Last week, the PA Chamber celebrated the enactment of a monumental tax reform package at a ceremonial bill signing with elected officials and partners in the business community who worked together to bring the long sought-after achievement to the finish line.
The coalition convened in the Governor’s Reception Room at the state Capitol with Gov. Tom Wolf, who initially signed Act 53 of 2022 along with the 2022-23 state budget in July.
PA Chamber President and CEO Luke Bernstein stood alongside the governor, former PA Chamber President and CEO Gene Barr, former Vice President Sam Denisco, the PA Chamber’s Government Affairs team, legislative leaders, local chamber executives, and business leaders who helped develop and advocate for this significant tax reform measure as it moved through the legislative process.
PA Chamber members at the ceremonial bill signing included Buchanan Ingersoll & Rooney, the Pennsylvania Institute of Certified Public Accountants, Baker & Hostetler LLP, Grant Thornton, Cozen O’Connor, Reed Smith LLP, and PA Chamber Board Chairman Nick Bertram; as well as representatives from the Greater Pittsburgh Chamber of Commerce and the Chamber of Commerce of Greater Philadelphia.
Act 53 will gradually cut Pennsylvania’s Corporate Net Income Tax in half, from 9.99 percent – where it currently stands as the second highest flat rate in the nation – to 4.99 percent by 2031, when it is expected to be the 8th lowest in the country. The new law also levels the playing field for small businesses, allowing for like-kind exchanges and a tax deduction for qualifying equipment purchases. Details of the law are available on our website.
Several nonpartisan studies have already shown that Act 53 is paying dividends and making Pennsylvania more attractive to business investment. The Commonwealth climbed six spots to No. 16 in Site Selection magazine’s “2022 Business Climate” rankings; and the Tax Foundation’s most updated analysis of Pennsylvania’s corporate tax structure cited Act 53 as the reason the state went from No. 44 to No. 27, with our overall competitiveness going from No. 29 to No. 17.
“It’s a great pleasure for Pennsylvania’s business community to join Gov. Tom Wolf to celebrate this bipartisan victory for Pennsylvania. Our shared achievement in lowering Pennsylvania’s Corporate Net Income tax rate – and removing what had long been a major red flag to private sector investment – was a goal three decades in the making, and one that instantly makes Pennsylvania a more attractive place to do business,” Bernstein said in a statement following the bill signing.
“As we look toward the future, the Pennsylvania Chamber is excited to continue this spirit of collaboration. We are committed to seeing through the scheduled phase-down of the CNI; achieving additional tax reforms, such as improving the treatment of Net Operating Losses; regulatory and permitting reform; strengthening workforce development; and more,” he added.
“Compromise can be elusive in a divided political climate, but our success achieving tax reform is proof that when we put politics aside and do what’s best for Pennsylvania, we can achieve great things.”