Erie County Times

On August 8, Gov. Tom Wolf met with business and economic leaders at the York County Economic Alliance where they celebrated the newly lowered Corporate Net Income Tax (CNIT) rate, according to a statement from Wolf's office.

This new CNIT has been set at 4.99% tax, and Wolf said it is to create a more competitive business environment that will bring well-paying jobs to the area and help the state’s economy moving forward. This rate is half of the former 9.99% tax rate and puts Pennsylvania as the seventh lowest CNIT rate in the country. Pennsylvania’s tax rate of 9.99% was the second highest in the nation among the 44 states that have a CNIT. The CNIT is a state tax paid by businesses through their profits.

“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.”

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. He is proud to have worked with a bipartisan group of legislators, along with Wolf, to make the tax reform 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.”

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.

Reps. Mary Jo Daley, Carol Hill-Evans and Greg Rothman helped Wolf with the CNIT, and Daly said she was proud to be a sponsor on the legislation.

“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,” Rep. Daly said.