|Posted:||October 13, 2020 02:37 PM|
|From:||Representative Natalie Mihalek|
|To:||All House members|
|Subject:||Competing on a Global Stage: Tax Reform for Economic Growth|
|Pennsylvania’s Corporate Net Income Tax (CNIT) has served as a deterrent to economic growth in the Commonwealth for generations. As Pennsylvania works to emerge from the economic downturn caused by COVID-19, and at a time when businesses are planning investments that will lead to the next phase of economic growth, we cannot afford to stay at a competitive disadvantage any longer. Pennsylvania’s sky-high CNIT and punitive, restrictive rules for NOLs (net operating losses) make the Commonwealth an unattractive outlier on the global stage. The time for change is now.
To that end, I will be introducing legislation to reduce the CNIT rate – which is currently the third-highest rate in the nation – from 9.99% to 5.99% by January 1, 2025. To encourage new entrepreneurs and help businesses create more jobs, this legislation will also increase the cap on NOL carryforward in the CNIT to 50% of taxable income by January 1, 2022.
I look forward to working with you on this proposal, which is part of the Commonwealth’s COVID Comeback legislative package.