PITTSBURGH – Sen. Devlin Robinson (R-37) joined Senate Majority Leader Kim Ward (R-39) and members of local businesses and chambers of commerce to discuss Pennsylvania’s business climate.
“Through bipartisan collaboration, recent reforms to Pennsylvania’s tax code are a vital step in driving the Commonwealth’s competitiveness forward and showing that we are open for business,” said Robinson. “We heard from chamber members today on how we can help encourage employers to stay in western Pennsylvania and to invest and expand here. These steps line Pennsylvania up to become one of the most competitive states in the country to start a business.”
Chambers of commerce members and individuals from local businesses gathered to discuss how the recently enacted Corporate Net Income Tax (CNIT) reduction will foster a positive economic environment in the Commonwealth and what a strong business climate means for Pennsylvanians.
Enacted as part of the 2022-23 budget agreement, reforms to Pennsylvania’s Tax Code include a long overdue reduction to the state’s CNIT rate from 9.99% to 4.99%, cutting it in half over the course of nine years. Once fully implemented, Pennsylvania will go from imposing one of the nation’s highest CNIT tax rates, to the eighth lowest in the country.
The tax package also includes relief for small businesses by affording them the opportunity to defer personal income tax liabilities through “like-kind exchanges” of certain property. This provision allows employers to invest in the job-creating assets they need to stay competitive.
Additionally, the reforms align the state Tax Code with federal tax law by allowing small businesses to deduct qualifying equipment purchases from personal income tax liabilities, just as federal tax law provides for under Section 179. This change makes it easier for employers to buy equipment and invest.
Video: Roundtable discussion.
CONTACT: Elizabeth Weitzel, 717-787-5839