Pa. cuts corporate net income tax nearly in half in order to attract more industry

Pennsylvania is on a path to create a more competitive business environment after Gov. Tom Wolf announced that the state's corporate net income tax will be cut nearly in half.

On Monday, the governor joined business and economic leaders at the York County Economic Alliance to celebrate that lower tax rate, according to a press release.

“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.”

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CNIT is a state tax paid by businesses within the state on their corporate profits. It is a major factor in companies’ decisions on where to establish job-creating businesses. Pennsylvania's former CNIT was 9.99 percent, the second highest in the country among the 44 states that levy the tax, according to the release.

The new rate would be 4.99 percent, which will place the commonwealth as the seventh lowest CNIT rate in the nation.

With this lower rate, Pennsylvania business leaders are hoping to attract more businesses to set up operations or expand their current operations to the commonwealth in order to create more jobs.

This article originally appeared on York Daily Record: Pa. cuts corporate net income tax nearly in half