The state recently lowered its Corporate Net Income Tax (CNIT) rate.
Pennsylvania’s rate of 9.99 percent was second highest among the 44 states that levy a CNIT. The state will eventual lower this rate to 4.99 percent which would make it the seventh lowest rate in the country. The change is expected to make the business environment more competitive.
A CNIT is a state tax that businesses pay on their corporate profits. It is one of the things companies consider when deciding where to establish business operations.
Gov. Tom Wolf hopes the change will signal to business leaders that Pennsylvania is open for business. Wolf also welcomed businesses to establish new operations in Pennsylvania or expand current ones.
Wolf met Monday with business and economic leaders at the York County Economic Alliance to celebrate the new CNIT rate.
“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,” Wolf said. “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.”