Help Businesses Grow + Thrive
We must reward innovation and expand Pennsylvania’s role as a world leader in fast-growing, high-technology industries with a competitive tax structure and invest in our entrepreneurs making business happen, from our largest employers to the local businesses improving their communities.
Reduce corporate taxes
Pennsylvania has one of the highest Corporate Net Income Tax rates in the country, which serves as an immediate ‘stop’ sign to companies looking to come here. We can cut taxes on employers creating good-paying jobs in the commonwealth by reducing the Corporate Net Income Tax from one of the highest in the nation -- currently 9.99% -- to one of the lowest in the region at 6.99%.
Make the business tax system more fair
We should protect PA-based businesses by strengthening add-back provisions, allowing the Department of Revenue to request additional documentation when there is substantial reason to believe income has been shifted to affiliated entities. This shift in policy will put us on par with what other states are already doing to protect their business communities.
Support small businesses and start-ups
We can reward investments in high-tech, high-wage jobs by accelerating the Net Operating Loss Carry-Forward, allowing companies that invest in new technology to write off more of that investment on their taxes. Pennsylvania is one of only two states that cap the Net Operating Loss (NOL) tax deduction (currently capped at 40 percent). Removing the NOL deduction cap benefits corporations that have large up-front investments or experience cyclical losses over time. This specifically helps biotechnology and medical companies that take the most risk in research and development -- making this change would encourage them to continue to invest in innovation.
To help start-ups succeed when coming to the market, we should invest more in existing university-based entrepreneurship programs including Infrastructure Technical Assistance and programs at other universities
To grow high-tech companies, we should support existing programs that match workers to employers by ensuring they have the skills they need.
We should build Pennsylvania’s role as a biotechnology leader by increasing funding for research and development tax credit caps and award caps and making them refundable. Currently, this tax credit is tapped out because so many companies want in. We have worthy projects waiting, but no funding left to support them. Further investment in this tax credit will increase research and development spending, resulting in more jobs and higher wages for our graduates.