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 eliminate the cap on net operating loss (NOL) carryforwards and to create a single sales factor apportionment formula (SSF). These steps are necessary to begin to close the gap with growing competitor states.

The Case for Change

• Pennsylvania would have nearly 700,000 more jobs today if the economy had grown at the national average since 1990. Instead, the Commonwealth ranks 44th in job growth over that span. Employers consistently cite the corporate net income (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.

• Currently, the CNI apportionment formula penalizes Pennsylvania employers for expanding their physical presence and hiring employees because the Commonwealth includes property and payroll in the calculation.

• And, Pennsylvania is one of only two states that cap NOLs, which creates an uneven playing field for companies in cyclical industries that do business in Pennsylvania and retards development of potentially high-growth startup companies.

CompetePA