Igniting PA's Economy

Pennsylvania has the second highest corporate income tax rate in the nation. Only New Jersey's rate is higher.

Pennsylvania’s current rate Corporate Net Income tax (CNIT) rate tax is 9.99%. With neighboring states ranging in rates from 6.0% to 7.25%, Pennsylvania is essentially eliminated from the list of states where companies are looking to relocate or expand. 


PA House Majority Leader Kerry Benninghoff on the bill:

“The House Republican Caucus is focused on passing legislation to make Pennsylvania the Envy of the East—to set our economy on fire so as to drive investment, create family-sustaining jobs, and grow our communities. The concepts in this legislation have bipartisan support and are seen as critically necessary to change the perception of Pennsylvania’s lack of openness to receiving additional investment. This is strong pro-growth legislation that will provide good jobs for Pennsylvanians and stand up for taxpayers and Pennsylvania families. This is legislation that, while just a start, will strengthen our communities, help stop our brain drain and bring investment into our state. We will never stop working to increase investment in Pennsylvania and grow our economy and there is more to come.” 

PA House Speaker Bryan Cutler on the bill:

"Today's historic vote shows that Pennsylvania is open for business. This is a crucial step in ensuring we can attract and retain job creators of all sizes, growing family-sustaining careers across Pennsylvania. For many years, our state has been burdened by carrying the title of having the second highest CNIT in the country. This distinction has kept countless industries, companies and employers from investing and expanding in Pennsylvania. This bill levels the playing field as we compete to attract employers and industries to our Commonwealth."




The tax reduction legislation would lower the Corporate Net Income Tax by one percentage point to 8.99 percent starting Jan. 1, 2023, with additional triggers to further lower the tax rate in future years. 

It's been two years....

Bill sponsor Rep. Josh Kail (R-Beaver/Washington) on the legislation

Promoting Tax Fairness for Pennsylvania Employers

PA House Republicans have taken additional action to help simplify tax issues and address issues of fairness for employers across Pennsylvania. 

These measures include: 

HB 199 (Dunbar): Allows a person to claim a deduction for depletion of mines, oil and gas wells, and other natural deposits by using a cost or percentage depletion.  *

HB 285 (Metcalfe): Defines income relating to distributions from an Employee Stock Ownership Plan. * 

HB 324 (White): Extends the authorized net operating loss carry-forward period for businesses with certain tax liabilities in the City of Philadelphia to 20 years. *
   
HB 333 (Nelson):   Permits an expense deduction for the cost of certain businesses’ property. *

HB 385 (Dunbar):  Provides for a forgiveness of indebtedness granted under the Coronavirus Aid, Relief, and Economic Security Act or Consolidated Appropriations Act, 2021, from Personal Income Tax. *

HB 1006 (Metzgar): Allows a person to recognize crop insurance proceeds as income in the taxable year following the taxable year in which the insurance proceeds are received. * (Included in Act 25 of 2021)

HB 1059 (Hickernell):  Increases the threshold that subjects taxpayers who expect to receive Pennsylvania taxable income, not subject to withholding, to make quarterly estimated tax payments. *

HB 1960 (Kail):  Increases the limitation for a net loss deduction to 80% of taxable income over a 4four-year period. *

HB 2277 (Topper):  Suspends the requirement for licensees to file a return and remit an early payment for sales tax liabilities. *

HB 2386 (B. Miller):   Excludes certain fencing materials and supplies from Sales and Use Tax. 

SB 349 (Hutchinson):   Permits an expense deduction for the cost of certain businesses’ property. 

Act 25 of 2021:  Converted the existing Computer Data Center Equipment Incentive Program to an exemption program; omnibus amendment provided exclusion from sales tax for the purchase of multipurpose agricultural vehicles used in farming operations; and provided changes to existing tax credit programs. 

Act 17 of 2022:  Aligns the deadline to file certain final local tax returns with the deadline to file final state income tax returns.