Gov. Tom Wolf recently highlighted his plan, backed by legislation sponsored by state Sen. Steve Santarsiero and Rep. Mary Jo Daley, to pave the way for new business opportunities, good jobs and a stronger economy by reducing and modernizing Pennsylvania’s Corporate Net Income Tax.
“In Pennsylvania, our Corporate Net Income Tax is one of the highest in the nation and it’s holding our commonwealth back,” said Wolf. “Businesses are asked to pay more than their fair share, it’s a barrier to new business growth, and limiting opportunities for our workers and new student graduates.
“My plan to lower this tax on Pennsylvania’s businesses is an opportunity to support Pennsylvania’s businesses and families, to ensure that students can find good jobs, and to remove barriers to new business and innovation in the commonwealth.”
Wolf wants to reduce the CNIT from 9.99 to 7.99 percent on Jan. 1, 2023, with a reduction to 6.99 percent in tax year 2026 on a path to 4.99 percent. His plan would also modernize the current structure to level the playing field for all businesses. Combined, this lower tax rate and modernization would immediately make the commonwealth more competitive with surrounding states and improve the overall business climate.
“It is past time we level the playing field for our Pennsylvania-based businesses,” said Santarsiero. “Fiscally, the commonwealth is in a position right now to improve our corporate tax system and set the stage for a more vibrant economy. The changes we are proposing today will support our local businesses and incentivize new start-ups in Pennsylvania.”
Santarsiero and Daley are sponsoring legislation to support the governor’s plan with Senate Bill 1077 and House Bill 2510.
