State Sens. Ryan P. Aument (R-Lancaster County) and Sen. Greg Rothman (R-Cumberland/Dauphin/Perry) plan to introduce legislation soon in the state Senate that would accelerate the reduction of the Commonwealth’s Corporate Net Income Tax (CNIT) rate.
The state’s CNIT rate was reduced in the tax reform package enacted as part of the 2022-2023 budget. The CNIT will drop from 9.99 percent to 4.99 percent over nine years.
The proposed legislation would include an immediate drop to 7.99 percent. It would then be reduced by 1 percent every Jan. 1 until 2026, when it would reach 4.99 percent. This would accelerate the reduction by five years.
“While we applaud this historic change, we believe Pennsylvania should not have to wait a decade to experience the full benefits of the lower rate,” the senators said in a memorandum to all Senate members.
“The benefits of a more competitive business tax code go far beyond improving the state’s business climate. Studies have shown that decreasing the CNIT leads to increased (gross domestic product), higher wages, and increased home values, all of which create family-sustaining jobs and attract and retain new talent.”
The senators requested their colleagues support the legislative proposal.