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High Tech & Manufacturing Stimulus Act
In December, I was pleased to introduce the High-Tech &
Manufacturing Stimulus Act along with my colleague, Senator
Browne. The legislation – Senate Bill 1229 (SB 1229) – is
designed to help Pennsylvania compete successfully for new
jobs and investment by addressing business tax
competitiveness problems. It calls for two changes that
will significantly improve Pennsylvania’s business climate
in a fiscally responsible manner through a two-year phase
in.
The first change is a proposal to adjust gradually the
apportionment formula for the Corporate Net Income Tax (CNIT)
to a formula based exclusively on a corporation’s sales.
The “Single Sales Factor” weights sales to encourage
companies to increase capital investment and employees in
Pennsylvania. The second change phases out the existing Net
Operating Loss (NOL) cap that currently limits the ability
of cyclical companies (manufacturers, high tech companies
and start-up companies) to offset their income with losses
each year. Only one other state – New Hampshire – places
such a restriction on carry over.
Pennsylvanians are concerned about our economy. Although we
have experienced growth in the past few years, that growth
has slowed now. Recent actions by the federal government
and proposals by our state government are intended to
stimulate our economy to ensure that there is money in the
hands of American workers and businesses. I believe that
the best way to do that is to improve Pennsylvania’s tax
climate so that we will see job growth, business investment,
and new economic development and, in turn, a robust and
healthy economy.
The action by the Senate’s Finance Committee to unanimously
move SB 1229 forward last month indicates to me that many of
my colleagues want to address this issue too. As we begin
moving through the budget process and determining what our
members’ priorities are, I encourage you to lend your
advocacy and expertise to make the case for these business
tax changes. So, please – weigh in and share what these
changes would mean to your business with your Senator and/or
Representative. I look forward to working together with you
as we keep Pennsylvania moving forward.
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