CompetePA is a coalition of businesses and organizations representing more than half the private sector employment in Pennsylvania that wants to see the Commonwealth compete successfully for new jobs and investment.

The Coalition has been working since 2005 to solve the serious business tax competitiveness problem in PA. We work to educate legislators about the need to eliminate the cap on Net Operating Loss (NOL) carryforwards and lower the overall rate of the Corporate Net Income (CNI) tax. These steps are necessary to begin to close the gap with growing competitor states.

The Case for Change

  • Overall, we have one of the least competitive corporate tax environments in the country. In 2022, the Commonwealth is ranked 44th out of 50 states in the Tax Foundation’s Corporate Tax Rank; only six states were listed as having a worse corporate tax environment.
  • Pennsylvania is one of only a few states in the nation that caps the usage of net operating losses (NOLs), and we have the highest non-graduated Corporate Net Income (CNI) tax rate in the country, at 9.99 percent.

2022 Policy Priorities

As regions look to recover and thrive in a post-pandemic world, now more than ever we need to ensure the commonwealth is competitively positioned to retain and recruit business investment. It is imperative that we focus on ways in which we can harness true economic growth that will ultimately contribute to community vibrancy and to the creation of good, family-sustaining jobs.

In order to help Pennsylvania be in the best possible position to achieve economic growth and recovery, the CompetePA Coalition urges lawmakers to consider its 2022 policy priorities:

  • We encourage lowering the Corporate Net Income tax (CNI) rate from the highest flat rate in the nation. We strongly believe that a material reduction of this highly uncompetitive rate will result in greatly enhanced economic growth, which will generate an increase in state tax revenue.
    • UPDATE: In July 2022, the Pennsylvania legislature passed a tax reform package that included the reduction of the CNI tax rate. The rate will reduce 1% on January 1, 2023, to 8.99%, and will decrease by 0.5% each year until it reaches a rate of 4.99% in 2031, ultimately cutting the current rate in half.
  • The cap on the usage of Net Operating Losses (NOLs) should be fully lifted. Pennsylvania is one of only a few states that caps the amount of NOLs a company can offset against its current corporate net income. Additionally, the coalition supports removing the time limitation a business may carry forward a net operating loss.
  • We oppose any subjective, broad expansion of the Department of Revenue’s taxing authority.  The coalition also opposes any reforms which are proposed in an overreaching and/or ambiguous manner, as this creates uncertainty and invites litigation.  Finally, no policies that would enhance state revenue should be made retroactive to the taxpayer.
  • Proposals to make the Commonwealth’s business climate more competitive should not target businesses unequally. Rooted in the uniformity clause found in the Constitution of the Commonwealth of Pennsylvania, the coalition encourages policy makers to consider any tax reform holistically and through a pro-economic growth lens.

Snapshot Analysis

Analysis provided by the Pennsylvania Economy League of Greater Pittsburgh, an affiliate of the Allegheny Conference.

Members of CompetePA

CompetePA has over 160 members throughout Pennsylvania – including statewide and regional business groups, small businesses and Fortune 500 companies. CompetePA has been representing the business community on corporate tax issues for more than fifteen years.

Download our 2022 Membership List

Recent Information, Reports & Communications

Join CompetePA

We invite you to join the coalition. If your business or organization supports the policy priorities outlined above, please complete the contact information below. Your organization’s name will then be added to our membership list.