May. 03, 2022
HARRISBURG – In an effort to boost job creation and our state’s economy, Rep. Parke Wentling (R-Crawford/Erie/Lawrence/Mercer) was proud to join an overwhelming majority of his colleagues in passing legislation last week that would reduce the Corporate Net Income Tax (CNIT) rate and provide additional tax relief to job creators.
“This legislation will encourage economic growth in the Commonwealth by expanding existing businesses, attracting new investments and creating family-sustaining jobs,” said Wentling.
The Commonwealth owns one of the highest CNIT rates in the United States. House Bill 1960, sponsored by Rep. Josh Kail (R-Beaver/Washington), would lower our rate from 9.99% to 8.99% starting in January. There would be further reduction in future years if the Commonwealth has a General Fund surplus of more than $500 million.
The measure would also increase the cap on net operating losses to 45% or as much as 50% of taxable income if the Commonwealth has a General Fund surplus of more than $750 million.
Employers weighed in on this significant passage, saying this bill makes Pennsylvania more inviting and competitive.
"For too long, Pennsylvania's uncompetitive business tax climate has served as a deterrent to potential investors," said PA Chamber President and CEO Gene Barr. "House Bill 1960
will go a long way toward lowering the cost of doing business in the Commonwealth by reducing the state's excessively high Corporate Net Income Tax and increasing the cap on Net Operating Loss deductions. As we collectively look toward Pennsylvania's long-term, post-pandemic recovery, this legislation is a key component to helping the state achieve its full economic potential. On behalf of the Commonwealth's broad-based business community, we applaud Rep. Wentling and his House colleagues for taking a stand for Pennsylvania job creators and supporting this important legislation."
“As the lead economic development agency in Mercer County, Penn-Northwest Development Corporation applauds the legislature for the passage of House Bill 1960 that lowers the Corporate Net Income tax,” said Rod Wilt, the company’s executive director. “As the U.S. economy continues to recover from the pandemic, Pennsylvania should be looking for ways to lower the cost of doing business here, and the CNIT is one tax that is higher than most of our neighboring states. This action, when taken together with other economic development incentives, makes us more competitive as we look to provide affordable solutions for business attraction, retention and expansion. We look forward to House Bill 1960’s full passage by the Senate and the signature of Governor Wolf.”
The bill passed the House by a vote of 195-8 and now goes to the Senate for consideration.
Representative Parke Wentling
17th Legislative District
Pennsylvania House of Representatives
Media Contact: Nate Temple