Lehigh Times

Earlier this month Gov. Tom Wolf met with business leaders at the York County Economic Alliance to celebrate the newly lowered Corporate Net Income Tax (CNIT) rate.

According to a press release on August 8, the new rate has been lowered from 9.99% to 4.99% to help create a more competitive business environment to bring good jobs to the area, and to help with the state’s economy.

“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 former plan gave Pennsylvania at the second highest rate in the country among the 44 states with a CNIT. The new rate has Pennsylvania as the seventh lowest. The former rate reportedly created barriers for the commonwealth’s ability to attract new businesses and create jobs.

Luke Bernstein, the president and CEO of the PA Chamber of Business and Industry, said this is a new chapter in the state’s history, and said he was proud to work alongside Wolf and a bipartisan group of lawmakers to make the new tax rate a reality.

“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,” Bernstein said. “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.”

Reps. Mary Jo Daley, Carol Hill-Evans and Greg Rothman helped Wolf with the CNIT as well, and Daley said she was proud to sponsor legislation that has worked for a reduction in the rate.

“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,” Daly said.

Department of Community and Economic Development Acting Secretary Neil Weaver said that lowering the CNIT makes Pennsylvania more attractive for businesses to come to the commonwealth, and more likely to attract economic development projects.

“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.