Site Selection Magazine released its 2022 Business Climate Rankings, and Pennsylvania climbed six spots to No. 16. The rankings consider several factors, including workforce skills; state and local tax scheme; workforce development; transportation infrastructure; ease of permitting and regulatory procedures; land/building prices and supply; utilities; incentives; higher education resources; and quality of life.
These rankings come on the heels of the Tax Foundation’s updated analysis of how pro-growth reforms recently enacted in Pennsylvania improved our ranking among states. With the enactment of Act 53, which included the CNI reduction, as well as small business tax reforms (Section 1031 like-kind exchanges and Section 179 expense deductions), Pennsylvania’s corporate tax structure went from No. 44 to No. 27, while our overall competitiveness went from No. 29 to No. 17.
Pennsylvania also climbed six spots this year in CNBC’s annual rankings of the top states for business, from No. 23 to No. 17. The financial news outlet gave the state high marks among states for the quality of its educational systems, technology and innovation sectors, access to capital, and infrastructure, but scored Pennsylvania at the middle or lower end for economic growth, workforce, and business friendliness measures.
The PA Chamber is committed to working with our allies in state government and our members to continue making Pennsylvania’s business tax climate more competitive, including maintaining or even accelerating the CNI phase down, improving the treatment of net operating losses, and other reforms to encourage private sector investment and job growth.