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 problems that are contributing to the low rate of job creation in Pennsylvania, educating legislators about the need to finalize the phase-out of the Capital Stock & Franchise tax, lower the overall rate of the Corporate Net Income (CNI) tax, and eliminate the cap on Net Operating Loss (NOL) carryforwards. These steps are necessary to begin to close the gap with growing competitor states.

The Case for Change
Policy Priorities
In the News
Get Involved
Coalition Members
Learn More
Contact Us

The Case for Change

  • The Commonwealth is one of only a handful of states in the nation to tax both business income (with a Corporate Net Income Tax) and assets (with a Capital Stock & Franchise Tax)
  • The state's 9.99% CNI tax rate is now the second-highest in the nation and a red flag to existing and potential new businesses about how serious Pennsylvania is about economic growth. Employers consistently cite the CNI tax as a major contributor to the poor business climate and a red flag that warns away companies that might otherwise consider locating or expanding in the Commonwealth.
  • Pennsylvania is one of only two states (New Hampshire being the other) that cap the amount of net operating losses (NOLs) that a company can carry forward and offset against their CNI tax liabilities in future years.

Policy Priorities

  • Our coalition supports elimination of the Capital Stock & Franchise Tax (CSFT) at the end of 2015. The Governor's budget proposal acknowledges the importance of this, and we look forward to working with him to accomplish the CSFT elimination. Read our summary to learn more.
  • We support a reduction of the Corporate Net Income (CNI) tax rate. We are pleased to hear that the Governor is interested in working to reduce this uncompetitive rate as well. Read our summary to learn more.
  • Instituting Mandatory Unitary Combined Reporting (MUCR) would have a broad range of negative consequences on Pennsylvania's economic climate. MUCR creates complexity and uncertainty for businesses.
  • We advocate lifting the cap on NOL carryforwards. We staunchly oppose the Governor's suggestion to return the cap to uncompetitive levels. PA is one of only two states that cap NOL carryforwards, and decreasing the cap moves us in the wrong competitive direction. Read our summary to learn more.

In the News

February 12, 2015
Greater Pittsburgh Chamber of Commerce Joins with the CompetePA Coalition and Speaker Turzai to Call for the Elimination of the Capital Stock & Franchise Tax

March 3, 2014
CompetePA Coalition Approves 2014 Tenets with a Continued Focus on Job Creation and Retention

February 6, 2013
CompetePA Commends Governor for Pro-Growth Budget Proposal

July 9, 2012
CompetePA Applauds Legislative Leaders, General Assembly and Governor for Implementation of Single Sales Factor Formula and Continued Phase-Out of Capital Stock and Franchise Tax


Get Involved

  • Join the CompetePA Coalition
    Please join the CompetePA Coalition by signing this form (PDF file) and sending it in today.
  • Help spread the word
    Download, print and distribute this flyer (PDF file)

Learn More

Un-cap the Net Operating Loss (NOL) Carryforward

Forty-eight (48) other states DO NOT CAP the NOL carryforward deduction in their states.

The current cap is $3 million or 20 percent.

Removing the cap on the NOL deduction would help two kinds of firms, both key to Pennsylvania's economy:

  • start-up firms in technology and biosciences which experience huge losses in early years that could be recouped, to some degree, if they reduced future taxes; and
  • cyclical firms, often manufacturers in commodity markets like steel, chemicals, or pulp and paper where profits and losses fluctuate in wide swings.

Find more information on net operating loss carryforwards (PDF file)


Oppose Mandatory Unitary Combined Reporting

Mandatory Unitary Combined Reporting will make Pennsylvania less competitive. In these economic times, a competitive business climate that leads to jobs and investment must be our primary goal. Any measure of combined reporting would deter business investment and make Pennsylvania even less competitive.

  • Combined reporting would discourage new businesses from locating here because it would expose their income in other states and countries to Pennsylvania business taxes. Industries such as manufacturing, business services and trade will experience tax increases under mandatory combined reporting.
  • It is easy to find an example of a firm that would pay 50% or even 100% more in businesses taxes under mandatory combined reporting. That is enough to force a decision to move jobs and investment out of our state.
  • Combined reporting creates uncertainty in revenue forecasts and collection and will result in increased administration and litigation costs for the Commonwealth.

Learn more about why Mandatory Unitary Combined Reporting will make Pennsylvania less competitive (PDF file)


The following links and reports will help you learn more about CompetePA and its priorities:


Contact

If you have questions or comments, please contact us via email, at info@CompetePA.com or by phone at 412.281.4783 x3114.