylvania as a great place to do business and said that the CNIT rate is just another benefit. Others include that it is a strategic East Coast location that is a day’s drive to about 40% of the U.S. population and 60% of the Canadian population; the fact that there are world class higher education and research institutions including six universities in the top 100 in the country; and affordable cost of living.

Reps. Mary Jo Daley, Carol Hill-Evans and Greg Rothman helped Wolf with the CNIT, in what was a bipartisan effort.

“Gov. Wolf has asked for a reduction of the CNIT in nearly every budget he introduced, and I have been proud to sponsor legislation in several sessions to get that done,” said Rep. Daley. “Working with staff in the Department of Revenue and the House Democratic Appropriations Committee, I am hopeful that the plan for reducing the CNIT will encourage new businesses and manufacturers to open shop in Pennsylvania, creating good jobs and boosting local economies.”